Commerce and Industry Minister Piyush Goyal has extended a welcoming invitation to Japanese companies, encouraging them to invest in India’s economy, enhance localisation efforts, and establish innovation centres. He emphasized that “our doors are open 24X7” while addressing representatives from Japan’s business sector.

During his speech, Goyal highlighted the rapid growth of the Indian economy and the nation’s increasing openness to international collaboration, particularly through free trade agreements. He expressed his desire for Japanese firms to leverage India’s skilled workforce and vast market potential.

Goyal underscored the importance of localisation, arguing that it can improve cost competitiveness for companies operating in India. His comments reflect a broader strategy to attract foreign investment by fostering an environment conducive to business.

Encouragement for Innovation and Research

The Minister urged Japanese firms to establish more research and development centres in India, alongside global capability centres (GCCs), which could enhance partnerships between Japanese companies and Indian educational institutions. He pointed out that these initiatives would support the cultivation of engineering talent within the country.

In addition, Goyal remarked that the Indian government is prepared to assist with funding aimed at fostering innovation. He suggested that companies capable of innovating in India could lower operational costs. He also encouraged firms to consider offshoring some of their work to India, building on efficiencies gained during the COVID-19 pandemic.

His comments reflect an ongoing commitment to promoting India’s manufacturing capabilities, with a clear message that new factories and capacities are needed to meet domestic and global demands. “A warm welcome to all of you,” Goyal stated, reiterating India’s readiness to encourage foreign investment.

Japan’s Investment Landscape in India

Japan ranks as the fifth largest investor in India, with the country having received a total of USD 48.14 billion in foreign direct investment (FDI) between April 2000 and March 2026. This investment accounts for 6 per cent of the total FDI attracted by India during this time frame.

To further boost bilateral ties, Goyal is leading a delegation comprising 200 business representatives to Japan. The primary aim of this visit is to explore new avenues for trade and investment between the two nations. In line with this agenda, Japan set an ambitious investment target of 10 trillion yen, approximately Rs 60,000 crore, in India over the next decade.

The collaboration between India and Japan is seen as a vital partnership, particularly in the context of advancing economic growth and establishing a more interconnected regional market. This ongoing dialogue and cooperation could potentially benefit both nations through shared innovations and strengthened business relationships.

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