The Centre on Friday urged Japanese businesses to scale up their investments in the country, emphasising the vast opportunities available across sectors. In particular, it encouraged them to deepen their participation in the ‘Make in India’ initiative, reinforcing India’s position as a global manufacturing hub.
“Today India’s credibility is stronger than ever. There is visible momentum, energy and optimism. Since the formation of the Modi government, the people of the nation have witnessed new era of development and started to feel empowered and confident with Modi’s vision of Viksit Bharat,” Harsh Malhotra, Minister of State for Corporate Affairs and Road Transport & Highways, said at the Nikkei India-Japan Economy & Investment Forum 2025 here.
Highlighting India’s stable economic environment, progressive reforms, and growing consumer market, Malhotra underscored the advantages of manufacturing locally for both domestic and global supply chains.
He invited Japanese firms to leverage India’s expanding infrastructure, skilled workforce, and investor-friendly policies to establish and expand their operations.
Acknowledging Japan’s pivotal role in India’s development and economic growth, Malhotra highlighted that Japan is India’s fifth-largest source of Foreign Direct Investment (FDI). Between 2000 and 2024, Japanese investments in India have surpassed $43 billion, underscoring the deep and long-standing economic ties between the two nations.
Malhotra highlighted that Japanese companies have shown significant interest in India’s Production Linked Incentive (PLI) scheme with companies like Suzuki, Toyota and Honda establishing manufacturing facilities in India. Toshiba, Panasonic have also invested in India which demonstrates our strong economic ties, he added.
With Japan being a key economic partner, India seeks to build on the existing collaboration in high-tech manufacturing, automotive, electronics, and clean energy, among others. The call for greater investment aligns with India’s vision of fostering technology-driven industrial growth, benefiting both economies, economy watchers said.
Over past decade India has become the fifth largest in world and is on track of becoming third largest by 2029, Malhotra added.
He also said that India endeavours to be among the top 25 countries in the Logistics Performance Index by 2030.
Speaking at the same forum, Keiichi Ono, Ambassador of Japan to India said “India aims to become a developed nation by 2047. Japan’s knowledge, technology and investment can significantly contribute to achieve the goal”.
Over 60 per cent of Japanese investment in India is in manufacturing and this makes Japan a partner in the ‘Make in India initiative’, Ono added.
