India-Japan trade at $27.5bn still a fraction of potential: Piyush Goyal
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- India and Japan's bilateral trade reached $27.5 billion in 2025-26, but remains below its potential.
- Both nations aim for 10 trillion yen in Japanese investment in India over the next decade, focusing on future technologies.
- Japan is India's fifth-largest FDI source, with over 1,400 Japanese companies operating in the country.
Union Commerce and Industry Minister Piyush Goyal stated that bilateral trade between India and Japan, currently at $27.5 billion for fiscal year 2025-26, represents only a fraction of the two countries' potential.
Our bilateral trade stands at around USD 27.5 billion in FY 2025-26, still fraction of our potential.
Addressing a Japanese delegation at the UP-Japan Investment Meet 2026, Goyal highlighted the strong bilateral relationship, underpinned by a target of 10 trillion yen in Japanese investment in India over the next decade. This investment is slated to focus on key future industries such as artificial intelligence, semiconductors, critical minerals, batteries, energy, and next-generation mobility.
It is indeed a great honour to welcome our friends from Japan this evening - a country that is not only admired for its culture of excellence and harmony but also cherished as one of India's closest partners in our shared journey of peace, progress and prosperity in the Indo-Pacific with institutional depth few bilateral relationships in the world can claim.
"Our bilateral trade stands at around USD 27.5 billion in FY 2025-26, still fraction of our potential," Goyal remarked. He emphasized the warmth and trust between the nations, matched by strategic ambition. "Warmth and trust are at the heart of our relationship, and it is matched by strategic ambition with a clear number: 10 trillion yen of Japanese investment in India over the next decade, in technologies and industries that will shape our future, from AI & semicons to critical minerals, batteries, energy & next-generation mobility."
Warmth and trust are at the heart of our relationship, and it is matched by strategic ambition with a clear number: 10 trillion yen of Japanese investment in India over the next decade, in technologies and industries that will shape our future, from AI & semicons to critical minerals, batteries, energy & next-generation mobility.
Japan is already India's fifth-largest source of foreign direct investment, with more than 1,400 Japanese companies operating in India. The minister also pitched Uttar Pradesh as a prime location for Japanese investment, citing its ambition to become a $1 trillion economy and its large consumer market, complemented by improving connectivity and a skilled workforce. Goyal noted that UP offers a unique platform for Japan's technological strengths to meet India's young workforce and growing market.
UP offers a unique platform for Japan's technological strength and experienced mature demographic to meet India's young workforce and growing market.
DistantNews Editorial
Originally published by Times of Oman. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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