India Japan Trade

Recent Trends & developments

• In a significant step towards sustainable development in India, REC Limited, a Maharatna Central Public Sector Enterprise and leading NBFC under the Ministry of Power, has successfully availed a Green Loan of Japanese Yen (JPY) 60.536 billion to finance eligible green projects in India.
• In 2023, Foreign Minister, Mr. Yoshimasa Hayashi mentioned that 2023 is a crucial year as Japan chairs G7 and India chairs G20. As the premier forum for international economic cooperation, G20 is of paramount importance for responding effectively to issues facing the international community, such as food security and development. As the G7 President, Japan wishes to coordinate closely with the G20 President, India.
• In 2022, the two countries will celebrate the 70th anniversary of the establishment of diplomatic relations.
• As part of celebrations for India@75 and India-Japan@70, an India-Japan webinar on “Exploring Tamil Nadu and its Potential Agricultural & Processed Food Products” was jointly organized by the Embassy of India, Japan and Agricultural and Processed Food Products Export Development Authority, India (APEDA) on February 7, 2022, to promote the business opportunities in Agri and Food processing sector from Tamil Nadu among the companies in Japan.
• Japan-India Foreign Ministers’ Meeting was held on February 11, 2022, wherein it was reaffirmed to promote economic cooperation including in digital, climate change countermeasures, healthcare, as well as economic security cooperation in fields such as Beyond 5G, undersea cables, and supply chain resilience, in addition to cooperation in India’s North-eastern region and steadily advancing the High-Speed Rail Project, the flagship project of Japan and India. Moreover, views on cooperation in regional affairs such as Myanmar and international cooperation including WTO, disarmament and non-proliferation, and UN Security Council reform were also exchanged.
• In March 2022, Prime Minister of Japan visited India for the first time in four and a half years as Prime Minister of Japan. In May 2022, Prime Minister Modi visited Japan for the Japan-Australia-India-U.S. Summit Meeting held in Japan. The two leaders concurred to further develop Japan-India relations and work closely toward the realisation of a “Free and Open Indo-Pacific”.
• The 7th Joint Working Group under India-Japan ICT Comprehensive Cooperation Framework was held on May 13, 2022, through hybrid mode.
• The Fourth Japan-India Cyber Dialogue was held virtually on June 30, 2022. Areas of discussion included national cyber policies and cybersecurity strategies, the recent cyber threat landscape, ICT supply chain risks and 5G policies. Both sides also discussed bilateral cooperation in the field of capacity building as well as cooperation under the UN, QUAD (Japan-Australia-India-U.S.) and ASEAN Regional Forum.
• Second Japan-India 2+2 Foreign and Defence Ministerial Meeting was held on September 8, 2022. The Ministers discussed regional and global affairs, bilateral security and defence cooperation, and coordination among like-minded countries, bearing in mind Prime Minister Mr. Narendra Modi’s possible future visit to Japan as part of the annual mutual visit by the leaders. In view of their respective presidencies of the G7 and G20 next year, they confirmed that both countries will work closely to lead the international community.
• Agreement between the Government of Japan and the Government of the Republic of India Concerning Reciprocal Provision of Supplies and Services between the Self-Defense Forces of Japan and the Indian Armed Forces (2021).
• During 2021-22, the Embassy of India, Japan in association with the Japan Tea Association (JTA), Tea Board of India organized the 223rd and 224th Indian Tea Seminar called “Chai-Varta” in the month of July 2021 and October 2021 respectively. A webinar titled “Festival of Indian Tea” was also held on February 15, 2022. The objective of these events is to promote Indian tea in Japan and to increase collaboration among Indian and Japanese companies in the Tea sector.
• The two countries signed a Memorandum of Cooperation (MoC) on specified skilled workers in January 2021 to promote the movement of skilled workers from India to Japan for employment on a contractual basis.
• Union Minister of Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Mr. Piyush Goyal addresses G7 Trade Ministers in Osaka, emphasizing the need for resilient supply chains post-COVID and geopolitical events. He advocates for public-private partnerships, infrastructure investment, and collaborative regulatory frameworks to boost cross-border trade. Notable positive experiences from private sectors, like Suzuki achieving over 95% indigenisation in India, were highlighted. ERIA underscores India's expanding role in global value chains.
• Chief of Defence Staff General Mr. Anil Chauhan embarks on an official visit to Japan, aiming to strengthen defense ties. His itinerary features meetings with top Japanese military officials, including the Minister of Defence, Chief of Staff, Joint Staff, and key representatives from the Acquisition Technology & Logistics Agency and National Institute of Defence Studies. This visit signifies the growing significance of India-Japan Defence Cooperation.
• India and ADB sign a US$ 250 million loan for the Delhi-Meerut Regional Rapid Transit System Corridor. This funding enhances urban mobility, connecting Delhi to neighboring cities and reducing carbon emissions. The agreement supports the NCR Regional Plan 2021's priority rail corridors, featuring multi-modal hubs for seamless transportation. The ADB's initial US$ 1,049 million financing in 2020 included a US$ 500 million tranche, with an additional US$ 500 million co-financed by AIIB.