Japan’s Vision 2025 initiative is propelling stronger bilateral ties, with a bold target of ¥5 trillion in investments by 2027. Takashi Suzuki, chief director general of the Japan External Trade Organization’s office in New Delhi, discussed how this strategic framework has reshaped Japan’s investment landscape in India.
“The Vision 2025 initiative, primarily a diplomatic effort, has certainly influenced the broader bilateral relationship,” he said. “Historically, the automotive sector, particularly Suzuki Motor Corp., has been a major driver of Japanese investment. However, in recent years, we’ve witnessed diversification into sectors like information technology and electronics. Companies like Rakuten and Fujitsu have established operations in India, particularly focusing on software development and research and development,” Suzuki noted.
This shift highlights India’s growing role in Japan’s global strategy. Japanese companies are recognizing India’s potential not only as a manufacturing hub, but also as a leader in tech and innovation. The India-Japan Industrial Competitiveness Partnership continues to strengthen collaboration, with a focus on fostering innovation in key sectors like electronics and semiconductors. “The semiconductor industry is another area of interest, especially with the recent government initiatives,” he added.
While partnerships with large Indian conglomerates are common, Suzuki pointed out that Japanese companies are increasingly seeing the value in collaborating with midsize firms.
“These partnerships can provide access to local markets, regulatory expertise and specialized knowledge,” he said, underscoring the importance of local insight in navigating the Indian market.
Another area where Suzuki sees immense potential for growth is in exchanges of people.
“By fostering stronger people-to-people ties, we can unlock the full potential of the Japan-India partnership,” he said, emphasizing the importance of cultural and educational exchanges to further deepen bilateral relations.
