Tokyo

The friendship between India and Japan has a long history rooted in spiritual affinity and strong cultural and civilization ties. Diplomatic relations were established on 28 April 1952.

Japan is regarded as a key partner in India’s economic transformation. In the recent past, the India Japan relationship has transformed to a partnership of great substance and purpose. Japan’s bilateral trade with India, totaled US$ 17.63 billion in FY 2018-19. Exports from Japan to India during this period were US$ 12.77 billion and imports were US$ 4.86 billion.

Approximately 38,000 Indians live in Japan. In recent years, there has been a change in the composition of the Indian community with the arrival of a large number of professionals, including IT professionals and engineers working for Indian and Japanese firms as well as professionals in management, finance, education, and S&T research.

India-Japan relations were elevated to ‘Global Partnership’ in 2000, ‘Strategic and Global Partnership’ in 2006, and ‘Special Strategic and Global Partnership’ in 2014.

The number of Japanese companies registered in India are 1400 as of October, 2022 with manufacturing firms accounting for half the total, according to a latest survey. These Japanese companies have in all 4901 business establishments in India. They include liaison and branch offices in India as well as local subsidiaries. More than 100 Indian companies are working in Japan. India’s Net Foreign Direct Investment in Japan during FY 2020-21 is US$ 40.91 million.

There are growing links between Japanese prefectures/cities and Indian states/cities. As of now, 7 states and 4 cities/regions from India have partnered with prefectures/cities of Japan through MoUs to cooperate under diverse sectors.

In FY 2020, Japan Bank of International Cooperation (JBIC) Survey Report on Overseas Business Operations by Japanese Manufacturing Companies (Survey of Overseas Direct Investment by 9 Japanese Companies) ranked India a close second for Japanese outward FDI in mid-term (3 years). Japanese FDI in India has increased in recent years but it remains small compared to Japan's total outward FDI. Japanese outward FDI to India in 2021-22 and 2022-23 stood at USD 1.49 billion and USD 1.79 billion respectively. Cumulatively, from 2000 until June 2023, the investments to India have been around US$ 39.94 billion ranking Japan fifth among source country for FDI. Japanese FDI into India has mainly been in automobile, electrical equipment, telecommunications, chemical, financial (insurance) and pharmaceutical sectors.