tapped sectors such as logistics
and real estate,” she says.
The trade relationship is go-
ing strong. India-bound invest-
ments in key areas are big, and
Indian software firms, IT start-
ups and healthcare players are
attempting to gain foothold in
the Japanese market. There is
further room for improvement.
Official data shows that in
2018/19, India-Japan bilateral
merchandise trade was $17.6
billion. While India exported
goods worth $4.74 billion, it im-
ported products worth $12.8 bil-
lion from Japan. The key export
items were petroleum products,
chemicals, fish and fish prepara-
tions, clothing and accessories
and textile yarn.
Imports from Japan were
dominated by machinery, trans-
port equipment, electronic goods,
organic chemicals and machine
tools. India was ranked as one of
the most attractive investment
destinations in the latest survey
(2018) of Japanese manufactur-
ing companies conducted by the
Japan Bank for International
Cooperation. From 2015/16 to
2016/17, Japanese FDI into India
increased from $2.61 billion to$4.7 billion. In 2017/18, it was $1.6 bil-
lion. Cumulatively, since 2000, Japanese investments in India have been
$27.28 billion (Japan ranks third among major investors).
Japanese FDI into India has been mainly in automobile, electrical
equipment, telecommunication, chemical and pharmaceutical sectors.
The number of Japanese-affiliated companies in India has grown sig-
nificantly in recent years. As of October 2017, 1,369 Japanese compa-
nies were registered in India, an increase of 64 companies (5 per cent)
from 2016. The number of Indian companies working in Japan has
crossed 100.
Friendly Base
As Hiramatsu points out, Japan’s commitment goes beyond economic
cooperation. The development projects the country supports include
Ganga rejuvenation, women’s empowerment, Swachh Bharat, forest
and disaster management, among others. The cooperation on regional
security and diplomatic issues is also noteworthy. The two countries
are also partners in development projects in friendly countries in the
Asian neighbourhood and Africa.
Japan also gives priority to people exchange programmes. “We want
more exchange programmes for youth and politicians. Tourism must be
encouraged. We now have direct f lights from Narita, Tokyo, to Chennai
88 I BUSINESS TODAY I August 11 I 2019and Bengaluru,” says Hiramatsu.
The highlight of Prime Minis-
ter Modi’s Japan visit was not just
the private dinner at Abe’s ancestral
home or the bilateral agreements. It
was the India-Japan Vision state-
ment. The vision outlines the future
course of bilateral relations and rests
on three pillars – Partnership for
Prosperity, Partnership for Peace
and Partnership for Global Action.
The ongoing collaborative proj-
ects between India and Japan in the
Indo-Pacific region, including in Sri
Lanka, Myanmar and Bangladesh,
as well as in Africa are in the spirit of
the Partnership in Prosperity. There
are plans to establish a Platform for
Japan-India Business Cooperation
in Asia-Africa Region by developing
industrial corridors and networks in
the region. The start of research in
Unmanned Ground Vehicle and Ro-
botics embodies the spirit of Partner-
ship for Peace while Partnership for
Global Action is defined by the vision
of taking forward regional collabora-
tions on issues such as economic and
climate change.
“Economic cooperation between
India and Japan has stood the test of
time and changes in government and
leaders. That said, the mutual respect
and admiration between Prime Min-
ister Shinzo Abe and Prime Min-
ister Narendra Modi has certainly
elevated the confidence and trust lev-
els among the investor community.
There seems to be a lot of purpose
and commitment in the relationship
as both the leaders have phenomenal
standing in their respective coun-
tries,” says Trilegal’s Kaur.
A Twitter response to a congratu-
latory call made to India’s new Ex-
ternal Affairs Minister S. Jaishankar
by Japan’s Foreign Minister Taro
Kono immediately after he assumed
charge in June summed it up. “Had a
good talk w ith Japanese foreign min-
ister @konotaromp. We agreed to be
in regular contact and take the Modi-
Abe vision forward”.@joecmathewJAPAN SPECIAL > OPENING ESSAY2014
2,4082015
-1,0412016
4,2522017
1,5002018
3,218PICKING UP
Japan’s net FDI in
India ($ million)$17.6
BILLION
BILATERAL MERCHANDISE
TRADE BETWEEN
INDIA AND JAPAN
IN 2018/19