NEW DELHI, India — India-Japan trade reached around USD 27.5 billion in FY 2025-26 but remains well below the potential of the bilateral relationship, Union Commerce and Industry Minister Piyush Goyal said on Tuesday at the UP-Japan Investment Meet 2026.
- India-Japan trade stood at around USD 27.5 billion in FY 2025-26.
- India is targeting 10 trillion yen in Japanese investment over the next decade.
- Future investment areas include AI, semiconductors, critical minerals, batteries, energy and next-generation mobility.
- More than 1,400 Japanese companies currently operate in India, according to Goyal.
India-Japan trade has room to grow
Addressing a Japanese delegation at the investment meet, Goyal said the current level of India-Japan trade represented only a fraction of what the two countries could achieve.
He highlighted the depth of the bilateral relationship and said future economic cooperation would focus on sectors capable of supporting India’s long-term growth ambitions.
10 trillion yen Japanese investment target
Goyal said the partnership has a clear investment target of 10 trillion yen from Japan over the next decade. The proposed investments are expected to cover emerging technologies and strategic industries.
According to the minister, areas identified for deeper cooperation include artificial intelligence, semiconductors, critical minerals, batteries, energy and next-generation mobility.
Japanese companies and projects already have strong presence
Goyal pointed to several major projects as evidence of the existing economic partnership. These include the Mumbai-Ahmedabad High-Speed Rail project and Japanese-assisted metro systems in Delhi, Ahmedabad, Bengaluru and Chennai.
He also said India has 11 Japanese industrial townships spread across eight states. More than 1,400 Japanese companies are operating in the country, with firms such as Suzuki, Toyota and Honda in mobility, Sony in electronics, and Hitachi and Mitsubishi in engineering.
Uttar Pradesh pitches itself as investment destination
The minister also invited Japanese businesses to deepen their presence in Uttar Pradesh, describing the state as a priority destination for investment. He cited its large consumer market, improving connectivity, industrial activity and skilled workforce.
Goyal said Uttar Pradesh has more than nine million micro, small and medium enterprises and is India’s fifth-largest state exporter. The state is also pursuing an ambition to become a USD 1 trillion economy.
UP-Japan Investment Meet draws Japanese delegation
The UP-Japan Investment Meet 2026 is being held from August 18 to 23 and has brought together more than 200 industrialists, chief executives, business leaders and policymakers from Japan.
The Japanese delegation is being led by Yamanashi Prefecture Governor Kotaro Nagasaki. Goyal said the strengths of India and Japan complement each other across manufacturing, agriculture, technology, infrastructure, energy, defence and the green and blue economy.
Frequently Asked Questions
What was India-Japan trade in FY 2025-26?
Union Minister Piyush Goyal said bilateral trade between India and Japan stood at around USD 27.5 billion in FY 2025-26.
How much Japanese investment does India target over the next decade?
India is targeting 10 trillion yen in Japanese investment over the next decade, with focus on areas including AI, semiconductors, critical minerals, batteries, energy and next-generation mobility.
Financial disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to invest in any company, sector or financial instrument.
Praveen Yadav is the Founder and Content Creator of The Nation Bulletin, an independent digital news platform focused on delivering timely, reliable and meaningful news from India and around the world.
