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India-Japan Bilateral Relations: Economic cooperation

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Japan is thought to be an important ally in India’s economic development. In recent years, the connection between India and Japan has evolved into one of enormous depth and significance. India’s enormous and expanding market and its resources, particularly its human resources, are among the many factors contributing to Japan’s growing interest in India. In fiscal year 2018–19, Japan and India had total bilateral trade of US$17.63 billion. During this time, Japan exported $12.77 billion to India while importing $4.86 billion. India and Japan had total bilateral trade of US$11.87 billion in the fiscal year 2019–20 (April–December).

(Indian-Japanese Flags)

3.94 billion dollars in exports from Japan to India were offset by 7.93 billion dollars in imports from Japan. Petroleum products, chemicals, elements, compounds, non-metallic mineral ware, fish and fish preparations, metalliferous ores and scrap, clothes and accessories, iron and steel products, textile yarn, textiles, and machinery are among India’s top exports to Japan. Japan is India’s main supplier of machinery, electrical equipment, iron and steel products, plastics, non-ferrous metals, auto components, organic chemicals, and metal manufacturing items.

Digital Partnership between India and Japan (IJDP) and Start-up Hub: The “India-Japan Digital Partnership” (I-JDP) was established during PM Modi’s visit to Japan in October 2018 in order to advance both current areas of collaboration and new initiatives within the scope of cooperation in S&T/ICT, focusing more on “Digital ICT Technologies.” Both parties signed a Joint Statement on the Japan-India Startup Initiative during Minister Seko’s visit to India in May 2018. This initiative calls for the establishment of the first Startup Hub by JETRO in Bangalore to help chosen Indian start-ups reach the Japanese market and potential Japanese investors.

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