Japan Turns to India for Digital Support, Manufacturing Growth

Japan Turns to India for Digital Support, Manufacturing Growth

India Manufacturing Review Team
Friday, 25 July 2025
  • JETRO seeks India’s digital tech to modernize Japanese manufacturing.
  • Japan faces labor shortfall; India’s workforce seen as key resource.
  • Collaboration aims to help Japanese firms localize production and grow exports.

At the Viksit Bharat 2047 seminar taking place in Nagpur, Takashi Suzuki, Chief Director General of JETRO, discussed the growing opportunities in India-Japan industrial collaboration given Japan is looking for digital technology partners as it works to respond in part to a critical labor shortage and also promises to grow its manufacturing base.

Suzuki noted that despite Japan being a strong manufacturing economy, its manufacturing firms are increasingly requiring digital capabilities. He outlined India's strength in digital innovation, and its ability to allow Japanese firms—including Toyota, who is planning to set up four new factories in Aurangabad—to transition to digitally-driven mobility platforms.

Also Read: Japanese Firms Eye Investment in India's Growing Textiles Sector

Japan also faces a serious shortage of low-skilled and entry-level labor owing to demographic shifts. Suzuki mentioned that with developments of Indian manpower, Japanese SMEs are looking actively for potential business opportunities in India to meet their labor needs, and to alleviate some of the pressures of using alternative suppliers, such as through local production.

The event occurred in a climate of geopolitical complexities regarding China, which are impacting Japan's industrial strategy. Suzuki stated that Japan is cautiously widening its economic engagement outside typical partners such as China, while maintaining minimal defense sector links.

Overall, Suzuki expressed Japan's optimism towards India's varied and large market, established digital infrastructure, and labor force. Japan considers India to be an important partner in developing bilateral industrial relations, and has made India core to its economic and manufacturing agenda.

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