Piyush Goyal Urges Japanese Firms to Invest More in India

Minister Piyush Goyal has invited Japanese businesses to expand investments and partnerships in India, highlighting opportunities in manufacturing, technology, infrastructure, semiconductors, AI and emerging industries.

Union Commerce and Industry Minister Piyush Goyal has offered Japanese companies the opportunity to invest more and collaborate with Indian companies in the country's growing market, its young population and the opportunities available in emerging industries. He spoke at a dinner organized in New Delhi by the Uttar Pradesh government for a Japan delegation.

Goyal emphasized the strategic significance of the India-Japan Special Strategic and Global Partnership and urged the Japanese firms to consider India as a long term manufacturing hub for innovation and business expansion. He especially highlighted the infrastructure, industrial clusters and burgeoning technology ecosystem of Uttar Pradesh as a choice of investment destination.

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The minister referred to the infrastructure developed in the state including Jewar International Airport, Yamuna Expressway and the Western Dedicated Freight Corridor developed with support from the Japan International Cooperation Agency (JICA) as examples to strengthen the state's connectivity and logistics capabilities. Japanese companies also have opportunities in industrial clusters and industrial ecosystems in Uttar Pradesh, like in defence and semiconductors/electronics.

Important sectors for future cooperation are expected to be technology and advanced manufacturing. Goyal pointed out sectors such as AI, semiconductors, critical minerals, batteries, energy and next-generation mobility may be more interesting for Japanese investments in India. Japan is planning 10 trillion yen investment in India in the next 10 years, which will help increase commercial interaction.

India already has robust economic ties with Japan with bilateral trade valued about $27.5 billion for FY25-26. The Japanese capital also has already become the fifth biggest source of FDI in India, highlighting the existing importance of Japanese capital in the Indian economy.

The matchup also points to the increasing attempts to link Indian states and regions as well as businesses with Japan. The presence of a Yamanashi Prefecture delegation from Japan shows that bilateral cooperation between economies is becoming more and more beyond the national level of discussion.

Goyal will visit Japan on 24-27 August 2026 to meet Government and industry officials to discuss trade and investment and intensify the bilateral economic partnership.

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The outreach coincides with India's efforts to lure more foreign investment in strategic industries and boost its manufacturing capabilities. The vast Indian consumer market, the growth of the industrial base, and the skilled workforce can create opportunities for Japanese firms to produce, conduct technology collaboration with India, or enter the Indian market through regional value-added chains.

The latest battle is thus a reflection of India's drive to bring its strategic partnership with Japan to a closer level in investment, technology transfer and industrial collaboration, where manufacturing and emerging technologies will hold a prominent position.