Speaking at an event in New York, External Affairs Minister S. Jaishankar stated that Japanese companies are showing increasing interest in establishing and expanding their operations in India. This interest extends to sectors such as semiconductors and advanced manufacturing. These developments are taking place at a time when India and Japan are strengthening their ties in the realms of investment and security.
Investment Takes Precedence Over Trade in India-Japan Economic Relations
Jaishankar emphasised that investment holds greater significance than mere trade in the economic relationship between India and Japan. He noted that Japanese companies are recognising the benefits of diversifying production locations rather than relying on a single site. “Our relationship with Japan is heavily focused on investment,” he said, adding that companies are exploring alternative options for their supply chains, which is driving the growth of investment-linked ties between the two nations.
Japanese Companies Exploring Ways to Leverage Indian Talent
Highlighting sectors like semiconductors, chemicals, and advanced manufacturing, Jaishankar mentioned the growing interest among Japanese firms. He noted that these companies are exploring how to leverage India’s talent pool and collaborate with Indian enterprises. “I can see Japanese companies actually setting up operations in India,” Jaishankar said, referring to activities grounded in India’s available skills and partnerships with local companies.
India and Japan: Both Maritime Powers
Jaishankar stated that the India-Japan relationship is also advancing in the spheres of defence and security. He pointed out that both nations are maritime powers with shared interests in the Indo-Pacific region. The long-standing cordial relations between the two countries have provided a solid foundation for security cooperation. Jaishankar noted that across the political spectrum in India, Japan has long been viewed positively. He stated that, alongside this broad acceptance, the geographical proximity of the two nations and the shared challenges they face have also facilitated the strengthening of security ties.
Mention of growing military exercises and joint activities
The External Affairs Minister also highlighted the increasing military exercises and other collaborative activities between India and Japan. He remarked that establishing defence-related trade ties with Japan is not a simple task; therefore, the growth of such engagements between the two nations is significant in itself. Jaishankar also referred to a Japanese Air Force exercise held in India, though he noted he could not recall precisely whether it took place late last year or early this year. He emphasised that such steps are highly significant from Japan’s perspective.
Japan expanding partnerships with other nations
Jaishankar stated that the Quad provides a framework for both nations to further enhance their cooperation. He indicated that as Japan expands its partnerships with other countries, operating within a structured and established framework proves beneficial. Apart from India and Japan, Australia and the United States are also members of the Quad. This group offers a platform for mutual cooperation among these four nations in the Indo-Pacific region.
Encouraging more Indian students to study in Japan
Jaishankar emphasised that India-Japan relations are not limited merely to governments and corporations. India desires greater people-to-people contact and exchange, as well as an increase in the number of Indian students going to Japan for their studies. He noted that the current number of Indian students in Japan is low. Meanwhile, there is a rising demand in India for learning and studying the Japanese language. Governments, too, attach importance to working with new partners.
Jaishankar made these remarks in response to a question regarding the role of the India-Japan partnership in the Indo-Pacific region. In his reply, he linked the economic and security ties between the two nations. While companies are exploring more options for production, the governments of both countries also view collaboration with new partners as crucial.
It is noteworthy that Japan has long been a significant investor in India’s infrastructure and industrial sectors. Beyond working together within the Quad framework, both nations maintain continuous contact and cooperation across diplomatic, economic, and security domains.
