Archive · 9 Oct 2026
Ashish Dhawan Sees Tenfold Potential in India-Japan Economic Ties
Ashish Dhawan believes India and Japan could do much more business together.
He said their economic relationship could become ten times larger in ten years.
Japanese companies may look to India as another place to make or buy goods, especially as they diversify their supply chains.
Dhawan said India needs to make it easier for companies to invest and operate.
He also pointed to opportunities in electronics and parts used in semiconductor production.
More Indian students and workers could go to Japan, but those pathways are not widely used yet.
Dhawan said universities and institutions could help both countries work together more closely.
He stressed that plans need to be put into action.
Ashish Dhawan said India-Japan economic engagement could grow tenfold over the next decade, starting from a low base.
He identified Japanese institutional investment and FDI as major opportunities, and urged India to improve investment channels and implementation.
More than 1,400 Japanese companies operate in India; Dhawan said better industrial infrastructure could attract more mid-sized firms.
He sees supply-chain diversification as an opening for India, including in solar manufacturing, electronics and semiconductor-related supply chains.
Dhawan said labour migration, student pathways and academic exchanges remain underdeveloped despite an existing labour-migration framework.
- Who
- Ashish Dhawan, founding chairperson of Ashoka University's Board of Trustees, discussed India-Japan economic ties.
- What
- Dhawan outlined opportunities to expand investment, manufacturing, technology cooperation and labour mobility between India and Japan.
- When
- The potential growth was framed over the next 10 years; the interview accompanied the release of an India-Japan Economic Corridor report.
- Where
- India and Japan.
- Why
- Dhawan said the relationship is underdeveloped and that Japan's efforts to reduce dependence on China create opportunities for closer economic cooperation.
Opportunity and strategic case
Implementation challenges
Investment and company expansion
Opportunity and strategic case
Dhawan sees substantial scope for Japanese institutional investment and more Japanese companies to establish or expand in India.
Implementation challenges
He said India must improve implementation, industrial infrastructure and business ecosystems, and that building trust with Japan takes time.
Supply-chain diversification
Opportunity and strategic case
Japanese firms may source from India as an alternative to China, even when Indian costs are higher; electronics and semiconductor supply chains offer areas for cooperation.
Implementation challenges
Dhawan said Indian production costs in solar can be 10-15% higher today and that India is still moving up the economies-of-scale learning curve.
Labour and academic links
Opportunity and strategic case
Dhawan identified opportunities for Indian workers and students in Japan and proposed stronger academic and institutional exchanges.
Implementation challenges
He said student pathways into Japan remain limited and the existing labour-migration framework has not been adequately implemented.
- Growth potential
- Dhawan said economic engagement could expand tenfold over the next decade.
- Japanese companies in India
- More than 1,400, approximately one-twentieth the number operating in China, according to Dhawan.
- Suggested investment allocation
- Dhawan said India should aim for 2-3% of Japan's overseas investment, using measures such as market capitalisation, free float or GDP.
- Solar sourcing costs
- Dhawan said Indian sourcing could currently cost 10-15% more than China, yet still interest Japanese firms seeking an alternative.
- Report
- Ashoka University's India-Japan Economic Corridor report is being developed through its Iron Pillar Initiative in Global Learning.
- Labour migration framework
- Dhawan said a framework exists, but implementation has not fulfilled the opportunity for Indian workers to go to Japan.