6 days ago
Goyal Urges Japanese Firms to Build India Manufacturing Chains
Piyush Goyal asked Japanese companies to make more of their products in India.
He said companies should produce parts, chemicals, equipment and other materials there, not only assemble finished goods.
About 1,500 Japanese companies already operate in India.
Goyal said India has many customers because its population is about 1.45 billion people.
He also said companies could export goods from India to other countries.
India is investing nearly $130 billion each year in infrastructure, which can support factories and transportation.
He identified chemicals, medicines, medical equipment and shipbuilding as promising areas for cooperation.
India already has trade access to economies representing more than $70 trillion in global GDP.
India and Japan want to increase their bilateral trade from $27.47 billion to $50 billion by 2030.
Commerce and Industry Minister Piyush Goyal urged Japanese companies to build complete manufacturing chains in India rather than focus mainly on assembly.
Goyal said about 1,500 Japanese companies already operate in India and are increasingly localising production.
He encouraged Kansai-region businesses to use India to serve both its domestic market and global customers.
India has spent nearly $130 billion annually on infrastructure over the past three years, according to Goyal.
India-Japan bilateral trade reached $27.47 billion in FY 2025-26, with both countries targeting $50 billion by 2030.
- Who
- Commerce and Industry Minister Piyush Goyal and Japanese companies, particularly businesses from Japan’s Kansai region.
- What
- Goyal urged Japanese firms to build complete manufacturing and supply-chain operations in India for domestic and international markets.
- Where
- At an investors and business roadshow in Osaka, Japan.
- When
- Thursday, with the report published on August 27, 2026.
- Why
- To deepen India-Japan economic cooperation, expand local manufacturing, integrate supply chains and increase exports.
Key facts
- Japanese companies in India
- About 1,500
- India’s annual infrastructure spending
- Nearly $130 billion over the past three years
- Current preferential market access
- Economies representing more than $70 trillion in global GDP
- Potential additional market access
- Another $10 trillion to $15 trillion through ongoing trade negotiations
- India-Japan bilateral trade
- $27.47 billion in FY 2025-26
- FY 2025-26 trade breakdown
- Japan’s exports to India: $21.43 billion; India’s exports to Japan: $6.04 billion
- Trade target
- $50 billion in bilateral trade by 2030
Quotes
Piyush Goyal
India’s Commerce and Industry Minister
“Work with India not only to capture the large demand of 1.45 billion Indians but also to make India your base to serve global demand for high-quality goods and services that Japan is recognised and respected for.”
thehindubusinessline.com
“We’ll add another $10 to $15 trillion of GDP through the discussions and negotiations that are going on. So India will be a part of global supply chains with seamless flow of goods and services.”
thehindubusinessline.com
Sources
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