A strategic reset: Japan Inc bets bigger on India amid global uncertainty

India–Japan ties are strengthening, driven by shared strategic interests and economic opportunities. Japanese firms remain bullish on India, ranking it top for manufacturing and non-manufacturing investment, supported by the 2025 JBIC survey. “China Plus One” diversification and India’s growth potential underpin this confidence. Bilateral trade stands at $23 billion, with Japanese FDI reaching $43.28 billion. Key sectors include electronics, chemicals, and general machinery, supported by initiatives like Make in India and the Semiconductor Mission. Infrastructure improvements, supply chain localization, and sustainability efforts are ongoing. Political continuity under Prime Minister Sanae Takaichi and India–Japan summits further reinforce the long-term partnership.