New Delhi, April 3 (NationPress) In a significant move to enhance bilateral economic relations, Japan's Ministry of Foreign Affairs has launched the Japan-India Economic Affairs Division to facilitate investments from Japanese enterprises into India. This initiative aims to strengthen public-private partnerships, promoting Japanese businesses' expansion in the Indian market and enhancing economic security cooperation between the two nations.

The ministry emphasized, "With India's impressive economic growth trajectory, the necessity for enhanced economic collaboration within Japan-India relations is increasingly vital."

This new division is poised to foster partnerships in thriving sectors such as artificial intelligence, startups, and critical minerals, aligning with the broader strategic objectives of both countries.

Tokyo's initiative underscores its growing emphasis on India as an essential economic and strategic ally amidst the evolving landscape of global supply chains and geopolitical dynamics.

Additionally, this initiative supports the shared goal of reaching a target of 10 trillion yen (approximately $62.6 billion) in private sector investments in India by 2035, as agreed in the 2025 bilateral summit.

Since 2000, cumulative Japanese FDI in India has amounted to around $43.2 billion, with significant investments concentrated in areas like automobiles, electronics, telecommunications, chemicals, and financial services.

Despite recognizing India as a promising market, many Japanese manufacturers are hesitant due to a lack of familiarity with the country's diverse rules and regulations.

The newly established facilitation cell will address these challenges by offering institutional support and simplifying entry processes for companies eager to enter the Indian market.

Japanese FDI has seen an upward trend, with inflows reaching $3.1 billion in the fiscal year 2023-24, predominantly directed towards sectors such as automobiles, electrical equipment, telecommunications, chemicals, financial services, and pharmaceuticals.

Japan Industrial Townships (JITs) are already operational in India, including locations like Neemrana and Sri City, hosting over 100 Japanese companies.

This new division complements existing initiatives like the SME Facilitation Cell from the Indian Embassy in Tokyo and JETRO's support for startups.

This effort is part of a broader long-term strategic partnership discussed between Prime Minister Narendra Modi and former Japanese Prime Minister Shigeru Ishiba in August 2025, aimed at reinforcing security and economic collaboration, particularly within the Quad framework.