Prime Minister Narendra Modi on Thursday, 2 July told Japanese business leaders that India has been reshaping its economic DNA over the past 12 years by embracing the philosophy of Kaizen — the Japanese principle of continuous improvement — positioning the country as the premier destination for Japanese capital and enterprise. Addressing the India-Japan Joint Economic Forum in New Delhi, Modi cited India's 7.7 per cent GDP growth in the last financial year as evidence of the country's standing as the world's fastest-growing major economy.

The Kaizen Pitch

Drawing a deliberate parallel with Japanese business culture, Prime Minister Modi argued that India's reform trajectory mirrors Kaizen's core ethos — incremental, sustained improvement rather than one-off disruptions. He said the government's agenda has centred on continuous upgrades across governance, taxation, and ease of doing business, making the environment progressively more competitive and investment-friendly.

'Over the last 12 years, we have been transforming our economic DNA by pursuing the philosophy of Kaizen, i.e. continuous improvement in India,' Modi said.

Next-Generation Reforms and Private Sector Opening

Modi highlighted what he described as next-generation reforms in taxation, governance, and business regulations, adding that India is opening every sector to private participation and offering targeted incentive schemes. 'Recently, we did next-gen reforms in taxation, governance and ease of doing business. We are opening every sector to the private sector, and in many sectors we are providing incentives, and I believe you too can benefit from them,' he said, directly addressing the Japanese business audience.

He noted that these incentive structures create fresh entry points for Japanese companies seeking to expand their footprint in India.

India Tops Japan's Most-Promising Destination List

Citing the Japan Bank for International Cooperation (JBIC) annual survey, Modi said India has ranked as the most promising overseas business destination for Japanese firms for four consecutive years. The statistic underscores a structural shift in Japanese corporate sentiment toward India, driven by supply-chain diversification away from China and India's large domestic consumer base.

Notably, this sustained ranking comes at a time when Japan is actively seeking to reduce its manufacturing concentration risk — a dynamic that aligns closely with India's own push to attract high-value industrial investment.

Strategic Partnership: AI, Defence, and Healthcare

Prime Minister Modi said he and Japanese Prime Minister Sanae Takaichi had agreed to deepen bilateral cooperation across economic security, artificial intelligence, defence, and healthcare. He described these agreements as making the India-Japan partnership 'more futuristic and limitless.'

'Our governments have strategic synergy, confidence and, most importantly, clarity. Now, it is your responsibility to turn them into outcomes,' Modi told the assembled business representatives, urging them to convert policy commitments into concrete investments and collaborations.

What Comes Next

The forum signals a renewed push to accelerate Japanese foreign direct investment into India at a moment when bilateral ties are deepening across both economic and security dimensions. Industry observers will watch whether the forum produces specific deal announcements or investment pledges in the coming days, as both governments seek to move from strategic intent to measurable outcomes.