Commerce minister Piyush Goyal asks Japanese companies to deepen localisation in India

Commerce and Industry Minister Piyush Goyal urged Japanese companies to deepen localization in India during a roundtable discussion on capital goods, machinery, and automotive. He encouraged these firms to establish more research and development centers and global capability centers in India to take advantage of the country’s free trade agreements.

Goyal stated that localizing in India will make Japanese companies more cost-competitive and enable them to supply to the rest of the world. The government is also willing to support firms in their innovation efforts.

Goyal highlighted that Japan's intent to invest 10 trillion yen in India is an ideal opportunity to set up new factories and capacities. He emphasized the importance of Japan’s collaboration with India, citing the low population of young people in Japan as a reason to tap India's vast potential. Goyal also mentioned that Japan is negotiating 8-9 free trade agreements with various countries, which together account for approximately $15 trillion in GDP.

India's existing FTAs with 9 other groups of countries and individual nations cover a combined GDP of $60 trillion and include 38 developed countries.

The Commerce Minister highlighted the opening of India's doors to global trade through nine free trade agreements, which have facilitated access to a $70 trillion economy. He assured that India is currently in negotiations with at least 8 or 9 more groups of countries, which will add another $15 trillion to global trade. Goyal led a large business delegation of over 200 representatives to boost trade and investment ties between India and Japan.

The delegation is exploring opportunities in areas such as data centers, manufacturing, and artificial intelligence.