FICCI-SAM Report on India–Japan Economic Partnership
March 13, 2026
- MSME Connect to drive the next phase of economic partnership between India and Japan: FICCI-SAM Report
- Calls for Deeper Collaboration in Supply Chain Resilience, Semiconductors, Mobility, Clean Energy, Advanced Technologies & Ship Building
NEW DELHI, 13 March 2026: FICCI jointly with Shardul Amarchand Mangaldas & Co. (SAM & Co) report on ‘India–Japan Economic Partnership: Partnering for a Secure, Innovative, and Sustainable Future’ emphasizes that the next phase of India–Japan economic cooperation will increasingly be driven by collaboration between Japanese mid-sized enterprises (Chuken) and India’s dynamic mid-sized manufacturing firms. These ‘Chuken-to-Chuken’ partnerships can enable deeper technological exchange, strengthen production capabilities and move the relationship beyond traditional supplier models toward co-creation, the report noted.
Since many Indian mid-sized companies already serve as Tier-1 and Tier-2 suppliers to global manufacturers, supported by strong engineering capabilities, international certifications, and growing R&D capacity, their operational depth and readiness for expansion make them natural partners for Japanese firms seeking to diversify supply chains and strengthen manufacturing collaboration in the Indo-Pacific, FICCI-SAM report highlighted.
The report identifies nine high-potential pillars of future cooperation across key sectors including-
- Semiconductors & Electronics- India’s fast-growing electronics market and strong policy support, combined with Japan’s upstream technology strengths, enable joint development of OSAT/ATMP facilities, power semiconductors, and deepening supply chain integration
- Automotive, EVs & Mobility- India’s EV penetration and domestic supplier ecosystem create strong complementarities with Japan’s advanced automotive technologies, EV components, and battery systems
- Pharmaceuticals & Healthcare- With India’s global leadership in generics and Japan’s innovation-driven ecosystem, both sides can collaborate on APIs, vaccines, digital R&D, and regulated‑market manufacturing
- Medical Devices- India’s large and rapidly expanding MedTech market, supported by medical device parks and PLI incentives, aligns strongly with Japan’s high-tech device manufacturers
- Renewable Energy, Green Hydrogen & Net‑Zero Technologies- Japan’s clean energy transition goals and India’s rapid renewable expansion—including 262.7 GW RE capacity—create new opportunities across hydrogen, ammonia, and grid-scale storage
- Advanced Manufacturing & Defence Technologies- Recent defence export policy reforms in Japan and India’s industrial corridors open pathways for joint production in electronics, sensors, maritime systems, and co-development of next-gen platforms.
- Shipbuilding- India’s expanding shipbuilding capacity and maritime infrastructure complement Japan’s advanced ship design and marine engineering capabilities. Collaboration in commercial vessels, green shipping, and maritime supply chains can strengthen resilient Indo-Pacific maritime trade.
- Railways & Aviation Systems- Japan’s railway and aviation expertise—spanning signaling, safety systems, high‑speed mobility, and MRO—can significantly accelerate India’s infrastructure modernization.
- Digital Finance, FinTech & Global Capability Centres (GCCs)- India’s digital public infrastructure and Japan’s financial institutions are forming deep partnerships in digital lending, payments, AI-driven services, and GCC expansion.
The report was released during FICCI’s Japan Delegation at the 49th India Japan Business Cooperation Committee (IJBCC) meeting held in Tokyo yesterday. The report was launched as part of the FICCI business delegation to Japan, covering Kumamoto, Fukuoka & Tokyo. FICCI brought one of its largest-ever business delegations to Japan this year, comprising nearly 50 prominent industry leaders representing a wide spectrum of sectors, including automobiles, shipbuilding, chemicals, electronics, engineering, amongst others.
The report highlights that India–Japan economic engagement has entered a decisive new phase, supported by sustained bilateral investments, resilient trade flows, and an unprecedented policy alignment between the two countries. Japan is today India’s 5th largest investor, with cumulative FDI reaching USD 45.69 billion and over 1500 Japanese companies operating in India. The report notes that the ongoing global supply chain reconfiguration, driven by geopolitical shocks, climate-linked risks, and economic security considerations, has strengthened the strategic rationale for deeper India–Japan collaboration.
India’s role is expanding due to strong macroeconomic performance, a large consumer base, rapid infrastructure growth, and a series of industrial policy reforms. Japan, with its global technological leadership in semiconductors, advanced manufacturing, mobility systems, and specialty materials, is seeking diversified and trusted production bases—making India a natural partner in the next decade.
The report highlighted that the India–Japan Vision for the Next Decade, announced at the 2025 Annual Summit, commits JPY 10 trillion in Japanese private-sector investment in India over ten years will continue to deepen across manufacturing, automotive, mobility, electronics, renewables, chemicals, railways, logistics, finance, aviation, and digital services. India and Japan are uniquely placed to co‑create resilient, innovation-led, and sustainable supply chains for the next generation of global industries. The new investment commitments, combined with shared values and strong institutional architecture, will shape one of the most important bilateral economic relationships of the coming decade.