Japan Establishes New Foreign Ministry Division to Support Firms Entering India
2 sources across 2 countries · India · Japan
Who reported this
- Hindustan Times
- The Japan Times
What the colours mean
- Left
- Centre-left
- Centre
- Centre-right
- Right
- A hatched block means the outlet is affiliated with, or controlled by, a state.
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Japan has established the Japan-India Economic Affairs Division within its foreign ministry to provide diplomatic support for Japanese companies, startups, and small and medium sized enterprises seeking to enter or expand in the Indian market. The new unit, which falls under the Southwest Asia Division, is scheduled to begin full operations on August 3 with a staff of approximately 10 members. The division aims to use inter-governmental dialogue, summit meetings, and ministerial talks to urge the Indian government to remove regulatory barriers and improve the business environment.
According to a report by Jiji Press, the number of Japanese companies in India has remained almost flat since 2018, with 1,434 firms operating there in 2024. This stagnation is attributed to factors such as insufficient infrastructure, varying regulations across states, and the opacity of legal systems. The Japanese government has set a target of 10 trillion yen in private sector investments in India over 10 years, with approximately two trillion yen already decided upon.
Economic data shows that Japanese foreign direct investment in India rose to $2.48 billion in FY 2024-25 from $1.49 billion in FY 2021-22. Cumulative investments from April 2000 to December 2024 totaled $43.28 billion. Bilateral trade reached $27.47 billion in FY 2025-26, with Japanese exports totaling $21.43 billion and imports totaling $6.04 billion. Both center and center-right sources note that India has ranked as the most promising overseas market for the fourth consecutive year in a 2025 survey by the Japan Bank for International Cooperation.
How each side framed it
- Centre
- The center lean source focused briefly on India's status as a promising market.
- Centre-right
- The center-right lean source provided extensive detail on the administrative structure of the new division and specific economic data.
Sources
93% of the statements in this article were traced back to the source articles listed above.