Union Commerce and Industry Minister Piyush Goyal has invited Japanese companies to increase their investments in India, deepen localisation and establish new research, innovation and global capability centres.
Addressing representatives of Japanese companies, Goyal said India is growing rapidly and opening new opportunities for international businesses through trade agreements, manufacturing expansion and partnerships.
“Our doors are open 24X7,” Goyal said, urging Japanese businesses to take advantage of India's large domestic market, skilled workforce and growing economic opportunities.
Piyush Goyal urges Japanese firms to increase localisation
Goyal encouraged Japanese companies operating in India to increase localisation, arguing that greater local production can improve cost competitiveness and strengthen their long-term presence in the Indian market.
He urged businesses to use India's talent and skills while expanding their operations in the country.
According to Goyal, India offers an opportunity for companies to build new factories and capacities not only to serve the domestic market but also to manufacture products for global markets.
The minister said it was time for companies to expand their manufacturing footprint and “Make in India for the world”.
Push for innovation centres and GCCs in India
Apart from manufacturing, Goyal also encouraged Japanese companies to establish more research and development centres, innovation hubs and Global Capability Centres, commonly known as GCCs.
He suggested that Japanese businesses could build engineering partnerships with Indian academic institutions and take advantage of India's growing technology and talent ecosystem.
The government, he said, is also willing to support companies through innovation funding.
Goyal pointed out that many activities successfully carried out remotely during the Covid-19 pandemic could now be offshored to India through GCCs and other business centres.
The expansion of such facilities could help companies reduce costs while accessing India's large pool of engineers, technology professionals and skilled workers.
Japan remains one of India's biggest foreign investors
Japan continues to be one of the largest foreign investors in India.
Between April 2000 and March 2026, India received approximately USD 48.14 billion in foreign direct investment from Japan.
This accounted for around 6% of India's total FDI inflows during the period, making Japan the country's fifth-largest investor.
Japanese companies have a significant presence across several sectors in India, including automobiles, electronics, infrastructure, manufacturing and technology.
India-Japan trade and investment ties in focus
Goyal is leading a 200-member business delegation to Japan to explore ways to strengthen trade and investment ties between the two countries.
Japan has also set a target of investing 10 trillion yen in India over a decade, underlining the scale of the economic partnership being pursued by the two countries.
The latest outreach focuses on attracting more Japanese investment into manufacturing, research and development, technology and business services.
With India positioning itself as a major global manufacturing and investment destination, the government is seeking to encourage international companies to build products locally while using India as a base for global operations.
What Piyush Goyal's message means for Japanese companies
Goyal's message to Japanese businesses is centred on three major opportunities: invest in India, increase localisation and build innovation capabilities.
The government wants Japanese companies to move beyond simply selling products in India and expand local manufacturing, research and development, engineering partnerships and Global Capability Centres.
As India and Japan look to deepen their economic partnership, greater Japanese investment could play an important role in expanding manufacturing capacity, creating jobs and strengthening India's position in global supply chains.
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