India and Japan maintain a strong economic relationship, with bilateral trade around $20 billion annually. India exports organic chemicals, iron ore, and textiles to Japan, while Japan exports machinery, electronics, and automobiles. Japan is also a key investor in India, particularly in the automobile, infrastructure, and manufacturing sectors, with major companies like Toyota and Suzuki operating in India.
Japan has supported major infrastructure projects in India, including the Delhi-Mumbai Industrial Corridor and the bullet train project between Mumbai and Ahmedabad. Additionally, Japan is involved in metro and smart city developments, alongside growing collaboration in digital technologies like 5G and AI, with Japanese firms investing in Indian tech startups.
Defense cooperation between India and Japan is strengthening, especially under the QUAD alliance, with joint military exercises and defense technology collaborations. Despite challenges such as a trade imbalance and bureaucratic hurdles, the future of India-Japan relations looks promising with continued investments and strategic ties.