India Japan Trade
India's exports to Japan reached US$ 6.03 billion in FY26 across 4,928 commodities, with engineering goods, chemicals, marine products and electronics among the major export categories.
Introduction
India and Japan reinforced their special strategic and global partnership during the 18th strategic dialogue in New Delhi, unveiling initiatives to boost economic security, resilient supply chains, AI collaboration, and critical minerals cooperation. Leaders reaffirmed joint commitments to India Japan trade, technology, defence ties and a rules-based Indo-Pacific framework, further strengthening India Japan trade relations and the India Japan economic partnership.
India and Japan maintain a close friendship with a long history rooted in spiritual affinity and strong culture. The civilization ties go back to the visit of the Indian monk Bodhisena in 752 AD. India and Japan established diplomatic relations in 1952. Since then, the relationship has transformed into a partnership of great substance and purpose. Today, Japan is regarded as a significant partner in India’s economic transformation, supporting bilateral trade between India and Japan, India exports to Japan, Japan imports from India, and creating new trade opportunities between India and Japan.
India-Japan Trade
- Japan occupies the 5th position in foreign direct investment (FDI) equity inflows into India with a cumulative FDI amount of US$ 48.14 billion from April 2000 to March 2026.
- In FY26, Japan’s rank is 21st in exports and 10th in imports.
- Japan’s bilateral trade with India totalled US$ 27.47 billion in FY26.
- In FY26, Japan’s exports to India were valued at US$ 21.43 billion and imports at US$ 6.03 billion.
- As per Press Information Bureau (PIB), Japan’s exports to India were 2.06% of India’s total imports and India’s exports to Japan were 0.75% of India’s total exports during FY25.
Major exports from India to Japan
- India’s exports to Japan stood at US$ 6.03 billion in FY26.
- India exported 4,928 commodities to Japan in FY26.
- Major exported items from India include engineering goods (US$ 2.65 billion), organic and inorganic chemicals (US$ 814.39 million), marine products (US$ 451.10 million), electronic goods (US$ 314.04 million), readymade garments (RMG) of all textiles (US$ 251.57 million), drugs and pharmaceuticals (US$ 248.31 million), gems and jewellery (US$ 232.30 million) etc during FY26.
Major imports by India from Japan
- Imports from Japan to India stood at US$ 21.43 billion in FY26.
- India imported 4,851 commodities from Japan in FY26.
- India’s imports from Japan include machinery, electrical and non-electrical (US$ 3.74 billion), non-ferrous metals (US$ 2.75 billion), electronic goods (US$ 2.43 billion), chemical materials and products (US$ 2.39 billion), transport equipment (US$ 2.30 billion), iron and steel (US$ 2.06 billion), artificial resins, plastic materials, etc. (US$ 1.25 billion), and organic and inorganic chemicals (US$ 1.22 billion) etc during FY26.
Recent Trends & developments
- From July 1-3, 2026, Japanese Prime Minister Ms. Takaichi Sanae visited India for the 16th India-Japan Annual Summit. On July 2, 2026, both leaders reaffirmed their commitment to strengthening the India-Japan Special Strategic and Global Partnership, prioritising defence and security, economic partnership, energy resilience, technology, innovation, and people-to-people exchanges to promote a resilient and prosperous Indo-Pacific.
- On May 25, 2026, India and Japan held a joint seminar in Tokyo on workforce mobility, bringing together policymakers, industry leaders and academic institutions to strengthen long-term cooperation in skilled workforce mobility and human resource development. The May 26, 2026, event concluded with a shared vision to facilitate a 50,000-person India-Japan workforce exchange programme over the next 10 years, reinforcing bilateral economic and people-to-people ties.
- On January 17, 2026, India and Japan held a strategic dialogue focusing on bolstering cooperation in critical minerals, AI and defence ties, aiming to enhance economic security, supply chain resilience and technology collaboration across strategic sectors.
- As part of the 2025 Summit outcomes, India and Japan renewed the Digital Partnership 2.0 MoC, promoting collaboration in semiconductors, AI, Digital Public Infrastructure, R&D and startups, and strengthened human resource exchanges including joint research and student internships
- On November 23, 2025, on the sidelines of the G20 Summit, Prime Minister Mr. Narendra Modi and Japanese Prime Minister H.E. Sanae Takaichi reaffirmed commitment to deepen the special strategic and global partnership across trade, investment, defence, semiconductors, infrastructure, and technology.
- On October 18, 2025, the India–Japan Maritime Exercise (JAIMEX 2025) showcased growing defence cooperation, emphasising shared commitment to a free, open and inclusive Indo-Pacific, and strengthened naval interoperability and maritime security cooperation.
- On October 14, 2025, the Indian digital payments ecosystem expanded as NPCI International and NTT DATA Japan signed an MoU to enable UPI acceptance in Japan, enhancing economic integration and cross-border digital transactions between the two nations
- On August 29, 2025, during the 15th India-Japan Annual Summit in Tokyo, India and Japan adopted a Joint Vision for the next decade to deepen economic, technological, and strategic cooperation, prioritising economic partnership, economic security, mobility, and innovation, while enhancing defence and overall bilateral engagement.
- In August 2025, both countries agreed on a Joint Declaration to expand defence collaboration, strengthen interoperability of forces, enhance logistical support, and explore new avenues for cooperation in counterterrorism, cyber-defence and joint operations across the Indo-Pacific region.
- On August 29, 2025, India and Japan set a 10-year investment roadmap targeting about US$ 67.56 billion (10 trillion yen) of Japanese private investment in India across critical sectors including semiconductors, defence, clean energy, and high-technology industries, reinforcing economic ties and supply-chain integration.
- In February 2025, Tokyo hosted this high-level forum launching the Japan‑India Cooperation Initiative for Sustainable Economic Development in Africa, reinforcing joint efforts to foster economic growth across Africa.
- A formal agreement targets transforming the Andaman & Nicobar and Lakshadweep islands into “Smart Islands” via renewable energy, port digitalisation and shipping infrastructure. Plans include Imabari Shipbuilding’s greenfield shipyard in Andhra Pradesh and technology-transfer projects.
- India and Japan signed a Memorandum of Implementation on November 15, 2024, in Tokyo to co-develop the Unified Complex Radio Antenna (UNICORN) mast for Indian Navy ships. The mast, integrating advanced communication systems, enhances stealth capabilities. This marks the first co-development of defence equipment between the nations, with Bharat Electronics Limited leading India's role.
- The Union Minister of New and Renewable Energy, Mr. Pralhad Joshi, chaired the signing ceremony of the first-ever agreement for the export of Green Ammonia from India to Japan. The project offtake agreement marks a significant step forward in India’s journey to becoming a global leader in green hydrogen and ammonia production.
- In a significant step towards sustainable development in India, REC Limited, a Maharatna Central Public Sector Enterprise and leading NBFC under the Ministry of Power, has successfully availed a Green Loan of Japanese Yen (JPY) 60.536 billion to finance eligible green projects in India.
- In 2023, Foreign Minister, Mr. Yoshimasa Hayashi mentioned that 2023 is a crucial year as Japan chairs G7 and India chairs G20. As the premier forum for international economic cooperation, G20 is of paramount importance for responding effectively to issues facing the international community, such as food security and development. As the G7 President, Japan wishes to coordinate closely with the G20 President, India.
- Japan-India Foreign Ministers’ Meeting was held on February 11, 2022, wherein it was reaffirmed to promote economic cooperation including in digital, climate change countermeasures, healthcare, as well as economic security cooperation in fields such as Beyond 5G, undersea cables, and supply chain resilience, in addition to cooperation in India’s North-eastern region and steadily advancing the High-Speed Rail Project, the flagship project of Japan and India. Moreover, views on cooperation in regional affairs such as Myanmar and international cooperation including WTO, disarmament and non-proliferation, and UN Security Council reform were also exchanged.
- In March 2022, Prime Minister of Japan visited India for the first time in four and a half years as Prime Minister of Japan. In May 2022, Prime Minister Mr. Narendra Modi visited Japan for the Japan-Australia-India-U.S. Summit Meeting held in Japan. The two leaders concurred to further develop Japan-India relations and work closely toward the realisation of a “Free and Open Indo-Pacific”.
- The Fourth Japan-India Cyber Dialogue was held virtually on June 30, 2022. Areas of discussion included national cyber policies and cybersecurity strategies, the recent cyber threat landscape, ICT supply chain risks and 5G policies. Both sides also discussed bilateral cooperation in the field of capacity building as well as cooperation under the UN, QUAD (Japan-Australia-India-U.S.) and ASEAN Regional Forum.
Economic Relations
Economic relations between India and Japan continue to deepen and expand across trade, investment, strategic cooperation, and emerging sectors, rooted in a long-standing special strategic and global partnership and complemented by complementary economic strengths and shared strategic visions.
During the 16th India-Japan Annual Summit held from July 1-3, 2026, Prime Minister Mr. Narendra Modi and Japanese Prime Minister Ms. Sanae Takaichi reaffirmed their commitment to strengthening economic ties through cooperation in economic security, energy resilience, technology and innovation. The leaders agreed to deepen collaboration on resilient supply chains, investment, and innovation, reinforcing the India-Japan Special Strategic and Global Partnership for shared growth and prosperity
In August 2025, India and Japan adopted the India-Japan joint vision for the next decade, reaffirming cooperation to harness complementary economic and financial capacities, expand bilateral trade and investment, and boost industrial collaboration. As part of this, the two governments agreed to build upon the existing 2022–2026 target of approximately US$ 33.8 billion (JPY 5 trillion) in public and private investment and financing from Japan to India and set a new target of approximately US$ 67.6 billion (JPY 10 trillion) of private investment over the next decade. The initiative also includes strengthening the implementation of the India–Japan Comprehensive Economic Cooperation Agreement (CEPA) and enhancing cooperation under the “Make in India” programme, including industrial initiatives, payment systems, and SME collaboration.
In August 2025 press announcements, India and Japan highlighted economic security cooperation as a core pillar of their bilateral partnership, emphasizing resilient supply chains, critical infrastructure, and key technology sectors such as semiconductors, critical minerals, clean energy and ICT. This included launching the India-Japan Private-Sector Dialogue on Economic Security and strengthening semiconductor cooperation via memoranda of cooperation and strategic partnerships (e.g., Renesas Electronics, Tokyo Electron with Tata Electronics), reflecting strong private-sector engagement and technology ecosystem linkages.
India and Japan also welcomed the Joint Statement of the 11th India-Japan Energy Dialogue (August 2025) and signed cooperation on mechanisms such as the Joint Crediting Mechanism (JCM), as well as joint initiatives in clean hydrogen, ammonia, renewable energy, and battery supply chains illustrating a broadening agenda beyond traditional trade to clean energy and environmental investment.
In June 2025, both nations agreed to deepen maritime relations, focusing on attracting Japanese investment in Indian shipyards and advancing port digitization, green initiatives, and R&D partnerships particularly to create skilled employment opportunities for Indian seafarers and unlock new economic collaboration in the maritime sector.
Bilateral trade figures also attest to ongoing economic engagement: Japan’s bilateral trade with India reached US$ 25.17 billion during FY25, with significant flows in exports of machinery and imports of diverse Indian goods.
Overall, India-Japan economic relations are marked by strong long-term investments, expanding trade, strategic industrial cooperation, and broadening collaboration in high-growth sectors such as semiconductors, clean energy, ICT, and maritime infrastructure supported by shared strategic interests and robust institutional dialogues.
Conclusion
India and Japan deepened their special strategic and global partnership by unveiling new measures to enhance cooperation in critical minerals, artificial intelligence, economic security, and defence, with strategic dialogues reaffirming shared commitments to resilient supply chains, technology collaboration, and regional stability, reflecting robust momentum in India Japan trade, India Japan trade relations, and the broader India Japan economic partnership, while supporting bilateral trade between India and Japan and creating new trade opportunities between India and Japan.
Contacts
- Embassy of India in Japan
Address: 2-2-11 Kudan-Minami, Chiyoda-Ku, Tokyo, 102-0074;
Telephone: +81-3-3262-2397
Ms. Nagma Mohamed Mallick (Ambassador);
Email: amboffice.tokyo@mea.gov.in
Mr. Ajay Kumar Sethi (Special Assistant to Ambassador);
Email: amboffice.tokyo@mea.gov.in
Mr. R Madhu Sudan (Deputy Chief of Mission);
Email: dcm.tokyo@mea.gov.in - Embassy of Japan in India
Address: Plot No.4&5, 50-G, Shantipath, Chanakyapuri, New Delhi 110021;
Telephone: +91-11-4610-4610/2687-6581
Email: jpembjic@nd.mofa.go.jp
H. E. Mr. ONO Keiichi (Ambassador)
FAQs
Engineering goods contribute the highest value to India exports to Japan, followed by organic and inorganic chemicals, marine products, electronic goods, readymade garments, drugs & pharmaceuticals, and gems & jewellery.
India Japan trade has expanded through higher bilateral trade, stronger investments and growing cooperation in strategic sectors.
Engineering, semiconductors, clean energy, ICT, defence, maritime infrastructure and chemicals are strengthening India Japan trade relations.
The Japanese market offers opportunities for India exports to Japan across engineering goods, chemicals, marine products, pharmaceuticals and textiles.
Major India exports to Japan include engineering goods, chemicals, marine products, electronic goods, garments, pharmaceuticals and gems & jewellery.
Trade partnerships strengthen the India Japan economic partnership by promoting investment, technology collaboration and market access.
Semiconductors, clean energy, AI, ICT, maritime infrastructure and critical minerals are expected to create new trade opportunities between India and Japan.
Strategic investments, resilient supply chains, technology partnerships and Japan imports from India continue to support the growth of India Japan trade.
Indian businesses can expand India exports to Japan by leveraging strategic partnerships and opportunities in high-growth sectors.
Products related to semiconductors, clean energy, AI, green hydrogen and advanced manufacturing have strong potential under the India Japan economic partnership.
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