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India Japan Trade

Japan’s exports to India were 2.62% of India’s total imports and India’s exports to Japan were 1.18% of India’s total exports during FY24.

Last updated: Sep, 2025

Introduction

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.

India-Japan Trade

  • Japan’s bilateral trade with India totalled US$ 25.17 billion during FY25.
  • Exports from Japan to India during FY24 were US$ 18.92 billion and imports were US$ 6.25 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$ 6.25 billion in FY25.
  • India exported ~3,900 commodities to Japan in FY25.
  • Major exported items from India to Japan include engineering goods (US$ 2.44 billion), organic and inorganic chemicals (US$ 1.06 billion) marine products (US$ 408.45 million), gems and jewellery (US$ 239.51 million), Electronic goods (US$ 658.45 million), Drugs and pharmaceuticals (US$ 231.52 million), etc during FY25.

Major imports by India from Japan

  • Imports from Japan to India stood at US$ 18.92 billion in FY25.
  • India imported ~4,000 commodities from Japan in FY25.
  • India's imports from Japan include nuclear reactors (US$ 3.31 billion), copper (US$ 1.81 billion), electrical machinery and equipment (US$ 2.01 billion), inorganic chemicals, organic or inorganic compounds of precious metals, of rare-earth metals, or radium. element or of isotopes (US$ 2.53 billion), iron and steel (US$ 1.95 billion), etc during FY25.

Recent Trends & developments

  • 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.
  • Second Japan-India 2+2 Foreign and Defence Ministerial Meeting was held on September 8, 2022. The Ministers discussed regional and global affairs, bilateral security and defence cooperation, and coordination among like-minded countries, bearing in mind Prime Minister Mr. Narendra Modi’s possible future visit to Japan as part of the annual mutual visit by the leaders. In view of their respective presidencies of the G7 and G20 next year, they confirmed that both countries will work closely to lead the international community.
  • Union Minister of Commerce and Industry Mr. Piyush Goyal addresses G7 Trade Ministers in Osaka, emphasizing the need for resilient supply chains post-COVID and geopolitical events. He advocates for public-private partnerships, infrastructure investment, and collaborative regulatory frameworks to boost cross-border trade. Notable positive experiences from private sectors, like Suzuki achieving over 95% indigenisation in India, were highlighted. ERIA underscores India's expanding role in global value chains.
  • Chief of Defence Staff General Mr. Anil Chauhan embarks on an official visit to Japan, aiming to strengthen defense ties. His itinerary features meetings with top Japanese military officials, including the Minister of Defence, Chief of Staff, Joint Staff, and key representatives from the Acquisition Technology & Logistics Agency and National Institute of Defence Studies. This visit signifies the growing significance of India-Japan Defence Cooperation.

Economic Relations

Economic relations between India and Japan have vast potential for growth, given the obvious complementarities that exist between the two Asian economies. Japan's interest in India is increasing due to a variety of reasons including India's big and growing market and its resources, especially human resources. The signing of the historic India-Japan Comprehensive Economic Partnership Agreement (CEPA) and its implementation in August 2011 has accelerated economic and commercial relations between the two countries.

In March 2025, the Government of India and the Government of Japan signed loan agreements amounting to JPY 191.736 billion (US$ 1.2 billion) under Japan’s Official Development Assistance (ODA) programme. The funds are allocated to six projects spanning forest management, water supply, urban transport, aquaculture, biodiversity conservation and investment promotion.

Japan commits Official Development Assistance (ODA) loan of Japanese Yen (JPY) 232.209 billion for nine projects in various sectors in India.

During the visit of the Hon’ble Prime Minister of Japan Mr. Fumio Kishida to India in March 2022, both Prime Ministers expressed the intention to realize US$ 37 billion (JPY 5 trillion) of public and private investment and financing from Japan to India in the next five years, to finance appropriate public and private projects of mutual interest.

In recent years, the economic relationship between the two countries has expanded and deepened steadily. The trade volume has increased with India being Japan’s 18th largest trading partner. Japan was the 14th largest trading partner for India in FY25.

Direct investment from Japan to India has increased, and Japan is currently the 5th largest investor in India. Presently, about 1,455 Japanese companies have branches in India. Besides, the two nations had committed to building a High-Speed Railway in India by introducing Japan’s Shinkansen System, which is the flagship project of Japan-India relations.

Conclusion

The two countries have witnessed increasing bilateral and multilateral engagement and strengthening of the India-Japan Special Strategic and Global Partnership. The two sides maintained the momentum in ties despite the pandemic. Apart from this, the two countries are working together across sectors such as health and medical care, transportation, power and energy, urban environment management, and agricultural and rural development.

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