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At a time when many countries are turning inward and the world faces increasing division and confrontation, it is more critical than ever for global businesses and economic communities to engage in dialogue and foster momentum for cross-border collaboration.

Against this backdrop, business leaders from Japan and India convened in Tokyo today for the 12th meeting of the Japan-India Business Leaders Forum (BLF).

At this BLF, the business leaders of Japan and India discussed how both countries can enhance their strategic autonomy while also strengthening their cooperation to uphold and strengthen the international order by leveraging the complementarities between the two countries. They also explored measures to further advance and diversify bilateral economic ties to achieve sustainable growth.

The following summarizes the outcomes of these discussions, with the shared aspiration that this joint statement will act as a catalyst for advancing Japan-India economic relations to greater heights.

It is our expectation that the governments and relevant agencies of both countries will give due consideration to the intent of this statement and incorporate it in future policies.

I. Japan-India Collaboration to Uphold and Strengthen the International Order

1. Maintaining and Strengthening a Rules-Based Free and Open International Economic Order

To begin with, both sides welcomed the expansion and deepening of economic relations following the entry into force of the Japan-India Comprehensive Economic Partnership Agreement (CEPA) in 2011 and the elevation of bilateral ties to a Special Strategic and Global Partnership in 2014. They reaffirmed that India, with the world's largest population and a rapidly expanding middle class, holds enormous potential as a key consumer market and manufacturing hub in the global economy and also holds strategic importance from a geopolitical standpoint as a pivotal location in the Indo-Pacific region.

With this in mind, both parties agreed on the importance of revising the CEPA to further strengthen bilateral economic ties and amending the tax treaty to enhance India's investment environment. They also agreed to cooperate in supporting India's potential future accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Furthermore, both sides shared the view to realize a Free and Open Indo-Pacific (FOIP), it is essential to advance concrete cooperation in areas such as critical and emerging technologies and critical mineral resources under the framework of the Quad (Japan, the United States, Australia, and India).

In addition to these Indo-Pacific-centered initiatives, both sides agreed on the urgent need to rebuild the multilateral free trade system to advance global rulemaking. They concluded that it is essential to reposition and reform the World Trade Organization (WTO), the cornerstone of this system, in response to today's evolving global environment.

2. Ensuring Economic Security Through Public-Private Partnership

After receiving an update from their respective governments on the India-Japan Dialogue on Economic Security launched in November 2024, both sides exchanged views and information on the economic security threats and risks surrounding Japan and India.

The two sides reached a shared understanding that: 1) public-private partnership is essential for ensuring economic security, as private companies are key actors in economic activity and governments are responsible for national security; and 2) the "three Ps"—industry protection (including measures to prevent leakage of sensitive technologies), industry promotion (including support for the development of critical technologies), and partnership (cross-border collaboration with foreign companies)—are crucial. Based on this shared recognition, they discussed opportunities for cooperation in areas such as the stable supply of critical strategic materials, protection of critical infrastructure, and research and development of advanced technologies.

Considering their governments' expectations, both sides thus agreed to begin preparations to launch the India-Japan Private-Sector Dialogue on Economic Security (tentative name) as a forum to facilitate information sharing and closer coordination among businesses and industry leaders, and to provide input to the intergovernmental dialogue. Specific discussion topics for the new dialogue will be determined in due course, taking into account domestic deliberations in both countries on securing strategic autonomy and achieving strategic superiority and indispensability. The process will also reference the Proposal for Joint Actions: Japan-India Economic Security Cooperation prepared jointly by the Japan External Trade Organization (JETRO), the Confederation of Indian Industry (CII), and the Japanese Chamber of Commerce and Industry in India (JCCII).

3. Advancing Decarbonization

Acknowledging India's high dependence on fossil fuels and its significant greenhouse gas emissions, both sides reaffirmed the potential for collaboration in areas such as jointly producing clean ammonia and hydrogen, decarbonizing thermal power plants by gradually transitioning fuels to ammonia or hydrogen, promoting the use of LNG and biofuels, and expanding the deployment of carbon capture, utilization and storage (CCUS) technologies, and constructing transportation infrastructure with low environmental impact.

To accelerate such collaboration, the establishment of the Joint Crediting Mechanism (JCM) is essential. It was noted that the JCM holds considerable potential given the 20-year gap between India's 2070 target and Japan's target for achieving Net Zero emission status.

II. Advancing and Diversifying Japan-India Economic Relations for Sustainable Growth

1. Advancing Japan-India Economic Relations

(1) Promoting "Make in India for the World"

Both sides recognized that India's "Make in India" initiative and Production-Linked Incentive (PLI) schemes for promoting domestic manufacturing have contributed to increased foreign direct investment in India positioning advanced Manufacturing as a strategic priority under National Manufacturing Mission (NMM). They welcomed the achievement of the 5-trillion-yen public-private investment and financing target for India over five years, as agreed by the leaders of Japan and India in 2022. Moreover, they confirmed that the local production activities and exports to third countries and regions by Japanese companies are contributing to job creation and foreign currency earnings in India, advancing the concept of "Make in India for the World."

Looking ahead, both sides agreed on the importance of leveraging each country's strengths and pursuing strategic collaboration in areas of mutual priority. In particular, it was suggested that combining Japan's strengths in advanced manufacturing technologies such as smart manufacturing and robotics with India's abundant talent in information technology (IT) and artificial intelligence (AI) could lead to greater sophistication, improved productivity, and enhanced export competitiveness for Indian manufacturing. Some Japanese companies have already established R&D centers in India and are developing products and services using IoT (Internet of Things), big data, and AI etc. Both sides expressed high expectations for further collaboration in this area.

Acknowledging India's large-scale policy support for its semiconductor industry under the India Semiconductor Mission (ISM), both sides agreed to strengthen cooperation across the entire supply chain, particularly in areas where Japan maintains an advantage to build a reliable semiconductor production base in India. This cooperation is also of critical importance from the perspective of economic security for both countries.

Recognizing that India's investment environment still has room for improvement, both sides agreed to encourage India's central and state governments to steadily address key issues. These include ensuring tax consistency and transparency; expediting tax dispute resolution; improving the clarity of Bureau of Indian Standards (BIS) certification, notice periods when expanding certification targets, and alignment with international standards; streamlining and improving the clarity and predictability of administrative and judicial procedures; reducing complexity in land acquisition; developing infrastructure; simplification of outward remittance regulations; and strengthening intellectual property protections through enhanced enforcement against counterfeits and improved remedies for rights violations.

(2) Participation of Japanese SMEs and Startups

Recognizing the growing international orientation of Indian SMEs and the emerging global trend of supply chain diversification, both sides acknowledged the significant opportunity for Japanese SMEs to collaborate with India in building resilient global value chains, supported by India's expanding network of freight corridors.

With regard to strengthening cooperation between Indian and Japanese SMEs and startups, both sides highlighted the complementarities between India's strengths in foundational technologies and local innovation, and Japan's expertise in advanced manufacturing, robotics, and automation. Such collaboration can foster the development of globally competitive solutions while enhancing industrial resilience in India. Indian side expressed its expectations for the launch of a SME facilitation programme by the two countries.

(3) Promoting Collaboration in Third-Country Markets

Both sides recognized the value of collaboration between Japanese and Indian businesses in developing third-country markets such as the Middle East and Africa. India has deep historical and human connections with East African countries, and many Indian companies possess strong local knowledge and extensive networks in the region. In this context, both sides noted that the government of Japan is promoting industrial clustering in India under the Japan-India Cooperation Initiative for Sustainable Economic Development in Africa, positioning the country as a hub for expanding trade and investment into Africa. The initiative also supports joint projects that use Japanese and Indian technologies to co-create innovative solutions with African countries. They also agreed to continue exploring how to collaborate in third-country markets in ways that contribute to the realization of a Free and Open Indo-Pacific (FOIP).

(4) Promoting Talent Exchange

Talent exchange serves as a foundation for sustaining medium- and long-term Japan-India cooperation. Post the signing of the Memorandum of Cooperation (MOC) on Technical Intern Training Programme (TITP) in 2017 and the MOC on Specified Skilled Workers (SSW)in 2021 between the two governments, Government of India remain committed for sending over 50,000 skilled workers to Japan in the immediate future. After receiving an explanation from the Japanese government regarding an Action Plan for India-Japan Human Resource Exchange and Cooperation that targets and exchange of more than 500,000 personnel in both directions in the next five years, the two sides discussed how Japanese and Indian businesses can contribute concretely to these efforts. Participants noted that in order for Indian talent to establish long-term careers at Japanese companies, it is essential not only providing Japanese language training and education on Japanese culture and customs, but also creating inclusive work environments that support Diversity, Equity, and Inclusion (DEI) as well as promoting digital transformation. They emphasized the need for Japanese companies to strengthen their internal systems to better accommodate diverse talent. In addition to strengthening such reception systems on the Japanese corporate side, the need was also highlighted for the Indian side to promote pre-departure training for personnel, such as imparting Japanese language and soft skills. In this context, it was suggested that the existing CII's infrastructure and institutes, as well as other private organizations, could be effectively utilized.

2. Diversifying Japan-India Economic Relations

(1) Space

Both sides noted the following developments: 1) India has made progress in space research and development, including lunar landings and solar observation satellites; 2) the Japan Aerospace Exploration Agency (JAXA) and the Indian Space Research Organisation (ISRO) signed an MoU in November 2016 and are currently engaged in Chandrayaan-5 / LUPEX (Lunar Polar Exploration) mission^#1; 3) the Japan-India Space Dialogue, established in 2019, has facilitated exchanges not only on space policy but also on security, agency collaboration, the space industry, positioning satellites, space situational awareness, and international rules and norms (this Dialogue has been held three times by this year); and 4) these collaborations have extended to private sector on both sides in the space sector, particularly in areas like space debris removal, satellite servicing, and ground station networks.

Both sides then agreed that deeper bilateral cooperation in the space sector will require stronger collaboration between private companies. They also expressed hopes that both governments play a more active role in supporting such collaboration.

(2) Entertainment Content

Recognizing that India's entertainment content market surpassed 2.5 trillion rupees (approximately 4.25 trillion yen) in 2024, making it one of the largest and fastest-growing in the world, both sides exchanged information and views on the potential for collaboration in film, animation, gaming, and extended reality (XR). It was shared that high interest had been shown in the introduction of Japanese anime into the Indian market and joint content production at the World Audio Visual & Entertainment Summit (WAVES) 2025 held in Mumbai in May 2025.

Both sides agreed that expanding Japanese entertainment content into the Indian market and jointly producing content will help deepen mutual understanding and broaden cultural exchange while also contributing to the diversification of economic ties. They committed to improving the necessary conditions to make this possible.

Yoshinobu Tsutsui Japanese Co-Chair India-Japan Business Leaders Forum

Baba Kalyani Indian Co-Chair India-Japan Business Leaders Forum