Goyal Seeks Japanese Investment; Says India Eyeing More FTAs
India is negotiating with approximately 8-9 additional groups of countries and individual nations that collectively represent another $15 trillion in GDP, stated Commerce and Industry Minister Piyush Goyal.
Goyal stated that the nation's free trade agreements would ultimately encompass roughly 75 percent of worldwide trade and assist in establishing India as a reliable partner in international value chains.
India possesses a vast internal market and has welcomed global trade, having signed nine free trade agreements over the past four years, he stated while speaking to business representatives from Japan and India.
These nine agreements encompass economies with a total GDP of $60 trillion and include 38 developed nations. Previous trade agreements with nations such as Japan, Korea, and the ASEAN area have unlocked an additional USD 10 trillion in GDP.
India has concluded trade agreements with the EU, EFTA bloc, UAE, Mauritius, Australia, Oman, New Zealand, the US, and the UK, and is also in talks for similar agreements with nations like Israel and Canada.
It has formalized terms of references to negotiate trade agreements with the South Africa-led SACU and the six-member Gulf Cooperation Council.
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Goyal is heading a major business group of more than 200 delegates present to enhance trade and investment relations between the nations. He mentioned that there are significant investment opportunities in India in sectors such as data centers, manufacturing, and artificial intelligence. The minister stated that enhancing economic relations should result in equitable trade between India and Japan.
The bilateral trade between the nations increased by 9.18 percent to $27.47 billion (with exports totaling $6.03 billion and imports reaching $21.43 billion) in 2025-26, compared to $25.16 billion in 2024-25. The trade deficit between the two nations increased to $15.4 billion in the previous fiscal year, up from $12.66 billion in 2024-25. It amounted to $12.53 billion in 2023-24 and $11 billion in 2022-23.
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Goyal mentioned that there are significant opportunities in the space industry now that India has allowed private sector involvement. Discussing the possibilities in the research and development sector, he mentioned that the expense of conducting innovation in India is significantly lower than in developed countries.
The minister encouraged Japanese companies to establish operations in the 20 smart industrial cities under development in India. India is currently working on establishing 100 plug and play industrial parks, he mentioned, encouraging Japanese firms to establish operations there. Goyal conducted bilateral discussions with multiple companies in the area, exploring opportunities to enhance investments in India.
India's expanding semiconductor and electronics landscape presents significant opportunities for Japanese firms to strengthen their presence and engage in India's development narrative, he stated. Goyal also met with Juro Baba, the Representative Director of Mitsubishi Corporation.
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During his meeting with Toshiaki Nagasato, President and Representative Director of Meiji Seika Pharma Co., Ltd, Goyal mentioned he talked about prospects to enhance India-Japan collaboration in the pharmaceutical industry and ways to grow the company's manufacturing and R&D presence in India.
India's pharmaceutical landscape presents substantial prospects for Japanese collaborators to expand and attain sustained growth, he noted.