New Delhi [India], August 26 (ANI): India-Japan bilateral commerce has the potential to rise to USD 50 billion by 2030 from USD 27.47 billion in 2025-26, with higher export diversification, an upgraded commerce pact and deeper enterprise engagement key to reaching the goal, business physique ASSOCHAM mentioned in a report.
The report mentioned India’s share in Japan’s complete international imports stays beneath 1 per cent, leaving vital room to develop Indian exports in areas akin to prescribed drugs, chemical compounds, equipment, electronics and marine merchandise.
‘ASSOCHAM believes that India Japan bilateral commerce has the potential to succeed in USD 50 billion by 2030, supported by rising financial complementarities and deeper enterprise engagement,’ ASSOCHAM Chief Economist S P Sharma mentioned within the report.
Bilateral merchandise commerce has risen from USD 15.36 billion in 2020-21 to USD 27.47 billion in 2025-26, a rise of almost 79 per cent in 5 years. However, the commerce stability has remained in Japan’s favour, with India’s imports from Japan at USD 21.43 billion towards exports of USD 6.04 billion in 2025-26.
ASSOCHAM mentioned India may enhance its presence in Japan’s massive import market by shifting in the direction of higher-value merchandise. Its report recognized prescribed drugs, chemical compounds, equipment and mechanical merchandise, electronics and marine merchandise among the many segments with the best export potential.
India’s share of Japan’s international imports was 0.93 per cent in 2025, whereas its share was significantly increased in natural chemical compounds at 6.33 per cent and cars and auto parts at 4.4 per cent, indicating areas the place Indian companies have already established a stronger presence.
The report additionally referred to as for an improve of the 15-year-old India-Japan Comprehensive Economic Partnership Agreement, together with steps to deal with non-tariff boundaries and supply higher help for Indian MSMEs searching for entry to Japan.
‘Rather than counting on conventional items commerce, each side ought to push India’s exports up the worth chain,’ ASSOCHAM mentioned, highlighting prescribed drugs, IT providers and renewable power expertise as areas with scope for growth.
Japanese funding may present one other enhance. Japan has dedicated to speculate JPY 10 trillion (round Rs 5.5 lakh crore) in India over the subsequent decade, whereas greater than JPY 2 trillion (round Rs 1.1 lakh crore) has already been dedicated by means of 129 private-sector agreements, the report mentioned.
The report mentioned the subsequent section also needs to give attention to easing regulatory procedures, strengthening two-way expertise switch and bringing extra Indian MSMEs into Japanese and international provide chains. (ANI)