New unit in Japan’s foreign ministry to help firms enter India

Japan's foreign ministry established the Japan-India Economic Affairs Division in April, starting full operations on August 3.

The division will support small and medium Japanese companies and startups entering India or expanding investment, including urging the Indian government to remove regulatory barriers.

It will address challenges like opaque legal systems, varying state regulations, and insufficient infrastructure that have kept Japanese firms in India flat at around 1,434 since 2018.

Japan targets 10 trillion yen in private sector investments in India over 10 years, with about two trillion yen in investment programs already decided.

At a summit, PM Narendra Modi and PM Sanae Takaichi agreed to promote economic growth in both countries, with the division facilitating inter-governmental dialogue.