India gets less than 1% of Japan's imports despite closer strategic ties, study finds

A recent study shows that Japan’s imports from India account for less than 1% of its total foreign purchases, even though the two countries have been deepening diplomatic and security cooperation in recent years. The analysis points to a gap between the political goodwill and the actual flow of goods, suggesting that many Japanese firms still source most of their components and finished products elsewhere.
For investors, the low trade share signals both a challenge and an opportunity. If policymakers succeed in translating the strategic partnership into concrete trade initiatives—such as joint ventures, technology sharing or incentives for Japanese manufacturers to set up production in India—certain sectors like automotive, electronics and high‑tech could see increased demand. Market participants will be watching upcoming bilateral talks, any revisions to tariff or investment rules, and corporate announcements that aim to bridge the supply‑chain gap.
Excerpt from CNBC-TV18
Published On Oct 9, 2026 | 18:30 IST Last Updated On Oct 9, 2026 | 18:30 IST A new report reveals that while India-Japan strategic ties have grown, economic integration lags behind, with low trade, investment, and workforce mobility. Experts urge building institutional bridges in technology, finance, and manufacturing…Read the original at CNBC-TV18
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