India-Japan Partnership Poised to Advance AI, Semiconductors, and Infrastructure

Strengthened bilateral ties between India and Japan are set to reinforce artificial intelligence, semiconductor fabrication, and core infrastructure development, according to corporate leaders speaking on the sidelines of a CEO roundtable in Tokyo chaired by Union Commerce Minister Piyush Goyal.

What Happened

Union Commerce Minister Piyush Goyal is conducting a four-day visit to Japan from August 24 to 27, accompanied by an Indian business delegation of around 200 members. During a roundtable discussion held in Tokyo with chief executives of Japanese corporations, industry representatives evaluated how complementary economic capabilities can expand joint projects in emerging technology sectors.

Speaking to ANI, Yousuke Okada, Founder and Chief Executive Officer of ABEJA, Inc., stated that Japan and India possess structural synergies. Okada observed that while Japan holds operational expertise and real-world operational data, India provides extensive IT infrastructure alongside human resources specialized in IT and AI. He noted that combined efforts could allow both nations to act as a third pillar in international AI growth beyond the United States and China, extending technological reach into markets such as Southeast Asia and the Global South.

Rajesh M. Revankar, Chairman of the Electronics and Computer Software Export Promotion Council, pointed out that Japanese firms increasingly regard India as an alternative market offering substantial domestic consumption and export potential. Revankar highlighted that government backing for India’s semiconductor landscape grew from an initial allocation of Rs 76,000 crore under the Semiconductor 1.0 initiative to Rs 1.24 lakh crore (approximately USD 12 billion), stimulating domestic chip design and fabrication infrastructure.

Key Highlights

• Complementary Tech Capabilities: Industry leadership identified Japanese operational data and Indian IT and AI talent as foundational elements for joint international solutions.
• Semiconductor Policy Expansion: State backing for India’s semiconductor framework has risen from Rs 76,000 crore to Rs 1.24 lakh crore (roughly USD 12 billion), bolstering chip design and fabrication centers.
• Broadening Industrial Focus: Bilateral commercial engagement is expanding past traditional automotive investments into advanced electronics, clean room technologies, and specialized material distribution.
• Supply Chain Geopolitics: Regulatory shifts and geopolitical disruptions in international trade are positioning India as a viable alternative supply hub for Japanese enterprises.
• Bilateral Trade Profile: Two-way trade between India and Japan reached USD 27.47 billion during the 2025-26 fiscal year, comprising USD 21.43 billion in Japanese exports to India and USD 6.04 billion in Indian exports to Japan.

Why This Matters

The engagement reflects an evolving industrial alignment shaped by international supply chain challenges and technological demands. Japanese businesses are actively seeking dependable alternate markets amid regulatory developments emerging from other jurisdictions, including the United States.

At the same time, India’s increased fiscal commitment toward domestic chip ecosystems provides a foundation for partnerships that extend beyond vehicle manufacturing. Specialised Japanese strengths in clean room technologies, raw material supply networks, and distribution directly address technical needs within India’s expanding semiconductor initiatives.

What to Watch Next

The Union Commerce Minister’s ongoing official tour will proceed across Tokyo, Nagoya, and Osaka through August 27. Discussions throughout the remaining itinerary involve key representatives from sectors such as manufacturing, steel, semiconductors, clean energy, automotive industries, healthcare, financial services, and start-ups.

Frequently Asked Questions

What was the focus of the Tokyo roundtable?

The roundtable, chaired by Union Commerce Minister Piyush Goyal, centered on enhancing collaboration between Indian and Japanese businesses in areas such as artificial intelligence, semiconductor manufacturing, advanced electronics, and core infrastructure.

What is the scale of India’s current semiconductor support policy?

Support under India’s Semiconductor 1.0 policy initially stood at Rs 76,000 crore and has expanded to Rs 1.24 lakh crore, which equals approximately USD 12 billion, targeted at domestic fabrication facilities and design services.

What were the bilateral trade statistics between India and Japan in FY 2025-26?

Total bilateral trade stood at USD 27.47 billion, with Japan exporting USD 21.43 billion to India and importing USD 6.04 billion from India. Japan accounted for 2.26 percent of India’s total trade, while India accounted for 1.75 percent of Japan’s total trade.

Source: ANI