India, Japan eye trade boost with nearly 100 MoUs as Modi, Ishiba meet in Tokyo

New Delhi: The India Japan Annual summit in Tokyo on Friday led by Prime Minister Narendra Modi and his Japanese counterpart Shigeru Ishiba will seek to expand bilateral trade and investment partnership amid prevailing challenges in India-US trade ties and Japan-US trade deal that has also run into turbulence.

On Friday an MoU could be signed at the summit on giving a big push to Japanese investments, ET has learnt. Modi will also engage with the Japanese entrepreneurs and investors during his visit. Indian businesses are likely to sign nearly 100 MoUs with their Japanese counterparts during the PM's visit. This is in the backdrop of the headwinds faced by New Delhi and Tokyo following unconventional decisions on trade matters by the US.

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While India is facing 50% tariffs, creating challenges for certain sectors of exports, Japan's top trade negotiator Ryosei Akazawa cancelled a trip to the US on Thursday over issues related to the US-Japan trade deal. In a statement, Japan's Chief Cabinet Secretary Yoshimasa Hayashi said that his trip would have involved the discussion of US tariff measures.

"However, during the coordination with the US, because it became apparent that certain points required further technical discussion, the trip was cancelled, and it was decided that discussions will continue at the administrative level," Hayashi told reporters in Tokyo.

Meanwhile, Japan's investments in India continue to accelerate. Over 170 MoUs signed in two years represent more than $13 billion in committed investments. This spread of investment across steel, automotive, renewables, semiconductors, real estate, and aerospace cements Japan's confidence in India's long-term economic potential, according to an official.

Japanese industry partnerships are pulling Indian SMEs into global supply chains. Tokyo Electron & Fujifilm with Tata Electronics is building a semiconductor ecosystem, with Indian SMEs becoming suppliers for high-value components; Toyota & Suzuki value chains will integrate hundreds of Tier-2/3 Indian SMEs, Fujitsu will be recruiting 9,000 Indian engineers in its Global Capability Centre, boosting IT-linked SMEs.