Japan Taps India's Digital Edge to Reinvent Manufacturing Synergy

By siliconindia  |  Friday, 25 July 2025, 17:17 IST

Japan Taps India's Digital Edge to Reinvent Manufacturing Synergy
  • Japan seeks to harness India's digital prowess to modernize its manufacturing sector, as highlighted by JETRO chief Takashi Suzuki at the 'Viksit Bharat 2047' seminar.
  • Toyota to establish four new plants in Aurangabad, signaling deeper Japanese investment and a shift toward digitally enabled mobility solutions.
  • JETRO urges policy alignment while promoting Indian production for local markets, aiming to build resilient bilateral supply chains amid global uncertainties.

Japan is now wanting to take advantage of India's quick digital evolution and make a new type of synergy between Indian technological innovation and Japanese manufacturing might. Attending the 'Viksit Bharat 2047: A Global Perspective' seminar in Nagpur, Takashi Suzuki, Chief Director General of the Japanese External Trade Organization (JETRO), emphasized that India's digital strengths are precisely what Japanese businesses require to incorporate into their manufacturing activities.

Suzuki made the point plain: if Japan is strong in manufacturing, then India has a lead in digital technology teamed up, it could comprehensively modernize Japanese industry. "If manufacturing is our strength, India is ahead in digital technology", Suzuki declared, challenging Japanese companies to join hands with Indian businesses to push digital innovation ahead.

Japanese labour shortages, even for unskilled positions, contribute to the sense of urgency. Suzuki confirmed that Japan is keen to draw upon India's pool of talent while creating possibilities for Japanese small and medium-sized enterprises (SMEs) to engage in India, taking advantage of local expertise and cost benefits.

Policy misalignment in the trade sector is still an issue. India's protectionist non-tariff measures have sometimes obstructed Japanese exports. In this context, JETRO is promoting Indian production for local markets, lowering dependence on exports while establishing stronger bilateral supply chain connections.

Also Read: India Aims to become Leadership In 6G Technology

A concrete manifestation of this new partnership is Toyota's plan to set up four new plants in Aurangabad, Maharashtra. This has attracted fresh Japanese investment attention to the state, with Toyota positioning itself as much of an automaker as a supplier of digitally enabled mobility solutions. Suzuki stressed that this represents a larger strategic transformation in Japanese industrial minds, commensurate with India's digital capabilities. 

In the face of geopolitical tensions either with China, conflicts in Europe and the Middle East, or regional affairs the focus continues to be on strengthening economic and technological cooperation. Suzuki made it clear that defense-sector ties will continue cautiously, considering Japan's limited military strategy. The focus instead is on optimizing economic convergence, coupling Japan's industrial strength with India's digital wave to capture world opportunities.

This is a turning point: Japan openly acknowledging India's rise in digital infrastructure whether payments, AI or digital public platforms and looking for meaningful collaborations that will transform both nations' future economics.

 

ON THE DECK