In 2014, Prime Minister Narendra Modi paid an official visit to Japan and had a summit meeting with former Prime Minister Shinzo Abe. During this visit, the leaders of the two countries concurred to upgrade the bilateral relationship to a ‘Special Strategic and Global Partnership’. The two prime ministers resolved to transform the Japan-India Special Strategic and Global Partnership into a deep, broad-based, and action-oriented partnership, which reflects a broad convergence of their long-term political, economic, and strategic goals.
They announced ‘Japan and India Vision 2025 Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World”, in a joint statement that would serve as a guidepost for the “new era in Japan-India relations”. During the visit of the prime minister to Japan in June 2019, a Letter of Intent was signed at Kobe regarding Ahmedabad-Kobe Sister City Partnership to promote cultural and commercial ties.
Along with sharing such strong bilateral ties with India, Japan also shares a special cultural and business relationship with the State of Gujarat. In 2007, Prime Minister Narendra Modi, the then chief minister of Gujarat visited Japan for the first time. The visit resulted in the establishment of strong bilateral ties between the State of Gujarat and Japan. Since then, the relations between Gujarat and Japan have grown at the highest level.
Japan is regarded as a key partner in India’s economic transformation. The India-Japan relationship has transformed into a partnership of great substance due to a variety of reasons including India’s large and growing market and its resources, especially the human resources.
In 2009, Japan became the first partner country for the Vibrant Gujarat Global Summit, and it has been a partner ever since. This relationship between a developed country and the state depicts the serious efforts and affection between Japan and Gujarat. To date, Japan has the highest participation in the Vibrant Gujarat Global Summit.
As a result of this special relationship, more than 35 Japanese companies with 358 branches/ offices and factories, including Suzuki, Honda, Mitsubishi Motors, Hitachi, and Lumax are working in Gujarat. Also, 2 Japanese Industrial Townships (JITs) have been developed in Gujarat – one at Khoraj and the other at Mandal.
Today, Gujarat has emerged as one of the top automotive manufacturing hubs not only in the country but all over the world.” Along with the success of Suzuki in India, Japanese companies are also expanding in Gujarat from automobiles to biofuel. The Ahmedabad Business Support Center established by JETRO has the facility to provide plug-and-play work-space facilities to many companies simultaneously.
Today, there are three Japan-India Institutes for Manufacturing (JIM) in Gujarat which are training hundreds of youths every year. These JIMs are respectively setup by Suzuki Motors Gujarat Limited, Toyota Tsusho India Private Limited, and Otsuka Pharmaceutical India Private Limited. Japan External Trade Organization (JETRO) joined as a Partner Organization for the Vibrant Gujarat Global Summit 2009. Since then, JETRO has been instrumental in promoting Japanese manufacturers to explore business opportunities and invest in Gujarat.
Moreover, to provide a favourable business environment to Japanese companies in Gujarat, the Gujarat Investment Promotion Programme (GIPP) has been instituted in collaboration with JICA. It has enabled to boost the skill development in the State and has established India’s first International Automobile Centre of Excellence (I-ACE) in Gandhinagar in PPP mode with the Government of Gujarat. Several important projects in Gujarat have been supported by Japan such as Ahmedabad-Mumbai High Speed Rail, Ahmedabad Metro Project, Ecosystem Restoration Project, and many others.
Japan is amongst the top sources for FDI to Gujarat with a cumulative investment of ~USD 3 billion from 2000- 2021. Further, in FY 2022-23, Gujarat exported goods worth USD 2.3 Billion to Japan.
Recently, to strengthen the ties between the state and country, the Hon’ble Chief Minister of Gujarat, Shri Bhupendra Patel along with a high-level delegation paid a visit to Japan. Wherein, they held various one-on-one meetings with the leading industrialists and governors from different prefectures in Japan along with a roadshow to promote the upcoming Vibrant Gujarat Global Summit 2024.
During this visit, the Chief Minister along with the high-level delegation met with various heads of organizations, and financial institutions along with participating in a Sneh Milan Program with Gujarati-Indian communities in Tokyo. This program was attended by leaders from the Gujarati and Indian communities residing in Tokyo, along with invited families and officials.
During the visit to Japan, the Hon’ble Chief Minister shed light on Japan’s role in the development of Gujarat over the last few years. He cited examples of projects such Mumbai-Ahmedabad High-Speed Rail Corridor and the DMIC (Delhi-Mumbai Industrial Corridor) and how they have played a significant role in the state’s development.
The Chief Minister met with Hon’ble Minister of Economy, Trade & Industry Mr. Yasutoshi Nishimura and discussed about long business relations between Japan and Gujarat. The Chief Minister appraised Mr. Nishimura about investment-friendly environment and policies of Gujarat. They both expressed satisfaction on increasing business interest between Japan and Gujarat. The Chief Minister extended invitation to Mr. Nishimura to participate in the upcoming VGGS 2024.
The Chief Minister also met with the Tokyo Governor Yuriko Koike and fondly remembered her motivational guidance on the six priority sectors identified in the U-20 Summit held during India’s G20 Presidency.
The Chief Minister extended an invitation to Industry leaders, financial institutions, trade organizations, and the Tokyo Governor to participate in the upcoming Vibrant Gujarat Global Summit 2024. The VGGS 2024 will provide a platform to discuss and collaborate on various opportunities to invest in the region along with fresh opportunities for Japan-Gujarat relations and to foster new investments.
(The author is the director-general of JETRO Ahmedabad)