The next phase of India–Japan economic cooperation will be powered by collaboration between Japanese mid-sized firms (Chuken) and India’s dynamic mid-sized manufacturing companies, according to a report jointly released by FICCI and Shardul Amarchand Mangaldas & Co. (SAM & Co).

Chuken-to-Chuken partnerships to drive technology and supply chain integration

These “Chuken-to-Chuken” collaborations can deepen technology transfer, expand production capabilities, and move bilateral engagement beyond traditional supplier models toward co-creation. “Indian mid-sized companies, already serving as Tier-1 and Tier-2 suppliers globally, are well-positioned to partner with Japanese firms seeking diversified, resilient supply chains,” the report noted.

High-potential sectors: Semiconductors, EVs, renewables, and advanced manufacturing

Nine sectors are identified as high-potential pillars for cooperation, including semiconductors, automotive and EVs, pharmaceuticals, medical devices, renewable energy, advanced manufacturing, defence technologies, shipbuilding, railways, aviation, and digital finance.

India’s electronics market paired with Japan’s technology strengths opens opportunities for joint OSAT/ATMP facilities and power semiconductor development, while India’s EV ecosystem complements Japan’s battery and mobility technologies.

Decade-long investments and strategic supply chain realignment

India–Japan engagement has reached a decisive phase, with Japan now India’s fifth-largest investor. Cumulative FDI from Japan stands at USD 45.69 billion, and over 1,500 Japanese companies operate in India. The 2025 India–Japan Vision for the Next Decade commits JPY 10 trillion in Japanese private-sector investment across manufacturing, electronics, mobility, renewables, and digital services.

According to FICCI-SAM, these investments will solidify co-created, resilient, and sustainable supply chains, positioning India–Japan as a key bilateral economic relationship for the coming decade.