ASSOCHAM forecasts India and Japan could boost bilateral trade to $50 billion by 2030, driven by diversified exports, upgraded trade pacts, and increased business collaboration, despite current trade imbalance.
ASSOCHAM said India and Japan could lift annual bilateral trade to $50 billion by 2030, helped by a wider mix of Indian exports, a refreshed trade pact and closer ties between businesses in both countries. The industry body said trade reached $27.47 billion in 2025-26, but India still accounts for less than 1% of Japan’s global imports, leaving room for expansion. The report was carried by ANI and echoed in coverage from other Indian business outlets.
The biggest gains, ASSOCHAM said, are likely to come from higher-value shipments such as pharmaceuticals, chemicals, machinery, electronics and marine products. The report also noted that India already has stronger positions in some niches, including organic chemicals and automobiles and auto components, suggesting that exporters have begun to build a foothold in parts of the Japanese market.
According to the report, the balance of trade remains heavily in Japan’s favour. India imported $21.43 billion worth of goods from Japan in 2025-26, while exports to Japan totalled $6.04 billion. ASSOCHAM said that gap can narrow only if Indian firms move further up the value chain and expand beyond traditional goods trade into areas such as pharmaceuticals, IT services and renewable energy technology.
The group also pressed for an upgrade of the 15-year-old India-Japan Comprehensive Economic Partnership Agreement, saying non-tariff barriers still limit access for smaller exporters and especially for micro, small and medium-sized enterprises. It said Japan’s pledged investment of JPY 10 trillion over the next decade, together with more than JPY 2 trillion already committed through 129 private-sector agreements, could provide further momentum if regulatory processes are eased and technology transfer deepens.
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