As per the data from the Department of Commerce, Japan is making considerable investments in India and has emerged as one of the country's largest investors, with a total Foreign Direct Investment (FDI) of US$ 17.15 billion between April 2022 and January 2023.

The East Asian country has actively encouraged its businesses to move manufacturing activities from China to India.

"India's economy has been remarkably resilient to the deteriorating external environment," said Auguste Tano Kouame, World Bank Country Director in India, "and strong macroeconomic fundamentals have placed it in good stead compared to other emerging market economies."

In this perspective, Prime Minister Modi's recent trip to Japan for the G7 Hiroshima Summit 2023 is viewed as a watershed moment in India's economic transition.

During the Fiscal Year (FY) 2022-23, India's exports to Japan totaled US$ 5.18 billion, while imports from Japan totaled US$ 11.97 billion. According to the exchange rate, the Indian currency appreciated 12.5 percent against the Japanese Yen between April and December 2022.

Between the fiscal years FY2012 and FY2022, Japan's imports to India increased at a compound annual growth rate (CAGR) of 1.6 percent, while India's exports to Japan decreased by 0.3 percent.

According to the Department of Commerce, bilateral commerce or import-export operations between India and Japan reached a decade high in FY2011-12, with a total value of US$ 20.57 billion.