India and Japan Strengthen Economic Ties with New Suzuki Plant Opening
In a significant move to bolster economic ties, Prime Minister Narendra Modi and Japan's Prime Minister Sanae Takaichi inaugurated a new Maruti Suzuki plant in Haryana during the India-Japan Joint Economic Forum. Modi highlighted that two-thirds of Suzuki cars sold globally are manufactured in India, showcasing the country's pivotal role in the automotive sector. He also announced the Japan Business Week to facilitate better communication between Japanese business leaders and Indian officials. With a target of 10 trillion yen in investments over the next decade, both nations are set to collaborate in key sectors such as AI, defense, and health, marking a new chapter in their economic partnership.
Jul 2, 2026, 17:30 IST
Inauguration of Suzuki's New Plant in Haryana
During the India-Japan Joint Economic Forum held in Delhi, Prime Minister Narendra Modi and Japan's Prime Minister Sanae Takaichi inaugurated the fourth vehicle manufacturing plant of Maruti Suzuki located in Kharkhoda, Haryana. PM Modi emphasized the significance of the economic relationship between India and Japan, stating that this new facility is a shining example of their partnership.
Suzuki Cars Manufactured in India
While addressing the audience, PM Modi shared an impressive statistic, revealing that two-thirds of Suzuki cars sold globally are produced in India, which are then exported to over 100 countries. He remarked, "When Japan's technology and investment combine with India's speed and scale, it benefits the entire world." He also welcomed new Japanese entrepreneurs joining the forum.
Transforming the DNA of the Indian Economy
Referring to the global economic downturn and trade uncertainties, PM Modi stated that only the strong advance during challenging times. He highlighted that India's GDP growth rate was 7.7% in the last fiscal year, making it the fastest-growing major economy in the world. He noted that over the past 12 years, India has embraced Japan's Kaizen philosophy, which is transforming the economic DNA of the nation.
Announcement of Japan Business Week
To facilitate business operations, PM Modi made a significant announcement regarding the upcoming Japan Business Week, organized by the Prime Minister's Office. Senior officials will engage directly with Japanese business leaders to understand and address their concerns. He mentioned that for the past four years, Japan Bank for International Cooperation has recognized India as the most reliable country for Japanese businesses.
Target of 10 Trillion Yen Investment
Setting a bold target for Japanese companies, the Prime Minister stated that while there is complete trust and coordination between the two governments, it is now the responsibility of the businesses to convert this into results. He expressed the goal of surpassing 10 trillion yen in Japanese investment in India over the next decade and doubling the number of Japanese companies operating in the country. Both nations have decided to collaborate in crucial future sectors such as economic security, AI, defense, health, and semiconductors.