Indian Industry Delegation in Tokyo Pushes for Regulatory Harmonisation and Mutual Certification Standards with Japan

Indian industry leaders have highlighted the pressing need for greater regulatory harmonisation and the mutual recognition of certification and quality standards between India and Japan. Speaking after business-to-business meetings in Tokyo, FICCI President Anant Goenka noted that the delegation, which accompanied Commerce and Industry Minister Piyush Goyal, specifically raised the issue of Indian pharmaceutical certifications in Japan.

Goenka pointed out that Indian pharmaceutical companies continue to face registration hurdles for their products in Japan, a bottleneck he suggested could potentially be addressed outside of a formal bilateral agreement. He linked the overall push for regulatory alignment to India's widening trade deficit with Japan. While bilateral trade has grown, the expansion remains largely one-directional. Bridging this gap requires Indian manufacturers to meet Japan's strict quality standards alongside overcoming domestic preferences for locally made products in Japan.

On the investment front, Goenka stated that economic ties are entering a new phase. An earlier investment target of $5 billion set for the 2022–2026 period was achieved two years ahead of schedule. Current discussions are focused on the next wave of investments, with strong interest directed toward steel, industrial parks, data centres, semiconductors, and automotives. The automotive sector has reportedly grown at over 15 percent over the past year and a half.

Regarding Japan's broader 10-trillion-yen commitment, Goenka observed that current investment levels remain modest relative to the target, though momentum is building. Bilateral talks also covered joint cooperation in Africa and strategies for securing critical minerals—a global challenge given the concentration of resources in a few nations. Both sides discussed potential joint negotiations and supply-sharing frameworks.

Addressing the slower pace of some Japanese investments, Goenka mentioned that Japanese companies remain divided over India's steel safeguard duty. Some investors seek protection for their local operations, while others who export into India oppose the measure. He suggested that domestic manufacturing should be supported where local capacity exists, while remaining open to specialty steel imports where India currently lacks adequate production capacity.

On workforce development and industrial policy, Goenka noted that skilling initiatives—such as Japanese language training and programs run by institutions like the Japan Institute of Plant Maintenance—are already underway to support Indian MSMEs. He also floated the idea of establishing Japanese-specific industrial parks in India featuring tailored amenities, though such decisions require broader policy-level deliberations.

Reflecting on global expansion strategies, Goenka cited his own group's experience in the tyre industry, noting that building dedicated product ranges and R&D capacity per continent typically requires significant capital investment. He defended continued protections for Indian industry against low-cost competition, particularly from Chinese-linked manufacturers, citing differing subsidy structures and profitability benchmarks abroad. Furthermore, he noted that India is steadily moving toward self-sufficiency and deeper value addition in sectors such as electronics and electric vehicle batteries.

"The bilateral trade discussions between Indian industry leaders and Japanese stakeholders highlight a vital phase in cross-border economic cooperation. Achieving investment targets ahead of schedule demonstrates strong confidence in India's industrial growth. However, addressing non-tariff barriers, particularly regulatory harmonisation and pharmaceutical certification approvals, remains crucial to balancing bilateral trade. For expanding businesses, aligning with international quality benchmarks and investing in targeted R&D will be essential to building sustainable global brands." — Dr. Shishir Gupta, Founder & CEO, StartupLanes