PM Modi Pitches 'Make in India, Make for World' to Japanese Investors in Tokyo Summit

PM Modi Delivers 'Make in India, Make for World' Pitch to Japanese Investors in Tokyo Summit

Prime Minister Narendra Modi has issued a compelling invitation to Japanese businesses during his address at the India-Japan Joint Economic Forum in Tokyo, urging them to "Come make in India, make for the world." The high-profile pitch came during his two-day official visit to Japan, where he is conducting summit talks with Japanese counterpart Shigeru Ishiba.

Japan Commits $68 Billion Investment Over Next Decade

The visit has yielded significant investment commitments, with reports indicating that Japan plans to invest 10 trillion Yen ($68 billion) to strengthen bilateral business relations with India over the next decade. This massive investment will span multiple high-growth sectors including artificial intelligence, semiconductors, environmental technology, and medicine.

This substantial financial commitment underscores Japan's confidence in India's economic trajectory and growth potential across technology-intensive industries.

Impressive Track Record of Japanese Investment

PM Modi highlighted the successful partnership between the two nations, noting that Japanese companies have already invested over $40 billion in India. The Prime Minister emphasized Japan's role as a crucial partner across diverse sectors, from cutting-edge semiconductors to innovative startups.

The strong foundation of existing investments provides a solid platform for the ambitious expansion plans outlined during the summit discussions.

Outstanding Business Performance Metrics

The Prime Minister presented compelling statistics demonstrating the success of Japanese businesses in India:

• 80% of Japanese companies express intentions to expand their operations in India
• 75% of Japanese firms are already generating profits from their Indian operations
• Capital invested in India doesn't just grow but "multiplies" according to PM Modi's assessment

These remarkable success rates indicate the favorable business environment and market opportunities that India offers to international investors, particularly in technology and manufacturing sectors.

India's Economic Transformation Highlights

PM Modi outlined the significant changes that have transformed India's investment landscape over the past eleven years:

Political Stability: Consistent governance providing predictable policy framework for long-term business planning. Economic Stability: Robust economic fundamentals supporting sustained growth and investment returns. Policy Transparency: Clear and transparent policy-making processes reducing regulatory uncertainty for businesses.

The Prime Minister emphasized that India stands as the world's fastest-growing major economy and is positioned to become the third-largest global economy in the near future.

Technology and Infrastructure Partnerships

The visit includes strategic site visits that underscore the technological partnership potential between the two nations. PM Modi is scheduled to visit:

• Tokyo's Electron Factory - showcasing advanced semiconductor manufacturing capabilities
• Tohoku Shinkansen plant in Sendai - where bullet train coaches are manufactured

These visits, accompanied by Japanese PM Ishiba, are expected to advance discussions on Tokyo's participation in India's bullet train project, representing a significant infrastructure collaboration opportunity.

Success Stories as Investment Models

PM Modi referenced the remarkable success of Japanese companies in India, specifically highlighting Suzuki and Daikin as exemplary cases of successful Japanese investment and operations in the Indian market. These companies have demonstrated how Japanese businesses can leverage India's manufacturing capabilities to serve both domestic and global markets effectively.

The Prime Minister encouraged other Japanese firms to replicate these success stories, emphasizing the potential for similar achievements across various sectors.

Global South Development Partnership

The discussions extended beyond bilateral cooperation to encompass broader international development objectives. PM Modi proposed joint collaboration in supporting Global South development, particularly in Africa, where combined India-Japan expertise and resources could create significant developmental impact.

This strategic partnership approach positions both nations as leaders in South-South cooperation and technology transfer to developing economies.

Investment Implications for Indian Markets

The substantial Japanese investment commitment and partnership expansion present several market opportunities:

• Technology sector companies may benefit from increased Japanese partnerships and investments
• Semiconductor manufacturing firms could see enhanced collaboration opportunities
• Infrastructure and construction companies may gain from bullet train and transport projects
• Manufacturing companies positioned to serve as joint venture partners or suppliers

Strategic Sectors for Future Growth

The $68 billion investment pipeline across artificial intelligence, semiconductors, environmental technology, and medicine indicates significant growth potential in these high-value sectors. Companies operating in these domains should expect increased partnership opportunities and potential technology transfer benefits.

The focus on advanced manufacturing and technology-intensive sectors aligns with India's vision of moving up the value chain and becoming a global manufacturing hub for sophisticated products.

Long-term Economic Partnership Vision

The summit discussions reflect a shared vision for long-term economic partnership that extends beyond traditional trade relationships. The emphasis on joint global market development and third-country partnerships suggests an evolving strategic alliance that could reshape regional economic dynamics.

For investors, this represents an opportunity to participate in one of the most significant bilateral economic partnerships in the Asia-Pacific region, with potential for sustained growth over the coming decade.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India's Industrial Production Accelerates to 4-Month High of 3.5% in July 2025

India's industrial production demonstrated significant momentum in July 2025, with the Index of Industrial Production (IIP) surging to a four-month high of 3.5% growth, marking a substantial improvement from the 1.5% recorded in June. This encouraging performance, released by the National Statistical Office (NSO) on Thursday, signals renewed strength in India's manufacturing sector despite challenges in other industrial segments.

Manufacturing Sector Drives Strong Performance

The July growth acceleration was primarily fueled by robust performance in the manufacturing sector, which recorded impressive 5.4% growth in July 2025 compared to 4.7% in the same period last year. This represents a significant improvement from the 3.7% growth registered in June 2025, reaching a six-month high.

The manufacturing sector's strong performance demonstrates resilience in India's industrial base and suggests improving demand conditions across key manufacturing segments. This growth trajectory is particularly significant given the current global economic uncertainties and trade tensions affecting various sectors.

Mixed Performance Across Industrial Segments

While manufacturing showed strong growth, other industrial sectors displayed contrasting performance patterns:

Mining sector faced significant challenges with a 7.2% contraction in July 2025, marking a sharp reversal from the 3.8% growth recorded in the corresponding period last year. This decline reflects ongoing challenges in the extractive industries sector.

Electricity generation showed subdued growth of just 0.6% in July 2025, substantially lower than the robust 7.9% growth achieved in July 2024. This slowdown indicates potential challenges in power sector expansion and demand patterns.

Construction and Infrastructure Surge

According to ICRA Chief Economist Aditi Nayar's analysis, the infrastructure and construction goods category demonstrated exceptional performance with output surging to a 21-month high of 11.9%. This remarkable growth was supported by robust demand for construction inputs including cement and steel, indicating strong construction activity throughout the month.

The construction sector's strength suggests continued momentum in India's infrastructure development programs and private sector construction activities, which bodes well for related industries and employment generation.

Consumer Durables Show Pre-Festive Momentum

The consumer durables segment recorded encouraging growth of 7.7%, reaching a seven-month high. This improvement is attributed to pre-festive stocking activities, aligning with the seasonal uptick in GST e-way bills generation.

This performance indicates improving consumer sentiment and preparation for the upcoming festive season, which traditionally drives significant consumption across various product categories.

Comparative Performance Analysis

The July 2025 industrial production growth of 3.5% represents the highest level since March 2025, when the IIP recorded 3.9% growth. However, it remains below the 5.0% growth achieved in July 2024, indicating that while recovery is underway, industrial production has not yet reached pre-pandemic growth levels.

For the April-July period of FY26, cumulative industrial production growth averaged 2.3%, significantly lower than the 5.4% growth recorded during the same period in the previous fiscal year.

Broad-Based Sectoral Improvement

The NSO data reveals that all six use-based categories showed improvement in July 2025 compared to June 2025, indicating broad-based recovery across industrial segments. This comprehensive improvement suggests that the growth momentum is not confined to specific sectors but reflects general economic strengthening.

The widespread nature of this improvement provides confidence that the industrial recovery has a solid foundation and is less vulnerable to sector-specific disruptions.

Market Implications and Investment Opportunities

The strong industrial production data presents several investment considerations:

• Manufacturing companies may benefit from improved demand conditions and capacity utilization
• Construction and infrastructure stocks could see continued momentum given the 21-month high in construction goods output
• Consumer durables manufacturers may experience seasonal demand boost ahead of festivals
• Cement and steel companies could benefit from robust construction activity

Future Outlook and Policy Support

Looking ahead, ICRA's analysis suggests that improved monetary policy transmission and recent announcements regarding GST rationalization may support urban consumption sentiment. However, some discretionary consumption might be deferred until lower tax rates are implemented, creating a mixed near-term outlook.

The recent easing of heavy rains' impact, which had previously weighed on mining and electricity sectors, may provide additional support for industrial production in coming months.

Economic Recovery Indicators

The acceleration in industrial production growth represents a positive indicator for India's broader economic recovery. The strong performance in manufacturing and construction sectors suggests that domestic demand conditions are improving, which could support GDP growth in the current fiscal year.

However, the significant gap between current performance and previous year's growth rates indicates that full recovery to pre-disruption levels may require sustained policy support and continued improvement in global economic conditions.

The mixed sectoral performance also highlights the uneven nature of the recovery, with manufacturing showing resilience while mining and power sectors face ongoing challenges that require targeted interventions.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Murugappa Group's CG Semi Inaugurates Historic Pilot Line at Gujarat Semiconductor Facility

CG Semi, a subsidiary of the prominent Murugappa Group, has achieved a significant milestone by inaugurating the pilot production line at its state-of-the-art semiconductor packaging facility in Sanand, Gujarat. This landmark event on Thursday, August 28, 2025, marks the first operational facility among 10 projects approved under the India Semiconductor Mission (ISM).

Massive Rs 7,600 Crore Investment with Government Support

The groundbreaking project represents a total investment of Rs 7,600 crore, with the Union government providing substantial 50% financial support through the India Semiconductor Mission. This strategic partnership involves collaboration with leading international firms including US semiconductor giant Renesas Electronics and Thai firm Stars Microelectronics.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw, along with Gujarat Chief Minister Bhupendra Patel, participated in the inauguration ceremony, underlining the project's national significance for India's semiconductor ambitions.

First Milestone Under Rs 76,000 Crore ISM Program

This facility represents a crucial achievement as the first operational unit among 10 projects cleared under the Rs 76,000 crore India Semiconductor Mission. The ISM, launched in January 2022, has allocated much of its substantial corpus across these strategic projects aimed at establishing India as a global semiconductor manufacturing hub.

Minister Vaishnaw emphasized that the pilot line would commence chip production "very soon," marking the beginning of India's journey toward semiconductor self-reliance.

Advanced Production Capabilities and Market Applications

The pilot line has been designed with impressive production capabilities, featuring a daily capacity of 5 lakh chips. This advanced, state-of-the-art facility will serve as a qualifying production center, manufacturing sample chips for potential customers before scaling to full commercial production.

The facility's versatile production capabilities will cater to diverse market segments:

• Consumer appliances including refrigerators and home electronics
• Automotive industry for next-generation vehicle systems
• Consumer electronics across various product categories
• Industrial applications requiring specialized semiconductor solutions

Strategic OSAT Operations and Global Integration

The Sanand facility operates as an Outsourced Semiconductor Assembly and Test (OSAT) center, providing critical backend services in the global semiconductor value chain. This positioning allows CG Semi to serve both domestic and international clients requiring high-quality packaging and testing services.

The facility's strategic location in Gujarat's industrial corridor provides excellent connectivity and infrastructure support for semiconductor manufacturing operations, making it an attractive hub for global semiconductor companies.

Timeline for Full-Scale Commercial Operations

According to official projections, CG Semi is expected to commence full-scale commercial semiconductor chip operations within 3 years. This timeline reflects the complex nature of semiconductor manufacturing and the need for extensive testing and qualification processes before reaching full production capacity.

At full capacity, the facility will produce millions of individual chips daily, significantly contributing to India's semiconductor manufacturing capabilities and reducing import dependency.

Broader Semiconductor Ecosystem Development

The success of CG Semi's pilot line supports the development of a comprehensive semiconductor ecosystem in Gujarat. Minister Vaishnaw also highlighted the rapid progress of Micron's Assembly, Test, Marking and Packaging (ATMP) facility, also located in Sanand and supported by ISM funding.

This clustering of semiconductor facilities creates synergies and strengthens India's position in the global semiconductor supply chain, attracting additional investments and partnerships.

Investment Implications and Market Impact

The successful launch of India's first ISM-supported semiconductor facility has significant implications for investors:

• Murugappa Group companies may benefit from diversification into high-tech semiconductor manufacturing
• Semiconductor supply chain partners could see increased business opportunities
• Technology sector stocks may gain from India's growing semiconductor capabilities
• Infrastructure and logistics companies supporting the Gujarat industrial corridor

Future Expansion and Semicon India 2025

IT Ministry officials have indicated that the next phase of the India Semiconductor Mission will expand funding opportunities for industry growth and development. Prime Minister Narendra Modi is scheduled to address Semicon India on September 2, the ministry's flagship semiconductor event, where additional announcements may be expected.

This high-level government attention demonstrates the strategic priority placed on developing India's semiconductor manufacturing capabilities and achieving technological self-reliance in this critical sector.

Long-term Strategic Significance

The CG Semi pilot line inauguration represents more than just a manufacturing milestone – it signals India's emergence as a credible player in global semiconductor manufacturing. The success of this facility could attract additional international partnerships and investments, further strengthening India's position in the global technology supply chain.

For the Murugappa Group, this venture represents a strategic diversification into high-technology manufacturing, potentially opening new revenue streams and establishing the conglomerate as a key player in India's semiconductor ecosystem.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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