Japan External Trade Organization (JETRO)

Why in News: 

During his visit to Tokyo for the India–Japan Annual Summit, Prime Minister Narendra Modi urged greater investment in India, highlighting the opportunity amid ongoing trade tensions with the United States.

Key Points: Japan External Trade Organization (JETRO)

India’s Economic Position:

• Prime Minister Modi stated that India is on track to emerge as the world’s third-largest economy in the near future.
• He described India as a key entry point for building ties with the Global South.

U.S. Trade Tensions:

• U.S. President Donald Trump criticised India over high tariffs and purchases of Russian crude.
• Trump imposed additional penalty tariffs, which India called “unreasonable”.

Japan’s Investment Commitments:

• A target of ¥10 trillion in private investment has been outlined by Japan (approx. $66 billion) for India over the next decade.
• Japanese firms have invested a total of $40 billion in India, with $13 billion of that amount flowing in over just the past two years.
• JBIC termed India as the most “promising destination”, while JETRO reported that 80% of Japanese firms want to expand in India and 75% are already profitable.

India–Japan New Initiatives:

• India–Japan AI Initiative launched.
• Economic Security Initiative announced to strengthen supply chain resilience in critical sectors such as pharmaceuticals, critical minerals, and emerging technologies.
• Launch of the India–Japan Small and Medium Enterprises (SMEs) Forum to enhance bilateral SME cooperation.

Agreements & Outcomes of the Summit:

• 13 outcomes announced, including multiple MoUs.
• Collaboration through a Joint Credit System to fund green energy initiatives.
• Cooperation in security, mineral resources, and new technologies.
• An action plan for people-to-people exchange, targeting 5 lakh exchanges over five years, including 50,000 skilled and semi-skilled Indian workers to Japan.

 About Japan External Trade Organization (JETRO):

Introduction:

• JETRO is a government-related organization established in 1958.
• Its primary aim is to promote mutual trade and investment between Japan and the rest of the world.

Functions:

• Supports foreign companies in setting up business in Japan by providing information, consultations, and incentives.
• Supports Japanese businesses, particularly small and medium enterprises, in expanding overseas markets such as India.
• Conducts surveys, research, and policy recommendations on global trade and investment.
• Organises business matching, trade fairs, and investment forums.

India Connection:

• JETRO has been active in India to promote Japanese investment.
• According to JETRO’s surveys, 80% of Japanese companies in India want to expand, and 75% are already profitable.
• Plays an active role in platforms like the India–Japan SMEs Forum and in initiatives aimed at enhancing supply chain resilience.

Headquarters: Tokyo, Japan.
Worldwide Reach: Operates through 70+ offices across the globe, with branches in Indian cities such as New Delhi, Mumbai, Bengaluru, and Chennai.