Driving Change: Indo-Japan Collaboration Fuels India's Automotive Future

A report highlights how regulatory changes like GST 2.0 and customs reforms are set to boost investments, encourage electric vehicle adoption, and fortify Indo-Japan collaboration in automotive manufacturing. With significant Japanese investments and joint ventures in India, the two nations are driving an innovation-led automotive future.

The automotive sector in India is poised for a transformative phase as highlighted in a recent report. The introduction of GST 2.0 and customs reforms is anticipated to drive a surge in investments, particularly in electric vehicles, paving the way for robust Indo-Japan collaborations.

Japan stands as India's fifth-largest foreign investor, with a cumulative investment of USD 43.3 billion. The report, co-authored by Grant Thornton Bharat and the Indo-Japan Chamber of Commerce and Industry, underscores the Free Trade Agreement's role in fostering enhanced competitiveness and a sustainable automotive future for India.

State-of-the-art Japanese manufacturing bases in Indian states like Haryana and Gujarat signal a strategic shift towards electric vehicles and advanced manufacturing. The regulatory improvements aim to solidify India's standing as a manufacturing hub, particularly appealing to Japanese automakers looking to leverage India's cost advantages.

(With inputs from agencies.)