About 26 Japanese companies are taking part in the PLI schemes of the Centre for various sectors, which will benefit both the countries, said MoS of Industry and Commerce Jitin Prasada.
He was speaking at the Japan-India Economic and Investment Forum organised by Nikkei India in New Delhi on Friday.
The minister said the government was open to addressing the challenges that Japanese companies are facing in India, including taxes issues.
"Challenges are there in every market, but I want to assure you that we are open to addressing those. We will leave no stone unturned in facilitating Japanese investment in India," the minister said.
He said the government is focused on promoting robotics, AI and semiconductors.
He emphasized that India is the talent capital of the world and the government is encouraging digital transformation, investment in electric vehicles and semiconductors.
On India's push for EVs and Japan's focus on hydrogen fuel vehicles, Prasada said India would like to understand Japan choosing Hydrogen.
Talking about the "Suzuki story" in India, he said the growth of the company in India shows the potential that India has.
It shows what has been achieved through India-Japan relations and what can be achieved further, he said.
The minister said relations between the two countries are rising and existing challenges can be discussed for further improvement.
The minister said that not just at the federal level, cooperation between India and Japan has been rising at the state level as well.
Japanese companies have signed MoUs with several States, including Maharashtra, Haryana and Andhra Pradesh, he added.
Prasada assured the Japanese industry leaders present at the event of a stable government at the centre. He also mentioned the BJP's wins in Maharashtra, Haryana and Delhi.
"It shows the people's support for government policies," he said.
Appreciating the forum, the minister said it will help deepen the bilateral ties between the two countries.
He said the number of member companies of the Japan Chamber of Commerce and Industry in India has increased from 100 earlier to about 500 now.
It shows the confidence in the India of Japanese industry, he said.
Citing a survey, he said India is the most sought after investment destination which shows the potential of the Indian economy.
Prasada highlighted the establishment of dedicated investment townships by National Industrial Corridor Development Corporation Limited.
He invited the Japanese industry to consider these areas for investment.
Prasada also said that India will also invest in the Japanese economy in whichever way possible.
Students and professionals from India are going to Japan to enhance their skills and contribute to its market, he said.
Nikkei India is hosting the Japan-India Economic and Investment Forum aimed at promoting bilateral growth and investment opportunities in the two countries.
