As the global economic landscape shifts amidst the West Asia crisis, it is recommended that the central and state governments in India collaborate to enhance economic connections with ASEAN countries and East Asian nations. Notably, countries like Japan, Singapore, and South Korea, already established in India, are now exploring opportunities in untapped states within the country.
Vietnam’s VinGroup recently announced an investment of nearly $8.5 billion in Maharashtra, focusing on sustainable urban development, industrial growth, renewable energy, and electric mobility. This initiative is expected to drive green energy, modern infrastructure, and dynamic transport systems in the state, including the development of an eco-friendly smart residential township.
Maharashtra, accounting for 39% of India’s total FDI inflows in 2024-2025, continues to attract investments. Japan has also taken steps to boost economic ties with India by setting up a new Japan-India Economic Affairs Division to facilitate Japanese investments in the country. With over 1,400 Japanese companies operating in India, there is recognition of untapped potential for further collaboration between the two nations.
Gujarat recently signed an agreement with Allegiance International Company Ltd., linked to Taiwan, to establish an Indo-Taiwan Industrial Park in the state. The importance of strengthening economic cooperation with ASEAN nations, South Korea, and Japan is emphasized, with state governments playing a crucial role in fostering these relationships.
