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Significant regulatory transformations such as GST 2.0 and progressive customs reforms are likely to accelerate investment flows, promote EV adoption, and drive the next wave of Indo-Japan collaboration in clean mobility and advanced manufacturing, according to a report. With USD 43.3 billion in cumulative investments, Japan is India's fifth-largest foreign investor. A deeper utilisation of the Indo-Japan FTA will be key to driving competitiveness, enabling technology transfer, and advancing India's journey toward a sustainable, innovation-led automotive future, Grant Thornton Bharat and the Indo-Japan Chamber of Commerce and Industry (IJCCI) said in a joint whitepaper. "The convergence of GST 2.0 and targeted customs incentives marks a defining moment for India's automotive sector. Reduced tax rates, simplified compliance, and supply-chain-focused exemptions will not only elevate India's cost competitiveness but also strengthen its positioning as a manufacturing and export hub for .