Japan is significantly increasing its investment focus on India, with capital flowing into diverse sectors as firms and financial institutions seek growth opportunities. Strategic acquisitions by major Japanese banks highlight a broader push to strengthen the India-Japan investment corridor, combining commercial banking, investment banking and advisory capabilities.
The renewed interest reflects confidence in India’s structural growth prospects — supported by a large consumer base, expanding digital infrastructure and strong economic momentum. Compared to Japan’s mature domestic market, India presents high-growth opportunities that align with Japanese firms’ long-term expansion strategies.
Japanese foreign direct investment in India has crossed ₹2.7 lakh crore, with more than 1,400 Japanese companies operating across sectors including manufacturing, automobiles, financial services, infrastructure and technology.
The expanding capital flows underscore deepening strategic and economic ties between the two nations, positioning Japan as one of India’s most significant long-term investment partners.
