Tokyo: India is seeking to deepen long-term investment ties with Japan as Commerce and Industry Minister Piyush Goyal held discussions with senior representatives of major Japanese financial institutions in Tokyo on Tuesday.
The meeting brought together representatives from MUFG, Development Bank of Japan (DBJ), Mizuho, Morgan Stanley, Nomura and Nippon Life. Discussions centred on expanding Japanese institutional investment in India, strengthening capital flows and improving the investment environment.
Goyal Highlights India’s Growth Potential
Goyal highlighted what he described as India’s strong economic fundamentals and investment opportunities across emerging sectors.
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The Minister said India recorded 7.7% economic growth last year despite global uncertainties and is working towards becoming a USD 30 trillion economy by 2047.
He pointed to the following factors as supporting India’s long-term growth:
- Strong banking-sector fundamentals and capital adequacy
- Low levels of non-performing assets
- A growing middle class
- Rising disposable incomes
- Policy reforms and improved business conditions
- Availability of skilled talent
Semiconductors, AI and Clean Energy Among Key Opportunities
Goyal invited Japanese investors to participate in India’s expanding opportunities in technology, manufacturing and clean energy.
The sectors highlighted during the discussions included:
- Semiconductors
- Artificial intelligence
- Data centres
- Renewable energy
- Green hydrogen
- Advanced manufacturing
- Digital infrastructure
The Minister said India’s expanding renewable-energy capacity and national power grid can support the growth of energy-intensive digital industries. He also highlighted the opportunities being created through the India Semiconductor Mission.
Japanese Financial Institutions Reaffirm Long-Term Interest
The participating Japanese institutions outlined their existing investments and expanding interests in India.
MUFG highlighted its investment of around USD 4 billion in Shriram Finance, along with interests in renewable energy and hydrogen.
DBJ discussed its India-focused strategy and interest in areas including property development and venture capital.
Mizuho highlighted the improving profitability of Japanese companies operating in India and the expansion of its operations, including its Global Capability Centre in Pune.
Morgan Stanley described India as one of its important global locations, with more than 19,000 employees, while pointing to the expansion of its Indian operations into higher-value capital markets and financial services activities.
Nomura highlighted its longstanding presence in India and its role in connecting Japanese companies and global industries with Indian opportunities, including through AI and cybersecurity capabilities.
Nippon Life stressed the importance of long-term “patient capital” and pointed to the returns generated by its Indian operations.
Investors Seek Easier Capital Flows
The discussions also focused on measures that could make it easier for Japanese institutional investors to operate in India.
Key areas raised included:
- Simplifying profit repatriation processes
- Improving access to Indian capital markets
- Greater regulatory predictability
- Creating a more seamless investment environment
The Japanese institutions maintained a positive long-term outlook on India while noting that currency movements and regulatory considerations can influence short-term investment decisions.
Goyal welcomed the feedback and reiterated the government’s commitment to improving the ease of doing business.
GIFT City Discussed as Investment Gateway
The meeting also examined the potential of GIFT City as a gateway for international capital into India and a platform for facilitating greater cross-border investment between India and Japan.
Goyal said India was seeking partnerships that extend beyond capital and bring technology, innovation, manufacturing capabilities, employment and integration with global value chains.
₹10 Trillion Japanese Investment Target
The discussions come against the backdrop of the India-Japan objective of mobilising 10 trillion yen in Japanese private investment into India over the next decade.
The engagement in Tokyo highlighted the potential for expanding Japanese participation in India’s investment landscape, particularly in technology, manufacturing, infrastructure and emerging industries.
The meeting marked another step in India’s efforts to attract long-term Japanese institutional capital and strengthen the broader India-Japan economic partnership.
