Japanese companies are stepping up investment in India. More than 100 have established global capability centers, while Mitsubishi UFJ has invested $4.4 billion in shadow bank Shriram Finance, it was reported. Expansion in the retail and financial sectors is also gaining momentum.
Japanese companies’ appetite for investment in India has reached unprecedented levels following a visit to Japan by India’s Minister of Commerce and Industry, while Japanese consumer brands are becoming more prominent in Mumbai, Delhi and Bengaluru. Brands including UNIQLO, MUJI and Onitsuka Tiger are expanding in the market, and plans by Nitori and Lawson to enter India have also been reported.
Acquisitions by foreign banks have become more active. Mitsubishi UFJ Financial Group acquired a 20% stake in Shriram Finance in 2025, recording the largest foreign investment to date in India’s financial market. Meanwhile, Sumitomo Mitsui Banking Corporation became the largest shareholder of YES BANK.
According to a Deloitte report, more than 100 Japanese companies have already established global capability centers in India, providing functions including research and development, AI development and corporate strategy. Japanese companies’ expansion in India is giving them a leading presence in the Asia-Pacific region.
Japan-India relations are built on a long-term partnership, and dialogue and cooperation between the two countries have strengthened since the Japanese prime minister’s visit to India in 2023. In July 2024, investment commitments totaling $12.5 billion, including in semiconductors and green energy, were announced in conjunction with Prime Minister Takaichi Sanae’s (高市早苗) official visit to Delhi, and approximately 120 cooperation documents were exchanged.