Commerce and Industry Minister Piyush Goyal on Tuesday invited Japanese financial institutions to deepen their long-term investments in India, highlighting opportunities in semiconductors, artificial intelligence, clean energy, advanced manufacturing and digital infrastructure.
Goyal held discussions in Tokyo with senior representatives of leading Japanese financial and investment institutions, including MUFG, Development Bank of Japan (DBJ), Mizuho, Morgan Stanley, Nomura and Nippon Life. The talks focused on strengthening long-term capital flows, expanding investment partnerships and facilitating greater Japanese participation in India’s economic growth.
The minister highlighted India’s economic resilience, noting that the country recorded 7.7 per cent growth last year despite global uncertainties and is working towards becoming a USD 30 trillion economy by 2047.
He cited the strength of India’s banking sector, strong capital adequacy, low levels of non-performing assets, a growing middle class and rising disposable incomes as key factors supporting sustained economic growth.
Goyal identified semiconductors, AI, data centres, renewable energy, green hydrogen, advanced manufacturing and digital infrastructure as major areas of opportunity for Japanese investors. He said India’s expanding renewable energy capacity and national power grid would provide a strong foundation for energy-intensive digital industries, while the India Semiconductor Mission was opening new opportunities in manufacturing and technology.
The minister described Japan as a trusted partner in India’s efforts to become a global manufacturing, technology and investment hub. He also underlined India’s commitment to intellectual property protection, availability of skilled talent, policy reforms and improving the overall business environment.
Japanese institutions express confidence in India
The Japanese financial institutions participating in the meeting outlined their expanding engagement with India and expressed confidence in the country’s long-term growth prospects.
MUFG highlighted its investment of around USD 4 billion in Shriram Finance and its growing interest in sectors such as renewable energy and hydrogen. DBJ outlined its India-focused strategy and interest in property development, venture capital and other long-term investment opportunities.
Mizuho pointed to improving profitability among Japanese companies operating in India and highlighted the expansion of its own India operations, including its Global Capability Centre in Pune.
Morgan Stanley described India as one of its most important global locations, with more than 19,000 employees, while highlighting the evolution of its operations towards higher-value capital markets and financial services activities.
Nomura highlighted its long-standing presence in India and its role in connecting Japanese companies and global industries with Indian opportunities, including through capabilities in artificial intelligence and cybersecurity.
Nippon Life emphasised the importance of long-term “patient capital” and noted the strong returns generated by its Indian operations.
Focus on easing capital flows
The discussions also covered measures to make it easier for Japanese institutional investors to invest in India. The financial institutions highlighted the need to simplify procedures for profit repatriation, improve access to Indian capital markets and ensure greater regulatory predictability for long-term investors.
The Japanese institutions maintained a positive long-term outlook on India while pointing to currency movements and certain regulatory and policy considerations that could influence short-term investment decisions.
Goyal welcomed the feedback and reiterated the government’s commitment to improving the ease of doing business and creating a more seamless investment environment.
The meeting also explored the potential of GIFT City as a gateway for international capital into India and as a platform for facilitating greater cross-border investment between the two countries.
Goyal stressed that India was seeking more than capital from Japanese investors, saying long-term partnerships should also bring technology, innovation, manufacturing capabilities, employment and integration with global value chains.
The discussions assume significance against the backdrop of the India-Japan objective of mobilising 10 trillion yen in Japanese private investment into India over the next decade.
The interaction reaffirmed the strong interest of Japanese financial institutions in India’s long-term growth story and highlighted opportunities to expand bilateral investment, technology and business linkages.
