Commerce Minister Piyush Goyal is on a visit to Japan with an Indian delegation, highlighting India’s investment potential and opportunities across emerging sectors.
Tokyo: Union Commerce and Industry Minister Piyush Goyal has urged Japanese investors and financial institutions to increase their investments in India, highlighting the country’s long-term economic growth prospects, strong financial system and expanding consumer market.
Goyal said India is working towards becoming a $30 trillion economy by 2047 and stressed that Japanese companies have significant opportunities to participate in India’s growth story.
Strong Banking System and Growing Consumer Market
During his interactions with leading Japanese financial institutions, Goyal highlighted India’s strong banking sector, adequate capitalisation and relatively low levels of non-performing assets.
He also pointed to the country’s expanding middle class and rising disposable incomes as key factors that could support long-term investment and consumption growth.
The Commerce Minister also made a pointed comparison with China’s business environment, reportedly using Jack Ma as an example while encouraging Japanese investors to feel confident about operating in India.
Major Opportunities for Japanese Companies
According to the Ministry of Commerce and Industry, several sectors offer significant opportunities for Japanese investment, including:
- Semiconductors
- Artificial Intelligence (AI)
- Data Centres
- Renewable Energy
- Green Hydrogen
- Advanced Manufacturing
- Digital Infrastructure
- Financial Services
- Real Estate and Venture Capital
The ministry said Japanese financial institutions shared their growing engagement with India and expressed confidence in the country’s long-term economic prospects.
MUFG Highlights Major Investment Interest
MUFG highlighted its investment of around $4 billion in Shriram Finance and its increasing interest in sectors such as renewable energy and hydrogen.
Meanwhile, the Development Bank of Japan (DBJ) discussed its dedicated India strategy and growing interest in real estate development, venture capital and other long-term investment opportunities.
Mizuho highlighted improving profitability among Japanese companies operating in India and the expansion of its operations, including its Global Capability Centre in Pune.
Morgan Stanley, Nomura and Nippon Life Also Highlight India Potential
According to the ministry, Morgan Stanley described India as one of its most important global hubs, with more than 19,000 employees in the country. The financial institution also pointed to the expansion of its Indian operations into 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 opportunities in the Indian market. It also pointed to its technology capabilities in areas such as AI and cybersecurity.
Nippon Life stressed the importance of long-term capital investment and said its Indian operations had generated strong returns.
Focus on Making Investment Easier
The discussions also focused on ways to facilitate greater flows of Japanese institutional capital into India.
Participants highlighted the importance of:
- Simplifying procedures for repatriating profits
- Improving access to Indian capital markets
- Providing greater regulatory stability for long-term investors
- Facilitating cross-border investment between India and Japan
Japanese institutions expressed a positive long-term strategic outlook on India, although they noted that currency fluctuations and certain regulatory and policy issues could influence investment decisions in the short term.
GIFT City Discussed as Investment Gateway
The meeting also discussed the potential of GIFT City as an international gateway for capital entering India.
The two sides explored how GIFT City could be used as a platform to facilitate greater cross-border investment flows between Japan and India.
India Seeks Long-Term Partnerships, Not Just Capital
Goyal emphasised that India is looking beyond simply attracting financial capital.
He said India wants long-term partnerships that bring technology, innovation, manufacturing capabilities, employment and integration with global value chains.
The discussions assume added importance as India and Japan work towards their target of mobilising ¥10 trillion (10 lakh crore yen) in Japanese private investment in India over the next decade.
Stronger India-Japan Economic Partnership
The Commerce Ministry said the discussions once again demonstrated the strong confidence of major Japanese financial institutions in India’s long-term growth prospects.
The engagement is expected to further strengthen India-Japan investment, technology and business ties, while creating opportunities for Japanese companies to participate in India’s expanding manufacturing, technology, energy and infrastructure ecosystem.
