India proposes new investment and innovation framework
Key Highlights
- India and Japan discussed deeper cooperation across startups, deep technology, innovation and MSMEs.
- Piyush Goyal proposed a Japan-India Deep-Tech Capital Corridor for early-stage research and commercialisation.
- India has nearly 250,000 startups and is the world’s third-largest startup ecosystem.
- A Two-Way Innovation Bridge has been proposed to connect universities, incubators and R&D institutions.
- Japanese investors were invited to participate in India’s proposed second Fund of Funds of around $1 billion.
- The India-Japan Pitching Series has connected 65 Indian startups with around 100 Japanese corporations.
- More than 30 business tie-ups have emerged from the pitching initiative.
- AI, semiconductors, healthcare, space, defence and advanced manufacturing were identified as major collaboration areas.
Tokyo: India and Japan are exploring a broader investment and technology partnership aimed at connecting Indian startups, deep-tech companies and MSMEs with Japanese capital, research capabilities and manufacturing expertise.
Commerce and Industry Minister Piyush Goyal, speaking at the India-Japan Startup Roundtable in Tokyo, proposed a framework to deepen cooperation between the two countries. He highlighted India’s position as the world’s third-largest startup ecosystem, with nearly 250,000 startups established over the past decade.
Goyal said India’s large domestic market, STEM talent, digital public infrastructure and expanding innovation ecosystem could create significant opportunities for Japanese investors and technology companies.
Deep-Tech Capital Corridor Proposed
A key proposal is the creation of a Japan-India Deep-Tech Capital Corridor designed to mobilise patient capital for early-stage research and commercialisation. Such funding could support technology businesses that require longer development cycles before reaching commercial scale.
Goyal also proposed a Two-Way Innovation Bridge connecting universities, incubators and research and development institutions in both countries.
Another area of focus is combining India’s manufacturing capabilities and scale with Japan’s technology, precision engineering and quality standards. This could also create opportunities for Indian MSMEs to participate in technology-driven global supply chains.
Japanese Investors Eye Indian Startups
India has proposed joint startup pitching platforms that would connect founders with Japanese corporations, venture capital funds and strategic investors.
Goyal also invited Japanese investors to participate in the Indian government’s proposed second Fund of Funds of around $1 billion, expected to have a significant focus on deep-tech enterprises.
The existing India-Japan Pitching Series has already connected 65 Indian startups with around 100 Japanese corporations and facilitated more than 30 business tie-ups, according to Ambassador Nagma Mohamed Mallick.
Deep-Tech Sectors in Focus
Japanese stakeholders identified artificial intelligence, semiconductors, healthcare, space, defence, advanced manufacturing and other deep-tech segments as promising areas for future investment and collaboration.
Indian startups participating in the roundtable showcased technologies across aerospace and defence, drones, AI, healthcare, robotics, warehouse automation, mobility and digital health.
Discussions focused on partnerships covering technology validation, precision manufacturing, investment, market access and supply-chain integration.
The emerging partnership seeks to combine India’s scale, technology talent and digital capabilities with Japan’s advanced engineering expertise, patient capital and manufacturing strengths, potentially creating a stronger cross-border ecosystem for startups and MSMEs.
