Goyal Seeks Greater Japanese Institutional Capital
Key Highlights:
- Piyush Goyal invited greater Japanese institutional investment into India during discussions in Tokyo.
- India is targeting USD 30 trillion economy by 2047.
- Japanese institutions highlighted strong long-term confidence in India’s growth prospects.
- Investment opportunities include semiconductors, AI, data centres, renewable energy and advanced manufacturing.
- Japanese investors sought easier profit repatriation, capital-market access and greater regulatory predictability.
- GIFT City was discussed as a gateway for cross-border investment.
- India and Japan aim to mobilise 10 trillion yen of Japanese private investment over the next decade.
News Story:
New Delhi, August 25: India-Japan investment ties gained further momentum as Union Commerce and Industry Minister Piyush Goyal held discussions in Tokyo with senior representatives of leading Japanese financial and investment institutions, inviting greater long-term Japanese institutional capital into India.
The meeting brought together senior leaders from MUFG, Development Bank of Japan (DBJ), Mizuho, Morgan Stanley, Nomura and Nippon Life. Discussions focused on India’s economic outlook, emerging investment opportunities and measures to make it easier for Japanese institutions to increase their investments in the country.
Goyal highlighted the resilience of the Indian economy, noting that India recorded 7.7 per cent growth last year despite global uncertainties. He said the country is working towards becoming a USD 30 trillion economy by 2047.
The Minister pointed to India’s strong banking sector, robust capital adequacy, low levels of non-performing assets, expanding middle class and rising disposable incomes as important drivers of long-term economic growth.
Investment opportunities across emerging sectors
Goyal highlighted significant opportunities for Japanese investors in semiconductors, artificial intelligence, data centres, renewable energy, green hydrogen, advanced manufacturing and digital infrastructure.
He said India’s expanding renewable energy capacity and national power grid provide a strong foundation for energy-intensive digital industries. The India Semiconductor Mission is also creating opportunities across semiconductor manufacturing and related technology sectors.
The Minister described Japan as a trusted partner in India’s ambition to become a global manufacturing, technology and investment hub. He also emphasised India’s focus on intellectual property protection, skilled talent, policy reforms and improving the overall business environment.
Japanese institutions expand India focus
Japanese financial institutions expressed strong confidence in India’s long-term growth prospects and outlined their expanding engagement with the country.
MUFG highlighted its investment of around USD 4 billion in Shriram Finance, along with growing interests in renewable energy and hydrogen. DBJ outlined its dedicated India strategy and identified property development, venture capital and other long-term investment opportunities as areas of interest.
Mizuho highlighted improving profitability among Japanese companies operating in India and the expansion of its Indian 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. The institution also highlighted the shift of its India 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 technology capabilities in artificial intelligence and cybersecurity.
Nippon Life emphasised the importance of long-term “patient capital” and highlighted the strong returns generated by its Indian operations.
Investors seek easier capital flows
The discussions also focused on measures to facilitate greater Japanese institutional investment in India.
Japanese financial institutions highlighted the need to simplify processes related to profit repatriation, improve access to Indian capital markets and provide greater regulatory predictability for long-term investors.
The institutions maintained a strongly positive long-term outlook on India, while noting that currency movements and certain regulatory and policy considerations can 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.
GIFT City emerges as investment gateway
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 flows between Japan and India.
Goyal stressed that India is looking beyond capital alone and is seeking long-term partnerships that bring technology, innovation, manufacturing capabilities, employment and integration with global value chains.
The discussions assume significance as India and Japan seek to mobilise 10 trillion yen of Japanese private investment into India over the next decade. The engagement reaffirmed Japanese financial institutions’ confidence in India’s long-term growth story while highlighting further opportunities for bilateral investment, technology and business cooperation.
The latest discussions mark another step towards deepening the India-Japan economic partnership and attracting greater flows of long-term Japanese institutional capital into India’s next phase of growth.
