Union Minister for Commerce and Industry Piyush Goyal met with senior executives of top Japanese financial and investment institutions in Tokyo to discuss ways to increase long-term capital flows into India. Investment opportunities discussed included digital infrastructure, green hydrogen, and renewable energy.
The meeting brought together senior representatives of MUFG, Development Bank of Japan (DBJ), Mizuho, Morgan Stanley, Nomura and Nippon Life. Discussions focused on India’s economic outlook, emerging investment opportunities and ways to facilitate greater Japanese institutional investment in the country.
Goyal highlighted renewable energy and green hydrogen among the sectors offering significant opportunities for Japanese investors, alongside semiconductors, artificial intelligence, data centres, advanced manufacturing and digital infrastructure.
He said India’s expanding renewable energy capacity and national power grid provide a strong foundation for the growth of energy-intensive digital industries. The India Semiconductor Mission is also creating opportunities across manufacturing and technology, he said.
The minister highlighted the resilience of the Indian economy, which recorded 7.7% growth last year despite global uncertainties. He said India is working towards becoming a $30 trillion economy by 2047, with a strong banking sector, robust capital adequacy, low levels of non-performing assets, an expanding middle class and rising disposable incomes supporting sustained economic growth.
Japanese financial institutions highlighted their growing engagement with India and expressed confidence in its long-term growth prospects.
MUFG highlighted its investment of around $4 billion in Shriram Finance and its expanding interests in renewable energy and hydrogen. DBJ outlined its dedicated India strategy and growing interest in property development, venture capital and other long-term investment opportunities.
Mizuho highlighted the improving profitability of Japanese companies operating in India and the expansion of its 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, and highlighted the expansion of its India operations towards higher-value capital markets and financial services activities.
The discussions also examined measures to facilitate greater flows of Japanese institutional capital into India. Participants highlighted the need to simplify profit repatriation processes, improve access to Indian capital markets and provide greater regulatory predictability for long-term investors.
The Japanese institutions maintained a 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.
The meeting also explored the potential of GIFT City as a gateway for international capital into India and a platform for facilitating greater cross-border investment flows between Japan and India.
Goyal said India is seeking long-term partnerships that bring technology, innovation, manufacturing capabilities, employment and integration with global value chains, rather than capital alone. He highlighted opportunities in both emerging sectors and established businesses requiring modernisation and technological upgrading.
The talks take place in the framework of Japan and India’s goal to raise 10 trillion yen in private Japanese investment in India over the course of the next ten years. The exchange brought to light the possibility of growing bilateral economic, technical, and investment ties, particularly in green hydrogen and renewable Energy.
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