Economic Economic


Embassy of India



India-Japan Bilateral Economic Relations

Economic relationship between India and Japan has vast potential for growth, given the obvious complementarities that exist between the two economies. Japan's interest in India is increasing due to variety of reasons including India's big and growing market and its resources, especially the human resources as well as focus on diversified an dependable supply chains. The signing of the historic India-Japan Comprehensive Economic Partnership Agreement (CEPA) and its implementation from August 2011 has accelerated bilateral economic and commercial relations. During the visit of the Prime Minister Shri Narendra Modi to Japan in September 2014, Hon’ble Prime Minister of Japan Mr. Shinzo Abe pledged $35 billion in investment in India's public and private sectors over the next five years as well as to double the number of Japanese companies operating in India. During the visit of Prime Minister of Kishida of Japan to India on March 19, 2022 the two sides expressed satisfaction that the investment target  announced in 2014 has been achieved and expressed their shared intention to realize JPY 5 trillion of public and private investment and financing from Japan to India in the next five years, to finance appropriate public and private projects of mutual interest. The two sides also renewed the bilateral currency swap agreement of USD 75 billion.

2.Japanese Investment in India: In FY 2021-22, Japan Bank of International Cooperation (JBIC) Survey Report on Overseas Business Operations by Japanese Manufacturing Companies (Survey of Overseas Direct Investment by Japanese Companies) ranked India a close second to China for Japanese outward FDI in medium-term (3 years). Japanese FDI in India has increased in recent years but it remains small compared to Japan's total outward FDI. Japanese outward FDI to India in FY 2020-21 and FY 2021-22 stood at US$ 1.95 billion and US$ 1.49 billion respectively. Cumulatively, from 2000 until June 2022, the investments to India have been around US$ 37.79 billion ranking Japan fifth among source countries for FDI. In recent years, Japanese FDI into India has mainly been in electrical equipment, general machinery, chemicals & pharmaceuticals, financial & insurance, construction, transportation, wholesale & retail and services sectors.

2.1. The number of Japanese companies registered in India was 1439 as of June, 2022 compared to 1455 in 2020 with manufacturing firms accounting for half the total, according to the latest joint survey by the Embassy of Japan in India and the Japan External Trade Organization (JETRO). These Japanese companies have 4,790 business establishments in India. They include liaison and branch offices in India as well as local subsidiaries. Similarly, the number of Indian companies working in Japan is also increasing with the number now crossing more than 100. India’s Net Foreign Direct Investment in Japan during FY 2021-22 is - (minus) US$ 1.38 million.

3.Japanese Official Development Assistance (ODA): Japan has been extending bilateral loan and grant assistance to India since 1958. Japan is the largest bilateral donor to India. Japanese ODA supports India’s efforts for accelerated economic development particularly in priority areas like power, transportation, environmental projects and projects related to basic human needs. Accumulated commitment as of date is over JPY 6.876 billion (INR 4,37,742 crores) with the number of ongoing projects being 77. Under technical cooperation, Japan has spent JPY 109 billion and 11,600 Japanese experts have traveled to India, whereas 8500 trainees from India have come to Japan. For the North-eastern region, JICA has committed approx JPY 314 billion.

Commitments and Disbursements of ODA loan from Japan for last several years has been as follows: (JPY in billion)








































* Source JICA

4.India-Japan Comprehensive Economic Partnership Agreement (CEPA): The 6th Joint Committee Meeting under India-Japan CEPA was held on 15th January 2021 through VC to review various issues concerning working of the Agreement.

4.1. The Embassy of India exchanged Note Verbale with the Japanese Ministry of Foreign Affairs on 29 September, 2016 for the implementation of the Protocol amending the Indian-Japan DTAC (The Protocol entered into force on 29 October 2016). The Protocol provides for internationally accepted standards for effective Exchange of Information in tax matters and that both India and Japan shall lend assistance to each other in the collection of taxes. These provisions will help in preventing international tax evasion and tax avoidance.

5.India-Japan Dialogue on Finance: Bilateral Dialogue on Financial Markets was established in June 2015 at the level of Joint Secretary/DDG, to seek wider cooperation on financial issues such as financial markets, banking, insurance and financial regulations. The 5th India – Japan Financial Dialogue was held in Tokyo on 26th – 27th September, 2019. Sixth Financial Dialogue between two finance ministries was held online on 14th April, 2021. The Dialogue was upgraded to the level of Secretary/Vice Minister and on June 16, 2022, Mr. Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance, India, and Mr. Masato Kanda, Vice Minister of Finance for International Affairs, Japan, held the 1st India-Japan Finance Dialogue in Delhi, India, wherein the two sides exchanged views on the macroeconomic situation, financial system, financial digitalization and investment environment in the two countries, and confirmed their intentions to work closely together as they hold presidencies of G20 and G7 next year. The participants including private financial institutions also discussed various financial regulation issues towards further expansion of investment in India. The 1st India-Japan Finance Dialogue also subsumed India-Japan Dialogue on Financial Markets, Strategic Dialogue on economic issues and Macroeconomic policy Dialogue.

5.1 Embassy of India, Tokyo in association with the Department of Economic Affairs, Ministry of Finance, Government of India; Gujarat International Finance Tec-city (GIFT); Japan Financial Services Agency  with support from Japan External Trade Organization(JETRO) organized “India-Japan Financial Symposium: Financial Reforms and Emerging Opportunities in India” on April 22, 2021.  The objective of the event was to apprise Japanese stakeholders about liberalization of insurance, GIFT, overall reforms in financial sector and emerging opportunities, get the feedback of Japanese stakeholders, and explore the opportunities for bilateral business collaboration in these areas.

5.2 Prominent Japanese banks and institutions in financial sector may be perused at Annexure-I.

6. High Level Strategic Economic Dialogue: This dialogue was established to develop an overarching dialogue mechanism on all economic issues. The first meeting was held in New Delhi in July 2007. 9th Strategic Economic Dialogue was held in Japan in March 29, 2018 and is now subsumed in India-Japan Finance Dialogue.

7.Advance Pricing Agreement (APA): Central Board of Direct Taxes, CBDT, Department of Revenue, Ministry of Finance, India signed a bilateral Advance Pricing Agreement (APA) with Mitsui Co. Ltd., Japan on 19th December, 2014. This was India’s first APA and for a period of five years. The APA scheme has been introduced to bring about certainty and uniformity in transfer pricing matters of multi-national companies and reducing litigation. Indian delegation led by Joint Secretary, CBDT visited Japan during 26th-30th March, 2018 to attend 8th IMF Japan High Level Tax Conference. India and Japan discussed bilateral APA cases and cases under Mutual Agreement Procedure (MAP) during meetings held in Tokyo.

8.Specific Projects and Industrial Corridors

  • The DMIC - a flagship project of India Japan cooperation. Implementation of the project is in progress. Indian Government, through the Delhi Mumbai Industrial Corridor (DMIC) Project, is in the process of initiating a new era of industrial infrastructure development with the creation of new generation smart cities across six Indian States.
  • In addition to new manufacturing hubs, DMIC will envisage development of infrastructure linkages like power plants, assured water supply, high capacity urban transportation and logistics facilities as well as important interventions like skill development programme for providing employment opportunities of youth.
  • Rapid progress has made in the Chennai Bengaluru Industrial Corridor and the finalisation of the perspective plan for the CBIC region.
  • Dedicated Freight Corridor Project: Western DFC, a corridor of 1504 km from Dadri to JNPT is being developed for reducing the congestion in Delhi-Mumbai route.
  • Mumbai-Ahmedabad High Speed Railway (MAHSR): MAHSR is another very important area of cooperation between India and Japan in Railway Sector. National High-Speed Rail Cooperation Limited (NHSRCL) is implementing the project. Civil work, on the ground, has started with award of tenders for various civil work packages.


October, 2022


Japanese Major Financial Institutions in India

(As of June 2022)

◎Branch, ●Subsidiaries, ○Branch Office, ■Non-insurance subsidiaries




◎Mumbai Branch

◎New Delhi Branch

◎Chennai Branch

◎Bangalore Branch

○Neemrana Branch

◎GIFT Branch

Sumitomo Mitsui Banking Corporation

◎New Delhi Branch

○Mumbai Branch

○Chennai Branch

Mizuho Bank

◎Mumbai Branch

◎New Delhi Branch

◎Chennai Branch

◎Bangalore Branch

○Ahmedabad Branch


General Insurance Companies

Tokio Marine & Nichido Fire Insurance

●IFFCO-TOKIO General Insurance Company Ltd. @ New Delhi

●Edelweiss Tokio Life Insurance Company Limited @ Mumbai

○New Delhi Office

○Mumbai Office

○Chennai Office

Mitsui Sumitomo Insurance Company

■Cholamandalam MS General Insurance Company Limited @ Chennai

■Max Life Insurance Company Limited @ Gurugram

■Max Financial Services Limited @ Delhi

○New Delhi Office

■Cholamandalam MS Risk Services Limited @ Chennai

Sompo Japan Insurance

■Universal Sompo General Insurance Company Limited @Mumbai

○Mumbai Office


Life Insurance Companies

Nippon Life Insurance

●Reliance Nippon Life Insurance Company Limited @ Mumbai

■Reliance Capital Pension Fund Limited @ Mumbai

■Nippon Life India Asset Management Limited @ Mumbai

■Nippon Life India AIF Management Limited @ Mumbai

■Nippon Life India AIF Trustee Private Limited @ Mumbai

■Nippon Life India Trustee Limited @ Mumbai

Dai-ichi Life Holdings

●Star Union Dai-ichi Life Insurance Company Limited @ Navi Mumbai

○New Delhi Office


Securities Companies

Nomura Holdings

●Nomura Financial Advisory and Securities (India) Private Limited @ Mumbai



●Nomura Services India Private Limited @ Mumbai

●Nomura Structured Finance Services Private Limited @ Mumbai

●Nomura Fin Services (India) Private Limited @ Mumbai

Daiwa Securities Group

●Daiwa Capital Markets India Pvt. Ltd. @ Mumbai

●DC Advisory India @ Mumbai

●DC Advisory India @ Bangalore

Mizuho Securities

●Mizuho Securities India Private Limited. @ Mumbai