Economic Economic


Embassy of India



 India-Japan Bilateral Economic Relations 

India and Japan share a ‘Special Strategic and Global Partnership’. 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 a variety of reasons including India's big and growing market and its resources, especially the human resources as well as focus on diversified and 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 first 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 realise 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. During the visit of Prime Minister Kishida in March 2023, the two leaders welcomed the steady progress made toward the 5-trillion-yen target of public and private investment and financing from Japan to India in the next five years, which was set in March 2022.
The two leaders also welcomed the signing of a 300-billion-yen (approx Rs. 18, 750 crores) loan for the Project for Construction of high-speed rail and confirmed that they will continue cooperation in promoting the high-speed rail project as a flagship project of Japan and India. It is the largest amount committed through a single project loan agreement in the history of Japan International Cooperation Agency (JICA), across the globe.  The two leaders also confirmed that they would continue cooperation on the development of the North-eastern region of India, through the Japan-India Act East Forum and three separate announcements of Japanese investment of USD 42 billion projects in Northeast India, and a clean energy partnership were also made. The Government of India and Government of Japan signed a Memorandum of Cooperation in January 2021 on a Basic Framework for Partnership for Proper Operting of the System Pertaining to ‘’Specified Skilled Workers’’ program. Embassy of India, with the august presence of MoS(CIT/MSDE), Shri Rajeev Chandrasekar and three Ministers from the Japanese side, launched an India-Japan Skill Connect on August 4, 2023.

2. Japanese Investment in India: As per, Japan Bank of International Cooperation (JBIC) Survey Report on Overseas Business Operations for 2022 by Japanese Manufacturing Companies (Survey of Overseas Direct Investment by Japanese Companies)   India has returned as the top promising country after three years, pushing China down into second place. Seen by a wide range of industries to be the most promising country for the next three years, India is back to the top place after three years, while China has lost a large number of votes. 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 September 2022, the investments to India have been around US$ 40.84 billion ranking Japan fifth among source countries for FDI and accounting for 6.24% of total FDI into India. 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 India-Japan Fund (IJF): India's National Investment and Infrastructure Fund (NIIF) and Japan Bank for International Cooperation (JBIC) launched a $600 million fund for climate and environment projects on 4 October, 2023. The Indian government will contribute to 49 per cent of the target corpus for the India-Japan fund (IJF), which is NIIF's first bilateral fund. The remaining 51 per cent will be contributed by JBIC. The IJF plans to prioritize investments in environmental sustainability and low carbon emission strategies. The establishment of IJF marks a significant breakthrough in the strategic and economic partnership between Japan and India. The fund will actively invest in India's environmental preservation sector, including renewable energy, e-mobility businesses, and circular economy sectors such as waste management and water.

2.2. The number of Japanese companies registered in India was 1400 as of October, 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 4901 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 2022-23 is – 1.798 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. The 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 6.978 billion (INR 440,742 crores ) with the number of ongoing projects being 77. Under technical cooperation started in 1966, Japan has spent JPY 109 billion over 11,835 Japanese experts have travelled to India, whereas 8400 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 the 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) organised “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 liberalisation of insurance, GIFT, overall reforms in the financial sector and emerging opportunities, get the feedback of Japanese stakeholders, and explore the opportunities for bilateral business collaboration in these areas.

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 on 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 multinational 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. The 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 programmes for providing employment opportunities for youth.
  • Rapid progress has been made in the Chennai Bengaluru Industrial Corridor and the finalisation of the prospective 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 the Railway Sector. National High-Speed Rail Corporation Limited (NHSRCL) is implementing the project. Civil work, on the ground, has started with the award of tenders for various civil work packages.

9. G7 and G20 Finance and Central Bank Governors Meetings : Finance Minister SUZUKI Shunichi and Bank of Japan Governor UEDA Kazuo attended the G20 Finance Minister and Central Bank Governors Meeting in Gandhinagar on 17-18 July 2023, whereas Finance Minister Smt Nirmala Sitharaman visited Japan to attend G7 Ministerial meeting on May 11-12, 2023.

10. Visit of RBI Governor Shri Shaktikanta Das to Japan, November 8-9, 2023: At the invitation of Institute of Indian Institute of Economic Studies (IIES), Tokyo, the RBI Governor Shri Shaktikanta Das visited Japan on November 8-9, 2023 and delivered Key Note remarks at the IIES. A Roadshow by Capital market division of RBI in association with Citi bank and HSBC was also organised followed by an investor meet and an interaction with the Financial Sector players of Japan. The RBI Governor Shri Shaktikantas Das highlighted the attractiveness of Indian Bond market, ease of doing business and calibrated opening of debt markets as other recent highlights of the progressing Indian economy.   Ambassador Shri Sibi George also delivered ‘’Special remarks’’ during the occasion.

11. International Financial Services Authority (IFSCA) delegation led by Shri K. Rajaraman, Chairperson, IFSC visited Japan on November 6-10, 2023 and held extensive discussions with financial sector stakeholders in Japan, inter alia, on the attractiveness of the GIFT IFSC for undertaking financial business activities. International Financial Services Authority (IFSCA) also became the 85th signatory to the Multilateral Memorandum of Understanding (MoU) of the International Association of Insurance Supervisors (IAIS), at the signing ceremony held during the Annual Conference of IAIS at Tokyo, Japan on 10th November 2023. This will facilitate IFSCA to collaborate and exchange information with other Global Insurance Supervisors. IFSCA also promoted Infinity Forum 2.0, which was held in the GIFT City, Gujarat on December 9, 2023.

12. A delegation of Insurance Regulatory and Development Authority of India visited Japan on November 9, 2023 and met with key players in the insurance sector. A roadshow organised by Embassy of India was addressed by Ambassador, Shri Sibi George, Shri Debashish Panda, and Shri Rajaraman, Chairman, IFSCA, GIFT City India. Presentations highlighted the vision of ‘’Insurance for All, and opportunities for Japanese companies for collaboration and investment in Indian Insurance sector.

13. List of Japanese Financial Institution in India





MUFG Bank, Ltd.

・MUFG Global Service Private Limited

・New Delhi Branch

・Mumbai Branch

・Bengaluru Branch

・Chennai Branch

・Neemrana Branch

Sumitomo Mitsui Financial Group, Inc.

○ Sumitomo Mitsui Financial Group, Inc.

・(Associated company) SMAS Auto Leasing India Private Limited

・(Subsidiary) SMFG India Credit Company Limited

・(Subsidiary) SMFG India Home Finance Company Limited


○ Sumitomo Mitsui Banking Corporation

・New Delhi Branch

・Mumbai Branch

・Chennai Branch



Mizuho Financial Group, Inc.

・(Subsidiary) Mizuho Global Services India Private Limited

・New Delhi - Gurugram Branch

・Mumbai Branch

・Ahmedabad Branch

・Bangalore - Devanahalli Branch

・Chennai Branch


Nomura Holdings, Inc.

・Nomura Financial Advisory and Securities (India) Private Limited

・Nomura Fixed Income Securities Private Limited

・Nomura Capital (India) Private Limited

・Nomura Services India Private Limited

・Nomura Structured Finance Services Private Limited

・Nomura Fin Services (India) Private Limited


Daiwa Securities Group Inc.

・Daiwa Capital Markets India Private Ltd.

Life Insurance

Nippon Life Insurance Company

・Reliance Nippon Life Insurance Company Limited

・(Subsidiary) Nippon Life India Asset Management Ltd

・(Subsidiary) Nippon Life India Trustee Limited

・(Subsidiary) Nippon Life India AIF Trustee Private Limited

・(Subsidiary) Nippon Life India AIF Management Limited

Meiji Yasuda Life Insurance Company


Dai-ichi Life Holdings, Inc.

・(Associated company) Star Union Dai-ichi Life Insurance Company Limited



General Insurance

MS&AD Insurance Group Holdings, Inc.

・(Subsidiary) Cholamandalam MS General Insurance Company Limited

・(Subsidiary) Cholamandalam MS Risk Services Limited

・(Subsidiary) Max Financial Services Limited

・(Subsidiary) Max Life Insurance Company Limited

Tokio Marine Holdings, Inc.

・IFFCO-TOKIO General InsuranceCompany Limited

Sompo Holdings, Inc.

・Universal Sompo General Insurance Company Limited

Embassy of India, Tokyo

December 2023