Embassy of India,

Tokyo

 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 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 up to 2026. 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.

1.2 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 Operating of the System Pertaining to ‘’Specified Skilled Workers’’ program. Embassy of India, with the august presence of MoS(CIT/MSDE), Shri Rajeev Chandrasekhar 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 2024 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 as compared to China. 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 2021-22, FY 22-23 , FY 23-24, FY 2024-25 stood at US$ 1.49 bn, 1.79 bn and 3.17 bn and $ 2.48 bn. .Cumulatively, from April 2000 to December 2024, the investments to India have been around US$ 43.28 billion ranking Japan fifth among source countries for FDI and accounting for 6.02% of total FDI into India. In recent years, Japanese FDI into India has mainly been in, automobiles, electrical equipment, general machinery, chemicals & pharmaceuticals, finance, 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 prioritizes 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. Two success cases since founding of the fund aggregating to Rs 10 bn are: 2 e-mobility projects – Mahindra last mile mobility manufactures of 3-wheeler and 4 wheelers for urban cargo and passenger movement and Ather Energy manufactures 2 wheelerinscootersegment.
2.2. The number of Japanese companies registered in India was 1490 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 84. Under technical cooperation started in 1966, Japan has spent JPY 109 billion over 11,835 Japanese experts have traveled to India, whereas 8400 trainees from India have come to Japan. For the North-eastern region, JICA has committed approx JPY 314 billion. Government of India and Government of Japan have signed 6 loan agreements worth JPY 191.736 billion under Japan’s ODA on 28 March 2025.

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

(Source: JICA/DEA)

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.

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 policyDialogue.
The 2nd Indo -Japan Financial Dialogue was held on 6th September 2024 at Tokyo , which was co- chaired by Mr. Ajay Seth and Vice -Minister Atshushi Mimura .Both countries shared insights into their economic conditions, with Japan focusing on structural reforms and India highlighting fiscal consolidation and inflation management. Discussions were held on the Indio-Pacific region, Africa, and the Pacific Island Countries (PICs). Japan emphasized its Free and Open Indo-Pacific (FOIP) strategy, while India underlined its "Act East" policy, aligning their efforts for sustainable infrastructure and development projects in third countries. Specific initiatives like the India-Japan Fund and Resilient and Inclusive Supply-chain Enhancement (RISE) were discussed, with Japan committing to substantial investments in India’s infrastructure and manufacturing sectors, especially in clean energy. On financial sector collaboration, while Japan focused on being a leading asset management center, digitization of finance, and sustainable finance. India shared its progress in digital finance (e.g., UPI and how more than 55% of the total digital transactions in the world take place in India) and ESG disclosure standards. India and Japan agreed to collaborate on MDB reforms, debt sustainability, and international tax cooperation, with shared interest in ensuring financial stability and transparency. Both sides expressed a commitment to continue dialogues, with India inviting Japan for the next round and reiterating support for joint initiatives, such as RISE and the Indo-Pacific Economic Framework. The dialogue reflected on a broad spectrum of economic, strategic, and regulatory cooperation aimed at strengthening ties between India and Japan across multiple domains.

India hosted the 41st Plenary Meeting of the Eurasian Group on Combating Money laundering and Financing of Terrorism (EAG) from November 25 to 29, 2024, in Indore, Madhya Pradesh. The event reaffirmed India’s strong commitment to global financial integrity and international cooperation in combating money laundering, terrorist financing, and proliferation financing (AML/CFT/CPF). Represented at the highest levels, with participation from Secretary, Revenue , Minister of State for Finance and Hon’ble Governor of Madhya Pradesh, India underscored its resolve to work closely with EAG Member States and observer jurisdictions to strengthen financial systems, improve risk monitoring, and share best practices. India’s Mutual Evaluation Report, conducted jointly with FATF and APG, was formally adopted at this session, marking a significant step forward in aligning its AML/CFT framework with global standards. The nation also presented its national experience, highlighting its advances in financial oversight, capacity building, and collaboration with regional and global stakeholders.

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 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. National Industrial Corridor Development Programme and its 12 new projects:

The National Industrial Corridor Development Corporation (NICDC) is playing a pivotal role in advancing India’s "Amrit Kaal: Vision 2047," spearheading the development of 11 industrial corridors across 13 states, encompassing 20 major projects. Among these, four smart cities—Dholera (Gujarat), Greater Noida (Uttar Pradesh), Vikram Udyogpuri (Madhya Pradesh), and AURIC Shendra-Bidkin (Maharashtra)—are fully ready for industrial allotment, while four more are nearing completion, and 12 new smart cities have been recently approved. These developments collectively offer 1,091 acres of industrial land with an investment potential of ₹97,378 crore, and are projected to create over 1 lakh jobs, with 410+ plots already allotted, 80+ units operational, and 90 units under construction. Prominent investors include Haier, Amul, and Hyosung. The 12 newly approved smart cities, spread across 10 states and aligned with six industrial corridors, possess a combined investment potential of ₹1.52 lakh crore (approximately $18.24 billion USD), entail project costs of ₹28,602 crore (around $3.43 billion USD), and offer a cumulative employment potential of over 939,000 jobs. Key features across these industrial cities include uninterrupted power, recycled water supply, effluent treatment, multi-modal logistics hubs, and single-window digital land allotment systems, bolstered by special incentives for anchor investors.New industrial nodes like Tumakuru (Karnataka) and Krishnapatnam (Andhra Pradesh) are individually projected to generate 88,000–98,000 jobs, while Dadri (Uttar Pradesh) and Nangal Chaudhary (Haryana) are emerging as strategic hubs with investments valued in tens of thousands of crores. These initiatives are seamlessly integrated with India’s rapidly growing infrastructure ecosystem—featuring 68,000+ km of railway network, highways expanding at 40–50 km/day, and the PM GatiShakti multimodal logistics framework, all supporting futuristic plug-and-play, walk-to-work urban layouts. The NICDC jointly executed by the Government of India and state governments, focuses on building Greenfield industrial smart cities that attract competitive manufacturing through advanced ICT infrastructure. While the central government funds trunk infrastructure, the states contribute land as equity. This programme is closely aligned with PM GatiShakti, ensuring seamless logistics via expressways, highways, and ports to reduce operational costs. So far, 20 projects have been approved under seven industrial corridors, with completed cities like Dholera, Shendra-Bidkin, Greater Noida, and Vikram Udyogpuri gaining traction from sectors such as semiconductors, aerospace, EVs, pharma, textiles, green hydrogen, IT, robotics, and food processing, reinforcing India's role as a global manufacturing hub. Additionally, major connectivity projects are reinforcing these industrial zones. The Western Dedicated Freight Corridor (DFC), a 1,504 km rail stretch from Dadri to JNPT, is being developed to decongest the Delhi-Mumbai trade route. Parallelly, the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project, executed by National High-Speed Rail Corporation Limited (NHSRCL) with cooperation from Japan, is nearing completion and marks a significant leap in India’s high-speed rail ambitions.

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 Road show by Capital market division of RBI in association with Citi bank and HSBC was also organized followed by an investor meet and an interaction with the Financial Sector players of Japan. The RBI Governor Shri Shaktikanta 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, 2023and 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 road show organized 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.
12. Engagement with FIIs and Sovereign Wealth funds of Japan: As part of growing interest among Japanese asset managers, major institutions like Daiwa Asset Management and Nomura Asset Management launched India-focused ETFs. During 2023 and 2024, nine passive funds tracking Nifty indices were introduced by all major fund houses including Sumitomo Mitsui Trust Holdings, Mitsubishi UFJ Asset Management, and BlackRock Japan. The launch of NISA (Nippon Individual Savings Account) further fueled momentum, resulting in significant inflows into India-focused funds and pushing the total Assets Under Management (AUM) to $1.5 billion USD as of May 2024. In June 2024, the listing of BlackRock’s iShares India Nifty 50 ETF on the Tokyo Stock Exchange received an overwhelming response, further reflecting the surging confidence of Japanese investors in Indian markets.On 18 June 2024, the President of JICA, Prof. Akihiko Tanaka, met with Ambassador Sibi George, reaffirming JICA’s commitment of ¥809.36 billion to India, underlining strong development cooperation between the two countries. On 6 November 2024, the 10th Anniversary of the “Make in India” initiative was celebrated at the Mission, in the presence of Mr. Shin Hosaka (METI) and Ms. Nivruti Rai, CEO of Invest India, showcasing India’s evolving investment climate. Invest India Team engaged with more than 30 companies across Tokyo and Osaka from 4–8 November 2024, in a bid to attract investments into emerging sectors like semiconductors, clean tech, and manufacturing.A strong industrial cooperation theme continued with the CII-led delegation visit on 5 April 2024, which included CII President Mr. R. Dinesh. The delegation signed an MoU with JUSE to enhance collaboration in quality standards and participated in a Keidanren-hosted roundtable to showcase Indian technological partnerships. Followed by this, the AIMA delegation, led by Mr. Nikhil Sawhney, visited Japan between 8–13 April 2024, holding meetings with Japanese corporate leaders such as Mr. Genichi Tamatsuka (Lotte Holdings) and Mr. Kenji Goto (Fuji Electric) to further strengthen institutional and corporate linkages. On 20 January 2025, the Ambassador called on Finance Minister Mr. Katsunobu Kato, who expressed condolences on the passing of former PM Dr. Manmohan Singh and appreciated India’s successful G20 presidency. FM Kato highlighted that ¥3.7 trillion out of the ¥5 trillion Japanese investment commitment to India had already materialized and emphasized SME expansion into India amid yen depreciation in Southeast Asia. He further noted interest in India’s digital public infrastructure, semiconductor collaboration, and skilled labor mobility. On 21 January 2025, the Ambassador met METI Minister Mr. Muto Yoji to discuss economic cooperation, people-to-people exchanges, trade policy, and Japanese investments in India .On 27 March 2025, Prime Minister Narendra Modi received Mr. Takeshi Niinami and 20 senior executives from Keizai Doyukai in Delhi to explore synergies in AI, MSMEs, agriculture, and clean energy, aligning India-Japan cooperation with future-forward sectors. This followed the 48th IJBCC–JIBCC Joint Meeting held in Delhi on 6 March 2025, co-chaired by Mr. Onkar S. Kanwar and Mr. Tatsuo Yasunaga, focusing on supply chains, resilient manufacturing, and bilateral business expansion. Sectoral outreach also gained momentum with a series of investment promotion pitch events conducted across diverse verticals such as healthcare, green tech, education, aerospace, automotive, and emerging technologies. Complementing this, the India–Japan–Africa Business Forum was co-hosted by METI and Nikkei in Tokyo on 26 February 2025, where the Ambassador highlighted India’s position as a “manufacturing hub for the world” across the Indo-Pacific, with trilateral collaboration pathways.As part of broader strategic outreach, the National Investment and Infrastructure Fund (NIIF) has partnered with the Embassy of India to attract long-term “patient capital” to India. To reinforce this partnership, the Ambassador held a focused meeting with the President of GPIF Mr. Masataka Miyazono on 31 July 2024 to encourage greater capital deployment into India. GPIF officials Mr. Ryosuke Yoshide and Mr. Hiroto visited India (28–29 October 2024 to evaluate India’s investment climate. On 8 October 2024, Nippon Asset Management (NAM) CEO Mr. Sandeep Sikka met the Ambassador to discuss NAM’s $83 billion AUM in India and future initiatives such as a tech start-up fund and India ETF via GIFT City. NAM announced plans to launch new products on the Tokyo Stock Exchange. On 12 December 2024, the Embassy, in collaboration with Mizuho Securities, hosted the India-Japan Connect Seminar on Mergers and Acquisitions, with speakers from Mizuho Bank, Kroll Associates, and Nitto Seiko showcasing success stories and market entry strategies. Complementing this, the Embassy has held several events with leading Law firms of India looking at Japan , like M/s Trilegal ,J. Sagar Associates , M/s Kundra and Bansals and Dua Associates The Embassy also hosted a Union Budget 2024–25 event titled “Beyond the Budget: Unveiling the Future of Indian Business in Global Context” with KPMG .

. List of Japanese Financial Institution in India: