Goyal Invites Greater Japanese Institutional Capital

Commerce and Industry Minister Piyush Goyal on Tuesday held discussions with representatives of Japan's leading financial and investment institutions on strengthening long-term capital flows, deepening investment partnerships and expanding Japanese participation in India's growth story.

The meeting brought together senior representatives of Mitsubishi UFJ Financial Group (MUFG), Development Bank of Japan (DBJ), Mizuho, Morgan Stanley, Nomura and Nippon Life, providing a platform for an exchange of views on India's economic outlook, emerging investment opportunities and measures to further facilitate Japanese institutional investment.

In the meetings, Goyal highlighted the strength and resilience of the Indian economy, noting that India recorded 7.7% growth last year despite global uncertainties and is working towards becoming a $30 trillion economy by 2047.

He underlined India's strong banking sector, robust capital adequacy and low levels of non-performing assets, along with the country's expanding middle class and rising disposable incomes.

He added that significant opportunities exist for Japanese firms in sectors such as semiconductors, artificial intelligence, data centres, renewable energy, green hydrogen, advanced manufacturing and digital infrastructure.

"The Japanese financial institutions shared their growing engagement with India and expressed strong confidence in the country's long-term growth prospects," the commerce ministry said in a statement.

It said that MUFG highlighted its investment of around $4 billion in Shriram Finance and its expanding interests in areas including renewable energy and hydrogen, while DBJ outlined its dedicated India strategy and growing interest in property development, venture capital and other long-term investments.

Similarly, Mizuho highlighted the improving profitability of Japanese companies operating in India and its expanding 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 pointed to the evolution of its India operations towards higher-value capital markets and financial services activities," it said.

The ministry added that 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 areas such as artificial intelligence and cybersecurity.

Nippon Life emphasised the importance of long-term "patient capital" and noted the strong returns generated by its Indian operations.

The discussions also covered measures that could further facilitate the flow of Japanese institutional capital into India.

"Participants highlighted the importance of simplifying processes for profit repatriation, improving access to Indian capital markets and ensuring greater regulatory predictability for long-term investors," it said.

While Japanese institutions reiterated that their long-term strategic outlook on India remains strongly positive, they noted that currency movements and certain regulatory and policy considerations can influence short-term investment decisions, it said.

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.

Further Goyal stated that India is seeking not merely capital but long-term partnerships that bring technology, innovation, manufacturing capabilities, employment and integration with global value chains.

The discussions assume significance in the context of the India-Japan objective of mobilising ¥10 trillion of Japanese private investment into India over the next decade.

"The interaction reaffirmed the strong confidence of leading Japanese financial institutions in India's long-term growth prospects and the considerable potential for expanding bilateral investment, technology and business linkages," the ministry said.