Tokyo: Union Minister of Commerce and Industry Piyush Goyal held discussions in Tokyo with senior leaders of leading Japanese financial and investment institutions, calling for stronger long-term capital flows and greater Japanese institutional capital participation in India’s growth story.
The meeting brought together senior representatives from MUFG, Development Bank of Japan (DBJ), Mizuho, Morgan Stanley, Nomura and Nippon Life.
Discussions focused on India’s economic outlook, emerging investment opportunities and measures to further facilitate Japanese institutional investment in India.
Piyush Goyal Highlights India’s Growth Potential
Piyush Goyal highlighted the strength and resilience of the Indian economy, noting that India recorded 7.7 per cent growth last year despite global uncertainties and is working towards becoming a USD 30 trillion economy by 2047.
The Minister underlined the strength of India’s banking sector, robust capital adequacy, low levels of non-performing assets, expanding middle class and rising disposable incomes as key drivers of sustained economic growth.
For Japanese institutional capital, Goyal highlighted significant opportunities across semiconductors, artificial intelligence, data centres, renewable energy, green hydrogen, advanced manufacturing and digital infrastructure.
He noted that 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, he added, is creating new opportunities across manufacturing and technology.
India Seeks Greater Japanese Institutional Capital
Highlighting the strategic and comprehensive nature of India-Japan relations, Goyal said India regards Japan as a trusted partner in its journey towards becoming a global manufacturing, technology and investment hub.
He emphasised India’s commitment to intellectual property protection, availability of high-quality talent, policy reforms and creating an increasingly conducive business environment for investors.
The discussions also highlighted the importance of expanding Japanese institutional capital flows into India and strengthening investment partnerships between the two countries.
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Japanese Financial Institutions Express Confidence in India
The Japanese financial institutions shared their growing engagement with India and expressed strong confidence in the country’s long-term growth prospects.
MUFG highlighted its investment of around USD 4 billion in Shriram Finance and its expanding interests in areas including renewable energy and hydrogen.
Development Bank of Japan 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. It also highlighted the evolution of its India operations towards higher-value capital markets and financial services activities.
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.
Ease of Capital Flows and Profit Repatriation Discussed
The discussions also covered measures to 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.
The Japanese institutions reiterated that their long-term strategic outlook on India remains strongly positive, 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 continuously improving the ease of doing business and creating a more seamless investment environment.
GIFT City as Gateway for International Capital
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.
Goyal emphasised that India is seeking not merely capital but long-term partnerships that bring technology, innovation, manufacturing capabilities, employment and integration with global value chains.
He highlighted opportunities in both new and emerging sectors as well as established businesses requiring modernisation and technological upgrading, creating further scope for Japanese institutional capital to participate in India’s development.
India-Japan Investment Target
The discussions assume significance in the context of the India-Japan objective of mobilising 10 trillion yen 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 highlighted the considerable potential for expanding bilateral investment, technology and business linkages.
The meeting marked another important step towards deepening the India-Japan economic partnership and unlocking greater flows of long-term Japanese institutional capital into India’s next phase of growth.
