India’s Commerce Minister Piyush Goyal led the largest business delegation to Japan last week to push deeper trade ties.
Japanese brands such as Uniqlo, Muji and Onitsuka Tiger are taking over Indian malls, while companies like Nitori and Lawson are also establishing a footprint.
In finance, MUFG Bank bought 20% of Shriram Finance for $4.4bn, and Sumitomo Mitsui credited Yes Bank with a 24% share.
Japan Inc now leads India’s global capability centre ecosystem, with over 100 firms launching offshore R&D and AI hubs.
Japanese investment surged to $12.5bn amid PM Sanae Takaichi’s July visit, surpassing the 10 trillion yen target and signalling a strategic pivot from China.
Despite this momentum, India faces regulatory hurdles and a slow‑moving bureaucracy that can stall projects like the bullet train, prompting Chinese state media to highlight contract enforcement gaps.
Experts argue that Japan’s ties with India are growing beyond diplomatic gestures into entrenched corporate collaboration, but challenges remain in aligning economic and political interests.
