Japanese firms are making India their next big investment destination
Japanese companies are ramping up investments in India, turning the country into a hot spot for major deals—especially in financial services.
Just this week, Mizuho Financial Group grabbed a controlling stake in Avendus Capital, while Mitsubishi UFJ is considering investing more than $3.2 billion for about 20% of Shriram Finance, according to people familiar with the matter.
Sumitomo Mitsui has also become the biggest shareholder in Yes Bank, showing just how seriously Japan is taking India right now.
Why it matters:
Deal activity with Indian firms has jumped 15% this year to nearly $90 billion, and Japanese interest keeps growing as more executives visit to scope out opportunities.
Experts say this momentum isn't slowing down anytime soon—Japanese companies are eyeing sectors like mobility, renewables, and infrastructure for long-term growth.
According to Nitin Maheshwari from JPMorgan, the momentum should continue in 2026 and beyond.