New Delhi: Japan has significantly expanded its investment footprint in India, with investment commitments worth approximately ₹1 trillion and a series of strategic partnerships spanning manufacturing, semiconductors, clean energy, digital infrastructure, finance, quantum technology and advanced research. The investment roadmap highlights the growing depth of the India-Japan Special Strategic and Global Partnership and underscores Japan’s long-term commitment to India’s economic transformation.
According to the latest investment overview, more than 120 Memoranda of Understanding (MoUs) have been signed between India and Japan since August 2025, aimed at accelerating bilateral trade, investment and technological collaboration across multiple sectors.
The investment programme reflects a strategic shift beyond traditional manufacturing, with both countries now collaborating in semiconductors, artificial intelligence, quantum technologies, green hydrogen, biogas, digital infrastructure and critical technologies.
Major Investments Across India
In Haryana, Daikin is establishing a Research and Development (R&D) facility with an investment of ₹10 billion. The state has also emerged as a major destination for Japanese investment through Sumitomo Corporation, which has announced a ₹38 billion comprehensive collaboration project.
Another major investment by Sumitomo Corporation Renewable Energy Company involves ₹100 billion towards renewable energy projects, strengthening India’s clean energy transition.
Japanese automobile manufacturer Suzuki is investing ₹50 billion for land acquisition and the establishment of a new manufacturing plant, further expanding its production base in India.
In Bidkin, Toyota is setting up a new automobile manufacturing facility with an annual production capacity of 100,000 vehicles. The project is expected to generate approximately 2,800 jobs, providing a significant boost to regional industrial development.
Green Energy and Industrial Projects
Japan’s focus on green energy is reflected in several landmark investments.
Itochu Corporation, in partnership with Larsen & Toubro (L&T), is developing a Green Ammonia project at Kandla Port with an annual capacity of 300,000 tonnes and an investment of ₹189 billion.
IHI Corporation and ACME Group are jointly investing ₹295 billion to establish facilities capable of producing 400,000 tonnes of green ammonia annually.
In another clean fuel initiative, Mitsubishi Gas Chemical and ACME are developing a Green Methanol project with an annual production capacity of 100,000 tonnes, involving an investment of ₹90 billion.
To further promote sustainable energy, Suzuki R&D, the National Dairy Development Board (NDDB) and NEDF are collaborating to establish a Biogas Plant in Assam, supporting India’s renewable energy ecosystem.
Semiconductor and Deep Technology Collaboration
Japan has significantly expanded its engagement in India’s semiconductor ecosystem.
Fujifilm, in collaboration with the Government of Gujarat, is setting up facilities for the production of semiconductor materials, strengthening India’s domestic semiconductor supply chain.
Toho Koki, working with IIT Guwahati, is supporting the development of a semiconductor ecosystem in Northeast India.
Telecommunications and Digital Infrastructure
Japanese companies are also investing heavily in India’s digital infrastructure.
NTT Data and Persistent Systems are collaborating on next-generation telecommunications technologies, reinforcing India’s digital transformation.
Separately, NTT Data is investing ₹38 billion in a submarine cable project, aimed at enhancing India’s international digital connectivity and data infrastructure.
Artificial Intelligence, Quantum Technology and Space
The partnership has expanded into advanced technologies as well.
Mitsubishi Electric, together with IIT Hyderabad, is collaborating on human capital development in Artificial Intelligence, Quantum Technologies and Security Studies, with a focus on research, innovation and skill development.
In the space sector, Japanese company ispace and Indian space startup Digantara are working together on a joint lunar exploration mission, highlighting growing cooperation in space technology.
Additionally, Yaqumo and the Indian Institute of Science (IISc) are collaborating to establish a Quantum Technology ecosystem and research partnership, strengthening India’s capabilities in next-generation computing and advanced scientific research.
Agriculture and Rural Development
Japanese investment is also supporting agricultural innovation.
BIJSI, in partnership with the Government of Meghalaya, is promoting high-value-added agriculture, aimed at improving agricultural productivity and enhancing farmers’ income.
Steel and Manufacturing
In the industrial sector, JFE Steel and JSW Steel are jointly developing an integrated steelworks project with an investment of ₹160 billion, further strengthening India’s manufacturing capabilities.
Financial Services
Japan’s financial institutions continue to deepen their presence in India.
Mitsubishi UFJ Financial Group (MUFG) and Shriram Finance have announced investments worth ₹400 billion, while Sumitomo Mitsui Banking Corporation (SMBC) and YES Bank are collaborating under a partnership valued at ₹170 billion, aimed at strengthening financial services and expanding access to capital.
Expanding Strategic Partnership
The investment map highlights that, in addition to large-scale investments, India and Japan are expanding cooperation in semiconductors, artificial intelligence, quantum technologies, clean energy, biogas, green ammonia, manufacturing and critical technologies.
With over 120 MoUs signed since August 2025 and investment commitments of nearly ₹1 trillion, the India-Japan economic partnership is entering a new phase, positioning both countries to deepen collaboration in high-technology sectors, sustainable development and advanced manufacturing while reinforcing their long-term strategic partnership.