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Japan expands investment ties with India as China risks deepen
Japan’s push includes deals in India’s financial sector, such as MUFG’s $4.4 billion purchase for a 20% stake in Shriram Finance.
Japan’s business push into India is accelerating as Japanese firms seek growth beyond a weakening outlook at home and increasing risks tied to China, according to BBC Business. The outlet notes that India’s commerce minister Piyush Goyal led the country’s largest-ever business delegation to Japan, aiming to expand trade and investment ties.
In retail and consumer markets, the BBC says Japanese brands are rapidly expanding across Indian cities, including Uniqlo, Muji, and Onitsuka Tiger. It also highlights newer entrants and planned growth, such as Nitori entering the market and Lawson reportedly preparing for a large store rollout in India starting in Mumbai.
The shift extends beyond consumer goods into finance, with the BBC citing foreign lender pullbacks from Indian bank portfolios. It says MUFG Bank bought a 20% stake in India’s shadow lender Shriram Finance for $4.4 billion last year, and that Sumitomo Mitsui Banking Corporation became the largest shareholder in Yes Bank with a 24.22% stake.
Japan’s investment is also showing up in India-based global capability centres, the BBC reports. It says more than 100 Japanese firms operate these offshore innovation hubs in India, which conduct functions like R&D, corporate strategy, and artificial intelligence development, citing a Deloitte report.