1 week ago
Japanese Financial Institutions Seek Easier Access to India’s Markets
Japanese financial companies want to invest more money in India.
They asked India to make it easier to move profits back home.
They also want clearer rules and better access to Indian bonds and other investments.
Some types of money transfers, such as share buybacks, can face delays and extra checks.
Indian bonds can offer higher returns than investments in Japan.
India and Japan hope Japanese investors will put 10 trillion yen into India over the next 10 years.
India wants this investment to bring technology, jobs and manufacturing, not just money.
Both sides said they are interested in building long-term partnerships.
Japanese financial institutions asked India to simplify profit repatriation and improve capital-market access.
They sought greater regulatory predictability for long-term investors during talks in Tokyo with Piyush Goyal.
The discussions support an India-Japan goal of mobilising 10 trillion yen in Japanese private investment over the next decade.
Japanese institutions want broader access to Indian fixed-income markets, citing India’s higher yields compared with Japan’s low-yield environment.
Goyal highlighted opportunities in semiconductors, artificial intelligence, renewable energy, hydrogen, manufacturing and digital infrastructure.
- Who
- Japanese financial and investment institutions and India’s Commerce and Industry Minister Piyush Goyal.
- What
- They discussed simplifying profit repatriation, widening access to Indian capital markets and improving regulatory predictability for long-term investment.
- Where
- Tokyo, Japan.
- When
- Tuesday; the talks took place in Tokyo.
- Why
- The discussions aimed to strengthen long-term capital flows and investment partnerships, supporting the goal of mobilising 10 trillion yen in Japanese private investment into India over the next decade.
Japanese Investor Concerns
Indian Investment Priorities
Market access and regulation
Japanese Investor Concerns
Japanese institutions want simpler capital transfers, broader access to bonds and greater regulatory predictability; they said structural capital moves can face delays, valuation scrutiny and transfer-pricing rules.
Indian Investment Priorities
India presented itself as a long-term investment destination and highlighted opportunities across technology, manufacturing, energy and infrastructure.
Purpose of investment
Japanese Investor Concerns
Japanese institutions are seeking attractive fixed-income opportunities and long-term investment options for funds managing substantial yen-denominated liabilities.
Indian Investment Priorities
Goyal said India seeks more than capital, including technology, innovation, manufacturing capabilities, employment and integration with global value chains.
Key facts
- Investment target
- India and Japan aim to mobilise 10 trillion yen, or about $68 billion, in Japanese private investment into India over the next decade.
- Requested reform
- Japanese institutions sought simpler profit repatriation procedures and more predictable regulation.
- Fixed-income access
- Investors requested broader access to Indian corporate and government bonds.
- Indian debt yields
- India’s top-tier debt was described as yielding 6.5% to 9%.
- Existing framework
- The Fully Accessible Route allows foreign investors to access designated government-security tenors without macro caps.
- MUFG investment
- MUFG highlighted an investment of around $4 billion in Shriram Finance.
- Priority sectors
- Goyal cited semiconductors, artificial intelligence, data centres, renewable energy, green hydrogen, advanced manufacturing and digital infrastructure.
Sources
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