Archive · 31 Aug 2026
India Woos Wary Japanese Investors Beyond Strategic Ties
India wants more Japanese companies to invest and build businesses there.
Minister Piyush Goyal visited Tokyo with a large business group to make that case.
He even promised Japanese-style hotels, restaurants, schools, hospitals and golf courses.
Japan has invested much more money in China than in India.
Japanese companies also find several Southeast Asian countries easier places to do business.
India and Japan have become closer partners in defense and regional strategy.
But government friendship does not always make companies invest more.
Some Japanese firms worry about India’s business rules and restrictions on working with China.
The article says both countries need a stronger plan to encourage business cooperation, not just political cooperation.
Commerce Minister Piyush Goyal led what he described as India’s biggest-ever business delegation to Tokyo and urged Japanese companies to invest.
Japanese investment in China has reached $130 billion, compared with $48 billion in India, while Southeast Asian economies have also attracted more Japanese capital.
India has sought Japanese investment for decades, with notable successes including Suzuki’s small-car project and later investments in infrastructure, transport and industry.
The article says Japanese companies still view China, Taiwan and Southeast Asia as easier places to do business than India.
Closer India-Japan strategic ties have not automatically translated into stronger corporate investment, with Indian restrictions on China and business conditions remaining concerns.
- Who
- Indian Commerce Minister Piyush Goyal, Indian officials and business representatives, and Japanese companies and investors.
- What
- India is seeking substantially greater Japanese investment and business cooperation.
- When
- Goyal made the investment appeal during a visit to Tokyo last week; the article also discusses developments from the 1980s through 2025.
- Where
- Tokyo, Japan, and India.
- Why
- India wants to convert its strategic partnership with Japan into stronger commercial ties, while Japanese companies remain concerned about India’s business environment and China-related restrictions.
India’s investment pitch
Japanese corporate concerns
India’s business opportunity
India’s investment pitch
India argues that its market and growing strategic relationship with Japan justify substantially greater Japanese investment.
Japanese corporate concerns
The article says the attractions of India’s domestic market alone have not been sufficient to draw sizeable foreign investment.
Government-to-business connection
India’s investment pitch
India’s leaders expect closer political, defense and strategic ties to help produce stronger commercial relations.
Japanese corporate concerns
Japanese corporate boards may not follow government relationships automatically; business-to-business decisions remain separate.
China-related restrictions
India’s investment pitch
India’s restrictions on doing business with China are presented as policies that may protect India’s strategic interests.
Japanese corporate concerns
Japanese companies with Chinese links may be wary of investing in India because those restrictions could complicate supply chains and cross-border business.
- Indian delegation
- Piyush Goyal described it as India’s biggest-ever business delegation.
- Japanese investment in China
- Japanese companies have invested a stated total of US$130 billion in China.
- Japanese investment in India
- Japanese companies have invested a stated total of US$48 billion in India.
- 2025 investment comparison
- Japanese investment in China rose by more than 55% in 2025, while investment in India rose by just over 10%.
- Historical investment effort
- India has sought greater Japanese investment for roughly half a century, with efforts dating to the 1980s.
- Major investment areas
- Japan has invested in India’s urban infrastructure, transportation and a range of industries.
- Central concern
- The article says Japanese companies often view India as more difficult for business than China, Taiwan and Southeast Asia.