Indian Investments in Japan: How India Is Growing in the Land of the Rising Sun
- EXPERIENCE JAPAN
- 9 hours ago
- 14 min read
By Experience Japan | India–Japan Economic Relations | Updated: May 2026
Tags: Indian investments in Japan, India Japan bilateral trade, India Japan economic relations, Indian companies in Japan, India Japan CEPA, Japanese language learning India, Japan business opportunities for India, Indian professionals in Japan, India Japan 2025, Experience Japan, Japanese classes India
Introduction Indian investments in Japan: A Partnership Rooted in History, Elevated by Opportunity
When most people think of India–Japan economic relations, the first image that comes to mind is Japanese investment flowing into India — the Shinkansen bullet train, Maruti Suzuki, Toyota factories, or the sprawling industrial corridors. But there is a quieter, equally significant story that rarely makes front-page news: the growing footprint of India in Japan.
India's rise as the world's fifth-largest economy and its emergence as a global technology and pharmaceutical powerhouse have opened new doors in Japan. Today, Indian companies, professionals, and entrepreneurs are making their presence felt in one of the world's most sophisticated markets. The story of Indian investments and growth in Japan is one of mutual benefit, strategic alignment, and deepening civilizational ties — and it is only just beginning.
At Experience Japan, a non-profit organization dedicated to fostering deeper understanding between India and Japan through language, culture, and education, we believe that economic integration and cultural exchange go hand in hand. This article unpacks the full landscape of how India is growing in Japan — from trade and investment to human capital and language learning — so that whether you are a business professional, a student, or simply a curious reader, you understand why this relationship matters more than ever.
1. The Foundation: India–Japan Bilateral Trade in 2025
Before examining Indian investment in Japan, it is essential to understand the bilateral trade framework that makes this relationship tick.
Japan's bilateral trade with India totalled USD 25.17 billion during FY 2024–25. Today, India ranks 18th in Japan's total trade while Japan ranks 17th in India's total trade.
India's primary exports to Japan include organic chemicals, vehicles (other than railways and trams), nuclear reactor components, aluminium and aluminium articles, and fish and other aquatic invertebrates. India's primary imports from Japan cover nuclear reactors, copper and copper articles, electrical machinery and equipment, inorganic chemicals, and iron and steel.
The structural backbone of this trade relationship is the India–Japan Comprehensive Economic Partnership Agreement (CEPA), signed in 2011. The CEPA has significantly strengthened bilateral trade, with over 1,400 Japanese companies operating in India. On the Indian side, CEPA has progressively enabled Indian goods, services, and professionals to access Japan with reduced barriers — a crucial enabler for India's growing presence in that market.
India's exports to Japan have strong growth potential in sectors such as textiles, pharmaceuticals, agriculture, and services. Realising this potential is a key agenda for both governments as they push to make CEPA work more effectively for both nations.
2. The Big Picture: Japan as India's Investment Partner — and Vice Versa
Japan's Investment in India: The Baseline
To understand how Indian investment in Japan is growing, one must first appreciate the depth of Japan's commitment to India, which forms the context for the reverse flow.
Cumulatively, from April 2000 to December 2024, Japanese investments to India have been around USD 43.28 billion, ranking Japan fifth among source countries for FDI and accounting for 6.02% of total FDI into India.
Japan has doubled its investment commitment in India to USD 68 billion over the next 10 years, up from the previous USD 42 billion over five years announced in 2022. As the fifth largest investor in the Indian economy, Japan now has over 1,434 companies operating in India with 5,205 business establishments.
As per the Japan Bank for International Cooperation (JBIC) Survey Report on Overseas Business Operations by Japanese Companies for 2025, India maintained its position for the fourth consecutive year as the top promising country over the medium term (next three years), with a vote share of 61.8%, up from 58.7% in 2024.
This level of Japanese confidence in India is historically unprecedented — and it creates a two-way corridor that Indian businesses are increasingly using to enter Japan.
The Reverse Flow: India in Japan
More than 100 Indian companies are working in Japan. This number, while modest compared to the 1,400+ Japanese companies in India, is growing steadily and spans sectors including information technology, pharmaceuticals, business process outsourcing, and financial services.
As of December 2024, approximately 53,974 Indian nationals reside in Japan, a community whose commercial importance in IT, engineering, and caregiving is growing rapidly.
These numbers tell a story of momentum. Indian professionals, companies, and entrepreneurs are discovering Japan not just as a client market, but as a destination for business, collaboration, and long-term growth.
3. India's IT Sector: The Quiet Engine of Indian Presence in Japan
The most significant Indian footprint in Japan is in the information technology and IT-enabled services sector. Japan is the world's third-largest economy and has an aging, high-cost domestic workforce. The country faces a persistent technology talent shortage, making it a natural market for Indian IT capabilities.
Major Indian IT companies — including Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Tech Mahindra — have had Japan operations for years. They serve Japanese clients across banking, manufacturing, automotive, retail, and government sectors.
One of the best outcomes of CEPA has been the provision allowing Indian professionals to work in Japan, especially in IT, healthcare, and engineering. This legal framework has enabled Indian IT firms to deploy talent in Japan far more effectively than before.
The bilateral framework specifically supports Japanese companies' utilisation of IT talent from India. The India–Japan Digital Partnership, a dedicated framework under the two governments' broader cooperation architecture, has made IT collaboration a strategic priority.
For Indian IT companies, Japan offers a market that values quality, reliability, and long-term relationships — characteristics that align strongly with how Indian IT majors have built their global reputations. The challenge has historically been linguistic and cultural — and this is precisely where organisations like Experience Japan play a transformative role.
4. The Pharmaceutical Sector: Indian Generics Finding Ground in Japan
Japan is the world's second-largest pharmaceutical market — a vast, high-quality, and historically difficult market to penetrate. Indian pharmaceutical companies, globally recognised for their generic drug manufacturing capabilities, have been making calculated and strategic inroads.
Lupin Limited has been one of the most prominent Indian pharma players in Japan. The company has been present in Japan since 2007 and has made multiple acquisitions in the country's branded drug portfolio to expand its business. Sun Pharmaceutical Industries has also acquired branded drug portfolios in Japan, signalling India's pharmaceutical ambition in this market.
Indian pharmaceutical companies are making serious efforts to strengthen their presence in Japan, driven by Japan's government push for greater consumption of generic drugs — a policy shift that directly benefits India's cost-competitive generic manufacturers.
The India–Japan pharmaceutical relationship is also deepening at the governmental level, with regulatory cooperation, standards harmonisation, and market access discussions forming part of the bilateral agenda.
5. Human Capital: Indian Professionals Powering Japan's Future
Perhaps the most impactful dimension of India's growing presence in Japan is human capital. Japan faces one of the world's most severe demographic challenges — a rapidly aging population and a shrinking labour force. India, in contrast, has the world's largest youth population. This demographic complementarity is the foundation of a powerful human resource partnership.
During the Annual Summit in August 2025, under the India–Japan Human Resource Exchange, an action plan was jointly agreed upon to promote a two-way exchange of 500,000 people between India and Japan, particularly 50,000 skilled and semi-skilled personnel from India to Japan in the next five years.
This is a landmark commitment. It means that tens of thousands of Indian engineers, healthcare workers, IT professionals, caregivers, and skilled tradespeople will be working in Japan over the coming years — contributing to Japan's economy while gaining world-class skills and experience.
Japan's JICA has sent 11,835 Japanese experts to India and trained 8,400 Indian professionals in Japan — a foundation of capacity-building that has already created a network of India-savvy Japanese professionals and Japan-savvy Indian ones.
6. The Japanese Language Advantage: Why Learning Japanese Is an Investment
Here is a truth that is often overlooked in economic analysis: language is the gateway to economic opportunity. For Indian professionals, students, and businesses looking to participate in the India–Japan growth story, proficiency in the Japanese language is not merely a soft skill — it is a strategic asset.
Consider the following:
Indian IT professionals who speak Japanese are significantly more valuable to both Indian companies serving Japanese clients and Japanese companies hiring Indian talent.
Indian students who study in Japan — in one of the world's top university systems — gain access to a market that values Japanese-speaking foreigners enormously.
Indian companies entering the Japanese market for business development, partnerships, or sales need Japanese-speaking professionals to build the kind of trust and long-term relationships that Japanese business culture demands.
This is where Experience Japan steps in as a critical enabler. As a non-profit organization based in India, Experience Japan is committed to making quality Japanese language education accessible to Indians — whether you are a working professional targeting Japan-based employment, a student aiming for study-abroad opportunities, or a business professional seeking to tap the India–Japan economic corridor.
If you are in India and looking for Japanese language classes, JLPT preparation, or Japanese cultural orientation programmes, Experience Japan is your trusted partner. Our mission is to bridge the language and cultural gap that has historically been one of the biggest barriers to Indian engagement with Japan.
7. Key Indian Sectors Growing in Japan
Technology and Digital Services
Indian technology companies are expanding their Japan presence, offering services in cloud computing, artificial intelligence, enterprise software, and digital transformation. Japan's corporate sector is undergoing a massive digitisation push, and Indian IT firms are well-positioned to support this transition.
Ayurveda, Wellness, and Yoga
Indian wellness traditions — Ayurveda, yoga, and holistic health practices — have found a growing audience in Japan, where health consciousness is a cultural value. Indian wellness brands and practitioners are establishing a presence in Japan's wellness market, which is one of Asia's most sophisticated.
Gems, Jewellery, and Textiles
India's primary exports to Japan include organic chemicals and other manufactured goods, but the gems, jewellery, and textile sectors are increasingly being explored as high-value export categories, leveraging Japan's appreciation for quality craftsmanship.
Food and Agriculture
Indian spices, basmati rice, processed foods, and seafood products have a growing market in Japan. The Indian diaspora in Japan and Japan's rising interest in diverse global cuisines are driving demand for authentic Indian food products.
Startups and Innovation
Indian startups are beginning to look at Japan as a destination for expansion, particularly in sectors like fintech, healthtech, and agritech. Japan's mature consumer base, high digital literacy, and sophisticated investor ecosystem make it an attractive market for Indian startups at scale.
8. The Strategic Framework: Diplomatic Underpinning of Economic Growth
India's growing presence in Japan does not happen in a vacuum — it is underpinned by one of Asia's strongest bilateral diplomatic frameworks.
In August 2025, Prime Minister Modi paid an official visit to Japan and held a summit meeting with Prime Minister Ishiba. The two leaders issued the "Japan–India Joint Vision for the Next Decade."
The "Joint Vision for the Next Decade" (2025) aims for an additional JPY 10 trillion in private investment, building on the JPY 5 trillion target set in 2022. Collaboration spans AI, semiconductors, the ISRO–JAXA LUPEX mission, and the Clean Energy Partnership.
India–Japan relations are highly institutionalised, with more than 70 bilateral dialogue mechanisms across sectors such as space, cyber security, civil nuclear cooperation, energy, healthcare, semiconductors, and many others.
This institutional density means that the economic relationship has deep governmental support — creating a stable, long-term environment in which Indian businesses can plan their Japan strategies with confidence.
9. Challenges and the Road Ahead
While the India–Japan investment story is genuinely exciting, it is important to be clear-eyed about the challenges.
Despite more than a decade of CEPA, bilateral trade reached just USD 22.85 billion in fiscal year 2023–24, with a persistent deficit — Japan exported USD 17.69 billion to India, while India's exports stood at only USD 5.15 billion. India's market access in Japan has remained limited even after CEPA came into force.
Regulatory complexity, standards harmonisation, and cultural and linguistic barriers remain real obstacles for Indian companies entering Japan. The Japanese market rewards patience, relationship-building, and cultural sensitivity — all qualities that require preparation and long-term commitment.
Both sides have recognised the strong complementarities between the two economies — Japan's strengths in technology, capital, and advanced manufacturing, and India's skilled workforce, large market, and rapidly growing economy — and are actively working to remove structural barriers through the CEPA sub-committee framework.
For Indian professionals and businesses, the lesson is clear: invest in preparation. Learn the language. Understand the culture. Build relationships patiently. The rewards in Japan are significant — but they go to those who approach the market with respect, knowledge, and commitment.
10. How Experience Japan Can Help You Be Part of This Story
The India–Japan economic story is not just for large corporations and government delegations. It is for every Indian student who dreams of studying at a Japanese university. It is for every IT professional who wants to work at a Tokyo-based technology firm. It is for every entrepreneur who sees an opportunity in Japan's sophisticated consumer market. And it is for every curious individual who wants to understand one of the world's most remarkable cultures.
Experience Japan, as a non-profit organisation, exists precisely to serve these individuals. We offer:
Japanese Language Courses — from beginner to advanced, designed for Indian learners
JLPT (Japanese Language Proficiency Test) Preparation — structured coaching for all levels (N5 to N1)
Japan Cultural Orientation — helping Indians understand business etiquette, workplace culture, and daily life in Japan
Career Guidance — for professionals seeking opportunities in Japan or in India–Japan bilateral organisations
Community Building — connecting India's Japan enthusiasts, students, professionals, and businesses
Whether you are in Delhi, Mumbai, Pune, Bengaluru, Chandigarh, or Ludhiana, if you are looking for Japanese language classes near you or online, Experience Japan is here to guide you. Visit us at www.e-j.org.in to learn more and take the first step in your Japan journey.
Conclusion: India and Japan — A Relationship on the Rise
The story of Indian investments and India's growth in Japan is still in its early chapters. The numbers — over 100 Indian companies in Japan, nearly 54,000 Indian nationals residing there, an action plan for 50,000 skilled workers, and a bilateral trade relationship of USD 25 billion — are significant, but they represent the beginning, not the peak.
What makes this story genuinely compelling is the structural alignment between the two nations. India has what Japan needs most — a young, skilled, English-speaking workforce, a booming technology sector, world-class pharmaceutical manufacturing, and a rapidly growing consumer market. Japan has what India needs most — advanced technology, capital, quality infrastructure expertise, and access to global supply chains.
When two complementary economies of this scale and sophistication decide to deepen their partnership, the results are transformational.
For Indians, the call to action is clear: learn Japanese, understand Japanese culture, and position yourself at the intersection of Asia's two most dynamic economies. The investment you make in understanding Japan today will pay dividends — professionally, personally, and economically — for decades to come.
At Experience Japan, we are here to help you make that investment. Reach us at www.e-j.org.in and begin your journey today.
© 2026 Experience Japan. All rights reserved. Experience Japan is a registered non-profit organization dedicated to promoting Japanese language education and cultural exchange between India and Japan.
References & Sources:
Embassy of India, Tokyo — Official Bilateral Relations Data (2025–26)
Ministry of External Affairs, Government of India — India–Japan Bilateral Relations Brief (May 2025)
India Brand Equity Foundation (IBEF) — India–Japan Trade Report
Japan External Trade Organization (JETRO) — Business Conditions Survey 2024
Japan Bank for International Cooperation (JBIC) — Overseas Business Operations Survey 2025
Grant Thornton Bharat — India–Japan Trade & Investment Analysis
Centre for Social and Economic Progress (CSEP) — India–Japan FDI Analysis
Invest India — India–Japan Synergies Report
News on Air (Government of India) — India–Japan Economy Forum Coverage
FAQs
FAQ 1: How many Indian companies are currently operating in Japan?
As of the latest available data (December 2024), more than 100 Indian companies are operating in Japan. While this number is modest compared to the 1,434 Japanese companies present in India, it is growing steadily across sectors such as information technology, pharmaceuticals, business process outsourcing, and financial services. The Indian professional community in Japan — approximately 53,974 residents as of December 2024 — forms the human backbone of this commercial presence.
FAQ 2: What is CEPA, and how does it help Indian businesses enter Japan?
CEPA stands for the Comprehensive Economic Partnership Agreement, signed between India and Japan in 2011. Think of it as a legal and commercial highway between the two countries — it reduces tariffs on goods, eases rules for services trade, and crucially, allows Indian professionals to legally work in Japan in sectors such as IT, healthcare, and engineering. For Indian businesses, CEPA is the single most important policy framework enabling market entry into Japan, and both governments are actively working through six dedicated sub-committees to make it work better.
FAQ 3: Which Indian sectors have the strongest presence in Japan?
Information technology leads the way, with major Indian IT firms like Infosys, TCS, Wipro, HCL Technologies, and Tech Mahindra serving Japanese corporate clients. Pharmaceuticals follow closely, with companies like Lupin and Sun Pharma making acquisitions and building presence in Japan's second-largest pharma market in the world. Beyond these, Indian exports to Japan in organic chemicals, seafood, gems and jewellery, and agricultural products are also growing. Wellness, yoga, and Ayurveda represent an emerging cultural-commercial frontier as well.
FAQ 4: Why is learning Japanese important for Indians who want to work or invest in Japan?
Japanese business culture places extraordinary value on trust, long-term relationships, and direct communication in the local language. Unlike many Western markets where English fluency suffices, Japan's corporate environment heavily rewards those who can communicate in Japanese — both in written and spoken form. For Indian IT professionals, speaking Japanese can significantly increase earning potential and career opportunities. For entrepreneurs and business developers, it is often the difference between a deal and a missed opportunity. This is precisely why organizations like Experience Japan focus on making quality Japanese language education accessible across India.
FAQ 5: What is the total value of India–Japan bilateral trade?
Japan's bilateral trade with India totalled USD 25.17 billion during FY 2024–25. Of this, Japan's exports to India were significantly higher than India's exports to Japan — reflecting a trade deficit that both governments are actively working to correct. India exports organic chemicals, vehicles, aluminium, and seafood to Japan, while importing nuclear reactor components, electrical machinery, copper, and iron and steel. Expanding India's export basket to Japan — particularly in textiles, pharmaceuticals, and services — is a stated priority under the CEPA framework.
FAQ 6: How many Indian professionals are expected to go to Japan in the coming years?
During the India–Japan Annual Summit in August 2025, both Prime Ministers jointly agreed to an action plan under the India–Japan Human Resource Exchange initiative. The plan targets the two-way exchange of 500,000 people between India and Japan, with a specific commitment to send 50,000 skilled and semi-skilled personnel from India to Japan within the next five years. This represents a historic scale-up in people-to-people exchange and creates enormous opportunity for Indian engineers, IT professionals, healthcare workers, and tradespeople who prepare themselves — including through Japanese language training.
FAQ 7: Is Japan a good market for Indian startups?
Japan is a demanding but rewarding market for Indian startups. It has one of the world's highest rates of consumer tech adoption, a sophisticated investor ecosystem, and a corporate sector actively seeking digital transformation solutions. Japanese firms like SoftBank have historically invested in Indian unicorns such as Paytm, Ola, and Flipkart, demonstrating that capital flows both ways. For Indian startups in fintech, healthtech, agritech, and AI, Japan is increasingly on the radar — but success requires patience, localisation, and a deep understanding of Japanese business norms, which takes time and cultural preparation to build.
FAQ 8: What is Experience Japan, and how does it help people benefit from the India–Japan opportunity?
Experience Japan is a registered non-profit organisation based in India, dedicated to promoting Japanese language education and cultural exchange between India and Japan. In practical terms, this means offering Japanese language courses from beginner to advanced level, structured JLPT (Japanese Language Proficiency Test) preparation for all levels from N5 to N1, Japan cultural orientation programmes, and career guidance for those seeking opportunities in Japan or in India–Japan bilateral organisations. Whether you are a working professional, a university student, or someone simply curious about Japan, Experience Japan serves as your guide — visit www.e-j.org.in to get started.
FAQ 9: What is the JLPT, and why does it matter for Indians seeking opportunities in Japan?
The JLPT, or Japanese Language Proficiency Test, is the internationally recognised standard for certifying Japanese language ability. It has five levels — N5 (beginner) to N1 (near-native proficiency). For Indians looking to work in Japan, most employers require at least N3 or N2 level certification. For IT roles and professional jobs, N2 is increasingly the benchmark. Having a JLPT certificate does not just prove language skills — it signals commitment, discipline, and cultural seriousness to Japanese employers, which aligns with the values they look for in international hires. Experience Japan offers structured coaching for all JLPT levels.
FAQ 10: What does the future hold for India–Japan economic relations?
The trajectory is unmistakably upward. Japan has committed USD 68 billion in investment in India over the next decade, India has pledged to send 50,000 skilled workers to Japan within five years, and the two governments have issued a "Joint Vision for the Next Decade" covering semiconductors, clean energy, AI, defence, and digital infrastructure. For India, Japan represents not just a trade partner but a technology and capital partner for its next phase of growth. For Japanese businesses, India is rated the number-one promising investment destination for the fourth consecutive year. The two economies are structurally complementary — and the relationship is only growing stronger.