Japan Inc Bets Big On India As China Risks Deepen

Japan’s companies are expanding investment in India as geopolitical tensions and slower growth make China less attractive, with Japanese firms announcing $12.5bn in investments through about 120 agreements during Prime Minister Sanae Takaichi’s visit in July, according to BBC. India’s commerce minister Piyush Goyal also led the country’s largest-ever business delegation to Japan last week to deepen trade and investment ties. The article says Japanese consumer brands including Uniqlo, Muji and Onitsuka Tiger are expanding rapidly in India, while Lawson plans to open 10,000 stores by 2050. Japanese banks are also buying Indian financial assets: MUFG Bank bought 20% of Shriram Finance for $4.4bn last year, and SMBC became the largest shareholder in Yes Bank with a 24.22% stake. More than 100 Japanese firms now operate global capability centres in India, and Suzuki-backed Next Bharat Ventures recently announced a $200mn fund in the country.