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NEW YORK Sunday, October 11, 2026

Asia

Japan tops FDI source for India in Q1 FY27

Japan's FDI in India reached nearly 29% of total equity inflows in the quarter.

New York Editorial News Desk October 11, 2026 1 min read

The Brief

  • Japan's FDI accounted for 29% of India's total equity inflows in Q1 FY27.
  • Japan aims to invest ¥10 trillion in India over a decade.
  • Japanese firms have already invested ₹1 lakh crore toward the target.

India received nearly 29% of its total equity inflows from Japan during the first quarter of fiscal year 27.

Japan had set a target to invest ¥10 trillion (approximately ₹7 lakh crore) in India over a ten-year period.

Commerce and Industry Minister Piyush Goyal visited Japan last month to strengthen trade and investment relations between the two nations.

During his visit, Goyal stated that Japanese firms had already invested ₹1 lakh crore of the 10 trillion yen target in India over the past decade.

Anil Talreja, Partner at Deloitte India, noted that Japanese institutional investors are increasing their engagement with India.

Talreja also mentioned that Japan is diversifying its supply chains due to geopolitical tensions and rising costs.

India's appeal to Japanese capital is based on its potential in technology, manufacturing, supply-chain integration, and long-term investment.

Key areas for future cooperation include artificial intelligence, semiconductors, critical minerals, batteries, and energy.

The automotive sector has seen the highest volume of Japanese industrial equity, as vehicle manufacturers and their suppliers expanded production capacity.

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