India emerging as a strategic growth hub for Japanese companies
India is emerging as an increasingly important market for Japanese corporates looking to invest in long-term business expansion as global companies navigate shifting supply chains, accelerating digital transformation and new growth priorities. These themes were among the insights shared by business leaders, policymakers and industry experts convened by MUFG for its “India Day” event in Tokyo.
Guided by the Japan-India Joint Vision—which sets forth priorities including economic security, resilient supply chains and advanced technology collaboration over the coming decade—the forum gathered representatives from government, industry and financial institutions to examine the evolving opportunities arising from Japan–India economic cooperation, specifically how Japanese companies can participate in India’s next phase of economic growth.
Takuya Senoo, CEO for India, MUFG Bank, said: “Japanese companies are no longer looking at India solely as a market. For manufacturing companies, India is increasingly being viewed through three lenses: a large and growing domestic market, a competitive production base, and an export hub serving global supply chains. For non-manufacturing sectors such as financial services, retail and real estate, India offers the scale of one of the world’s fastest-growing markets, the ability to deploy capital into long-term growth opportunities, and access to a deep talent and capabilities base. As companies evaluate their next phase of expansion, India is becoming an increasingly strategic destination. MUFG’s role is to combine global connectivity, local expertise and integrated financial solutions to help clients establish, grow and scale their businesses with confidence.”
India’s growth trajectory continues to create new opportunities
India remains one of the world’s most dynamic major economies, supported by ongoing infrastructure development, digitalisation, demographic advantages and a growing domestic market. Participants noted that India is increasingly viewed not only as an investment destination, but also as a strategic market for long-term growth.
Partnerships are becoming a critical success factor
As India’s economic landscape grows in scale and complexity, capital alone is not enough for companies entering or expanding in India. Successful market participation increasingly requires strong local relationships and ecosystem partnerships. Business leaders emphasised the importance of collaboration between Japanese and Indian companies to unlock new opportunities and accelerate growth. Companies also need local knowledge, trusted partners, access to talent and financial solutions that support growth from market entry through expansion.
The diversification of semiconductor supply chains is accelerating collaboration
Japan and India are placing heightened emphasis on accelerating collaboration in critical industries, including the semiconductor sector. This includes India’s semiconductor policy (particularly its subsidy initiatives), evolving industry trends, and the resulting business opportunities where Japan and India can combine their respective strengths to drive future growth and enhance supply chain resilience.
Global Capability Centres (GCCs) are evolving beyond operational support
India’s GCC ecosystem is becoming an increasingly important source of innovation, technology expertise and business transformation. As organisations seek to build more agile and digitally enabled operating models, GCCs are playing a growing role in supporting enterprise-wide capabilities and value creation.
Access to integrated financial solutions will be increasingly important
As companies expand their presence in India, the need for seamless and accessible banking, advisory and capital markets support is becoming more critical. Participants explored the role that banks and non-banking financial institutions can play to develop integrated financing solutions that help both businesses and the underbanked and unbanked communities access financing services, navigate growth opportunities, optimise capital flows and support cross-border expansion.
The discussions also highlighted the complementary strengths of institutions such as State Bank of India, Morgan Stanley and Shriram Finance in supporting different aspects of India’s growth story. Perspectives shared during the forum covered cross-border banking, capital markets, M&A financing, infrastructure finance, SME funding and regional economic growth. Collectively, these capabilities reflect the increasingly sophisticated financial ecosystem available to support Japanese companies investing and expanding in India.
As India and Japan continue to deepen economic ties, MUFG remains committed to supporting businesses across both markets through global connectivity, local expertise and strategic partnerships that facilitate investment, industrial development and long-term economic growth.
