India Aims for ¥10 Trillion Japanese Investment by 2035
By Business Desk
India targets ¥10 trillion in Japanese investment by 2035, focusing on semiconductors and easing business norms. Minister Goyal met with key Japanese firms and financial institutions.
India’s Commerce and Industry Minister Piyush Goyal recently concluded a four-day visit to Japan, aiming to secure ¥10 trillion (approximately $60 billion) in Japanese investment by 2035.
This ambitious financial target was initially established last year during Prime Minister Narendra Modi’s visit to Japan. During his trip, Minister Goyal engaged with key government leaders, major financial institutions, and over 30 prominent Japanese companies, including MUFG, Mizuho, Nomura, and Nippon Life.
Key Investment Targets and Flows
- Targeted Japanese investment by 2035: ¥10 trillion (approximately $60 billion)
- Projected semiconductor demand by 2032: $150 billion
- Cumulative Foreign Direct Investment (FDI) from Japan as of March 2026: $48.14 billion
- Percentage of Japanese manufacturers finding BIS certification challenging: 72%
Discussions centered on expanding overall investment, strengthening resilient supply chains, advancing technology partnerships, and creating new avenues for business-to-business collaboration between India and Japan. A significant focus of these talks was establishing a globally competitive semiconductor ecosystem within India.
Minister Goyal specifically outlined a six-pillar strategy designed to achieve this semiconductor goal. This strategy aims to leverage India’s large pool of skilled, young talent alongside Japan’s cutting-edge technology and manufacturing capabilities to foster a world-class semiconductor and technology revolution.
India’s Semiconductor Strategy Pillars
- Chip design
- Semiconductor machinery and materials
- Fabrication
- Back-end processing
- Research and development
- Talent building
To further facilitate foreign participation, Goyal committed to developing a framework that simplifies compliance and regulatory norms for international firms. This initiative includes easing the Bureau of Indian Standards (BIS) certification requirement, which has been a known hurdle for foreign investors.
A survey by the Japan External Trade Organization (JETRO) indicated that nearly 72% of Japanese manufacturers identified BIS certification as a challenging compliance requirement. This strategic move to mobilize Foreign Direct Investment addresses a broader trend of slowed net FDI inflows into India over the past four years.