Japanese Industry Delegation Pitches Investments Worth Rs 8-10 Lakh Crore in India's Infrastructure and Manufacturing Sectors

A 32-member Japanese industry delegation led by the Japan Chamber of Commerce and Industry (JCCI) and Mitsubishi corporate adviser Ken Kobayashi met top policymakers here, pitching investments to the tune of Rs 8-10 lakh crore in India’s infrastructure and manufacturing sectors over the next few years. The commitment comes at a time India scouts for durable capital and seeks to stem capital outflows. The Japanese group’s visit also coincides with the Asian country emerging as India’s top source of foreign direct investment (FDI) in Q1 FY27, pipping conventional source countries like Singapore and Mauritius and the US. During the interactions, the delegates sought faster clearances for projects, tax predictability and a larger pool of skilled manpower, official sources sajd. The proposed investments span several sectors, including automobiles, manufacturing and new high-speed rail networks, among others. Besides prominent Japanese businessman Kobayashi, the delegation comprised representatives from various sectors, including Seiji Kuraishi of Honda Motor (automobiles), Tatsufumi Sakai of Mizuho Financial Group (financial services), Shinichiro Shimizu of Japan Airlines (air transport), Isao Iguchi of Corno Macaroni Co. (food manufacturing), Sei Kosaka of Komatsu Store Co. (retail) and Masaki Seki of Sekisho Corporation (trading), among others. Besides meeting PMO officials, the delegation also met the top brass of NITI Aayog and is scheduled to meet other government and business leaders over the next few days. “The Japanese delegation expressed interest in making fresh investments across several sectors, particularly in the automobile sector and mega infrastructure projects, including proposed new high-speed rail corridors,” an official familiar with the deliberations told FE. The delegates also sought tax predictability rather than tax concessions and called for strengthening Indian start-ups. “The Japanese delegation offered collaboration between Japanese MSMEs and start-ups and their Indian counterparts in this regard,” another official said. Mitsubishi Corporation is understood to have shown interest in the proposed Delhi-Varanasi and Varanasi-Siliguri high-speed rail corridors ( bullet train projects ). Currently, India is implementing the Rs 2 lakh crore Mumbai-Ahmedabad high-speed rail project in collaboration with Japanese investors. Mitsubishi acts primarily as a major industrial contractor, commercial administrator and system supplier for high-speed rail and mega-transportation projects globally. The Japanese delegation sought faster clearances and necessary project approvals. It also called for infrastructure projects to be constructed in phases so that commercial operations could begin earlier, making large projects financially sustainable, rather than waiting for their full completion before commencing operations, sources said. The delegates flagged a shortage of skilled manpower in India’s high-tech industries and infrastructure projects. In this context, it was agreed that the Action Plan for India-Japan Human Resource Exchange and Cooperation, which aims to facilitate the two-way movement of more than 500,000 personnel over five years, could be used to train workers in India or Japan. Honda also expressed interest in setting up new plants in different parts of the country. Honda Motorcycle & Scooter India (HMSI) operates four manufacturing facilities in Manesar (Haryana), Tapukara (Rajasthan), Vithalpur (Gujarat) and Narsapura (Karnataka). On Monday, it scrapped plans to invest Rs 600 crore in a dedicated electric two-wheeler factory in Karnataka, which would have had an annual capacity of one million units. Driven by financial-sector transactions and manufacturing acquisitions, Japan emerged as India’s top source of foreign direct investment (FDI) in Q1 FY27, contributing a record $5.71 billion during the April-June quarter. This accounted for nearly 29% of the country’s total equity inflows of $19.81 billion, largely propelled by Mitsubishi UFJ Financial Group’s $4.4 billion deal involving Shriram Finance. Geopolitical factors, including ongoing tensions with China, are also contributing to Japan’s rising investments in India.