India-Japan Economic Relations


  • India is the largest democracy in Asia and Japan the most prosperous The people of India and Japan are guided by common cultural traditions including the heritage of Buddhism, and share commitment to the ideals of democracy, tolerance, pluralism and open society.
  • Over the years, the two countries have built upon these values and created a partnership based on both principle and pragmatism.
India-Japan FDI synopsis

Share of Japan in FDI Equity Inflows in India (as on December 2016)

Rank: Japan ranks 4th

Percentage share of total FDI inflows: 8%

Cumulative FDI Inflows from Japan: US$ 23.76 billion

Share of Top Sectors Attracting FDI Equity inflows from Japan
(from April 2000 to February 2014):

Rank Sector Amount of FDI equity Inflows % age of FDI equity inflows
Rs. in crore In US$ millions From Japan
1 Drugs & Pharmaceuticals 21,688.81 4,400.97 27.56
2 Automobile Industry 12,389.49 2,526.21 15.82
3 Services Sector* 12,666.78 2,447.31 15.33
4 Metallurgical Industries 6,498.95 1,397.16 8.75
5 Electrical Equipment 3,112.51 686.51 4.30
Total of Above 56,356.54 11,458.16 71.76

*Services sector includes Financial, Banking, Insurance, Non-Financial / Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis.


Top 10 companies attracting the highest FDI investments from Japan
Name of the Indian company Name of the foreign collaborator Amount of FDI inflows (in USD mn)
Ranbaxy Laboratories Ltd. Daiichi Sankyo Co. Ltd. 4,065.20
JSW Steel Ltd. JFE Steel Corporation 1,060.3
Reliance Life Insurance Company Ltd Nippon Life Insurance Company 543
Anchor Electricals Pvt Ltd Matsushita Electric Works Ltd 341.90
Kotak Mahindra Bank Ltd Sumitomo Mitsui Banking Corporation 303.5
Renault Nissan Automotive India Pvt Ltd Nissan Motors Company 274.7
Toshiba Transmission and Distribution System Toshiba Corporation 273.40
Reliance Capital Asset Management Ltd Nippon Life Insurance Company 261
Honda Siel Cars India Ltd Asian Honda Motor Co Ltd 213.10
Indian Companies Investing In Japan

Japanese Companies, their Subsidiaries and Joint Ventures in India

Japan’s investment in India

Regarding investment, India has been ranked as the most attractive investment destination in the latest survey of Japanese manufacturing companies, conducted by the Japan Bank for International Cooperation (JBIC). Japanese FDI in India has increased in recent years but is still inadequate as compared to Japan’s total outward FDI. In terms of cumulative FDI inflows into India, Japan is India’s fourth largest source of FDI.

Year Japanese FDI in India (In US$ million)
2013-14 1718
2014-15 2084
2015-16 2614


Japanese Official Development Assistance (ODA)
  • Japan has been expanding reciprocal credit and giving help to India since 1958. Japan is the biggest reciprocal benefactor to India. Japanese ODA back’s India’s endeavours for quickened monetary advancement especially in sectors like power, transportation, natural ventures and tasks identified with fundamental human needs.
  • A perceptible positive pattern in these years is that even as sum conferred has balanced out or gone down to some degree, genuine payment has expanded. From 2007-08, Japanese side has presented a Double Track Mechanism for giving ODA advances which permits us to stance extend proposition to the Japanese side twice in a budgetary year.
  • The financing costs pertinent from April 2013 are: 1.4% for every annum of general ventures with a 30 years residency including a beauty time of 10 years. For ecological tasks, the loan cost is 0.30% for every annum with a 40 years residency including effortlessness time of 10 years.
  • From April 2013, JICA has annulled impose of responsibility charges and has presented Front End Fee payable one time at the rate 0.2% toward the start of the venture.
  • On the 0.2% Front End Fee, 0.1% will be repaid if the venture is actualized inside the stipulated time.

Commitments and Disbursements of ODA loan from Japan for last several years has been as follows:

Year Commitment (Yen in Billion) Disbursement(Yen in Billion)
2013-14 365.059 144.254
2014-15 71.39 74.36
2015-2016 400 390


Japan Plus
  • Under this India–Japan Investment Promotion Partnership, Japan had offered to contribute 3.5 trillion Yen (US $ 33.5 Billion) in India by method for open and private speculation and financing throughout the following five years.
  • The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India, had set up “Japan Plus”, a unique administration group to encourage and quick track venture proposition from Japan to accomplish this objective. Japan Plus has been operational since eighth October, 2014.