India has become a priority market for Japanese financial and investment firms looking to expand globally. In 2025, strategic activity from Japan into India has surged, particularly in financial services and future-focused sectors.
Deals initiated or closed
- Mizuho Financial Group is acquiring a majority stake in Avendus Capital, a leading Indian financial services firm.
- Mitsubishi UFJ Financial Group (MUFG) is preparing to invest over ¥500 billion (approximately $3.2 billion) for a 20% stake in Shriram Finance Ltd.
- Sumitomo Mitsui Financial Group (SMFG) has become the largest shareholder in Yes Bank Ltd.
What’s Driving This Surge?
India offers a mix of economic scale, strong demographics, and emerging opportunities in:
- Financial services
- Mobility and transportation
- Renewable energy
- Sustainability and infrastructure
Japanese executives are making frequent visits to evaluate partnerships, scout acquisitions, and build long-term assets. The increased deal flow indicates rising confidence in India’s policy stability, consumption power, and business potential.
India offers a mix of economic scale, strong demographics, and emerging opportunities in:
- Financial services
- Mobility and transportation
- Renewable energy
- Sustainability and infrastructure
India’s Edge
The Japanese economy continues to face slow growth and low yield conditions. India, on the other hand, offers scalable investment potential, rising consumption, and a more dynamic business environment. These factors make India one of the most promising destinations for long-term strategic capital.
Lakshmishree Insights
Foreign participation in India’s financial landscape is expanding. Investors should track this momentum across sectors like financial services, clean energy, and mobility. For Lakshmishree clients, this marks an opportunity to stay ahead by aligning portfolios with global capital flows and sectoral growth stories.
Read more about sector-specific trends and international inflows on our [Market Insight blog].
News Desk
