Synopsis: Japan has committed nearly ₹1 lakh crore in fresh investments across India since August 2025, spanning manufacturing, finance, semiconductors, green energy, AI, pharmaceuticals and digital infrastructure. Here’s how the investments are distributed across states.
Japan’s investments in India in the form of around 120 MoUs in sectors such as automobiles, finance, semiconductors, green energy, pharmaceuticals, AI, and digital infrastructure and skilling have topped ₹1 lakh crore since the August 2025 summit of the leaders of India and Japan. The investments are part of Japan’s policy to diversify supply chains and boost economic ties with India. The investment footprint is now more across various Indian states-
Haryana
One of the largest beneficiaries is the state of Haryana. Daikin is spending approximately ₹1,000 crore on setting up an R&D centre at Manesar, which will generate more than 500 positions. Sumitomo Corporation and the state government have entered into a comprehensive industrial cooperation pact. The biggest project is Maruti Suzuki’s manufacturing plan at IMT Kharkhoda, with an investment of ₹35,000 crore, covering an area of approximately 800 acres, which will produce 10 lakh vehicles per year, create 21,000 direct jobs and use 100 per cent renewable electricity, without any liquid discharge. Air Water has also tied up with Haryana Enterprises Promotion Centre to scale up the commercialisation of Industrial Gases and Bio-methane.
Gujarat
Gujarat is now the main manufacturing hub for semiconductors and industries in Japan. Itochu Corporation is assisting L&T in building a green ammonia plant of 3 lakh tonne per year at Kandla Port and Suzuki has invested about ₹5,000 crore in land for a new manufacturing facility. Renesas Electronics has invested in CG Power’s OSAT plant at Sanand; Tokyo Electron has strategic partnership with Tata Electronics in Dholera; Fujifilm India plans to build a semiconductor-materials plant; Mizuho Bank supports Japanese semiconductor companies; and Toho Koki is part of the emerging semiconductor cluster. Otsuka Pharmaceutical has manufacturing plants in Ahmedabad and Sysmex has a diagnostics manufacturing base at Sanand II.
Maharashtra and Financial Services (Chennai and Mumbai)
Toyota Kirloskar Motor is working on an 827-acre electric and hybrid vehicle manufacturing plant at Bidkin in Delhi-Mumbai Industrial Corridor that will produce one lakh vehicles a year initially and scaling to 4 lakh vehicles with about 2,800 direct jobs. Mumbai is also the centre of Japan’s financial investments. MUFG’s investment in Shriram Finance was the biggest foreign investment in India’s financial services sector, with a holding of 20% worth about ₹39,618 crore (US$4.4 billion) in the company based in Chennai. SMBC built its position in Yes Bank in three moves: a 20%, acquisition worth about ₹13,480 crore, additional 4.2% stake worth about ₹2,850 crore, purchase and separate capital infusion of ₹16,000 crore, together SMBC became the biggest foreign investor in Indian banking history.
Odisha
The biggest Japanese-backed green energy pledges are in Odisha. IHI Corporation and ACME Group have inked deals valued at ₹67,000 crore for three projects that will create jobs of more than 7,000. These are a ₹20,000 crore with about 3,400 jobs 0.4 MTPA (405,000 tonnes a year) green ammonia plant at Gopalpur, plus an associated ₹1,000 crore jetty-less floating terminal a ₹34,000 crore, a larger 0.8 MTPA (800,000 tonnes a year) green ammonia project at Paradip and a green methanol project valued at ₹12,000 crore and create approximately 600 jobs to supply Mitsubishi Gas Chemical. The state is also host to JFE steel–JSW Steel joint venture. JFE’s Investment of about ₹15,750 crore has been followed by a further investment of ₹32,000 crore, to increase capacity to over 10 million tonnes per year.
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Andhra Pradesh and Telangana.
JSW Steel has started its work on a low carbon steel project of 2 MTPA in Rayalaseema with a cap of ₹16,350 crore. Japanese pharmaceuticals major Eisai also manages manufacturing and R&D plants in the city, and is setting up a Global Capability Centre dedicated to AI-driven drug development. In Telangana, NTT Data and Persistent Systems are partnering on new generation telecom technologies while Mitsubishi Electric is collaborating with IIT Hyderabad for research in the fields of AI, quantum technologies and security. JICA has also provided support for the AI research infrastructure, T-Hub, and the integration of AI into government data.
Karnataka
Investments in technology are mostly devoted to research in Japan. Under the broader framework of India-Japan cooperation in quantum technologies, Yaqumo Inc. has signed a Letter of Intent for quantum hardware and photonics, as well as software and systems engineering with the Indian Institute of Science. Meanwhile, Ispace has entered into a partnership with Bengaluru-based Digantara for lunar exploration pursuant to the India-Japan LUPEX programme.
Assam
Suzuki R&D is contributing to a biogas project in Assam, in partnership with the National Dairy Development Board in the India-Japan Biogas Initiative. JICA is carrying out surveys to increase the production of biogas from dairies, and Toho Koki is working with IIT Guwahati on semiconductors development. JBIC has signed a JPY 60 billion loan agreement to support a bamboo-based bioethanol project.
Meghalaya
Meghalaya is a part of Japan’s North East engagement. BIJSI is assisting a high-value agriculture project and Asean One Co. Ltd. has signed an agreement with Meghalaya State Skill Development Society to train and place up to 5,000 youths over five years in abroad jobs in the healthcare, hospitality and IT sector.
Tamil Nadu, Uttar Pradesh and Jharkhand
- MinebeaMitsumi is in an agreement with Tamil Nadu to explore facilities and manufacturing of power semiconductors and related components.
- Uttar Pradesh has entered a green hydrogen partnership with Japan’s Yamanashi prefecture, under which Kanadevia and Infistar Energy have signed an MoU on green hydrogen production in the state.
- Air Water has bought Tata Steel’s industrial gas plant in Jamshedpur for Jharkhand.
Pan-India Digital Infrastructure
NTT Data is continuing to invest around ₹3,800 crore in submarine cable infrastructure and other digital connectivity, which further complements its partnership with Persistent Systems in the telecom space, and enhances India’s international data infrastructure. For India, the nearly ₹1 lakh crore investment pipeline acts as a catalyst for technology transfer, research collaboration and employment opportunities.
