Japan Eyes Diplomatic Support for Firms’ Entry into India

Tokyo, Aug. 2 (Jiji Press)–Japan’s Foreign Ministry will support Japanese small and midsize companies and startups seeking to enter the Indian market or expand investment there through diplomatic efforts to urge the Indian government to remove regulatory barriers. In April, the ministry established the Japan-India Economic Affairs Division under the Southwest Asia Division. With the head of the new division taking office Monday, it will go into full-scale operation with about 10 members, including dedicated staff. It will grasp the regulations and challenges faced by Japanese companies that do not have bases or sales channels in India and seek to improve the business environment through negotiations with the Indian government, sources familiar with the matter said. India has the world’s largest population of more than 1.4 billion, with its real gross domestic product growing at around 7 pct. Last year, the Japanese government set a target of realizing 10-trillion-yen private-sector investment in India over 10 years, and has already decided on investment programs worth about 2 trillion yen. At a summit last month, Japanese Prime Minister Sanae Takaichi and her Indian counterpart, Narendra Modi, confirmed their intention to cooperate on promoting economic growth in both countries. Against this background, Japanese companies have high expectations for the Indian market. India ranked top for the fourth straight year as the most promising overseas market in a survey released in 2025 by the Japan Bank for International Cooperation, or JBIC. However, the number of Japanese companies entering the Indian market has grown slowly in recent years. As of 2024, there were 1,434 Japanese companies operating in India. The number has remained almost flat since reaching 1,400 in 2018, apparently reflecting such factors as the opacity of legal systems, varying regulations across states and insufficient infrastructure. The Japan-India Economic Affairs Division plans to take up these issues at summit and ministerial meetings and use intergovernmental dialogue to urge the removal of barriers. “We want to solve problems facing companies through diplomacy,” a ministry source said. END [Copyright The Jiji Press, Ltd.]