Japan Emerges as Top FDI Source for India With $5.71 Billion Investment in Q1 FY27

Key facts

• Japan became the largest source of foreign direct investment (FDI) into India in April-June of FY 2026-27, with inflows of $5.71 billion, surpassing the $3.74 billion received during the entire FY 2025-26.
• Japanese inflows accounted for nearly 29% of India's total equity inflows of $19.81 billion in the quarter.
• Singapore was the second largest investor with $5.22 billion, followed by Mauritius ($2.4 billion), the Netherlands ($1.38 billion) and the US ($1.35 billion).
• Japan has committed to invest 10 trillion yen (about Rs 7 lakh crore) in India over a decade, with Japanese firms having already invested Rs 1 lakh crore, as stated by Commerce and Industry Minister Piyush Goyal in Nagoya.
• In April, Japan's MUFG Bank acquired a 20% stake in Shriram Finance Ltd for Rs 39,618 crore (about $4.4 billion), the largest cross-border investment in India's financial services sector.
• India has 12 Japanese industrial townships (JITs) across nine states offering Japan-specific infrastructure and facilitation through Japan Plus and JETRO.