From steel to satellites, Japan bets big on India with $13 billon MoU push
As India positions itself as a key player in the global economic landscape, Japan’s expanding investments and partnerships serve as a robust signal of confidence in India’s long-term potential.
- Aug 29, 2025,
- Updated Aug 29, 2025 2:59 PM IST
India and Japan have stepped up their economic partnership with a series of wide-ranging MoUs, pledging more than $13 billion in investments across industries, clean energy, and human resource exchange. As India positions itself as a key player in the global economic landscape, Japan’s expanding investments and partnerships serve as a robust signal of confidence in India’s long-term potential. These collaborations span multiple sectors, from industrial development and clean energy to human resources and regional security.
Expanding Japanese investment
In the past two years, Japanese firms have signed over 170 MoUs with India. Nippon Steel has committed Rs 7,100 crore for projects in Gujarat and Andhra Pradesh, while Suzuki Motor is investing Rs 38,200 crore to expand its Gujarat base. Toyota Kirloskar has announced Rs 23,300 crore for new and expanded facilities in Karnataka and Maharashtra. Other major commitments include Sumitomo Realty’s $4.76 billion in real estate, JFE Steel’s Rs 44,500 crore electrical steel project, Osaka Gas’s 400 MW renewable investments, and Astroscale’s commercial satellite launches with ISRO.
SMEs in global supply chains
The agreements are also opening new opportunities for Indian SMEs. Collaborations like Tokyo Electron and Fujifilm with Tata Electronics in semiconductors, and Toyota-Suzuki’s supply chain integration, will bring hundreds of Indian Tier-2 and Tier-3 suppliers into global networks. Fujitsu’s hiring of 9,000 Indian engineers further strengthens IT-linked SMEs and boosts export competitiveness.
Rural economy and clean energy
Japanese firms are investing directly in rural India’s green transition. Sojitz Corporation and Indian Oil will set up 30 biogas plants with $395 million, enabling farmers to supply crop residues for extra income. Suzuki Motor, along with the National Dairy Development Board, will build four biogas plants in Gujarat worth Rs 230 crore, converting cow dung into carbon-neutral fuel for CNG vehicles. These projects promise to cut emissions, create jobs, and support energy self-sufficiency.
Boosting exports
Japan-backed ventures will expand India’s role as an export hub. Nippon Steel will produce specialty steel for global markets, Toyota and Suzuki plan to export hybrid and EV cars to Africa and Southeast Asia, and Fujifilm’s partnership with Tata aims to anchor India in global chip supply chains.
Talent bridge
Human capital is a key focus, with the India-Japan Talent Bridge program targeting 500,000 academic and professional exchanges over five years. Japanese firms such as Nidec, Musashi Seimitsu, and Dai-ichi Life are recruiting Indian engineers, while Japan’s METI has allocated JPY15 billion to fund skills training, internships, and language programs.
Strategic outreach
A fresh MoU between Assam and ASEAN Holdings signals Japan’s support for India’s northeast under the Act East Policy. Globally, both nations are deepening collaboration on mineral security, EV supply chains, and new export corridors to Africa and the Middle East.
India and Japan have stepped up their economic partnership with a series of wide-ranging MoUs, pledging more than $13 billion in investments across industries, clean energy, and human resource exchange. As India positions itself as a key player in the global economic landscape, Japan’s expanding investments and partnerships serve as a robust signal of confidence in India’s long-term potential. These collaborations span multiple sectors, from industrial development and clean energy to human resources and regional security.
Expanding Japanese investment
In the past two years, Japanese firms have signed over 170 MoUs with India. Nippon Steel has committed Rs 7,100 crore for projects in Gujarat and Andhra Pradesh, while Suzuki Motor is investing Rs 38,200 crore to expand its Gujarat base. Toyota Kirloskar has announced Rs 23,300 crore for new and expanded facilities in Karnataka and Maharashtra. Other major commitments include Sumitomo Realty’s $4.76 billion in real estate, JFE Steel’s Rs 44,500 crore electrical steel project, Osaka Gas’s 400 MW renewable investments, and Astroscale’s commercial satellite launches with ISRO.
SMEs in global supply chains
The agreements are also opening new opportunities for Indian SMEs. Collaborations like Tokyo Electron and Fujifilm with Tata Electronics in semiconductors, and Toyota-Suzuki’s supply chain integration, will bring hundreds of Indian Tier-2 and Tier-3 suppliers into global networks. Fujitsu’s hiring of 9,000 Indian engineers further strengthens IT-linked SMEs and boosts export competitiveness.
Rural economy and clean energy
Japanese firms are investing directly in rural India’s green transition. Sojitz Corporation and Indian Oil will set up 30 biogas plants with $395 million, enabling farmers to supply crop residues for extra income. Suzuki Motor, along with the National Dairy Development Board, will build four biogas plants in Gujarat worth Rs 230 crore, converting cow dung into carbon-neutral fuel for CNG vehicles. These projects promise to cut emissions, create jobs, and support energy self-sufficiency.
Boosting exports
Japan-backed ventures will expand India’s role as an export hub. Nippon Steel will produce specialty steel for global markets, Toyota and Suzuki plan to export hybrid and EV cars to Africa and Southeast Asia, and Fujifilm’s partnership with Tata aims to anchor India in global chip supply chains.
Talent bridge
Human capital is a key focus, with the India-Japan Talent Bridge program targeting 500,000 academic and professional exchanges over five years. Japanese firms such as Nidec, Musashi Seimitsu, and Dai-ichi Life are recruiting Indian engineers, while Japan’s METI has allocated JPY15 billion to fund skills training, internships, and language programs.
Strategic outreach
A fresh MoU between Assam and ASEAN Holdings signals Japan’s support for India’s northeast under the Act East Policy. Globally, both nations are deepening collaboration on mineral security, EV supply chains, and new export corridors to Africa and the Middle East.