Japan is significantly expanding its economic presence in India, with investments worth nearly Rs 1 trillion spanning semiconductors, artificial intelligence (AI), manufacturing, green energy, finance and digital infrastructure. The push comes alongside 120 memoranda of understanding (MoUs) signed between the two countries since August 2025, signalling that the bilateral relationship is evolving from trade into a broader technology and strategic partnership.
The projects span multiple states including Haryana, Gujarat, Maharashtra, Telangana, Assam and Meghalaya, reflecting India’s growing importance in Japan’s efforts to diversify supply chains and deepen economic cooperation in the Indo-Pacific.
Semiconductors have emerged as one of the most prominent themes in the latest phase of India-Japan collaboration. Projects involving Fujifilm, Toho Koki, IIT Guwahati and other partners aim to strengthen India’s semiconductor ecosystem through manufacturing, research and advanced technology collaboration. The investments are expected to support India’s ambitions of becoming a global electronics manufacturing hub while reducing dependence on imported semiconductor components.
Technology collaboration is also expanding well beyond hardware. NTT Data and Persistent Systems are working together on next-generation telecom technologies, while Mitsubishi Electric is partnering on human capital development in AI, quantum technologies and security applications. NTT Data is additionally investing in submarine cable infrastructure, strengthening India’s international digital connectivity and supporting growing demand for data centres and cloud services.
The two countries are also collaborating to develop a quantum technology ecosystem, underscoring their shared focus on frontier technologies.