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Japan Emerges as India Leading FDI Source in First Quarter of Fiscal Year 2026-27
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News18•11-10-2026, 13:30
Japan Emerges as India Leading FDI Source in First Quarter of Fiscal Year 2026-27
- •Japan became the largest source of foreign direct investment for India during April-June, recording USD 5.71 billion in inflows and accounting for nearly 29 per cent of total equity inflows.
- •The surge in investments was significantly driven by major financial-sector transactions and acquisitions, including MUFG Bank acquiring a 20 per cent stake in Shriram Finance Ltd for Rs 39,618 crore.
- •Key areas of cooperation and investment expansion include artificial intelligence, semiconductors, automotive manufacturing, renewable energy, and digital infrastructure.
- •Singapore followed as the second largest investor with USD 5.22 billion in FDI, followed by Mauritius, the Netherlands, and the United States.
Key Questions Answered
FDI inflows from Japan into India stood at USD 5.71 billion during the April-June quarter of the 2026-27 fiscal year.
Singapore was the second largest investor in India during the quarter, with foreign direct investment worth USD 5.22 billion.
In April, Japan’s MUFG Bank acquired a 20 percent stake in Shriram Finance Ltd for Rs 39,618 crore, marking the largest cross-border investment in India’s financial services sector.
