Japan's drive to bring more private capital into India is creating additional legal work for local firms, partners interviewed by Livemint said, even as clients push to contain fees.
The two governments set a goal in August 2025 for JPY 10 trillion in Japanese private investment in India over the following decade. The target followed a 2022 commitment covering JPY 5 trillion in public and private investment and financing over five years. Japan's Prime Minister's Office said that earlier goal was reached in three years. The 2025 joint statement linked the new target to improving India's business environment and cooperation on supply chains and economic security.
Japan's Ministry of Foreign Affairs said investment commitments toward the goal totaled JPY 2 trillion as of July 2, 2026. The ministry also said more than 150 Japanese companies joined a visit to India, during which about 120 cooperation documents were announced. Separately, Foreign Secretary Vikram Misri said more than 120 business-to-business memorandums of understanding had been signed since the August 2025 summit, with about $10 billion in aggregate investment commitments.
Several large financial-sector transactions illustrate the activity. MUFG Bank agreed in December 2025 to subscribe to a preferential share issue representing a 20% stake in Shriram Finance. Shriram Finance said the allotment was completed April 8, 2026, for ₹39,617.98 crore. Sumitomo Mitsui Banking Corporation completed its 20% stake acquisition in YES BANK on Sept. 17, 2025.
Mizuho Securities announced in December 2025 that it planned to acquire more than 60% of Avendus Capital, subject to regulatory approvals. The Competition Commission of India approved the acquisition of certain Avendus share capital on April 28, 2026.
Argus Partners announced that Saurav Kumar, Swathi Sreenath and their team joined the firm on Sept. 23, 2026, with Kumar leading its Japan and South Korea desk. Livemint reported that partners also described fee competition among firms and client pressure for cost efficiency.
Japan's prime minister invited Indian Prime Minister Narendra Modi to Japan for the 17th annual summit in 2027. The joint statement did not give a date.
