{
  "id": 4739455,
  "title": "Japan Inc is betting big on India as China risks deepen",
  "url": "https://urgent.news/2026/08/31/japan-inc-is-betting-big-on-india-as-china-risks-deepen",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-31T22:07:19.000Z",
  "source": {
    "name": "BBC Business",
    "slug": "bbc-business",
    "url": "https://www.bbc.co.uk/news/articles/cz64955d56po?at_medium=RSS&at_campaign=rss"
  },
  "original_language": "en",
  "account": "Japan Inc is heavily investing in India as China's influence in the region deepens. India's commerce minister, Piyush Goyal, led the largest-ever business delegation from India to Japan, signaling the growing importance of economic ties between the two nations. Japanese consumer brands like Uniqlo, Muji, and Onitsuka Tiger have been present in India for some time, but their presence is expanding rapidly. Nitori, a Japanese furniture maker, recently entered the Indian market, and Lawson, a convenience store chain, plans to open 10,000 stores by 2050, starting with Mumbai. Japanese banks are also aggressively acquiring Indian financial assets, with MUFG Bank purchasing a 20% stake in Shriram Finance last year.\n\nJapan Inc is now the largest contributor to India's growing ecosystem of global capability centers (GCCs), with over 100 Japanese firms operating these hubs in the country. GCCs focus on business-critical functions such as R&D, corporate strategy, and artificial intelligence development. Vipul Nath Jindal, founder of Next Bharat Ventures, attributes this trend to India's declining population and shrinking domestic market, as well as the attractiveness of alternative markets for Japanese companies.\n\nEconomic ties between India and Japan have grown since signing a trade liberalization agreement nearly 15 years ago. Under Prime Minister Narendra Modi, the relationship was elevated to a \"special strategic and global partnership,\" with the target of doubling the number of Japanese companies in India and projects like India's first bullet train between Mumbai and Ahmedabad. In July, Japanese companies announced $12.5 billion in investments through 120 agreements, driven by sectors such as semiconductors and green energy. Japanese SMEs are also exploring the Indian market. Shruti Pandalai, India Chair at the Lowy Institute, notes that Japan's diversification strategies are reducing concentration risk in China, making India a hedge against geopolitical risks.\n\nHowever, challenges remain. Japan remains deeply integrated into Chinese manufacturing networks, and India's engagement is uneven across key sectors. Economic interdependence may limit coordinated measures, as both nations aim to pursue their own manufacturing ambitions. Despite these challenges, the relationship between Japan and India has become embedded in bureaucracies, corporations, and strategic planning on both sides.",
  "summary": "Japanese companies are doubling down on India amid a shrinking domestic market and rising risks in China.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}