The data released by the government has showed that Japan has emerged as the largest source of foreign direct investment (FDI) into India during April-June of the current fiscal year (Q1FY27). FDI inflows from Japan stood at $5.71 billion in Q1FY27, surpassing the $3.74 billion India received from the country during the entire 2025-26 fiscal year. It was $2.48 billion in the entire 2024-25 fiscal year.
The data showed the foreign inflows from Japan account for nearly 29 per cent of the total equity inflows ($19.81 billion) which India received during the quarter. The investments from Japan are important as Japan had set a target of investing 10 trillion yen (about Rs seven lakh crore) in India in over a decade.
Besides, last month, Commerce and Industry Minister Piyush Goyal visited Japan to further boost bilateral trade and investment ties between the countries. According to him, Japanese firms have already invested Rs 1 lakh crore of the 10 trillion Yen (around Rs 6 lakh crore) investment target in India over a decade, as committed in 2025.
