Japanese Firms Eye India as China Risks Grow
Monday, 2026/09/07180 words3 minutes982 reads
Japanese businesses are expanding in India, from consumer brands to banks and technology firms. Uniqlo, Muji and Onitsuka Tiger are growing their retail presence. Nitori has entered India, while Lawson plans to begin in Mumbai and reportedly hopes to open 10,000 stores in India by 2050.
The movement is broader than shopping. MUFG Bank bought 20% of Indian shadow lender Shriram Finance for $4.4bn last year. Sumitomo Mitsui Banking Corporation became Yes Bank's largest shareholder, with a 24.22% stake. More than 100 Japanese firms run global capability centres in India, according to Deloitte.
In July, Japanese companies announced $12.5bn in investments through around 120 agreements. The agreements covered sectors from semiconductors to green energy. Japanese companies want growth as Japan's population declines and domestic demand weakens. India offers a growing consumer market and manufacturing ambitions.
Still, this is diversification, not an exit from China. Analysts say Japanese firms remain deeply connected to Chinese manufacturing networks. India also has tax uncertainty, red tape and delays in land and environmental approvals. Those challenges could affect how quickly investment plans become real projects.
