Japanese companies are finding India a profitable place to do business, says Indian ambassador

Around 76% of Japanese companies operating in India are reporting strong profitability, India's Ambassador to Japan, Nagma Mohamed Mallick, said on Friday, citing a Japanese government report.

Speaking at the India-Japan Business Conclave in Tokyo, Mallick said Japan is India's fifth-largest investor, having invested about $45 billion in the country over the past 25 years.

She said nearly 1,500 Japanese companies operate more than 5,200 business establishments across India in sectors including automobiles, electronics, engineering, chemicals, logistics and services.

Highlighting the depth of bilateral ties, Mallick pointed to flagship initiatives such as the Mumbai-Ahmedabad High-Speed Rail project, the Delhi-Mumbai Industrial Corridor and the India-Japan AI Strategic Dialogue. She said the future roadmap for the relationship is anchored in the eight pillars agreed upon at the 15th India-Japan Annual Summit, including next-generation economic partnership, economic security, clean energy, smart mobility, ecological sustainability, technology and innovation, health cooperation, and people-to-people exchanges.

Japanese Finance Minister Satsuki Katayama called for financial cooperation between the two countries to extend beyond bilateral engagement and identified three priority areas for collaboration: investment in India's long-term growth, economic security cooperation, and support for the Global South and sustainable global economic growth.

Suzuki Motor Corporation President, Representative Director and CEO Toshihiro Suzuki said Maruti Suzuki's record production of 2.35 million vehicles in FY25 placed it among a select group of global automakers, including Toyota and BYD, to achieve such volumes.

With exports exceeding 448,000 units and vehicles shipped to markets across Africa, West Asia and other regions, Suzuki said Maruti Suzuki exemplified the "Make in India" vision. He added that the company's next challenge would be to grow alongside "the next billion" people moving into the next phase of India's economic development.

Akiko Okumura, Executive Vice President of the Japan External Trade Organization (JETRO), said India has emerged as Japan's most compelling economic partner, with more than 80% of Japanese companies operating in the country planning to expand their businesses.

She said Japanese investment has broadened beyond traditional manufacturing and automotive sectors to include semiconductors, financial services, startups and information technology. India is increasingly being viewed not just as a large consumer market, but also as a global production and export hub, she added.