India's Big Pitch Falls Short: Japan's Investment Hesitancy Continues

India's largest-ever business delegation of over 200 members visited Japan recently to pitch investment opportunities in various sectors, including manufacturing, semiconductors, clean energy, and steel. The visit aimed to advance efforts towards a target of 10 trillion yen ($62.96 billion) in Japanese private investment in India over the next decade.

The delegation led by Commerce Minister Piyush Goyal engaged with Japanese financial institutions, including MUFG, Mizuho, and Nomura, and highlighted India's ambition to build a globally competitive semiconductor ecosystem, with projected demand reaching $150 billion by 2032.

However, despite the interest shown by Japanese companies, they remain hesitant about significantly scaling up their investments. A Chinese expert noted that while India has made some adjustments in certain areas, deep-seated issues such as exchange rate management and capital repatriation are unlikely to see fundamental changes in the short term.