Mizuho, Sumitomo among Japanese firms piling into India for growth

The total volume of deals targeting Indian companies, including via mergers and acquisitions, has climbed 15% this year to almost $90 billion

Japanese companies are expanding in India, making it one of the busiest corridors for dealmaking in Asia, particularly in financial services.

Among them, Mitsubishi UFJ Financial Group Inc. might invest more than ¥500 billion ($3.2 billion) to buy about 20% of Shriram Finance Ltd., people familiar with the matter said earlier this week, while Mizuho Financial Group Inc. is buying a majority stake in Avendus Capital Pvt. Sumitomo Mitsui Financial Group Inc. is also now Yes Bank Ltd.’s biggest shareholder.

“Japanese firms looking for growth outside of their home market have India at the top of their list,” said Nitin Maheshwari, co-head of investment banking in India at JPMorgan Chase & Co. “Travel schedules have been very busy with Japan this year.”

SMBC open to bigger Yes Bank stake; plans for India unit under consideration: Report

Japanese executives are jetting in to visit the Indian units of their companies or to pursue new opportunities such as partnerships, Maheshwari said.

The total volume of deals targeting Indian companies, including via mergers and acquisitions, has climbed 15% this year to almost $90 billion, data compiled by Bloomberg show. Japanese buyers only account for a small fraction of that for now, but they’re on the up and spreading their wings, dealmakers say.

MUFG likely to infuse $3.5-4 billion for 20% stake in Shriram Finance

“Apart from the big-ticket deals from conglomerates, Japanese mid-market companies will increasingly scout for M&A deals in mobility, renewables, sustainability and overall infrastructure in 2026,” said Swathy Ramanath, a partner at law firm Khaitan & Co.

“Japanese companies are seeing growth and yield beyond their home market and India is one of the top priorities for deals,” she said.

India offers growth opportunities and the potential for big investments, added Maheshwari. However, in some sectors, public markets offer better value than private transactions, which creates a challenge for M&A, he said.

“Japan is a super-active corridor and certainly the momentum should continue in 2026 and beyond,” the JPMorgan banker said. “There is generally good dialogue and chemistry around things that Japanese and Indian companies can do together across sectors.”