Japan tops India’s FDI equity inflows in Q1 FY27 with $5.71 billion
Why in the news
Government data released in October 2026 showed that Japan became the biggest source of foreign direct investment (FDI) equity into India in April-June 2026, the first quarter of FY27.
Key facts
- Japan’s inflow: $5.71 billion, roughly 29% of total equity inflows, and more than Japan invested in the whole of FY2025-26.
- Total FDI equity inflows (Q1 FY27): $19.81 billion, about 6% higher than $18.62 billion in Q1 FY26 (DPIIT data).
- Biggest deal: MUFG Bank bought a 20% stake in Shriram Finance in April for Rs 39,618 crore (about $4.4 billion), called the largest cross-border investment in India’s financial services sector.
- Other Japanese financial-sector moves cited: SMBC-YES Bank and Mizuho-Avendus.
- Top sector: Services drew about $7.04 billion, followed by computer software and hardware at about $2.84 billion.
Top FDI sources, Q1 FY27
| Rank | Country | Equity inflow |
|---|---|---|
| 1 | Japan | $5.71 billion |
| 2 | Singapore | $5.22 billion |
| 3 | Mauritius | $2.31 billion |
| 4 | Netherlands | $1.38 billion |
| 5 | USA | $1.34 billion |
About India-Japan investment ties
Japan aims to invest 10 trillion yen in India over a decade. India hosts 12 Japanese Industrial Townships (JITs) in nine states, offering Japan desks, Japanese-standard utilities and single-window coordination through Japan Plus and JETRO. Automobiles attract the largest share of Japanese industrial equity.
Exam angle
- Q1 FY27 top source: Japan; second: Singapore.
- Total equity inflow Q1 FY27: $19.81 billion; growth about 6%.
- FDI data is compiled by DPIIT under the Ministry of Commerce and Industry.