According to Sundeep Sikka, MD and CEO of Nippon Life India Asset Management, Japanese capital is expected to expand its influence beyond manufacturing and into India’s financial services and other service sectors as economic connections between the two nations strengthen. According to him, long-term Japanese investors are finding fresh chances in India due to the country’s improving policy climate, expanding domestic capital markets, and stronger bilateral relations.
During his speech at the IIMBue 2026 event in Bengaluru, Sikka stated that Japan’s investment strategy in India is shifting from a concentration on manufacturing to a more comprehensive approach that includes digital innovation, technology, and finance. He went on to say that manufacturing will still play a significant role, but that in the future, Japanese investments will focus more on industries that are helped along by India’s growing capital markets and domestic economy.The change, which Sikka ascribed to increased cooperation between the Japanese and Indian governments, “started recently” in the financial industry. Japan has one of the world’s biggest savings accounts, but the country is looking for better growth prospects outside, he said, alluding to the bilateral goal of encouraging more investment from Japan.The diplomatic ties between Japan and India… A lot of money is flowing into India from Japan. This time, he added, it will spread beyond manufacturing and into the financial and service sectors—a tendency that has already begun.
Sikka pointed out that Nippon Life’s investment was significant because it was one of the biggest FDIs in India’s financial services industry. He continued by saying that ever since then, Japanese banks and financial organisations have been increasingly curious about the Indian market, with enquiries touching on fields as diverse as healthcare, engineering, and even finance.
When compared to several worldwide markets, Sikka claims that Japan’s investing strategy stands out due to its emphasis on long-term sustainability rather than short-term profits.According to him, Nippon’s activities in India have been centred around long-term planning, organisational discipline, and consistency, while many other companies tend to focus on quarterly or annual goals. He went on to say that the mix works well in the local market because Indian enterprises bring agility and flexibility.
He warned against foreign corporations trying to “plug-and-play” techniques from their home markets into India without first adjusting them to local consumers’ needs, citing the failure of several international companies to succeed in the country.
Speaking about another area of collaboration, Sikka mentioned the Nippon India Digital Innovation Fund. This fund was formed at the same time as the G20 Summit, and its purpose is not just to contribute financially; it also aims to expose Japanese institutions to India’s startup environment.
