Japan Pours Record $9 Billion into India's Financial Sector in 2025

• Japan invested a record $9 billion in India's M&A market in 2025, the highest in several years, with the financial sector as a prime target.
• MUFG's ₹40,000 crore acquisition of a 20% stake in Shriram Finance marks India's largest financial sector FDI to date.
• Other major Japanese banks like Mizuho Financial Group and Sumitomo Mitsui Banking Corporation also made significant investments in Indian financial firms.
• Japan sees India's young population, strong growth, and rapid economic expansion as a crucial counter to its own aging economy and slow growth.
• Geopolitical shifts, including complexities in China and US-China tensions, position India as a safe and reliable investment destination for Japan.

Why It Matters: Japan made a record $9 billion investment in India's booming financial sector in 2025, driven by India's growth and global diversification needs.