Japanese firms are accelerating investment in India, drawn by the country's growing consumer market and the need to reduce dependence on China amid geopolitical tensions and supply chain disruptions. At a summit in July, Japanese companies announced $12.5 billion across roughly 120 agreements covering sectors from semiconductors to green energy, while major banks including MUFG and SMBC (Sumitomo Mitsui Banking Corporation) have taken large stakes in Indian financial institutions. Analysts warn, however, that India's regulatory hurdles and bureaucratic delays — along with both countries' continued economic ties to China — could limit the full potential of the partnership.