Record Japanese investment in India’s financial sector is highlighting the tightening business links between the world’s fourth and fifth-largest economies.
Japan’s largest bank, Mitsubishi UFJ Financial Group, closed a $4.4bn deal to acquire part of an Indian shadow bank at the end of last year, the largest ever foreign investment in India’s financial sector.
MUFG’s purchase of a fifth of Shriram Finance’s shares was part of a record $8.8bn spent by Japanese companies on stakes in Indian businesses in 2025, according to Dealogic data.
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