After big bets, Japanese firms boost India tech centre plans

After Japanese investments into India hit a high last year, some of the largest companies of the East Asian country are now looking to expand or establish tech centres to tap India's deep talent pool.

- Jas Bardia

At least three Japanese groups, including MUFG, are in stages of setting up or expanding technology centres in India.

(AP)

At least three major Japanese groups-Mitsubishi UFJ Financial Group (MUFG), Nidec Corp and Daicel-owned Polyplastics-are in various stages of setting up or expanding technology centres in India, according to two people with knowledge of the matter.

This signals India's rising appeal as a tech offshoring hub as cash-rich Japanese companies grapple with an ageing population and shrinking talent pipeline. This also comes amid growing discomfort with China as a high-risk geography for intellectual property.

The focus follows a spate of large Japanese financial investments in 2025. Groups including MUFG, Sumitomo Mitsui Banking Corp. and Mizuho Financial Group have collectively invested more than $7.2 billion in Indian financial services firms such as Shriram Finance, Yes Bank, and Avendus Group, respectively. up 12% from a year-earlier.