Tokyo, August 26: India and Japan have reaffirmed their commitment to enhancing collaboration in the startup, deep-tech, innovation, and MSME sectors. Union Commerce and Industry Minister Piyush Goyal stated this during the India-Japan Startup Roundtable held in Tokyo. He highlighted that India has emerged as the world’s third-largest startup ecosystem, boasting around 250,000 startups over the past decade. Japan has become an attractive destination for investment and technological collaboration.
The meeting saw participation from senior government officials, investors, industry leaders, and startup founders from both countries. The primary focus was on strengthening technology partnerships, boosting investments, and accelerating the next phase of innovation-driven economic cooperation.
Goyal emphasized that India’s vast domestic market, a large pool of skilled talent in science, technology, engineering, and mathematics, robust digital public infrastructure, and rapidly evolving innovation mechanisms present significant opportunities for Japanese companies. He noted that the capabilities of India and Japan complement each other, enabling both nations to establish global leadership in future technologies.
India’s Ambassador to Japan, Nagama Mohammad Malik, remarked on the strengthening startup collaboration between the two nations. She mentioned that through the India-Japan pitching series, 65 Indian startups have been connected with nearly 100 Japanese companies, resulting in over 30 business partnerships. The presence of a 222-member Indian business delegation is also creating opportunities for new relationships between the innovation ecosystems of both countries.
During the meeting, Goyal proposed a new framework for India-Japan startup collaboration based on four key pillars. This includes the establishment of a Japan-India Deep-Tech Capital Corridor aimed at providing long-term capital for early-stage research, deep-tech innovation, and commercialization.
He also suggested a bi-directional innovation bridge that would connect universities, incubators, research and development institutions, laboratories, and testing facilities in both countries. Additionally, he proposed linking India’s manufacturing capabilities and engineering talent with Japan’s advanced manufacturing expertise, along with establishing regular startup pitching platforms to facilitate ongoing dialogue among Indian entrepreneurs, Japanese companies, venture capital funds, and strategic investors.
Goyal mentioned the Indian government’s proposed second fund of funds, amounting to nearly $1 billion, which will focus on supporting deep-tech companies. He called on Japanese investors to actively participate in this initiative.
Japanese representatives praised the maturity and rapidly growing potential of the Indian startup ecosystem. Shohei Hara, Senior Vice President of the Japan International Cooperation Agency (JICA), stated that this partnership is mutually beneficial. Japan can share its technical expertise, while India can learn how to transform its social and developmental challenges into significant business opportunities. JICA also expressed its desire to connect more Japanese startups with Indian market opportunities.
The meeting included representatives from approximately 40 leading Japanese companies and investment institutions, including Sparks Group, MUFG Innovation Partners, Beyond Next Ventures, Mizuho Financial Group, SBI Investment, Fujitsu, and Daiwa Ventures.
Industry representatives emphasized the need to strengthen the connection between the MSME sector and startups, as well as the necessity for better plug-and-play infrastructure for companies establishing production in India.
Investors identified artificial intelligence (AI), semiconductors, healthcare, space, defense, advanced manufacturing, and deep-tech as key future areas for India-Japan investment cooperation. They noted that India’s startup ecosystem is rapidly evolving beyond internet and software-based businesses to include manufacturing and advanced technology-based enterprises.
The statement further noted that Indian startups showcased their capabilities in sectors such as aerospace and defense, drones, AI, healthcare, robotics, prosthetics, warehouse automation, mobility, and digital health. Many companies discussed opportunities for technical validation, advanced manufacturing, investment, market access, and participation in global supply chains with Japanese partners.
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