India is increasingly becoming an attractive destination for Japanese companies, as tensions with China are still running high, according to data from investment firm Dealogic.
“Strong growth and big population” are the main factors that make India interesting for Japanese companies, explained Makoto Suzuki, the head of Mitsui and Co. India Ltd., a group that is active in IT and infrastructure, among others.
Half of India’s population is under the age of 25, while the Indian economy is growing at a pace of 5.5 percent annually, one of the fastest growing rates in the world.
Japan has been the largest foreign investor in India this year, with $1.5 billion in 34 deals up to this point.
Japanese companies are on a shopping spree abroad this year, Dealogic said, with $101.7 billion invested in 573 overseas acquisition up to now this year. It is the first time when the $100 billion threshold is surpassed, with the previous record standing at $84 billion in 2011