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Japanese companies are expanding investment in India as geopolitical tensions, supply-chain concerns and rising business risks in China push firms to diversify across Asia.

Japanese companies are increasingly turning their attention toward India as the world's third-largest economy becomes a more attractive destination for investment, manufacturing and consumer expansion, while growing geopolitical and economic uncertainty in China encourages businesses to diversify their operations across Asia. The shift does not mean Japanese companies are abandoning China, which remains one of the world's largest consumer and industrial markets, but instead reflects a growing strategy of reducing dependence on a single country. India's expanding middle class, large young population, improving infrastructure and government efforts to attract foreign investment are creating new opportunities for Japanese businesses that are looking for long-term growth outside their traditional markets. The trend was highlighted by Indian Commerce Minister Piyush Goyal, who led what was described as India's largest-ever business delegation to Japan in an effort to strengthen trade and investment ties between the two economies.