India’s potential to attract Japanese investments has grown significantly, thanks to its policy stability under the Modi government, robust economic strength, and rising domestic consumption. Christopher Willcox, Head of Nomura’s Wholesale Division, highlighted these factors as drivers for India’s prominence in Japanese business discussions.
India remains one of the best-performing and most stable equity markets globally, offering an edge over several ASEAN peers. Nomura views India as a key growth market and plans to allocate more capital to sustain an 8–10% return on equity.
India’s Stability Attracts Japanese Corporations
Japanese businesses are increasingly optimistic about India’s investment climate, according to Willcox. While historical challenges with Indian counterparts had tempered enthusiasm, current conditions have largely mitigated risks.
The shift in global supply chains away from China has also positioned India as a leading alternative. “India is now seen as a less tumultuous place to do business,” Willcox stated, adding that Japanese boardrooms rank India as a priority focus for the coming years.
Evolving Equity Markets and Economic Resilience
India’s equity markets, now larger than Hong Kong in market capitalization, continue to attract global investors. Despite recent corrections, driven by subdued corporate earnings and global uncertainties, Willcox emphasized that the slowdown is temporary.
The ongoing evolution of India’s financial markets, including a surge in IPOs, has improved liquidity for long-term investors. Willcox praised India’s structural reforms, resilient economic growth, and improved corporate governance.
Nomura plans to expand its banking franchise in India, focusing on forex, fixed income, and investment banking. Its strategy targets sectors like sustainability, financial services, and energy transition, aligning with global mega-themes.
Willcox noted that India’s sustained growth trajectory makes it a preferred destination for global capital, reinforcing its position as a vital player in Japanese investment strategies.
Also Read: 55% Of Indian Economy To Grow Positively Amid Signs Of Moderation: HSBC Report
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