Tokyo: Commerce and Industry Minister Piyush Goyal has called for deeper India–Japan cooperation in startups, deep technology, innovation and manufacturing, saying India’s large market, STEM talent and expanding startup ecosystem offer strong opportunities for Japanese investors and technology companies.
Speaking at the India–Japan Startup Roundtable in Tokyo, Goyal said India had emerged as the world’s third-largest startup ecosystem, with nearly 250,000 startups established over the past decade.
The roundtable brought together government representatives, investors, industry leaders and startups from India and Japan. Around 40 leading Japanese companies participated in the discussions, which focused on investment, technology partnerships, MSMEs and innovation-led economic cooperation.
Four-pillar framework proposed for startup cooperation
Goyal proposed a four-pillar framework for the next phase of India–Japan startup cooperation.
The first is a Japan–India Deep-Tech Capital Corridor aimed at mobilising patient capital for early-stage research, deep-tech innovation and commercialisation.
The second is a Two-Way Innovation Bridge connecting universities, incubators, research institutions, laboratories and testing facilities in both countries.
The third pillar focuses on manufacturing and technology integration, combining India’s scale, engineering talent and entrepreneurial capabilities with Japan’s technology, precision engineering and manufacturing strengths.
The fourth calls for joint startup pitching platforms to enable regular interaction between Indian founders, Japanese corporations, venture capital funds and strategic investors.
Goyal also referred to the Government of India’s proposed second Fund of Funds of around US$1 billion, which is expected to focus on supporting deep-tech enterprises. He invited greater participation from Japanese investors.
India–Japan startup ties expanding
Ambassador Nagma Mohamed Mallick said startup engagement between India and Japan had already begun to produce business partnerships.
She said the India–Japan Pitching Series had connected 65 Indian startups with around 100 Japanese corporations and facilitated more than 30 business tie-ups.
Mallick also said the participation of a 222-member Indian business delegation created further opportunities to build long-term partnerships between the two countries’ innovation ecosystems.
JICA Senior Vice President Shohei Hara called for a two-way partnership in which Japan could contribute its technological capabilities while also learning from India’s experience in turning social and developmental challenges into scalable business opportunities.
JICA also expressed its intention to introduce more Japanese startups to opportunities in the Indian market.
AI, semiconductors and space among key investment areas
Venture capital investors identified artificial intelligence, semiconductors, healthcare, space, defence, advanced manufacturing and deep technology as important areas for future India–Japan investment.
Investors also pointed to a shift in India’s startup ecosystem, with increasing activity in manufacturing and technology-intensive businesses rather than only internet and software ventures.
Industry representatives stressed the need to connect MSMEs with startups and global supply chains. They also called for plug-and-play infrastructure for companies looking to establish manufacturing operations and expand in India.
Indian startups showcase technology capabilities
Indian startups at the roundtable presented their work in aerospace and defence, drones, artificial intelligence, healthcare, prosthetics, robotics, warehouse automation, mobility and digital health.
Several companies explored opportunities to work with Japanese partners on technology validation, precision manufacturing, investment, market access and integration with Japanese and international supply chains.
Representatives of companies including SPARX Group, MUFG Innovation Partners, Beyond Next Ventures Inc., Incubate Fund Asia, Mizuho Financial Group, SBI Investment, Fujitsu Limited, DG Daiwa Ventures, ASTRO GATE Inc., Instalimb Inc., Universal Materials Incubator Co., Ltd., Kyoto Fusioneering Ltd. and Aerosense Inc. participated in the discussions.
Senior representatives of the Tokyo Metropolitan Government and JETRO were also present. JETRO partnered with the Indian Mission in bringing Japanese companies to the session.
Focus shifts towards institutional partnership
Participants said India and Japan offered complementary strengths. India brings market scale, talent, digital capabilities and entrepreneurial speed, while Japan offers long-term capital, advanced technology, manufacturing expertise and global quality standards.
The discussions concluded with a call to move beyond individual engagements towards a more institutionalised India–Japan startup and innovation partnership.
Participants supported regular investor–startup interactions, technology partnerships, co-investment mechanisms and stronger links between universities, research institutions, incubators and industries in both countries.