Abstract
India has already marked its presence as one of the fastest growing economies of the world. It has been ranked among the top 3 attractive destinations for inbound investments. Since 1991, the regulatory environment in terms of foreign investment has been consistently eased to make it investor-friendly. After formation of new government in May 2014 at Centre, Indian prime minister visited Japan to boost business and political ties. Japanese companies’ investments have flowed into manufacturing sector of India and are expected to rise. The Government of India (GOI) recently launched a major new national program ?Make in India? designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure. The cumulative Foreign Direct Investment (FDI) inflows (including equity, re-invested earnings & other capital) in India from Japan from April 2000 to February 2014 are US$ 321.81 billion which ranked Japan 4th largest investor in India. Further, it is found that sectors attracted maximum FDI equity inflows from Japan from April 2000 to February 2014 are drugs & pharmaceutical, automobile industry, services sector, metallurgical industries and electrical equipment. This study aims to highlight Japan-specific investment opportunities in India against the backdrop of Japanese investors’ concerns regarding FDI in India.
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