India and Japan on Wednesday reaffirmed their commitment to deepen cooperation in startups, deep technology, innovation and MSMEs, with Commerce and Industry Minister Piyush Goyal highlighting India’s emergence as the world’s third-largest startup ecosystem.
Addressing the India-Japan Startup Roundtable in Tokyo, Goyal said nearly 250,000 startups have been established in India over the past decade, supported by the country’s large domestic market, STEM talent pool, digital public infrastructure and expanding innovation ecosystem.
The roundtable brought together government representatives, investors, industry leaders and startups from both countries to explore technology partnerships, investment opportunities and new avenues for innovation-led economic collaboration.
Goyal proposed a four-pillar framework to take India-Japan startup cooperation to the next level. The framework includes a Japan-India Deep-Tech Capital Corridor to mobilise patient capital for early-stage research, deep-tech innovation and commercialisation; a Two-Way Innovation Bridge linking universities, incubators, research institutions, laboratories and testing facilities; Manufacturing and Technology Integration combining India’s scale and engineering talent with Japan’s precision engineering and manufacturing capabilities; and Joint Startup Pitching Platforms for regular interactions between Indian founders, Japanese corporations, venture funds and strategic investors.
The minister also highlighted the government’s proposed second Fund of Funds of around $1 billion, with a focus on deep-tech enterprises, and invited Japanese investors to participate.
Stronger India-Japan startup linkages
Indian Ambassador to Japan Nagma Mohamed Mallick highlighted the growing engagement between the two startup ecosystems. The India-Japan Pitching Series has so far connected 65 Indian startups with around 100 Japanese corporations, resulting in more than 30 business tie-ups.
She said the participation of a 222-member Indian business delegation in Japan provided an opportunity to build new and long-term partnerships between the two countries.
JICA Senior Vice President Shohei Hara welcomed the expanding cooperation and stressed the importance of a two-way partnership. He said Japan could contribute its technological capabilities while learning from India’s ability to turn social and developmental challenges into scalable business opportunities.
JICA also indicated plans to showcase opportunities in the Indian market to a larger number of Japanese startups.
The event was attended by senior representatives of the Tokyo Metropolitan Government and the Japan External Trade Organization (JETRO), which partnered with the Indian Mission to bring Japanese companies to the roundtable.
Around 40 leading Japanese companies participated, including SPARX Group, MUFG Innovation Partners, Beyond Next Ventures, Incubate Fund Asia, Mizuho Financial Group, SBI Investment, Fujitsu, DG Daiwa Ventures, ASTRO GATE, Instalimb, Universal Materials Incubator, Kyoto Fusioneering and Aerosense.
AI, semiconductors, space among investment opportunities
Venture capital investors identified artificial intelligence, semiconductors, healthcare, space, defence, advanced manufacturing and deep technology as major areas for future India-Japan investment.
Investors also pointed to a shift in India’s startup landscape, from an ecosystem dominated by internet and software companies towards businesses focused increasingly on manufacturing and advanced technologies.
Indian startups at the roundtable showcased capabilities in aerospace and defence, drones, AI, healthcare, prosthetics, robotics, warehouse automation, mobility and digital health. Several explored partnerships with Japanese companies in technology validation, precision manufacturing, investment, market access and integration into Japanese and global supply chains.
Industry representatives also called for stronger integration of MSMEs with startups and global supply chains, along with plug-and-play infrastructure for companies looking to manufacture and expand their operations in India.
Complementary strengths
The discussions highlighted the complementary strengths of the two economies. India brings scale, a large talent pool, digital capabilities and entrepreneurial dynamism, while Japan offers advanced technology, patient capital, manufacturing expertise and global quality standards.
The two sides said combining these strengths could help create globally competitive enterprises and technologies capable of serving markets in India, Japan and other countries.
The roundtable concluded with an emphasis on moving beyond individual business engagements towards an institutionalised India-Japan startup and innovation partnership, supported by regular investor-startup interactions, co-investment mechanisms, technology partnerships and stronger links among universities, research institutions, incubators and industry.
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