India, Japan seek deeper startup, deep-tech cooperation; Goyal pitches $1 billion fund and capital corridor

INDIA and Japan aim to strengthen cooperation in startups, deep technology, innovation, and MSMEs, with Commerce and industry minister Piyush Goyal proposing a framework to boost investment, technology partnerships, and cross-border links, a Commerce Ministry release said.

Speaking at the India–Japan Startup Roundtable in Tokyo, Goyal highlighted India’s emergence as the world’s third-largest startup ecosystem, with nearly 250,000 startups established over the past decade. He said India’s large domestic market, STEM (Science, Technology, Engineering, and Mathematics) talent pool, digital public infrastructure and expanding innovation ecosystem make it an attractive destination for Japanese technology, investment and innovation partnerships.

The roundtable brought together government representatives, investors, industry leaders and startups from both countries, with representatives of around 40 leading Japanese companies participating in the discussions.

Four-pillar framework

Goyal proposed a four-pillar framework for the next phase of India-Japan startup cooperation. This 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 connecting universities, incubators, R&D institutions, laboratories and testing facilities; greater manufacturing and technology integration; and joint startup pitching platforms to facilitate regular interactions between Indian founders, Japanese corporations, venture funds and strategic investors.

Key Takeaways

    Goyal proposed a four-pillar framework for India-Japan deep-tech and startup collaboration.
    India plans a $1 billion Fund of Funds focused on deep-tech ventures.
    Over 40 major Japanese firms discussed joint investments in high-tech sectors.
    Past pitching sessions have sparked over 30 business tie-ups between the two nations.
    The partnership pairs the Indian market scale with Japanese high-precision manufacturing expertise.

The minister also highlighted the government’s proposed second Fund of Funds, of around $1 billion, which is expected to focus on deep-tech enterprises, and invited greater participation from Japanese investors.

Japan’s development and investment ecosystem also signalled interest in expanding engagement with India. Japan International Cooperation Agency (JICA) senior vice president Shohei Hara emphasised the importance of a two-way partnership, saying Japan could contribute its technological capabilities while learning from India’s ability to turn social and developmental challenges into scalable business opportunities. JICA also expressed an intention to showcase opportunities in the Indian market to a larger number of Japanese startups.

Connecting businesses in India and Japan

The India–Japan Pitching Series has so far connected 65 Indian startups with around 100 Japanese corporations and facilitated more than 30 business tie-ups, according to Ambassador Nagma Mohamed Mallick. She said the participation of a 222-member Indian business delegation in Japan provides an opportunity to develop further partnerships between the two innovation ecosystems.

Japanese investors identified artificial intelligence, semiconductors, healthcare, space, defence, advanced manufacturing and deep technology as key areas for future India-Japan investment. They also pointed to a shift in India’s startup ecosystem from predominantly internet and software businesses towards manufacturing- and technology-intensive enterprises.

Indian startups participating in the roundtable showcased capabilities in aerospace and defence, drones, artificial intelligence, healthcare, prosthetics, robotics, warehouse automation, mobility and digital health. Discussions included potential Japanese partnerships for technology validation, precision manufacturing, investment, market access and integration into Japanese and global supply chains.

Industry representatives also highlighted the need to better integrate micro, small, and medium enterprises (MSMEs) with startups and global supply chains, while stressing the importance of plug-and-play infrastructure for companies looking to manufacture and expand in India.

The roundtable also saw participation from the senior leadership of the Tokyo Metropolitan Government and JETRO, which partnered with the Indian Mission to bring Japanese companies to the session. Companies participating included SPARX Group, MUFG Innovation Partners, Beyond Next Ventures, Incubate Fund Asia, Mizuho Financial Group, SBI Investment, Fujitsu, DG Daiwa Ventures, ASTRO GATE, Incubate Fund, Instalimb, Universal Materials Incubator, Kyoto Fusioneering and Aerosense.

The discussions highlighted the complementary strengths of the two economies, with India offering scale, talent, digital capabilities and entrepreneurial speed, while Japan brings patient capital, advanced technology, manufacturing capabilities and global quality standards.

The two sides agreed on the need to move beyond individual engagements towards a more institutionalised India-Japan startup and innovation partnership, supported by regular investor-startup interactions, technology partnerships, co-investment mechanisms and stronger links among universities, research institutions, incubators and industry.