The Indian IT and start-up industry has helped many Japanese corporations to adopt digital capabilities and innovative business models. Japanese policymakers have started investing heavily in Indian tech startups since 2016.
The total Japanese investment has reached $9.2 billion after most deals were closed by large investors like Softbank in India. Startups in fintech, healthcare, e-commerce, and real estate has attracted investment from multiple Japanese investors, according to The National Association of Software and Services Companies (NASSCOM) report.
As per the report, the investment has grown four times since 2016 and created 102,000 additional jobs. As a result, startups would contribute 80% of the total employment.
The employment generation is led by increased funding available for Series D and accompanied by many deals coming for early-stage startups and increased investment in IT and technologies like AI, ML, IoT.
“This increase in the investment by Japan is a testament to our performance and expertise. The technology industry has become a reliable partner for digital transformation journey and innovating new business model to Japanese companies,” Debjani Ghosh, president, NASSCOM, said.
The scope of India Japan Digital Partnership (IJDP) includes cooperation in Electron System Design and Manufacturing (ESDM), digital infrastructure, R&D, strengthening supply chains and cooperation in human resources in IT sector.