Japanese investment in India reached a record high in 2025, with over $9 billion deployed through mergers and acquisitions. Major deals include MUFG's $4.4 billion investment in Shriram Finance and JFE Holdings' $1.75 billion investment in Bhushan Power Steel. This surge, with five of the top ten Japanese investments in India since 2016 occurring this year, is attributed to Japan's economic challenges and India's growth potential.