Chartered Accountants◆Practising since 2016

Japan to India · Trade and sectors

Trade agreements and sector rules for Japanese investors

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

The India–Japan Comprehensive Economic Partnership Agreement has been in force since 1 August 2011. Foreign investment from Japan is on the automatic route in most sectors. Japanese investors are most active in automotive and components, electronics and industrial machinery, infrastructure and urban development.

What is specific to Japanese companies

The India–Japan CEPA has been in force since 1 August 2011. Japanese investment is strongest in automotive, electronics and infrastructure.

Sectors

  • Automotive and components
  • Electronics and industrial machinery
  • Infrastructure and urban development
  • Trading companies (sogo shosha)

A trade agreement does not change FDI caps, FEMA pricing or RBI reporting.

Our services

How SU and Company helps

We assess whether a GIFT City unit or a mainland company fits the business and set up the chosen entity.

  • IFSC versus mainland comparison
  • Entity incorporation
  • Accounting, tax and compliance after set-up

Questions

Does a trade agreement change FDI rules?

No. Tariffs and services access change; FDI policy, sector caps and FEMA reporting still apply.

General information as at 5 November 2026, not advice for a particular case. Indian and Japanese rules change often; confirm the current position before acting. Japanese law points should be confirmed with a Japanese adviser.

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