Japanese companies are expanding in India, making it one of the busiest corridors for dealmaking in Asia, particularly in financial services.

Just Wednesday, Mizuho Financial Group said it is buying a controlling stake in investment bank Avendus Capital, backed by KKR & Co. Bigger rival Mitsubishi UFJ Financial Group might invest more than ?500 billion ($3.2 billion) to buy about 20% of Shriram Finance, people familiar with the matter said earlier this week. And Sumitomo Mitsui Financial Group is now Yes Bank¡¯s biggest shareholder.

¡°Japanese firms looking for growth outside of their home market have India at the top of their list,¡± said Nitin Maheshwari, co-head of investment banking in India at JPMorgan Chase & Co. ¡°Travel schedules have been very busy with Japan this year.¡±

Japanese executives are jetting in to visit the Indian units of their companies or to pursue new opportunities such as partnerships, Maheshwari said.

The total volume of deals targeting Indian companies, including via mergers and acquisitions, has climbed 15% this year to almost $90 billion, compiled data shows. Japanese buyers account for only a small fraction of that for now, but they¡¯re on the up and spreading their wings, dealmakers say.

¡°Apart from the big-ticket deals from conglomerates, Japanese midmarket companies will increasingly scout for M&A (mergers & acquisitions) deals in mobility, renewables, sustainability and overall infrastructure in 2026,¡± said Swathy Ramanath, a partner at law firm Khaitan & Co.

¡°Japanese companies are seeing growth and yield beyond their home market and India is one of the top priorities for deals,¡± she said.

India offers growth opportunities and the potential for big investments, added Maheshwari. However, in some sectors, public markets offer better value than private transactions, which creates a challenge for M&A, he said.

¡°Japan is a super-active corridor and certainly the momentum should continue in 2026 and beyond,¡± the JPMorgan banker said. ¡°There is generally good dialogue and chemistry around things that Japanese and Indian companies can do together across sectors.¡±