Japanese companies expand innovation centers in India

Over 100 Japanese companies have established or expanded Global Capability Centres (GCCs) in India, marking a strategic shift from traditional cost-cutting back-office support to high-value innovation. According to a report by Cushman & Wakefield, these centers are increasingly focused on advanced functions such as artificial intelligence, engineering, cybersecurity, digital innovation, and product development.

This transition is driven by Japan’s need to address domestic technology talent shortages and accelerate digital transformation. India provides a significant advantage through its annual output of approximately 2.5 to 2.8 million STEM graduates, alongside a mature infrastructure and real estate ecosystem.

Beyond operational expansion, Japanese capital is also being directed toward funding office campuses and technology parks across India. While major tech hubs like Bengaluru, Hyderabad, and Pune remain primary targets, companies are also exploring emerging talent markets to scale their global business priorities.