India vs Japan
A data-driven side-by-side: investment score, economy, business climate, political stability, and tax — to help you decide where to invest, incorporate, or relocate.
Overall: Japan ranks higher
Japan scores 82/100 on our composite investment index, ahead of India at 61/100. This blends economic strength, political stability, business climate, financial maturity, and growth outlook. Read the breakdown below to see where each country actually leads.
Category breakdown
65
Economic strength
Japan leads
80
48
Political stability
Japan leads
88
58
Business climate
Japan leads
85
55
Financial maturity
Japan leads
72
90
Growth outlook
India leads
55
Macro snapshot
3,730
GDP (USD bn)
-500.0 bn
4,230
6.8%
GDP growth (%)
+5.8 pp
1.0%
$2,600
GDP per capita (USD)
-31400.0
$34,000
4.8%
Inflation (%)
+2.1 pp
2.7%
1.6%
FDI (% of GDP)
+0.8 pp
0.8%
82%
Public debt (% of GDP)
-173.0 pp
255%
1,440
Population (M)
+1316.0M
124
India — strong sectors
- Technology (IT Services)8.0% of GDP95
- Financial Services6.0% of GDP82
- Pharmaceuticals2.0% of GDP80
- Manufacturing13.0% of GDP70
Japan — strong sectors
- Technology8.0% of GDP88
- Automotive5.0% of GDP85
- Manufacturing20.0% of GDP82
- Financial Services6.0% of GDP78
Frequently asked
Which is better for investment: India or Japan?
Our composite investment index gives India a score of 61/100 and Japan a score of 82/100. Japan ranks higher overall, but the right answer depends on your sector and risk tolerance — see the category breakdown above.
Is India a safer market than Japan?
Risk classification puts India as moderate (Growing economy with manageable risks - suitable for diversified portfolios) and Japan as safe (Strong fundamentals, stable governance, favorable investment climate).
Which has higher GDP growth: India or Japan?
India is currently growing at 6.8% per year, vs 1.0% for Japan. India has the faster headline growth rate today.