New Delhi, May 6 -- India has emerged as the second-most attractive destination for Japanese investment in Asia since 2023, trailing only Singapore. Notably, it has surpassed China, which held the top spot for over four decades. In 2020, India ranked seventh-this sharp rise underscores a dramatic shift in Japanese investor priorities.

The escalation of US-China trade tensions, particularly following former President Donald Trump's tariff war, disrupted China's dominance as a low-cost manufacturing hub. This triggered Japanese companies to reassess their investment destinations, increasingly favoring India's sustainable growth trajectory and domestic demand base.

Historically, trade disputes involving the United States have been signific...