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During Q4 2025, India and Japan enhanced economic engagement through government interactions and business exchanges, focusing on investment stability in manufacturing, mobility, electronics, and finance. Japanese firms have engaged in India's sectors due to regulatory reforms and infrastructure developments.

Key policy initiatives include the CDSCO's requirement for medical device licenses, a scheme for rare earth magnets, revised petroleum rules, and nuclear energy framework changes. The Indian Parliament passed several bills, including one for liberalizing FDI in insurance, while the RBI amended financial regulations. Additionally, foreign investments from Honda, Mitsubishi UFJ, and Sumitomo Corporation aim to enhance local manufacturing and energy solutions.