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Japan Growth Strategy 2026: The 17 Sectors and ¥370 Trillion Bet

The draft Japan Growth Strategy sets out over ¥370 trillion in anticipated public-private investment across 17 strategic sectors and 62 key technologies by FY2040. An interactive, sector-by-sector explainer.

Japan Growth Strategy 2026: The 17 Sectors and ¥370 Trillion Bet
Photo: PM Sanae Takaichi on her first day at the Kantei by 首相官邸 (Cabinet Public Affairs Office), CC BY 4.0.

On June 30, 2026, the Cabinet Secretariat’s Growth Strategy Council released the draft Japan Growth Strategy 2026 (日本成長戦略). Paired with the same-day draft of the FY2026 Basic Policy (骨太方針), it is the biggest coordinated economic policy signal from Tokyo in years, envisioning over ¥370 trillion in cumulative public-private domestic investment across 17 strategic sectors and 62 specific products and technologies by FY2040.

The framing is unusually explicit. The strategy names each sector, each tech within it, and each of the 8 cross-cutting policy tracks with a numerical KPI. Explore all of it below, click any sector to see its named technologies, and scan the 8-priority scorecard for the wage, productivity, human capital, and cybersecurity targets that the government is aiming to hit. Toggle EN/日本語 at the top-right of the viewer.

Source: Cabinet Secretariat · 6th Growth Strategy Council · June 30, 2026 - draft council document; final figures subject to Cabinet approval.

What this tells you

  • ¥370 tn+ anticipated cumulative public-private investment across 17 sectors by FY2040, the largest sectoral industrial policy push Japan has set out in decades.
  • 62 named technologies, Physical AI, perovskite solar, next-gen reactors, fusion, port logistics DX, and content industries are all treated as first-class strategic sectors alongside semiconductors and defense.
  • AI transformation (AX) as the connective tissue, Physical AI capability is positioned as Japan’s cross-sector competitive edge, with domain-specific vertical AI as the deployment layer.
  • A new investment framework, the “Strong & Rich Japan” (強く豊かな日本) envelope replaces single-year fiscal caps for the priority sectors, enabling multi-year, escalating support.
  • Fiscal companion: this strategy is explicitly the growth half of a paired framework with the FY2026 Honebuto, which sets up FY2027 as “Year One” of a new Responsible Aggressive Fiscal Policy era (2027-2040).
  • 8 cross-cutting KPI tracks, from science/engineering/agriculture, digital, and health-related enrollment capacity (35% → 50%) to labor productivity (+15% / 5yr), women’s continuous employment (69.5% → 80%), real wages (+1%/yr), and critical infrastructure cyber protection (100% by 2031).

Foreign firms already active in, or planning entry to, any of the 17 sectors should treat this draft as a road map for where government support, procurement, and regulatory alignment will concentrate through 2040. If you would like to work through what the strategy means for your industry, your product roadmap, or your Japan market-entry timing, please get in touch.