Japan plans to double investment target for India to 10 trillion yen during PM Modi’s visit

The Japanese government is preparing to announce a 10 trillion yen (USD 68 billion) investment budget for India during Prime Minister Narendra Modi’s visit later this month, Kyodo News reported, citing a government source, according to ANI.

Tokyo to double investment target for India

This marks a big leap from the 5 trillion yen five-year target introduced in 2022, as both countries look to boost economic and strategic ties while promoting a “free and open Indo-Pacific” in response to an increasingly assertive China.

According to the reports, the new investment target may be included in a joint statement following summit talks between the Prime Ministers of both countries.

PM Modi will be on a three-day visit to Japan starting August 29 for a discussion with the Japanese Prime Minister Shigeru Ishiba.

This will be the Indian Prime Minister’s first since May 2023, when he attended the G7 summit in Hiroshima.

The previous investment target was announced during former Japanese Prime Minister Fumio Kishida’s visit to India in March 2022.

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India-Japan plans for more projects together

Beyond investments, both nations are also working to agree on a new framework for cooperation in economic security, as reported by Kyodo News.

This is for stable supplies of critical goods, semiconductors, essential minerals, communications, clean energy, artificial intelligence, and pharmaceutical products.

Tokyo and New Delhi are additionally expected to announce an AI cooperation initiative, based on emerging technologies and startups. 

“We hope promoting cooperation between Japanese companies (and their Indian counterparts) in fields where Indian firms have strengths would contribute to the growth of the Japanese economy,” one of the sources told Kyodo News, as cited by ANI.

According to reports, PM Modi may travel to Sendai in Miyagi Prefecture during his stay to view an experimental shinkansen bullet train car and visit a major Japanese manufacturer of chip-making equipment.

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