Japan to Boost Investment Targets in India Ahead of Modi Visit

The Japanese government is set to raise its investment target for India, aiming for 10 trillion yen ($68 billion) over the next decade, according to a source familiar with bilateral ties.

Prime Minister Shigeru Ishiba and Indian Prime Minister Narendra Modi are expected to finalize the new target during their meeting in Tokyo on August 29.

The move will build on Japan’s earlier pledge of 5 trillion yen over five years, announced in March 2022 by then-Prime Minister Fumio Kishida during his visit to India.

So far, Japanese companies have invested nearly 1 trillion yen in India annually on average. By revising the goal, Tokyo hopes to further encourage private-sector participation.

Modi will be in Japan from August 29 to 31.

Japan and India are preparing to launch an Economic Security Initiative, a new framework to strengthen cooperation on challenges such as securing stable supplies of critical materials and protecting core infrastructure.

The initiative will focus on priority sectors including semiconductors, critical minerals, telecommunications, clean energy, pharmaceuticals, and advanced scientific fields like artificial intelligence. It will also create platforms for dialogue between businesses and governments.

A dedicated AI Cooperation Initiative will promote collaboration in AI technologies and startups, while a new Digital Partnership 2.0 will broaden economic cooperation from traditional manufacturing to emerging areas such as semiconductors, AI, and startups

In clean energy, both sides will issue a Joint Statement on Energy Dialogue, underscoring efforts to align decarbonization, economic growth, and energy security.

They are also expected to introduce the Joint Crediting Mechanism, which will allow Japan to count emission reductions achieved in India through its low-carbon technologies toward its own climate targets.

The Japanese government is also weighing new targets to boost people-to-people exchanges with India, such as enabling over 500,000 two-way visits within five years and welcoming 50,000 Indian nationals to Japan.

In India’s first high-speed rail project, which uses Japan’s Shinkansen technology, the two sides are expected to agree on introducing the next-generation E10 series bullet train being developed by East Japan Railway Co.

Prime Minister Narendra Modi, during his Japan visit, will also attend business forums where Indian and Japanese companies are set to sign more than 100 memorandums of understanding, including major investment projects.

Tokyo and New Delhi will further update the Joint Declaration on Security Cooperation for the first time since it was established in 2008. The agreement currently covers collaboration among foreign affairs, defense, and maritime security authorities.

Prime Minister Shigeru Ishiba and Prime Minister Modi are scheduled to finalize these initiatives during their upcoming talks.

Also Read: PM Modi to Launch Rs 18,000 Crore Projects in Bihar and Bengal