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

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

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

This marks a sharp jump from the 5 trillion yen five-year target unveiled 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.

To feature in joint statement

According to sources, the new investment goal may be included in a joint statement following summit talks between Japanese Prime Minister Shigeru Ishiba and Modi. The Indian leader will be on a three-day visit to Japan starting August 29, his first since May 2023, when he attended the G7 summit in Hiroshima.

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

Economic security, critical goods in focus

Beyond investments, both governments are also working to agree on a new framework for cooperation in economic security, Kyodo News reported. This would cover stable supplies of critical goods, with semiconductors, essential minerals, communications, clean energy, artificial intelligence, and pharmaceutical products identified as priority areas.

AI and startup cooperation on the cards

Tokyo and New Delhi are additionally expected to announce an AI cooperation initiative, focusing 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.

Modi’s possible stops in Japan

During his stay, Modi may travel to Sendai in Miyagi Prefecture to view an experimental shinkansen bullet train car and visit a major Japanese manufacturer of chip-making equipment, the sources said.