Japan plans to announce a new investment target of 10 trillion yen (about USD 68 billion) in India during Prime Minister Narendra Modi’s visit later this month, Kyodo News reported, quoting a government source.
This doubles the earlier goal of 5 trillion yen set in 2022. The move aims to boost investment as both countries work together for a “free and open Indo-Pacific” amid China’s growing assertiveness.
According to sources, the target may be included in a joint statement following summit talks between Japanese Prime Minister Shigeru Ishiba and Modi.
Why Is Japan Planning to Splurge So Much in India?
Modi’s three-day visit to Japan, starting August 29, will be his first since May 2023, when he attended the Group of Seven summit in Hiroshima, as per Kyodo News.
The previous investment target, announced during former Prime Minister Fumio Kishida’s visit to India in March 2022, aimed for 5 trillion yen in public and private investment and financing over five years.
Both countries’ governments are also seeking to agree on a new framework to explore cooperation in economic security, such as for procuring stable supplies of critical goods, the sources said.
The framework would designate semiconductors, essential minerals, communications, clean energy, artificial intelligence and pharmaceutical products as key areas for discussion, according to Kyodo News.
India-Japan to Focus on Cooperation in Several Sectors
The two sides are additionally arranging to announce what they call an AI cooperation initiative for the emerging technology and related startups, they said.
“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,” a source was quoted as saying.
PM Modi is likely to visit Sendai while he is in Japan, to see what experts described as an experimental shinkasen bullet train car. He may also visit an important Japanese firm which manufactures chip-making equipment, sources said.
