Japan to Invest INR 6 Trillion in India The Prime Minister, Narendra Modi also urged Japanese businesses to explore opportunities in India, using the success stories of companies like Suzuki and Daikin as a model for potential future investments
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India and Japan have committed to a landmark economic partnership, with Japan targeting an investment of ¥10 trillion (approximately INR 6 trillion) in India over the next decade. This announcement was made by Prime Minister Narendra Modi following his discussions with Japanese counterpart Shigeru Ishiba in Tokyo.
As part of this expanded collaboration, the two nations have launched the Economic Security Cooperation Initiative, which will focus on sectors such as artificial intelligence (AI), digital partnerships, and the joint development of semiconductors and rare earth minerals.
The two leaders also underscored their intention to strengthen economic ties, not only between India and Japan but also with other global partners, particularly in light of the U.S. imposing a 50 per cent tariff on Indian goods, which is the highest in the world.
Prime Minister Modi emphasised the establishment of a "strong foundation for a new and golden chapter" in the India-Japan Special Strategic and Global Partnership, with a comprehensive roadmap outlined for the next decade. He said the vision would cover key areas such as investment, innovation, economic security, environment, technology, health, mobility, and people-to-people exchanges.
Looking ahead, India and Japan are working on high-speed train projects and making significant progress in areas such as ports, aviation, and shipbuilding under the Next Generation Mobility Partnership. Modi also shared plans for promoting an exchange of up to 500,000 people over the next five years, with 50,000 skilled Indians expected to contribute to Japan's economic growth.
During the India-Japan Economic Forum, Modi highlighted the complementary strengths of both nations; Japan as a "tech powerhouse" and India as a "talent powerhouse." The partnership aims to leverage these strengths in fields such as semiconductors, quantum computing, space exploration, and artificial intelligence. Both countries are also focused on sustainable energy, with an emphasis on carbon markets, green energy transitions, and the development of renewable energy solutions, including solar cells and green hydrogen.
Additionally, the two nations have agreed to establish a joint credit mechanism to help reduce greenhouse gas emissions and meet their respective net-zero targets. Modi also announced that India is targeting 500 GW of renewable energy capacity by 2030 and aims to achieve 100 GW of nuclear power by 2047.
The Prime Minister also urged Japanese businesses to explore opportunities in India, using the success stories of companies like Suzuki and Daikin as a model for potential future investments. He concluded by stressing the potential for collaboration between India and Japan to foster significant growth and development, particularly in the Global South, including Africa.
