New Delhi: Japan is likely to set a fresh investment target of 10 trillion yen (around USD 68 billion) for India during Prime Minister Narendra Modi’s visit later this month, according to a report by Kyodo News. The move would mark a sharp increase from the earlier five-year commitment of 5 trillion yen announced in 2022, highlighting efforts to deepen economic and strategic ties between the two nations.
The new investment goal is expected to be part of a joint statement following summit talks between Prime Minister Modi and his Japanese counterpart Shigeru Ishiba. Modi 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 commitment was announced during former Prime Minister Fumio Kishida’s visit to India in March 2022.
Economic security and critical sectors in focus
Alongside investments, both governments are working on a cooperation framework in the field of economic security. The focus will be on ensuring stable supplies of critical goods, including semiconductors, essential minerals, communication technology, clean energy, artificial intelligence, and pharmaceutical products. These areas have been identified as priority sectors given their importance for long-term growth and stability.
AI and startup collaboration expected
The two countries are also expected to announce an AI cooperation initiative. This will promote collaboration in emerging technologies and startup ecosystems. Japanese officials believe closer ties with Indian firms, particularly in areas where India has strong capabilities, will also contribute to Japan’s economic growth.
Modi’s expected stops in Japan
During his visit, Prime Minister Modi may travel to Sendai in Miyagi Prefecture to view an experimental shinkansen bullet train car and is also expected to visit a major Japanese manufacturer of chip-making equipment, sources said.
The possible doubling of Japanese investment signals stronger bilateral cooperation, not only in trade and technology but also in strategic sectors that align with the broader vision of a free and open Indo-Pacific.
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Source: Moneycontrol
News Desk
