India foreign ministry: To launch several new initiatives with Japan

India foreign ministry: To launch several new initiatives with Japan

Prime Minister Narendra Modi's upcoming visit to Japan, scheduled from August 29-31, is set to witness the unveiling of a significant economic initiative. Japan is preparing to announce a 10 trillion-yen ($68 billion) private investment plan for India, spanning a decade [1]. This ambitious plan aims to boost investment in India amidst US tariffs and foster cooperation in critical areas such as semiconductors, artificial intelligence, and economic security.

The investment plan is an increase from a previous five-year, five trillion-yen goal announced in 2022. It is designed to enhance India's infrastructure, manufacturing, clean energy, and technology partnership with Japan. Additionally, the two countries are expected to announce an AI cooperation initiative focused on emerging technology and startups [1].

During Modi's visit, New Delhi and Tokyo may also agree on a new framework to explore cooperation in economic security, covering critical goods like semiconductors, essential minerals, communications, clean energy, artificial intelligence, and pharmaceutical products [1]. The visit could also include Modi traveling to Sendai in Miyagi Prefecture to view an experimental shinkansen bullet train car and visit a major Japanese manufacturer of chip-making equipment [1].

Japan's foreign direct investment (FDI) in India has been growing in recent years, with investments reaching $1.79 billion in 2022-23 and $3.1 billion in 2023-24. Japanese FDI into India has primarily been in sectors such as automobiles, electrical equipment, telecommunications, chemicals, finance, and pharmaceuticals [1]. Over 60% of Japanese companies in India reported an increase in market share for their main products and services in 2024 [1].

Modi's visit to Japan and China reflects India's strategic intent amidst global geopolitical flux. The visit to Japan underscores India's commitment to advancing economic security, defense cooperation, and Indo-Pacific stability, while the subsequent visit to China aims to manage tensions and explore confidence-building measures [2]. The visit to Japan is not just about consolidating an old partnership but also about recognizing where India's most dependable ballast lies in the face of uncertainty [2].

The Tokyo visit signals steady strategic intent and highlights India's ability to engage with trusted partners and competitors without allowing one relationship to dictate the other. It reinforces the idea that dedicated long-term cooperation can deliver tangible outcomes and underscores India as one of Japan's most reliable partners in navigating the challenges of the Indo-Pacific [2].

References:

[1] https://economictimes.indiatimes.com/news/india/japan-likely-to-unveil-68b-india-plan-during-pms-visit/articleshow/123460458.cms

[2] https://www.thehindu.com/opinion/op-ed/india-japan-ties-old-partners-new-priorities/article69975928.ece