The Japanese government has announced plans to double its private-sector investment target in India, aiming for 10 trillion yen ($68 billion) over the next decade, according to reports from Tokyo. The new commitment is expected to be confirmed during a meeting between Japanese Prime Minister Shigeru Ishiba and Indian Prime Minister Narendra Modi in Tokyo on August 29.
This expanded investment target builds on Japan’s previous goal of 5 trillion yen over five years, announced in March 2022 by then-Prime Minister Fumio Kishida. Japanese businesses have already contributed nearly 1 trillion yen annually to India, and the new target is intended to further stimulate private-sector participation.
The two governments are also set to launch an Economic Security Initiative, a framework to address key economic security challenges such as securing critical materials and safeguarding core infrastructure. Priority sectors include semiconductors, telecommunications, clean energy, pharmaceuticals, and scientific fields like artificial intelligence. An AI Cooperation Initiative will further strengthen collaboration in technology and startups.
In addition, the Digital Partnership 2.0 project aims to extend economic cooperation beyond manufacturing, encompassing emerging technologies including AI and semiconductors. During PM Modi’s visit, India and Japan are expected to update their 2008 joint declaration on security cooperation to reflect contemporary security challenges.
Energy collaboration is another key focus. The countries will issue a Joint Statement on Energy Dialogue to advance decarbonization, economic growth, and energy security. Japan plans to implement a Joint Crediting Mechanism, allowing its carbon reductions achieved through technology deployment in India to count toward its climate goals.
People-to-people exchanges are also a priority, with targets set for over 500,000 visitors in five years and the acceptance of 50,000 Indian nationals in Japan. As part of the Mumbai-Ahmedabad bullet train project, the two leaders are expected to agree on introducing the next-generation E10 series bullet train developed by East Japan Railway Co.
The visit will include business meetings where Japanese and Indian firms are anticipated to sign more than 100 memoranda of understanding, covering investment projects and collaborative initiatives across multiple sectors.
