Prime Minister of Japan, H.E. Mr. Shigeru Ishiba, has announced a plan to invest approximately US$ 68 billion in India over the next decade, aiming to strengthen economic and technological ties between the two nations. The proposal is expected to be highlighted during the 15th India-Japan Annual Summit with Prime Minister Narendra Modi on August 29–30.
This long-term investment will span eight priority sectors, including mobility, environmental technologies, healthcare, artificial intelligence (AI), and semiconductor manufacturing, while also supporting Indian startups and promoting collaborative technology initiatives. The move reflects Japan’s strategy to deepen its presence in India by leveraging its own technological expertise and tapping into India’s vast talent pool.
Under the proposed ‘AI Cooperation Initiative,’ young researchers from both countries will exchange knowledge to accelerate innovation and enhance research capabilities. As part of the collaboration, both leaders will visit Tokyo Electron’s facility in Miyagi to showcase Japan’s semiconductor manufacturing proficiency.
The Japan International Cooperation Agency (JICA) has already provided yen-denominated loans to support Indian startups, particularly in Telangana’s IT sector. Tokyo also aims to recruit and train elite Indian engineers to address Japan’s anticipated shortage of 7,90,000 advanced technology professionals by 2030. Programs by Japanese companies, including Sompo Care and Sekisho, offer language training, technical upskilling, and job placement for Indian workers to bridge this workforce gap.
This proposed investment highlights the growing interdependence between India and Japan in advanced technologies, semiconductors, and AI-driven solutions. By combining Japanese expertise with India’s talent, the partnership is expected to accelerate technological innovation, create employment opportunities, and reinforce bilateral economic and security cooperation.
The planned engagement also includes a revision of the joint declaration on security cooperation between India and Japan for the first time in 17 years, signaling a holistic approach to strategic and economic collaboration. Through this decade-long partnership, both countries aim to position themselves as leaders in technology, innovation, and sustainable growth in the Indo-Pacific region.
