Indian Prime Minister Narendra Modi and Japanese Prime Minister Shigeru Ishiba have reaffirmed their commitment to strengthening economic ties ahead of a key summit. The discussions come at a time of rising global trade frictions, particularly due to new US tariffs.
According to reports, India and Japan are preparing to finalize a landmark agreement valued at $68 billion. The deal, which may be signed on August 29, 2025, will focus on ramping up Japanese private sector investments in India. Over the next decade, Tokyo aims to channel 10 trillion yen ($68 billion) into India’s growing economy while also enhancing human resources collaboration by facilitating the exchange of 500,000 professionals between the two nations within five years.
This strategic step reflects the determination of both governments to deepen trade and investment ties, especially as India faces hurdles in its economic relations with Washington, and Japan struggles with its own trade turbulence with the US.
Japan sees India’s youthful and skilled workforce as a solution to its shrinking labor force, which is challenged by an aging population. For India, Japanese investments represent an opportunity to accelerate growth in sectors critical to the future economy.
Modi, in his address, highlighted the strong foundation of India-Japan ties. “Japan has been a vital partner in India’s development journey,” he said, inviting Japanese companies to increase their footprint in India. He pointed to the success of Suzuki Motor Corp as a model that can be replicated in advanced fields such as batteries, robotics, semiconductors, shipbuilding, and nuclear energy. Such cooperation, he emphasized, could also extend to supporting growth across Global South nations and Africa.
In his remarks, Modi called Japan a “tech powerhouse” and India a “talent powerhouse,” suggesting that their partnership could drive the next wave of global innovation. He stressed that together, the two countries can lead this century’s technological revolution, particularly in green energy, mobility solutions, and logistics infrastructure.
The potential $68 billion deal not only signals confidence in India’s reforms and transparent regulatory environment but also highlights how India and Japan are positioning themselves as partners to navigate shifting global trade dynamics while building a roadmap for sustainable growth.
