Japan likely to unveil $68b India investment plan during PM Modi's visit: Report

Japan is likely to announce a 10 trillion-yen private investment plan in India during Prime Minister Narendra Modi’s upcoming visit to the country.

According to a report by The Economic Times, the investment plan will span a decade and is an expansion of the five trillion-yen investment goal that was announced in 2022. PM Modi is set to visit Japan on August 29-31.

What will happen during PM Modi’s Japan visit?

During the visit, New Delhi and Tokyo are expected to agree on a new framework to enhance cooperation in economic security, focusing on securing stable supplies of critical goods. This collaboration would cover areas such as semiconductors, essential minerals, communications, clean energy, artificial intelligence, and pharmaceutical products.

India and Japan are also likely to announce an “AI cooperation initiative” for emerging technology and startups. PM Modi may also travel to Sendai in Miyagi Prefecture for the inauguration of an experimental Shinkansen bullet train car.

From 2000 to December 2024, Japan has invested approximately $43.2 billion in India, making it the fifth-largest source of foreign direct investment (FDI). Japanese FDI has primarily focused on sectors such as automobiles, electrical equipment, telecommunications, chemicals, financial services (including insurance), and pharmaceuticals.

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PM Modi’s Japan visit

The Ministry of External Affairs has said PM Modi will be in Japan on August 29 and 30 to participate in the 15th India-Japan annual summit.

This will be PM Modi’s eighth visit to Japan as the prime minister.

The ministry said PM Modi and his Japanese counterpart, Shigeru Ishiba, will review the Special Strategic and Global Partnership between India and Japan.

It said the two prime ministers will deliberate on cooperation in the areas of defence and security, trade and economy, technology and innovation, and people-to-people exchanges, as well as discuss issues of regional and global importance.

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“The visit will reaffirm the longstanding special bond of friendship between the two countries,” the MEA said in a statement.

With inputs from agencies