India–Japan ties: Tokyo set to unveil 10 trillion yen investment plan; announcement expected during PM Modi’s trip

Japan is planning to announce a decade-long investment target worth 10 trillion yen ($68 billion) for India during Prime Minister Narendra Modi’s visit later this month.The plan is seen as an upgrade of the five-year investment target set three years back, aiming to deepen economic ties as Japan and India step up efforts to promote a “free and open Indo-Pacific” amid China’s growing assertiveness, Kyodo News reported on Thursday, citing government sources.According to sources, the new investment target could be highlighted in a joint statement following summit talks between Japanese PM Shigeru Ishiba and PM Modi.PM Modi will begin his three-day trip to Japan on 29 August, marking his first visit since May 2023, when he travelled to Hiroshima for the Group of Seven summit.The previous target, announced during then Japanese PM Fumio Kishida’s visit to India in March 2022, had aimed for 5 trillion yen in public and private investment and financing over five years.Alongside the new investment goal, both governments are also working on a fresh framework to boost cooperation in economic security, focusing on securing stable supplies of critical goods. Major sectors under discussion include semiconductors, essential minerals, communications, clean energy, artificial intelligence and pharmaceutical products, Kyodo News reported.The two sides are also planning to launch an AI cooperation initiative to support the development of emerging technology and related startups.“We hope promoting cooperation between Japanese companies (and their Indian counterparts) in fields where Indian firms have strengths would contribute to the growth of the Japanese economy,” a source told Kyodo News.During his stay, PM Modi may also travel to Sendai, in Miyagi Prefecture in northeastern Japan, to view an experimental shinkansen bullet train car and visit a leading Japanese manufacturer of chip-making equipment, the sources added.