Japan may Announce 10 Trillion Yen Investment in India
The Japanese government may mention the new target in an outcome document to be issued following summit talks between Japanese Prime Minister Shigeru Ishiba and Modi
Chennai: Japan is likely to announce a 10 trillion yen ($68 billion) private sector investment in India for the next ten years during the visit of Prime Minister Narendra Modi from Aug 29, Japanese news agency Kyodo News reported.
“The new target -- an update of a five-year 5 trillion yen investment goal rolled out in 2022 -- is intended to further spur investment at a time when the two countries are working closely to promote a "free and open Indo-Pacific" in the face of an assertive China,” Kyodo quoted government sources.
In March 2022, Japan had committed private and public investment of 5 trillion yen for a five-year period between 2022 and 2027 targeting local manufacturing, especially in semiconductors, electric vehicles and clean energy. The Mumbai-Ahmedabad high-speed rail project is also part of this investment.
The Japanese government may mention the new target in an outcome document to be issued following summit talks between Japanese Prime Minister Shigeru Ishiba and Modi.
According to Kyodo, the Japanese and Indian governments are also seeking to agree on a new framework to explore cooperation in economic security, such as for procuring stable supplies of critical goods.
The framework would designate semiconductors, essential minerals, communications, clean energy, artificial intelligence and pharmaceutical products as key areas for discussion.
The two sides are additionally arranging to announce what they call an AI cooperation initiative for the emerging technology and related startups.
Japan is the fifth largest foreign direct investor in India and the largest bilateral donor supporting investments in developmental projects.