Japan will invest 10 trillion yen (approximately $67 billion) in India over the next ten years to bolster cooperation in various sectors such as defense, technology, and critical minerals, revealed Indian Prime Minister Narendra Modi on Friday at an event in Tokyo hosted by his Japanese counterpart, Shigeru Ishiba.
“We have set a goal of investment of 10 trillion yen from Japan in India in the next 10 years. Special emphasis will be laid on connecting India’s and Japan’s small and medium enterprises and startups,” Modi said.
The development came after discussions between the two leaders at the 15th India-Japan Annual Summit in Tokyo.
Modi and Ishiba also launched the Economic Security Initiative aimed at strengthening supply chain resilience across key sectors, including semiconductors, telecommunications, pharmaceuticals, and emerging technologies. They also finalized a Joint Declaration on Security Cooperation, outlining collaborative efforts to tackle current defense challenges.
The new target builds on the previous commitment of 5 trillion yen in public and private investment and financing from Japan to India, established in 2022. Both nations acknowledged the progress made toward that goal and pledged to double the volume of investment moving forward.
Ishiba stated that Japan would advance collaboration with India in areas such as space exploration, next-generation mobility, and the Mumbai-Ahmedabad high-speed rail, which is considered a flagship initiative for both nations. Beyond the rail project, the Next Generation Mobility Partnership will also focus on enhancing cooperation in ports, aviation, and shipbuilding. Furthermore, both countries agreed to strengthen bilateral efforts to support Japan Industrial Townships (JITs) and work together on boosting micro, small, and medium enterprises (MSMEs), logistics, textiles, automotive, and industrial capital goods through the India-Japan Industrial Competitiveness Partnership (IJICP).
In addition, several bilateral agreements were signed on Friday, including memorandums of cooperation on digital partnership and clean energy. Modi’s visit to Japan comes at a time when New Delhi is addressing the impact of the 50% tariff recently imposed by the Trump administration on Indian goods.
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