Japan likely to unveil $68b India plan during PM’s visit

New Delhi: Japan is working on a 10 trillion-yen ($68 billion) decade-long private investment for India which could be announced when prime minister Narendra Modi visits the East Asian country on August 29-31.

The figure — an increase of a five-year, five trillion-yen investment goal announced in 2022 — is intended to further increase investment in India in the backdrop of US tariffs. The announcement could come during Modi’s visit for the annual Summit, it is learnt.

This will be Modi’s maiden visit to Japan since May 2023, when he travelled to the G-7 summit in Hiroshima. From Japan, the PM will travel to China for the SCO Summit on August 31-September 1.

During the visit, New Delhi and Tokyo could also agree on a new framework to explore cooperation in economic security, including stable supplies of critical goods. This would include semiconductors, essential minerals, communications, clean energy, artificial intelligence and pharmaceutical products, it is learnt.

The two sides could also announce what they call an AI cooperation initiative for emerging technology and related startups, according to a person familiar with Indo-Japan ties. During his stay, Modi may travel to Sendai in Miyagi Prefecture in northeastern Japan, to view an experimental shinkansen bullet train car and visit a major Japanese manufacturer of chip-making equipment, according to a source.

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Japanese FDI in India has increased in recent years but it remains small compared to Japan’s total outward FDI. Japanese outward FDI to India in 2022-23 and 2023-24 stood at $1.79 billion and $3.1 billion respectively, with $1.36 billion in 2024-25 (up to December 2024), according to a brief by the Indian Embassy in Japan. Cumulatively, from 2000 until December 2024, investments to India have been around $43.2 billion ranking Japan the fifth among source countries for FDI. Japanese FDI into India has mainly been in automobile, electrical equipment, telecommunications, chemical, financial (insurance) and pharmaceutical sectors. In 2024, over 60% of Japanese companies in India reported an increase in market share for their main products and services, among the highest in Southwest Asia, as per the Indian Embassy brief.



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