Japan’s Prime Minister Shigeru Ishiba is set to announce a massive investment of up to 10 trillion yen (approximately $68 billion) in India over the next 10 years during the summit with Indian Prime Minister Narendra Modi on Friday, August 29. The investment aims to deepen economic and technological cooperation between the two countries.
The news was first reported on August 21 by Kyodo News, citing government sources, and later confirmed by The Times of India and Asahi Shimbun, among other media outlets.
The extensive plan covers eight key areas including artificial intelligence (AI), semiconductors, healthcare, environment, and mobility technology, with the goal of assisting Japanese businesses in entering the Indian market and accelerating innovative development in bilateral industries. The two sides have also launched the “AI Cooperation Initiative” to promote the exchange of young researchers and facilitate the practical application of AI technology.
On August 30, Ishiba and Modi will visit the Tokyo Electron chip factory and training center located in Miyagi Prefecture, showcasing Japan’s technological advantage in semiconductor materials and equipment.
The plan also includes expanding the acceptance of high-tech professionals from India. Over the past five years, 25,000 Indian experts have worked, studied, or trained in Japan, with Ishiba pledging to increase this number to 50,000 over the next five years.
To overcome language barriers, some companies are investing in Japanese language education and vocational training in India. For example, Sekisho, a comprehensive trading company, has established a presence in India focusing on talent cultivation and cross-border cooperation.
Japanese nursing service company Sompo Care, a subsidiary of Sompo Holdings Group, has also begun recruiting and training Indian employees, with the first batch of personnel already employed in Japan last year.
Japan estimates a shortfall of 790,000 skilled workers in the high-tech industry by 2030, while India produces around 1.5 million engineering graduates annually, attracting Japanese companies to actively expand their presence.
As early as March 2022, former Prime Minister Fumio Kishida proposed a goal of investing 5 trillion yen over five years during his visit to India. This time, the Japanese government is doubling the investment scale to further encourage private enterprises to increase their investments in India.
The Japanese government will increase support for Indian startups through official development assistance (ODA) and the Japan International Cooperation Agency (JICA), such as initiating yen loan projects in Telangana, India’s IT hub, to foster startup companies.
These investments are also seen as a launchpad for Japanese companies to enter the African market, leveraging India’s engineering talent to create an industrial network connecting Asia and Africa.
During the 9th Tokyo International Conference on African Development held in Yokohama on August 20, Ishiba proposed the “Indian Ocean–Africa Economic Zone Initiative,” aiming to strengthen trade and technology connections with Africa through Japanese bases and supply chains in India and the Middle East.
In addition to economic and technological issues, the summit on Friday will also see Japan and India revising the joint statement on security cooperation for the first time in 17 years, further solidifying their comprehensive partnership in economic, geopolitical, and security aspects.