The new investment target would more than double Japan's previous commitment of ¥5 trillion over five years, which was made in 2022. This move is seen as a strategic effort to deepen economic cooperation and promote a "free and open Indo-Pacific" in the face of an assertive China.
During the visit, PM Modi will meet with his Japanese counterpart, Prime Minister Shigeru Ishiba, for the 15th India-Japan Annual Summit. Discussions are expected to focus on a wide range of topics, including defense, security, trade, technology, and economic security. The new investment framework is likely to target key sectors such as semiconductors, critical minerals, clean energy, and artificial intelligence, as the two nations seek to build more resilient supply chains.
Japan is already a major investor in India, ranking as the fifth largest source of foreign direct investment. Japanese companies like Suzuki and Honda have a strong presence in the Indian market. The new investment is anticipated to further accelerate collaboration, with plans for a new AI cooperation initiative and a framework to address economic security challenges. Prime Minister Modi's visit also includes a potential tour of a bullet train facility, a symbolic nod to the flagship Mumbai-Ahmedabad high-speed rail project, which is being implemented with Japanese assistance.