Japan Commits 10 Trillion Yen Investment in India with New 10-Year Economic Roadmap

Japan has announced a significant investment target of 10 trillion yen, approximately Rs 60,000 crore, in India over the next decade. This decision was made during summit talks between Prime Minister Narendra Modi and Japanese Prime Minister Shigeru Ishiba. The two nations also signed several agreements to enhance their strategic and economic partnership amid global trade tensions.

The agreements include a comprehensive framework for defence cooperation and a roadmap to boost economic ties over the next ten years. The focus areas include economic security, technology, health, and people-to-people exchanges. A key agreement aims to facilitate the mobility of 50,000 skilled workers from India to Japan within five years.

Economic Security and Technology

Both countries are committed to promoting supply chain resilience in critical sectors such as semiconductors, clean energy, and pharmaceuticals. They have also agreed on a joint crediting mechanism to support decarbonising technologies and infrastructure. This initiative will contribute to India's greenhouse gas reduction goals while encouraging Japanese investments.

In the realm of space exploration, India and Japan have agreed on cooperation between the Indian Space Research Organisation and Japan Aerospace Exploration Agency for a joint lunar-polar mission. This collaboration is part of the Chandrayaan-5 mission, marking a significant step in space exploration efforts.

Defence and Maritime Security

The defence framework aims to address contemporary security challenges. Both leaders expressed concern over China's military activities in the East China Sea and South China Sea. They reiterated their opposition to any unilateral actions that threaten navigation safety or attempt to change the status quo by force.

The prime ministers emphasised resolving maritime disputes peacefully under international law, particularly the UN Convention on the Law of the Sea (UNCLOS). They reaffirmed their commitment to a free and open Indo-Pacific region that is peaceful and prosperous.

Infrastructure and High-Speed Rail

The Mumbai-Ahmedabad high-speed rail project remains a flagship initiative between India and Japan. Both sides are eager to commence operations soon, incorporating Japan's Shinkansen technology. Japan has offered to introduce the E10 series of Shinkansen trains in India by the early 2030s.

Prime Minister Modi highlighted the synergy between Japanese technology and Indian talent in various sectors like ports, aviation, and shipbuilding. He mentioned ongoing progress under the next-generation mobility partnership.

Condemnation of Terrorism

Modi and Ishiba condemned the terrorist attack in Pahalgam, acknowledging a UN report that mentioned The Resistance Front (TRF) as responsible. They called for swift justice against those involved in this act. Modi explained that TRF had claimed responsibility for the attack, which Ishiba noted with concern.

The leaders tasked their foreign ministries with accelerating policy exchanges on economic security. They aim to identify projects in strategic sectors while easing export control challenges. Ishiba urged India to continue reforms for deepening supply chains, recognising opportunities for Japanese companies.

Modi acknowledged Japanese contributions to employment and growth in India. He pledged further reforms to attract more Japanese investments, inviting businesses to explore opportunities in India.

With inputs from PTI