Prime Minister Narendra Modi said on Saturday that Japan plans to invest $42 billion (5 trillion yen) in India over the next five years, after meeting its Japanese counterpart Fumio Kishida in the national capital to strengthen bilateral cooperation.
Both leaders held meetings as part of the 14th India-Japan annual summit. This is Kishida’s first visit to India as Prime Minister of Japan. Strengthening bilateral ties, Modi said at a joint news conference, will not only benefit the two countries but also contribute to initiatives for peace, prosperity and stability in the Indo-Pacific region. Former Japanese Prime Minister Shinzo Abe had announced in 2014 that Moscow would invest and finance 3.5 trillion yen in New Delhi over five years.
Both sides signed six pacts on cybersecurity, capacity building, information sharing and cooperation, and agreed to also forge a clean energy partnership. Kishida and Modi are also expected to arrange a two-plus-two meeting between their foreign and defense ministers at the earliest, an official said.
Sources said the two sides are working on a Supply Chain Resilience Initiative (SCRI) – the Trade and Economy Ministers of India, Japan and Australia launched the SCRI on April 27, 2021. The initiative aims to increase the resilience of supply chains in the Indo- Pacific region and to develop reliable sources of supply and attract investment. As first projects, sharing best practices in supply chain resilience; and holding a matching event are completed.
Japan was the fifth largest investor in India, with foreign direct investment of $36.4 billion between April 2000 and December 2021. It accounted for 6% of the cumulative inflow of foreign direct investment into India during this period. However, India has a huge trade deficit with Japan. As of January this fiscal year, while India shipped products worth just $5.2 billion, Japanese exports to India reached a staggering $12 billion.
“Progress has been made in the economic partnership between India and Japan. Japan is one of the largest investors in India. The countries are working as ‘one team, one project’ on the Mumbai-Ahmedabad high-speed railway line,’ Modi said.
Both leaders discussed ways to strengthen economic and cultural ties between the two countries at Hyderabad House earlier in the day, according to the Prime Minister’s Office (PMO). This year also marks the 70th anniversary of diplomatic relations between India and Japan.
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