Japan to unveil 10 trillion yen India investment plan during PM Modi’s visit, focus on AI, chips, critical minerals

The initiative is expected to be presented as an upgrade to the five-year target announced three years ago, underscoring efforts to expand economic engagement while both nations seek to promote a “free and open Indo-Pacific” in the face of China’s increasing assertiveness.

Sources told Kyodo News that the new investment framework could be emphasised in a joint statement following summit discussions between Japanese Prime Minister Shigeru Ishiba and PM Modi.

Modi begins his three-day trip to Japan on August 29 — his first since May 2023, when he attended the G7 summit in Hiroshima.

The earlier commitment, unveiled during then Japanese Prime Minister Fumio Kishida’s India visit in March 2022, had pledged 5 trillion yen in public and private investment and financing over five years.

Alongside the fresh investment target, both governments are developing a framework to deepen cooperation on economic security, with emphasis on securing stable supplies of essential goods.

Discussions cover key sectors such as semiconductors, critical minerals, telecommunications, clean energy, artificial intelligence, and pharmaceuticals, Kyodo reported.

In addition, the two sides are preparing to launch a joint AI cooperation initiative to support the development of emerging technologies and nurture related startups.

“We hope promoting cooperation between Japanese companies (and their Indian counterparts) in fields where Indian firms have strengths would contribute to the growth of the Japanese economy,” a source was quoted as saying.

During his stay, Modi is also expected to travel to Sendai in Miyagi Prefecture, where he may inspect an experimental shinkansen bullet train car and visit a leading Japanese manufacturer of chip-making equipment, sources said.