The determine — a rise of a five-year, 5 trillion-yen funding purpose introduced in 2022 — is meant to additional enhance funding in India within the backdrop of US tariffs. The announcement may come throughout Modi's go to for the annual Summit, it's learnt.
This can be Modi's maiden go to to Japan since Might 2023, when he travelled to the G-7 summit in Hiroshima. From Japan, the PM will journey to China for the SCO Summit on August 31-September 1.
Through the go to, New Delhi and Tokyo may additionally agree on a brand new framework to discover cooperation in financial safety, together with steady provides of essential items. This would come with semiconductors, important minerals, communications, clear vitality, synthetic intelligence and pharmaceutical merchandise, it's learnt.
The 2 sides may additionally announce what they name an AI cooperation initiative for rising expertise and associated startups, in line with an individual accustomed to Indo-Japan ties. Throughout his keep, Modi could journey to Sendai in Miyagi Prefecture in northeastern Japan, to view an experimental shinkansen bullet practice automobile and go to a serious Japanese producer of chip-making gear, in line with a supply.
Japanese FDI in India has elevated in recent times but it surely stays small in comparison with Japan's whole outward FDI. Japanese outward FDI to India in 2022-23 and 2023-24 stood at $1.79 billion and $3.1 billion respectively, with $1.36 billion in 2024-25 (as much as December 2024), in line with a short by the Indian Embassy in Japan. Cumulatively, from 2000 till December 2024, investments to India have been round $43.2 billion rating Japan the fifth amongst supply nations for FDI. Japanese FDI into India has primarily been in car, electrical gear, telecommunications, chemical, monetary (insurance coverage) and pharmaceutical sectors. In 2024, over 60% of Japanese firms in India reported a rise in market share for his or her essential services and products, among the many highest in Southwest Asia, as per the Indian Embassy temporary.
