Tokyo is eyeing areas such as semiconductors, critical minerals, telecommunications, and artificial intelligence
Japan is looking to invest $68 billion in India over the next decade to strengthen economic ties between the two countries, Nikkei Asia reported on Tuesday.
The investment will focus on key areas such as semiconductors, critical minerals, telecommunications, clean energy, pharmaceuticals, and high technology, according to the report.
An official announcement is expected during Indian Prime Minister Narendra Modi’s visit to Tokyo on August 29-30, the media outlet said.
During his upcoming meeting with Modi, Japanese Prime Minister Shigeru Ishiba is expected to unveil the plans to deepen economic cooperation between the two countries.
Japan is looking to increase investments in the South Asian country through official development assistance, specifically targeting startups looking to enter the Indian market. The Japan International Cooperation Agency has already provided yen loans to startups in the southern Indian city of Hyderabad.
New investments are expected to enable Japanese companies to expand their presence in India, particularly in the artificial intelligence and semiconductor sectors. As part of this growth strategy, Japanese companies plan to employ Indian specialists, the report said.
The Modi-Ishiba talks will also focus on an exchange program for young researchers in artificial intelligence, as part of the ‘AI Cooperation Initiative’ agreement, according to Nikkei.
Japan expects a shortage of up to 790,000 workers trained in advanced technologies by 2030, while India produces about 1.5 million engineering graduates every year.
Modi and Ishiba will also revise their countries’ joint declaration on security cooperation for the first time in 17 years and reaffirm the two nations’ commitment to peace, prosperity and stability in the Indo-Pacific and beyond, Indian Foreign Secretary Vikram Misri said on Tuesday.
