On Friday, Indian Prime Minister Narendra Modi got a promise of up to ยฅ10 trillion (US 68 billion) investment commitment by Japanese Prime Minister Shigeru Ishiba, as the two Asian economies collaborate amid trade uncertainty created by soaring US tariffs, and Japan is currently developing a 10-year, private-investment strategy in India that is an expansion of a five-year, five trillion-yen investment target announced in 2022.
A big investment commitment enhances bilateral relations
According to The Edge Malaysia, on Friday, Indian Prime Minister Narendra Modi negotiated a Japanese investment commitment of up to ยฅ10 trillion (US $68 billion) with Japanese Prime Minister Shigeru Ishiba as the two Asian economies join forces in the face of trade uncertainty due to skyrocketing US tariffs. Japan will now promote investment by private companies in India with a goal of 10 trillion yen in 10 years.
In a joint press release, issued after the meetings with Ishiba, Modi said: “We both opined that as two of the biggest economies in the world and dynamic democracies, we decided that our relationship was of utmost importance not only to our respective countries but also in terms of world peace and stability.
Comprehensive economic security framework
The investment includes a larger economic security agreement, including collaboration on semiconductors, critical minerals, and artificial intelligence. The visit may also see New Delhi and Tokyo agreeing on a new framework to explore cooperation in economic security, such as stable supplies of critical goods, as reported by the Economic Times.
Technology and defense cooperation expand
This would feature semiconductors, key minerals, communications, clean energy, artificial intelligence, and pharmaceutical products. The two parties can also declare what they term an AI cooperation program on emerging technology and associated start-ups, as described by one person acquainted with the Indo-Japanese relations.
Modi can also go to Sendai in Miyagi Prefecture in northeastern Japan to see an experimental shinkansen bullet train car and visit a major Japanese manufacturer of chip-making equipment. Ishiba says that India and Japan also revised a 2008 joint statement on security cooperation to better represent the shared challenges the two sides are currently dealing with. With the international situation growing more unpredictable, Japan and India have to come together to secure peace and stability in the area, Ishiba said.
Strategic partnerships amid global uncertainty
According to the Japanese Foreign Ministry, the updated defence declaration also contained the pledge to conduct additional joint exercises, collaborate in critical minerals, and even consider the potential to jointly develop and produce military equipment. One area that New Delhi is especially keen on is the technological transfer and the co-development of military hardware.
India and Japan are developing an advanced sensor that can enable smooth communication as they enhance the stealth capabilities of the warships. The second-largest arms importer after Ukraine, India is attempting to increase domestic weapons production and obtain technology from countries like France, Germany, Japan, and the US.
Broader regional implications
The commitment to deeper relations is a time when India is considering a change in the geopolitical equilibrium and is trying to consolidate the support of its friendly states after the relationship with the US reached a new low. Japan, whose auto industry has been severely impacted by the tariffs proposed by Trump, is also considering embracing more trade with like-minded countries as it looks to access the huge Indian market and the high population of young people.
The 68 billion dollar investment commitment between India and Japan reflects a major fortification of the bilateral relationship that involves technology change, defense cooperation, and economic security alliances, and it places both countries in a better position to surmount global trade uncertainties amid shared interests in semiconductors, AI, and the development of key infrastructure across numerous strategic sectors.