India and Japan have agreed on a major investment target that underscores the shift in Asia’s economic partnerships. Prime Minister Narendra Modi, during his visit to Tokyo on Friday, confirmed that Japan will invest 10 trillion yen in India over the next decade.
The plan comes at a time of global trade turbulence, driven in part by US tariffs under President Donald Trump, and reflects a joint strategy to reinforce economic security, technology cooperation, and defence ties between the two nations.
The roadmap sets the stage for a decade-long expansion of bilateral projects across strategic sectors.
Investment target of 10 trillion yen over a decade
The new target, unveiled after summit talks between Narendra Modi and Japanese Prime Minister Shigeru Ishiba, builds on the India-Japan special strategic and global partnership.
Modi emphasised that both nations had created a 10-year plan covering investment, innovation, and economic security.
The partnership aims to channel Japanese capital into Indian industries ranging from critical minerals to high-technology sectors, strengthening India’s long-term industrial base.
Both leaders confirmed that the agreement would be backed by government-level cooperation as well as private sector involvement.
By setting a specific figure of 10 trillion yen, the roadmap provides measurable clarity at a time when global investment flows are increasingly uncertain.
Focus on critical minerals, defence, and technology
Beyond capital commitments, India and Japan are prioritising areas that align with their shared security and economic concerns.
Modi said both countries would expand collaboration on critical minerals, which are vital for high-tech manufacturing and green energy supply chains.
Defence cooperation also featured prominently in the talks, with both sides agreeing to strengthen joint efforts in the defence industry, innovation, and maritime security.
Modi stressed that India and Japan face similar concerns regarding terrorism and cybersecurity, making security cooperation an essential part of the new roadmap.
The Japanese prime minister underlined that the two nations need to leverage each other’s strengths to meet the challenges of next-generation technologies.
This reflects a broader recognition that both economies, as advanced democracies in the Indo-Pacific, share common strategic interests.
Indo-Pacific cooperation and economic security
A central theme of the announcements was the Indo-Pacific, where both India and Japan reiterated their commitment to maintaining a free, open, peaceful, and rules-based order.
Modi described this alignment as a “new and golden chapter” in bilateral ties, highlighting how the partnership is rooted in mutual trust and shared values.
The roadmap also reflects growing concern over global supply chain resilience, particularly as Trump administration trade policies have created uncertainty for Asian exporters.
By deepening India-Japan cooperation, both governments seek to mitigate external shocks and establish stronger economic security frameworks.
A strategic chapter in bilateral relations
The decisions reached in Tokyo are not just symbolic but set a structural agenda for future engagement.
By focusing on investment, security, and next-generation technology, India and Japan are positioning their partnership as a stabilising factor in the Indo-Pacific.
Modi’s emphasis on democracies working together underlines the shared political foundation of this economic commitment.
The 10 trillion yen investment pledge, spread across a decade, represents one of the most ambitious bilateral roadmaps India has undertaken in recent years.
As both nations navigate a volatile global trade environment, the partnership aims to provide long-term certainty for industries and investors in Asia’s largest emerging market.
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