Japan Announces 5 Trillion Yen or INR 3.2 Lakh Crore or USD 42.0 Billion Investment in India
- Published | 29 March 2022
On Saturday, March 19, 2022, Prime Minister Narendra Modi said that Japan would invest 5 trillion yen, or INR 3.2 lakh crores or USD 42.0 Billion, in India over the next five years, as the two sides finalized a slew of agreements and cooperation to strengthen their special strategic and global alliance. The two sides inked six agreements to expand bilateral cooperation in a range of areas besides forming a separate clean energy partnership. Among these agreements is one wherein Japan International Cooperation Agency will facilitate a INR 20,400 crore (USD 2.68 Billion) loan for development projects in India.
Japanese Prime Minister Fumio Kishida said that through the India-Japan Industrial partnership, economic relations between the two countries would further develop, which has great potential. According to a joint statement, Modi and Kishida emphasized their commitment to working together to create a peaceful, stable, and prosperous world based on a rules-based system that respects nations' sovereignty and territorial integrity.
The two sides established a clean energy partnership (CEP) to collaborate in sectors such as electric vehicles, storage systems including batteries, electric vehicle charging infrastructure, and solar energy development. Japan's Suzuki Motors is investing USD 1.3 billion in electric vehicle and batteries production in India. Loans of INR 20,400 crore (USD 2.68 Billion) were also agreed upon from the Japan International Cooperative Agency (JICA) for cooperation infrastructure, connectivity, biodiversity, and healthcare. The two sides also agreed to continue strengthening their collaboration in defense and security, including cybersecurity.
The two sides expressed severe concern about the growing threat of terrorism and emphasized the importance of bolstering international collaboration to combat terrorism comprehensively and sustainably. Prime Minister Narendra Modi emphasized that both countries understand the importance of a secure, trusted, predictable, and stable energy supply. The two prime ministers agreed to continue working closely on early UN Security Council reform to meet 21st-century realities.
Economic relations between India and Japan are strengthening, and Japan is a significant investor in India. Both countries expect to reach a 5 trillion yen or INR 3.2 lakh crores or USD 42.0 Billion investment target in the next five years based on recent trends, resulting in several economic prospects.
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