India reports Japan wanting to invest USD68 billion in India

(MENAFN) Japan is set to invest $68 billion in India over the next decade as part of an initiative to strengthen the economic relationship between the two countries, according to Nikkei Asia. The investment will be concentrated in sectors such as semiconductors, critical minerals, telecommunications, clean energy, pharmaceuticals, and high-tech industries.

The official announcement is expected to take place during Indian Prime Minister Narendra Modi's visit to Tokyo on August 29-30, where Japanese Prime Minister Shigeru Ishiba will outline plans to deepen bilateral economic cooperation.

Japan's investments will focus on enhancing ties through official development assistance, especially by supporting startups aiming to enter the Indian market. The Japan International Cooperation Agency has already extended yen loans to startups in Hyderabad.

The new investments are also anticipated to help Japanese companies expand their presence in India, particularly in the artificial intelligence and semiconductor sectors. Additionally, Japanese firms plan to hire Indian professionals to support their growth.

The discussions between Modi and Ishiba will also include a new program for young researchers in artificial intelligence, based on the 'AI Cooperation Initiative.' Japan is facing a potential shortage of up to 790,000 skilled workers in advanced technologies by 2030, while India produces around 1.5 million engineering graduates annually.

The two leaders will also update their security cooperation agreement, revising the joint declaration for the first time in 17 years and reaffirming their commitment to regional peace and stability in the Indo-Pacific.

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