India and Japan to Enhance Cooperation in Clean Energy, Semiconductors, and Critical Minerals

Bangkok, October 16 (Daily Kiran) : India’s Finance Minister, Nirmala Sitharaman, met with Kazuhiro Amakawa, Governor of the Japan Bank for International Cooperation (JBIC), on Friday in Bangkok during the World Bank-IMF annual meetings. The two discussed ways to strengthen collaboration in clean energy, semiconductors, and critical minerals.

According to the Finance Ministry, discussions focused on enhancing cooperation in areas such as clean energy, energy transition, advanced manufacturing, semiconductors, critical minerals, electric mobility, and robust supply chains. They also addressed the $600 million India-Japan fund and Japanese participation in the National Investment and Infrastructure Fund (NIIF).

Amakawa highlighted the success of the India-Japan fund in electric mobility and bioethanol sectors, expressing hope for a new fund in the future. He noted the growing interest of Japanese companies in the semiconductor sector, particularly emphasizing opportunities in Dholera and potential investments in artificial intelligence (AI) and data centers.

Sitharaman urged Japanese firms to invest in data centers in Tier-2 and Tier-3 cities like Visakhapatnam to promote balanced urban development. Both parties acknowledged the significant potential for deepening economic and financial cooperation and learning from each other’s experiences.

Earlier in the day, Sitharaman delivered a keynote address on “Working Together to Make Cities Investable – Mobilizing Private Capital for Urban and Water Infrastructure,” outlining India’s ambitious urban development programs. In a discussion with the Atlantic Council, she addressed the challenges faced by many middle-income countries that often find themselves in severe balance of payments crises, emphasizing the need for timely responses to such situations.