Japanese Companies Set to Announce $12.5 Billion Investment in India

New Delhi, July 2: Japanese Prime Minister Sanae Takaiichi has commenced a three-day visit to India. During this visit, Japanese companies are expected to announce investments totaling approximately $12.5 billion (2 trillion yen) in the country.

Over 150 Japanese companies are participating in the Japan-India Economic Forum. This investment is part of a previous commitment made last year, where the Japanese government pledged to facilitate 10 trillion yen in private Japanese investment in India over the next decade.

In a post on the social media platform ‘X’, Masanao Ozaki, Japan’s Deputy Chief Cabinet Secretary accompanying Prime Minister Takaiichi, confirmed the participation of over 150 companies in the forum.

Ozaki also shared a report from the Japanese newspaper ‘The Yomiuri Shimbun’, which indicated that the purpose of this investment is to strengthen Japan’s presence in India, with the Japanese side estimating the investment at around 2 trillion yen.

India and Japan are considering initiatives to enhance energy security through stockpiling efforts, which is expected to significantly boost defense cooperation as well.

Reports suggest that Prime Minister Narendra Modi and Takaiichi will inaugurate a new manufacturing plant for Maruti Suzuki India in Kharkhoda, Haryana, further promoting the ‘Make in India’ initiative. This will be Maruti’s fourth plant in India, with a total investment of approximately ₹35,000 crore.

Earlier in the day, Prime Minister Modi met with his Japanese counterpart Takaiichi at Hyderabad House in New Delhi. Before the meeting, both leaders warmly welcomed each other, and as they proceeded to the meeting room, Prime Minister Takaiichi paid her respects by bowing in front of the national flags of India and Japan.

Takaiichi arrived in New Delhi on Wednesday evening to begin her three-day official visit. Before her departure, she emphasized the importance of Japan’s cooperation with India amid current international circumstances.

On Wednesday, Takaiichi stated to reporters in Tokyo, “Through this visit, I hope to advance solid cooperation in three key areas with Prime Minister Modi: deepening the Japan-India strategic partnership in light of current international conditions; promoting collaboration in economic security; and strengthening cooperation between businesses in our two countries in the fields of investment and innovation.”