Japan reaffirms 10 trillion yen investment in India over next decade: Minister
New Delhi, June 27
Japan has reaffirmed its commitment to invest 10 trillion yen in India over the next decade, with Japanese Finance Minister Satsuki Katayama describing the bilateral partnership as one that could become "the most important relationship in the world", according to a statement.
Addressing the Rising India 2 India-Japan Business Conclave, Katayama said the investment target, agreed during the 2025 India-Japan summit, would support India's long-term economic growth through greater cooperation in infrastructure, semiconductors, artificial intelligence and advanced manufacturing.
She said India remains the largest recipient of Japanese yen loans, with Japan continuing to support major infrastructure projects ranging from the Delhi Metro to industrial corridors.
Highlighting economic security as another pillar of bilateral ties, Katayama said India and Japan are working together to diversify critical mineral supply chains and reduce dependence on any single country. She also referred to Japan's support for energy and resource security initiatives across Asia.
Calling India the world's largest democracy and an increasingly influential voice of the Global South, the Japanese minister said closer cooperation between the two countries would contribute to regional and global stability.
In an interaction following her address, Katayama praised Prime Minister Narendra Modi, calling him a great leader and expressed admiration for India's Aadhaar digital identity system, saying Japan was keen to deepen cooperation in the area of digital governance.
At the conclave, Suzuki Motor Corporation President Toshihiro Suzuki reaffirmed the company's long-term commitment to India, saying it would continue to walk alongside Bharat and contribute to the country's development.
The auto firm highlighted Maruti Suzuki's record production of 2.35 million vehicles and exports of about 4.48 lakh units in FY25, while outlining the company's multi-pathway mobility strategy covering electric vehicles, hybrids, CNG, biofuels and biogas.
He also announced the Next Bharat Ventures initiative to support Indian entrepreneurs, agriculture and rural businesses, saying the company aims to contribute to the development of the country's next phase of growth.
— IANS
Reader Comments
The Japanese minister praising Aadhaar is such a proud moment! Our digital governance model is truly world-class. I just hope these investments actually create jobs on the ground and trickle down to smaller towns. The Suzuki Next Bharat Ventures initiative sounds promising for rural entrepreneurship.
Good to see Japan diversifying away from over-dependence on any one country for critical minerals. This is strategic for both nations. But let's be honest - India needs to improve its ease of doing business and infrastructure to actually absorb this kind of investment. Land acquisition delays and bureaucratic hurdles are still a problem.
Suzuki's multi-pathway strategy is smart - EVs, hybrids, CNG, biofuels, biogas. Not putting all eggs in one basket. And 2.35 million vehicles produced in a year is phenomenal! India's auto sector is truly coming of age. But we need to ensure Japanese tech transfer happens smoothly and Indian workers get proper training. 🤞
As someone who works in Indo-Japanese trade, I can say this is a win-win. Japan brings precision engineering and advanced manufacturing, India brings scale and a massive market. The semiconductor collaboration is especially crucial given global chip shortages. Let's hope the next decade delivers on this partnership!
Respectful criticism: While this investment is fantastic, I hope it doesn't come with strings attached that favor Japanese companies over domestic ones. We need to ensure India's own MSMEs and startups get a piece of the pie too. The 'Make in India' vision should benefit local entrepreneurs as much as foreign investors.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.