Japan to invest $68 billion in India over next 10 years: Report

Japan will invest 10 trillion yen or $68 billion in India over the next 10 years to deepen bilateral ties, said a report. Japanese Prime Minister Shigeru Ishiba is expected to unveil the plans during his summit with Prime Minister Narendra Modi, which begins on Friday.

According to a report in Nikkei Asia, the investments will help Japanese companies in fields such as artificial intelligence and semiconductors expansion. More Indian specialist workers will also be accepted by the companies in Japan as part of the plan to boost India’s economy.

The summit in Japan that will be attended by PM Modi is expected to see the countries revising the joint declaration on security cooperation for the first time in 17 years.

This investment will focus on eight priority areas such as mobility, the environment, and medicine, bolstering industrial and technological collaboration.

As part of the initiative, both countries are set to enhance their relationship in AI through the AI Cooperation Initiative, which aims to address social issues by leveraging AI applications, the report added.

India has reportedly shown keen interest in Japan's advanced semiconductor materials and equipment, which will be highlighted during the visit of prominent leaders to Tokyo Electron's facility in Japan.

The report added that Japan plans to increase its investments in Indian startups, particularly in Telangana, by utilising official development assistance. The Japan International Cooperation Agency has extended yen loans to support enterprises in this region, known for its IT hub in Hyderabad.

To address a domestic shortage of skilled workers in high-tech sectors, Japan aims to welcome more Indian specialists, doubling the number of Indian workers in Japan over the next five years. This initiative seeks to bridge the gap in Japan's workforce, estimated to reach 790,000 by 2030, it said.

Japanese companies, such as Sompo Care and energy firm Sekisho, are initiating training and employment programmes for Indian workers, bringing them into Japan's workforce. These initiatives include language education and job placement services, particularly targeting regional companies.

Sekisho's recent establishment in India reflects a concerted effort to connect Indian students with Japanese businesses, promoting educational and employment opportunities abroad. This approach addresses language barriers and ensures smoother integration of Indian talent into Japanese enterprises.