Japan’s Rs 1 trillion investment push in India: PM Modi and Japanese PM Sanae Takaichi unveil initiatives to boost ties

India and Japan on Thursday announced a series of major initiatives, including a new economic partnership framework, a defence agreement for the joint development of military equipment, and measures to deepen cooperation in the energy sector to strengthen resilience against oil supply disruptions. The announcements came after summit-level talks between Prime Minister Narendra Modi and his Japanese counterpart, Sanae Takaichi.Highlighting the growing economic partnership between the two nations, PM Modi said more than 100 new business agreements had been signed over the past year, paving the way for Japanese investments worth over $10 billion in India.“Our objective is to attract investments worth 10 trillion yen from Japan into India over the next decade while also doubling the number of Japanese companies operating in the country,” he said.

Japan’s Rs 1 trillion investment plans for India

Japan plans around Rs 1 trillion investment in India through various projects. 120 MoUs have been signed between the two countries since August 2025. Japan’s planned investments in India span across the country for various projects including auto sector, renewable energy and more. In addition to new large-scale investments, cooperation has deepened across multiple sectors, including expansion into semiconductors, AI, and quantum technologies, as well as major investments in biogas and green ammonia.Some of the major projects include:

Among the key outcomes of the meeting today were a declaration on economic security, a joint statement on collaboration in artificial intelligence, and an agreement aimed at strengthening cooperation across the energy supply chain.The two countries also concluded a mobility framework to facilitate cooperation in areas such as shipbuilding, aviation and logistics.“In today’s uncertain global environment, India and Japan both recognise the critical importance of economic and energy security. Keeping this in mind, we have prepared a joint roadmap on economic security,” Modi said in his media statement.He said the roadmap would enhance supply chain resilience in strategic sectors, including semiconductors, quantum technology and advanced materials.The two leaders also reviewed developments in the Indo-Pacific, where China’s growing military presence has emerged as a key concern.“Today, India and Japan are among the world’s largest economies. A free, prosperous and rules-based Indo-Pacific remains a shared priority for both countries,” Modi said.“As the region’s leading democratic and market-oriented economies, we have launched several important initiatives today that will contribute to peace, stability and development across the Indo-Pacific,” he added.On energy security, Modi said both countries had taken several important decisions to strengthen cooperation.“Under the India-Japan Bio-gas Initiative, Japan will support the establishment of 1,000 bio-gas and organic fertiliser plants in India,” he said.According to Modi, the initiative will promote sustainability, boost prosperity and strengthen rural livelihoods across Indian villages.He also said India and Japan had agreed on a major initiative to improve energy resilience and better prepare for situations such as oil supply shocks.“In addition, our partnership in batteries, green hydrogen and nuclear energy will play an important role in advancing the global clean energy transition,” Modi said.He emphasised that both countries consider economic security a shared responsibility and view the energy transition as a common opportunity.“We are committed to taking this agenda forward and driving transformation in these areas,” he said.