Japan to invest US$ 42 billion over the next five years to boost ties

Japan is the fifth-largest investor in India accounting for 6% of the cumulative FDI inflows between 2000 to 2021

March 23, 2022

India and Japan signed six pacts in matters of cybersecurity, capacity building, information sharing, and cooperation

Both countries are also expected to arrange a two-plus-two meeting between their foreign and defence ministers

The countries are also working on a Supply Chain Resilience Initiative (SCRI) to increase the flexibility of supply chains in the Indo-Pacific region

India has been running a huge trade deficit with Japan as until January 2022

Japan aims to invest US$ 42 billion over the next five years in India to boost bilateral cooperation. This was announced after Prime Minister Narendra Modi met his Japanese counterpart Fumio Kishida in the 14th India-Japan Annual Summit. As per the PM, this investment will not only benefit the two countries but will also bring about peace, prosperity, and stability in the Indo-Pacific region.

India and Japan signed six pacts in matters of cybersecurity, capacity building, information sharing, and cooperation, and agreed to establish a clean energy partnership as well. Both countries are also expected to arrange a two-plus-two meeting between their foreign and defence ministers.

The countries are also working on an SCRI, which will increase the flexibility of supply chains in the Indo-Pacific region, develop reliable supply sources, and attract investment.

Japan is the fifth-largest investor in India and has invested US$ 36.4 billion between April 2000 and December 2021, accounting for 6% of the cumulative FDI inflows during this period. However, India has been running a huge trade deficit with Japan. Until January 2022, India exported products worth only US$ 5.2 billion with Japan accounting for US$ 12 billion.