Japan to Invest $68Bn in India: AI, Chips & Energy in Focus

Japan plans to ramp up private-sector investment in India to ¥10 trillion (about $68 billion) over the next decade, Nikkei Asia reported. Japanese Prime Minister Shigeru Ishiba is expected to formally announce the commitment during Prime Minister Narendra Modi’s two-day visit to Tokyo on August 29–30.

The package will be accompanied by a revision of the two countries’ security declaration for the first time in 17 years and a suite of new cooperation frameworks aimed at economic and technological security.

Investment Focus

Under the new proposal, Tokyo will build on an earlier five-year, ¥5 trillion goal and steer capital into strategic areas including semiconductors, critical minerals, telecommunications, clean energy, pharmaceuticals and artificial intelligence. Officials say the plan aims both to broaden industrial collaboration and to strengthen supply-chain resilience for critical technologies.

As part of the package, Japan and India will launch an Economic Security Initiative to safeguard supplies of key materials and protect core infrastructure.

A separate AI Cooperation Initiative is expected to promote research partnerships, talent exchanges and startup collaboration in artificial-intelligence technologies. A “Digital Partnership 2.0” element would extend cooperation beyond manufacturing into semiconductors, AI and other deep-tech fields.

Talent & Tech Transfer

Tokyo also plans to deepen people-to-people links by increasing the flow of specialist workers: Japanese leaders hope to double the number of Indian specialists working in Japan from about 25,000 today to 50,000 over the next five years.

The effort includes skills training, language support and academic exchanges intended to build a pipeline of engineers and technicians to help Japanese firms scale up operations in India.

Officials said the two governments will issue a joint statement on energy dialogue targeting decarbonisation, growth and energy security. Japan plans to promote a Joint Crediting Mechanism that would allow it to count emissions reductions achieved through Japanese technologies deployed in India.

The leaders are also expected to advance cooperation on the Mumbai-Ahmedabad bullet train project and discuss the potential introduction of Japan’s next-generation E10 trainsets.

Implementation & Strategy

Japanese investment will be deployed through a mix of private capital, official development assistance and yen loans; the Japan International Cooperation Agency is already extending financing to Indian startups.

Tokyo’s push reflects concern at home about shortages in advanced-technology talent and capacity, Japan estimates a shortfall of hundreds of thousands of specialised workers by 2030, and views India as a large, skilled talent pool that can help fill those gaps.

The coming summit will be watched closely for concrete timelines, the split between public and private financing, and firm agreements on talent mobility, technology collaboration and specific project pipelines.

The deal marks a deepening of strategic economic ties between Tokyo and New Delhi at a moment when both countries are seeking secure, diversified supply chains and closer cooperation on critical technologies.