India aims to attract 10 trillion yen in Japanese investment: Modi | Today’s news
Prime Minister Narendra Modi said on Thursday that India aims to attract ¥10 trillion in Japanese investment over the next decade and double the number of Japanese companies operating in India, as the two countries unveiled a broad agenda to deepen their strategic and economic partnership.
The bilateral investment partnership continued to strengthen, Modi said in a joint press statement after the annual India-Japan summit with Japanese Prime Minister Sanae Takaichi.
He said more than 100 new trade deals have been concluded in the past year and are expected to bring more than $10 billion in Japanese investment to India.
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India wants to attract 10 trillion yen in Japanese investment over the next decade, Prime Minister Modi said.
The agreements between the financial services agencies of the two countries will facilitate capital and investment flows, thereby making it easier for Japanese companies to do business in India.
Technology cooperation is a priority to combine precise Japanese technology with Indian software capabilities to accelerate global AI development, which will boost economic growth for both countries.
The summit unveiled the India-Japan Biogas Initiative, through which Japan will help set up 1,000 biogas and organic fertilizer plants in India, promoting rural sustainability and prosperity.
India and Japan plan to strengthen their defense cooperation through joint technology development, starting with a project to jointly develop a maritime radio antenna to enhance regional peace and maritime security.
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He added that an agreement between the two countries’ financial services agencies would facilitate capital and investment flows, while India’s ongoing reforms have made it easier to do business and created greater opportunities for Japanese companies to expand their presence in the country.
Technology emerged as a key theme of the summit, with both countries issuing a joint statement on artificial intelligence (AI). Leading institutions from both sides also signed agreements to strengthen cooperation in the sector.
Modi said Japan’s precision technology and India’s software capabilities will together accelerate global AI development.
Defense cooperation
On the defense front, India and Japan signed an agreement on their first joint development project involving a naval radio antenna, marking a new phase in bilateral defense technology cooperation.
Modi said the two countries will jointly develop defense technologies to strengthen regional peace, maritime security and rules-based order.
The two sides also adopted a joint economic security plan to strengthen supply chain resilience in strategic sectors such as semiconductors, quantum technologies and advanced materials.
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Investment in energy
In the energy sector, the leaders announced the India-Japan Biogas Initiative, under which Japan will support the establishment of 1,000 biogas and organic fertilizer plants in the country.
Modi said the initiative will strengthen the government’s GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) program while promoting sustainability, rural prosperity and livelihoods.
The two countries also agreed to expand cooperation on batteries, green hydrogen and nuclear power to support the clean energy transition.
The summit also witnessed the launch of the India-Japan Next Generation Mobility Partnership Framework, which seeks to expand bilateral cooperation beyond the automotive sector to shipbuilding, aerospace and logistics.
Modi said India and Japan will further enhance cooperation in talent mobility, skills, technical internship programs, research, education and startups. The two countries will also mark the 75th anniversary of diplomatic relations next year through enhanced cooperation in culture, tourism and the creative economy.
“Our economies are complementary, our values are aligned and above all, our relationship is based on unwavering mutual trust,” Modi said, expressing confidence that the partnership will contribute to a vision of a developed India, a stronger Japan and global prosperity.
Trade between India and Japan
Bilateral trade between the two countries reached $27.5 billion in FY26, while Japanese investment in India reached $3.2 billion between April and December 2025, according to Indian government data.
Japan is among India’s biggest investors and supports major infrastructure projects, including a high-speed rail corridor between Mumbai and Ahmedabad. Japanese firms have also increased investment in Indian companies, including a recent $1.6 billion deal for a 20% stake in Yes Bank.
“This is historic given the changes in Japan’s nature authority financial commitments, moving from risk-averse credit and liberal infrastructure funding to direct investment in defense, critical minerals, semiconductors, automobiles and electronics. Japan and India share common challenges in the Indo-Pacific and it is great to note that the two countries are working together across sectors on common regional economic development challenges, mutual benefits and inclusive solution. in this esteemed geo-economic partnership,” said Ram Singh, Professor and Director, Indian Institute of Foreign Trade, New Delhi.
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