Tokyo — Japan is considering setting an ambitious 10 trillion yen ($68 billion) private investment goal in India over the next decade, a potential boost to New Delhi’s economic agenda amid a mounting tariff clash with Washington, according to reports Thursday, reported by Anadolu Agency.
Kyodo News, citing government sources, said the announcement could be made during Indian Prime Minister Narendra Modi’s visit to Japan later this month. Modi is expected to arrive on August 29 for a three-day trip, marking his first visit since May 2023.
The proposed target would more than double Japan’s earlier plan, which aimed for 5 trillion yen ($33.8 billion) in investments over five years, announced in 2022. The updated strategy signals Tokyo’s intent to accelerate capital flows at a moment when India and Japan are aligning more closely on building a “free and open Indo-Pacific” in response to an increasingly assertive China.
The timing comes as India faces turbulence in its trade relations with the United States. Washington recently slapped a 50% duty on Indian exports, citing its aim to pressure Russia over the Ukraine conflict. The tariff escalation has complicated New Delhi’s balancing act between its Western partners and longstanding ties with Moscow.
Japan’s renewed bet on India also highlights a broader South Asian competition for foreign capital. Just last week, Punjab Chief Minister Maryam Nawaz of Pakistan concluded a high-profile investment visit abroad, courting international partners with promises of infrastructure upgrades and business-friendly reforms. Her pitch sought to rebrand Pakistan as an attractive destination at a time when regional rivals, including India, are rapidly expanding their investment pipelines.
For Tokyo, the India plan underscores its dual role: a strategic counterweight to Beijing and a key partner in fostering economic resilience across South Asia. For New Delhi, it offers a much-needed confidence boost as it navigates tariffs, geopolitics, and domestic growth demands.
