'Decided to Make Our Partnership Dynamic & Deeper': PM Modi Targets 10 Trillion Yen Japanese Investment in India Over Next Decade

Delhi: Prime Minister Narendra Modi on Thursday outlined an ambitious vision for India-Japan cooperation, declaring that the two nations have decided to make their partnership "more dynamic and deeper" through new agreements spanning economic security, artificial intelligence, defence, and health.

Addressing the India-Japan Joint Economic Forum, Modi said he and Japanese Prime Minister Takaichi have resolved to accelerate and broaden bilateral engagement to create a "futuristic and limitless" partnership.

"We signed agreements on economic security, AI, defence, health and several issues so that this partnership becomes futuristic and limitless," Modi stated.

"There is strategic synergy, confidence and clarity between our two governments. The responsibility to turn this into outcomes is yours," he said.

The Prime Minister painted a bold picture of collaborative global leadership, highlighting complementary strengths between the two economies. He envisioned Japan’s advanced technology combining with India’s vast market potential to build resilient supply chains in semiconductors, pharmaceuticals, and critical minerals. He further spoke of joint efforts in shipbuilding, mobility solutions, and clean energy, while urging startups from both countries to develop next-generation innovations in AI, quantum computing, and biotechnology. Modi also emphasised enhanced cooperation in aerospace and defence to contribute to global security.

Investment and Business Targets

Setting clear benchmarks for the partnership, Modi urged industry leaders to ensure that Japanese investment in India surpasses 10 trillion yen over the next decade, while the number of Japanese companies operating in the country doubles in the same period.

He highlighted recent reforms in taxation, governance, and ease of doing business, noting that India is opening multiple sectors to private investment with attractive incentives.

"This is the reason, in last 4 years, Japan Bank for International Cooperation's survey shows that India has been the most promising destination for Japanese business," Modi said. He announced that the Prime Minister’s Office will organise a dedicated Japan Business Week, during which senior officials will engage directly with Japanese businesses to address concerns and further improve the investment climate.

Resilience Amid Global Challenges

Acknowledging current global economic headwinds, including supply chain disruptions, trade uncertainties, and softening demand, Modi struck an optimistic note, invoking the spirit of resilience.

"Like it is said, 'when the going gets tough, the tough gets going'," he remarked. He pointed to India’s status as the world’s fastest-growing major economy, with GDP growth of 7.7% in the last financial year. Over the past 12 years, India has embraced the Japanese philosophy of Kaizen (continuous improvement) to transform its economic framework, he added.

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