India-Japan $68 Billion Deal: What Modi-Ishiba Pact Could Bring - AI, Chips, Bullet Train & Defence

The Indian Prime Minister Narendra Modi and Japanese Prime Minister Shigeru Ishiba have pledged deeper economic ties ahead of a summit meeting, as they are all set to partner up amid trade tensions which have been triggered by soaring US tariffs.

According to media reports, a deal between the two countries worth $68 billion could also be signed soon.

What Is This Potential Deal About?

According to a report by the Associated Press, the two leaders are expected to agree on a goal of boosting Japanese private sector investment in India to 10 trillion yen ($68 billion) over the next decade and increasing human resources exchanges to half a million people in the next five years.

As per media reports, the agreement could get signed on Friday, August 29, 2025.

This is how the two countries are seeking to expand bilateral trade and investment partnership amid the challenges between India-US trade ties as well as Japan-US trade deal which has also run into turbulence.

The two governments are hopeful that India's skilled, young workforce can help address labor shortages caused by Japan's aging and declining population.

"In India’s development journey, Japan has always been an important partner," PM Modi said, urging Japanese companies to invest in India, saying that reforms have created a more transparent and predictable business environment.

He further noted Suzuki Motor Corp’s success in India and said Japan adding that India can replicate "the same magic" in batteries, robotics, semiconductors, shipbuilding and nuclear energy and contribute to the development of the so-called Global South nations and Africa.

In his speech PM Modi also said that "Japan is a tech powerhouse and India is a talent powerhouse".

According to him, the two countries together can "lead this century's tech revolution," in areas of green energy, next generation mobility and logistics infrastructure.

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