Tokyo [Japan], August 21 : The Japanese government is planning to announce a 10 trillion yen (USD 68 billion) investment target for India during Prime Minister Narendra Modi's visit later this month, Kyodo News reported, citing a government source's statement.
The new target, an update of a five-year 5 trillion yen investment goal rolled out in 2022, is intended to further spur investment at a time when the two countries are working closely to promote a "free and open Indo-Pacific" in the face of an assertive China.
According to sources, the target may be included in a joint statement following summit talks between Japanese Prime Minister Shigeru Ishiba and Modi.
Modi's three-day visit to Japan, starting August 29, will be his first since May 2023, when he attended the Group of Seven summit in Hiroshima, as per Kyodo News.
The previous investment target, announced during former Prime Minister Fumio Kishida's visit to India in March 2022, aimed for 5 trillion yen in public and private investment and financing over five years.
Both countries' governments are also seeking to agree on a new framework to explore cooperation in economic security, such as for procuring stable supplies of critical goods, the sources said.
The framework would designate semiconductors, essential minerals, communications, clean energy, artificial intelligence and pharmaceutical products as key areas for discussion, according to Kyodo News.
The two sides are additionally arranging to announce what they call an AI cooperation initiative for the emerging technology and related startups, they said.
"We hope promoting cooperation between Japanese companies (and their Indian counterparts) in fields where Indian firms have strengths would contribute to the growth of the Japanese economy," one of the sources said.
During his stay, Modi may travel to Sendai, in Miyagi Prefecture in northeastern Japan, to view an experimental shinkansen bullet train car and visit a major Japanese manufacturer of chip-making equipment, according to the sources.
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