Japan to unveil plan to invest Rs. 5,95,884 crore (US$ 68 billion) in India over 10 years in artificial intelligence (AI), chips

Prime Minister of Japan, H.E., Mr. Shigeru Ishiba, has proposed an investment of Rs. 5,95,884 crore (US$ 68 billion) in India over the next decade to strengthen bilateral business relations, according to Nikkei Asia. The announcement is expected during his meeting with Prime Minister Mr. Narendra Modi on August 29-30 at the 15th India-Japan Annual Summit. The two leaders are also set to revise their joint declaration on security cooperation for the first time in 17 years. The planned investment will target eight key areas, including mobility, environment, healthcare, artificial intelligence (AI), and semiconductors, while also supporting startups and technology collaborations. 

Japan aims to expand its presence in India by leveraging its strength in semiconductors and advanced technologies, while simultaneously employing Indian talent to bridge business partnerships. Under the proposed ‘AI Cooperation Initiative,’ younger researchers from both nations will exchange knowledge to accelerate innovation. Prime Minister of Japan, H.E., Mr. Shigeru Ishiba, and Prime Minister Mr. Narendra Modi will visit Tokyo Electron’s facility in Miyagi to highlight Japan’s chipmaking expertise. Additionally, the Japan International Cooperation Agency has already supported Indian startups with yen loans, particularly in Telangana’s IT hub. Tokyo also intends to support the recruitment of elite engineers from India, given its large talent pool of 1.5 million engineering graduates annually. Japanese companies, including Sompo Care and Sekisho, have begun hiring and training Indian workers to address labour shortages, with programmes providing language training, job placement, and technical upskilling. Japan anticipates a shortfall of nearly 7,90,000 advanced technology workers by 2030, positioning India as a critical partner in meeting this demand. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.