NEW DELHI (AP) – Japan’s Prime Minister Fumio Kishida on Saturday said his country will invest USD42 billion in India over the next five years in a deal that is expected to boost bilateral trade.
Kishida met his counterpart, Narendra Modi, in New Delhi during his maiden visit to India since assuming office. The two leaders held talks ranging from economy to security cooperation.
In a televised press statement, Kishida said the investment plan will bring huge benefits for several industries, from the development of urban infrastructure to green energy.
Kishida also said the two sides reaffirmed Japan and India’s commitment to strengthen security ties across the Indo-Pacific region and held discussions over the ongoing crisis in Ukraine.
“We discussed the situation in Ukraine. (The) Russian attack is a serious matter as it has shaken international norms,” he said.
India said ties with Japan are key to stability in the region. The two nations, along with the United States (US) and Australia, are members of the Indo-Pacific alliance known as “the Quad”.
India is the only Quad member that has not condemned Russia’s invasion of Ukraine. It has refrained from taking sides and abstained from voting against Russia at the United Nations (UN) or criticising President Vladimir Putin.
Japan, meanwhile, has imposed financial sanctions to isolate Russia, including export controls on high-tech products.
The Japanese investments in India touched USD32 billion between 2000 and 2019, mainly in the automobile, electrical equipment, telecommunications, chemical, insurance and pharmaceutical sectors.
Japan has also been supporting infrastructure development in India, including a high-speed
The bilateral trade between India and Japan for 2019-20 crossed USD11.87 billion, according to government data. India’s exports from Japan amounted to USD3.94 billion while India’s imports from Japan stood at USD7.93 billion.
In September, the Quad leaders announced Japan would work with India on a USD100-million investment in COVID-19 vaccines and treatment drugs.