Modi and Ishiba Forge Stronger Ties with $68 Billion Investment Pact

Prime Minister Narendra Modi and Japanese Prime Minister Shigeru Ishiba held significant discussions in Tokyo on August 29, 2023, marking a pivotal moment in India-Japan relations. The summit resulted in a commitment to enhance bilateral cooperation across various sectors, including a remarkable investment pledge from Japan of $68 billion over the next decade. This investment aims to bolster initiatives in semiconductors, clean energy, artificial intelligence, and robotics.

The meeting was part of the 15th India-Japan Annual Summit, which coincided with Modi’s first standalone visit to Japan in nearly seven years. Modi described the discussions as “productive and purposeful,” reflecting a renewed momentum in the strategic partnership between the two nations. The leaders emphasized their commitment to a “special strategic and global partnership,” addressing regional and global challenges together.

During the summit, topics ranged from defense and security to trade and technology. The upgrade of defense cooperation under the existing 2008 agreement aims to strengthen security in the Indo-Pacific region, particularly through collaboration within the Quad grouping. Infrastructure projects, such as the high-speed rail link between Mumbai and Ahmedabad, remain a priority for both countries.

At the India-Japan Joint Economic Forum, Modi urged Japanese businesses to expand their presence in India, stating, “Come, make in India, make for the world.” He highlighted the potential for technological innovations that could arise from combining Japanese expertise with India’s capabilities.

Beyond the summit discussions, Modi met with Japanese lawmakers and former Prime Minister Fumio Kishida, who he praised as a strong advocate for closer ties between India and Japan. The Indian Prime Minister’s visit to Japan serves to solidify ties ahead of his next destination, Tianjin, China, where he will attend the Shanghai Cooperation Organisation (SCO) Summit from August 31 to September 1. As a full member of the SCO since 2017, India will join leaders from Eurasia to discuss critical issues such as security, connectivity, and trade, with additional bilateral talks expected during the summit.

This summit not only reinforces the importance of India and Japan’s partnership but also signals India’s growing influence in Asian diplomacy as it seeks to address shared challenges with its regional allies.