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Japan plans to invest $42 billion in India to develop commercial ties

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Japan plans to invest $42 billion in India to develop commercial ties

by Madhu Sahu
March 19, 2022
in Business
0
Japan plans to invest $42 billion in India to develop commercial ties

Fumio Kishida, Japan’s prime minister, announced on Saturday that his country will spend $42 billion in India over the next five years as part of a pact that is anticipated to improve bilateral trade.

During his first visit to India since taking office, Kishida met with his counterpart, Narendra Modi, in New Delhi. The two presidents discussed a variety of topics, including the economy and security cooperation.

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Kishida said the investment plan will assist a variety of businesses, from urban infrastructure development to green energy, in a televised press statement.

Kishida also stated that the two countries reiterated their resolve to expand security ties in the Indo-Pacific region and discussed the ongoing Ukraine problem.

“We talked about the situation in Ukraine.”(The) Russian strike is a major concern since it has thrown international rules into disarray,” he said.

India claims that relations with Japan are critical to regional stability. The two countries, along with the US and Australia, make up the Indo-Pacific alliance known as “the Quad,” which is aimed at combating China’s growing influence in Asia.

The only member of the Quad who has not condemned Russia’s invasion of Ukraine is India. It has avoided taking sides, voting against Russia at the United Nations, and criticizing President Vladimir Putin.

Meanwhile, Japan has put financial restrictions on Russia, including export controls on high-tech exports, in order to isolate the country.

Between 2000 and 2019, Japan invested $32 billion in India, primarily in the automotive, electrical equipment, telecommunications, chemical, insurance, and pharmaceutical industries. Japan has also been investing in India’s infrastructure, including a high-speed rail project.

According to government figures, bilateral trade between India and Japan reached $11.87 billion in 2019-20. India’s exports to Japan totaled $3.94 billion, while the country’s imports totaled $7.93 billion.

The Quad leaders stated in September that Japan and India would collaborate on a $100 million investment in COVID-19 vaccines and treatment medications.

Kishida’s visit to India will come to an end on Sunday.

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