‘In India, Capital Does Not Just Grow — It Multiplies’: Modi Urges Deeper Japan Investment

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Indian Prime Minister Narendra Modi made a futuristic case today for deepening India–Japan cooperation in technology, startups, and green energy during his addresses at the India–Japan Joint Economic Forum and the 15th Annual Summit in Tokyo.  

credits: indiatoday

“In India, capital doesn’t grow…it multiplies”

Modi spotlighted India’s emergence as an innovation hub and urged Japan to partner in co-creating the future. He noted that over US$40 billion has already flowed into India from Japanese companies, with $13 billion invested in just the last two years. He highlighted that 80% of Japanese firms are planning to expand in India and that 75% are already profitable. 

“In India, capital does not just grow — it multiplies,” Modi remarks and invites Japanese firms to Make in India, make for the world.

Strategic & Security Cooperation

The summit finalised a Joint Vision for the Next Decade, covering vital domains like economy, technology, health, environment, and security. Modi and Ishiba reaffirmed their commitment to a free, open, peaceful, and rules-based Indo-Pacific, reinforcing their shared stance within the Quad alliance (alongside the U.S. and Australia). Japan and India pledged deeper defence cooperation, supply chain resilience, and collaboration in frontier technologies such as AI, semiconductors, space, and high-speed rail.

Human Resource & Cultural Exchange

The leaders agreed to facilitate the exchange of 500,000 students and workers over the next five years, addressing both Japan’s labor demand and India’s workforce potential. Discussions noted the dual benefits of combining Japan’s advanced technology with India’s youthful talent to fuel future joint ventures.

Agreements & Vision Plan

A total of 12 agreements were signed, anchoring the Vision Plan designed to deepen cooperation in defense industry, innovation, and other critical sectors. The Vision Plan reiterates both nations’ pledge to uphold a rules-based Indo-Pacific, underpinned by democracy, freedom, and shared prosperity.

Strategic Context & Next Steps

The summit took place amid heightened economic tensions, particularly U.S. tariffs impacting India, and growing Chinese influence in the region. Following the conclusion of the Japan visit, Prime Minister Modi is scheduled to head to China for the Shanghai Cooperation Organisation summit, where he is expected to meet President Xi Jinping.

credits: ndtv

India–Japan Relations: An Evolving Strategic Partnership

India and Japan share a relationship rooted in cultural ties, economic cooperation, and shared democratic values, which has steadily grown into a comprehensive strategic partnership over the past two decades.

Historical Background

  • Diplomatic relations were formally established in 1952, making Japan one of the first countries to sign a peace treaty with post-independence India.

  • Ties initially revolved around economic assistance, with Japan becoming a key development partner for India through aid, technology transfers, and infrastructure projects.

Economic & Trade Ties

  • Japan is one of the largest investors in India, with cumulative investments exceeding $40 billion, especially in infrastructure, automobiles, energy, and technology.

  • Flagship projects include the Mumbai–Ahmedabad high-speed rail corridor, metro systems, and industrial corridors.

  • In 2025, both countries set a target of 10 trillion yen (~$68 billion) in Japanese private-sector investments in India over the next decade.

People-to-People & Cultural Ties

  • Cultural links trace back centuries, with Buddhism being a major bridge between the two nations.

  • More recently, cooperation includes student exchanges, tourism promotion, and workforce mobility programs, with Japan welcoming Indian IT professionals and skilled workers to address labor shortages.

  • Both governments are working to expand exchanges, with a target of 500,000 personnel exchanges in the next five years.

[Credits for header image: The impressive times 

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