Japanese Prime Minister Fumio Kishida is expected to announce a 5 trillion yen ($42 billion) investment plan in India over the next five years during his visit to the country on Saturday, according to media reports.
The 5 trillion yen target exceeds the 3.5 trillion yen investment and financing over five years announced by then Japanese Prime Minister Shinzo Abe during his visit to India in 2014, reported the Japanese Nikkei newspaper.
Japan is currently supporting India’s urban infrastructure development as well as a high-speed railway based on Japanese shinkansen bullet train technology.
Prime Minister Kishida is to reveal public-private financing at an economic forum. It is expected to promise growth in direct investment in terms of value, as well as an increase in the number of Japanese companies setting up shop in India, the well-known business newspaper said.
Kishida is also set to accept a loan of around 300 billion yen during his meeting with Prime Minister Narendra Modi. An energy cooperation document on carbon reduction should be signed between the two sides, he added.
During Saturday’s public-private forum, Kishida is also expected to voice support for India’s continued infrastructure development in a bid to entice Japanese companies to build factories, according to the newspaper.
India represents the first leg of Kishida’s three-day tour. He is due to travel to Cambodia on Sunday to meet Prime Minister Hun Sen.
Japan and India are parties to the Quadrilateral Security Dialogue, a security framework known as the Quad that includes the United States and Australia. Cambodia holds the presidency of the Association of Southeast Asian Nations this year.
Kishida plans to confirm the tightening of security arrangements bearing in mind Russia’s invasion of Ukraine.
In 2020, Japan and India signed a Cross Acquisition and Services Agreement, which allows for reciprocal supplies of food, fuel and other supplies between the Indian Army and the Japanese Self-Defense Forces. Kishida and Modi must reaffirm that they will take this deal forward, the newspaper said.
Kishida and Modi are expected to agree to convene a two-plus-two meeting between the two countries’ foreign and defense chiefs soon.
It will be Kishida’s first overseas trip as prime minister since visiting Britain in November.
Kishida, 64, has been the president of the Liberal Democratic Party since 2021.