India and Japan Deepen Strategic Ties with 10 Trillion Yen Investment Pledge
During a summit in Tokyo, India and Japan solidified their "Special Strategic and Global Partnership," with Japan pledging a 10 trillion yen (approx. ₹60,000 crores) investment in India over the next decade. The two nations signed 13 agreements, establishing a 10-year economic roadmap and frameworks for defence cooperation, supply chain resilience in sectors like semiconductors and clean energy, and a joint lunar exploration mission, Chandrayaan-5. The collaboration aims to bolster economic security and regional stability.
Unpacked:
India and Japan had limited engagement during the Cold War but began deepening ties in the 2000s. The relationship was upgraded to a 'Special Strategic and Global Partnership' in 2014, reflecting shared democratic values, economic interests, and security concerns, especially in the Indo-Pacific region.
The agreements focus on supply chain resilience in sectors like semiconductors and clean energy, as well as defense cooperation and technology, including a joint lunar exploration mission. Infrastructure, R&D, and innovation are also key areas of collaboration.
Japan aims to strengthen economic ties, ensure regional stability, and counterbalance China's growing influence in Asia. The investment supports economic growth, enhances supply chain security, and deepens technological and defense cooperation with India.
Challenges include bureaucratic hurdles, differences in business environments, the need for greater innovation and R&D, cultural differences, and external regional pressures—particularly from China—which could complicate implementation and trust-building.