Modi To Secure Japan Investment, Supply Deals During Key Visit

Indian Prime Minister Narendra Modi is expected to secure investment pledges from Japan of more than ¥10 trillion ($68 billion) during his two-day trip to the country, people familiar with the matter said, as he seeks to bolster the economy against soaring US tariffs.

The two sides are also expected to sign an economic security pact covering cooperation on semiconductors, critical minerals, and artificial intelligence, the officials in New Delhi said, asking not to be identified to discuss matters that are still private. 

Modi said in a statement Thursday that the two sides will focus on “shaping the next phase” of their partnership. “We would endeavor to give new wings to our collaboration, expand scope and ambition of our economic and investment ties, and advance cooperation in new and emerging technologies, including AI and semiconductors,” he said in a statement. 

Modi will visit Japan on Friday and Saturday, where he is scheduled to meet his counterpart Shigeru Ishiba and governors of Japanese prefectures. He will then travel to China for the Shanghai Cooperation Organisation summit — his first visit to the country in seven years — where he is expected to hold a bilateral meeting with President Xi Jinping.

New Delhi is resetting ties with China after a 2020 border clash, and reaching out to friendly nations to shore up support as relations with the US sour. President Donald Trump this week imposed 50% tariffs on India goods, the highest in Asia.

During Modi’s visit to Japan, the two sides are also expected to step up plans on defense cooperation, with New Delhi focusing on transfer of technology and jointly developing military hardware, the people said. India and Japan are working to develop a sophisticated sensor for seamless communication while increasing the stealth features of warships.

India is the second-largest importer of arms after Ukraine — according to data from the Stockholm International Peace Research Institute. It’s trying to ramp up domestic weapons manufacturing and acquire technology from nations such as France, Germany, Japan and the US.