“World Is Counting on India”: PM Modi’s Japan Visit Sparks Big Investment Hopes and Strategic Ties

Tokyo, August 29, 2025 – Prime Minister Narendra Modi began a two-day visit to Japan on Friday with a strong message to global investors. Speaking at the India–Japan Economic Forum in Tokyo, Modi said, “The world is not just watching India, it is counting on it.” His words set the tone for one of the most important diplomatic and business visits of the year. The trip comes at a time when global trade faces uncertainty due to new U.S. tariffs and shifting supply chains. For India, Japan is not just a partner, but a trusted ally in both business and security.

Modi’s Call: India as the Global Growth Engine

In his keynote speech, Modi described India as the new engine of global growth. He highlighted that India is the fastest-growing major economy and is close to becoming the world’s third-largest economy. He invited Japanese companies to see India not just as a market but as a partner in building the industries of the future.

He said, “India is the springboard for Japanese business to the Global South. Together we can repeat the success story of automobiles in new areas like batteries, robotics, semiconductors, shipbuilding, and nuclear energy.”

His message was clear: combine Japan’s cutting-edge technology with India’s skilled workforce and large market to create the industries that will define the 21st century.

Bold Investment Pitch: 10 Trillion Yen

One of the biggest announcements during the visit was Modi’s call for 10 trillion yen (about USD 65 billion) investment from Japan into India over the next 10 years. This target, he said, would focus on sectors that matter most for the future—innovation, green energy, economic security, healthcare, infrastructure, and advanced manufacturing.

Modi pointed out that in the last two years alone, Japanese companies have invested USD 13 billion in India. He told business leaders, “In India, capital does not just grow, it multiplies.” His pitch was backed by India’s record of reforms in taxation, ease of doing business, and openness to foreign investors.

Stability, Reform, and Predictability

Modi reassured Japanese investors about India’s long-term political stability and policy continuity. He explained that India now offers transparent governance, simplified tax systems, and consistent regulatory frameworks. He reminded the audience that reforms in India are no longer limited to one or two sectors, but now cover manufacturing, defence, space, infrastructure, and even nuclear energy.

He said, “The world looks for stability, reform, and predictability. India is offering all three.” This was a strong attempt to ease the concerns of global investors who often worry about political changes affecting business in emerging markets.

Strategic Partnership with Japan

Beyond economics, Modi’s visit had a strong geopolitical angle. He met Japanese Prime Minister Shigeru Ishiba to outline a 10-year joint vision plan. This plan will focus on security cooperation, energy partnerships, and human resource development.

Both leaders discussed deeper ties in defence technology, artificial intelligence, quantum computing, semiconductors, and critical minerals. They also pledged closer cooperation on green energy through a Joint Credit Mechanism, which will help reduce carbon emissions while boosting clean fuel trade.

The Indo-Pacific was another key focus. Modi said strong democracies like India and Japan must work together to ensure peace and stability in the region. Ishiba added that India and Japan can together strengthen economic and security networks stretching from the Indian Ocean to Europe and Africa.

U.S. Tariffs Create New Urgency

A major backdrop to Modi’s Asia visit is the U.S. decision to impose tariffs as high as 50% on Indian exports. This has created fresh pressure on India’s trade outlook. Modi’s trip to Japan, followed by planned visits to China and Russia, is part of a broader strategy to diversify partnerships.

Japan’s role is especially critical because it can provide both large-scale investments and advanced technology. Reuters reported that Japanese businesses are ready to expand operations in India as supply chains shift away from China. Modi used the Tokyo forum to push this momentum further.

India’s Rising Role in Future Industries

During his speeches and meetings, Modi stressed that India is not just a consumer of global goods but a future hub of innovation. He highlighted sectors where India can lead with Japanese support:

• Semiconductors & Electronics – India wants to become a semiconductor hub and is offering big incentives for chip makers.
• Robotics & Automation – With Japanese expertise, India can power automation in manufacturing.
• Green Energy – Hydrogen fuel, solar, and wind energy are areas where India is scaling up fast.
• Biotech & Healthcare – India’s pharma base can partner with Japan’s research strengths.
• Space & Quantum Tech – India’s growing space missions and quantum research need global partnerships.

He called these sectors the “future pillars” of India–Japan cooperation.

Diaspora and Cultural Ties

Modi also met members of the Indian community in Tokyo. He thanked them for strengthening the bridge between the two nations. The Indian diaspora in Japan is small compared to the U.S. or U.K., but it plays a key role in technology and trade.

In a symbolic moment, Modi received a Daruma doll, a Japanese cultural gift symbolizing perseverance and good fortune. The gesture was seen as a reflection of the resilience and shared hopes between the two nations.

Shared Democratic Values

Both leaders underlined that India and Japan are bound not just by business, but by shared democratic values. Modi said, “Strong democracies are natural partners.” Ishiba agreed, saying Japan and India together can create a more secure and stable Indo-Pacific.

This political alignment adds weight to the economic agreements. It signals that the partnership is not short-term but rooted in shared visions of global order.

Why Japan Matters for India

Japan is already one of the biggest investors in India’s infrastructure. From the Delhi-Mumbai Industrial Corridor to the Mumbai-Ahmedabad bullet train, Japanese financing and technology have been crucial. With this visit, India is asking Japan to expand beyond infrastructure into new-age industries.

For Japan, India represents a large, young market that can keep its companies competitive in the global south. As supply chains move out of China, India is emerging as the natural alternative.