- Ishiba pledges ¥10 trillion investment over 10 years in India.
- Focus on AI, semiconductors, healthcare, mobility, and environment.
- India-Japan to launch 'AI Cooperation Initiative' and expand talent exchange.
Japanese Prime Minister Shigeru Ishiba intends to allocate ¥10 trillion ($68 billion) to enhance bilateral trade relations with India in the coming decade, according to Nikkei Asia.
Ishiba, set to meet Prime Minister Narendra Modi on Friday, is anticipated to present initiatives aimed at strengthening the economic relations between the two Asian nations. PM Modi is set to visit Japan from August 29 to August 30 for the 15th Annual Summit between India and Japan.
Nikkei Asia reported that the two prime ministers will update the countries' joint security cooperation declaration for the first time in 17 years. Tokyo and New Delhi intend to collaborate over the next ten years, featuring Japan's suggested ¥10 trillion investment. The initiative aims to focus on eight key areas, such as mobility, the environment, and healthcare.
The report states that the investments will assist Japanese firms in areas such as artificial intelligence and semiconductors to grow in India. These firms will be hiring Indian skilled labor as a strategy to enhance India's economy by fostering stronger business connections between the nations.
The dialogue between the two leaders will focus on creating a program for the exchange of young researchers in artificial intelligence, referred to as the 'AI Cooperation Initiative'. The report indicates that New Delhi is keen on Japan's capabilities in the semiconductor industry, including its associated materials and machinery.
Ishiba and PM Modi will tour the Tokyo Electron facility located in the Miyagi prefecture, a prominent producer of chipmaking equipment. The two leaders will also visit the company’s customer training center, allowing Japan to showcase its technological expertise.
Tokyo aims to increase funding via official development aid to support startups attempting to enter the Indian market. The Japan International Cooperation Agency has provided yen loans to startups in Telangana, the state that contains the nation’s IT center, Hyderabad.
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Tokyo aims to assist in recruiting talent in India, which boasts the largest population globally and an abundance of skilled engineers. Japan aims to train professionals who can act as a link to assist Japanese firms in establishing their presence in Indian markets.
Ishiba, during his meeting with PM Modi, will announce Tokyo's initiative to invite more skilled workers in the areas of chips and technology. The report indicates that in the last five years, approximately 25,000 skilled Indians have relocated to Japan to join the workforce or complete educational or training courses.
It is important to highlight that firms in Japan are currently employing Indian workers to tackle local labor shortages and promote collaboration with Indian companies.