Investment deals unveiled as Japan, India leaders meet

NEW DELHI－Japan will invest $42 billion in India over the next five years, India's Prime Minister Narendra Modi announced on Saturday, accompanied by the visiting Japanese Prime Minister Fumio Kishida.

Addressing media after their meeting, the two talked of the significant growth in economic collaboration between the two countries.

In a joint statement, they expressed satisfaction that an investment target of 3.5 trillion Japanese yen ($29 billion) announced in 2014 had been achieved.

The two welcomed the launch of the India-Japan Clean Energy Partnership for collaboration toward achieving sustainable economic growth, addressing climate change and ensuring energy security.

They also discussed regional and global issues during their talks. The two leaders held discussions over the ongoing conflict in Ukraine.

Three memorandums of understanding were signed on issues such as cybersecurity, sustainable urban development and wastewater management with a new Japanese technique, India's Foreign Secretary Harsh Shringla said.

Suzuki Motor of Japan will invest $1.3 billion into electric vehicles and battery production in India, the car and motorcycle maker said on Sunday, as it accelerates long-term plans to achieve carbon neutrality.

In a deal signed with the Indian state of Gujarat in the presence of Modi and Kishida, Suzuki said it planned to increase production capacity for electric vehicle manufacturing in the state.

It aims to begin operations in 2025.

The company will also build a factory making electric vehicle batteries on land near its Gujarat plant, and a joint venture, Maruti Suzuki Toyotsu India, will build a vehicle recycling facility on the same site.

Japanese investment in India touched $32 billion between 2000 and 2019, mainly in the automobile, electrical equipment, telecommunications, chemical, insurance and pharmaceutical sectors. Japan has also been supporting infrastructure development in India, including a high-speed rail project.

The value of trade between India and Japan for 2019-20 exceeded $11.87 billion, according to government figures. India's exports from Japan were worth $3.94 billion, and India's imports from Japan were worth $7.93 billion.

Agencies - Xinhua