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India and Japan explored the possibility of a follow-on fund to the USD 600 million India-Japan Fund and discussed expanding investments in semiconductors, clean energy and advanced manufacturing, as the two countries seek to deepen economic and financial cooperation.
Union Finance Minister Nirmala Sitharaman met Kazuhiko Amakawa, Governor of Japan Bank for International Cooperation (JBIC), on the sidelines of the World Bank-IMF annual meetings in Bangkok, Thailand, on Friday, according to the Ministry of Finance. The discussions focused on expanding cooperation in clean energy, energy transition, advanced manufacturing, semiconductors, critical minerals, electric mobility and resilient supply chains, including through the India-Japan Fund and Japanese participation in the National Investment and Infrastructure Fund (NIIF). During the meeting, Amakawa highlighted the success of the India-Japan Fund, which has invested in electric mobility and bioethanol, and expressed hope for a follow-on fund, the ministry said in a post on social media. The fund provides a platform for investment cooperation between the two countries, while the discussions on a potential follow-on fund indicate scope for further collaboration in areas linked to energy transition and sustainable development. Amakawa also highlighted JBIC's stake in the National Industrial Corridor Development Corporation (NICDC) and growing Japanese interest in India's semiconductor sector, including opportunities at Dholera in Gujarat. The discussions also covered opportunities in artificial intelligence and data centres, as both countries look to strengthen cooperation in emerging technologies and infrastructure. Sitharaman encouraged Japanese investment in data centres in Tier 2 and Tier 3 cities, including Visakhapatnam, to support balanced urban growth. The focus on smaller cities could help widen the geographical spread of investment in digital infrastructure, alongside opportunities in established industrial and technology centres. Both sides also discussed cooperation in electric mobility, critical minerals and resilient supply chains, sectors that are becoming increasingly important to manufacturing and energy-transition priorities. The Ministry of Finance said both sides recognised the potential to deepen India-Japan economic and financial cooperation and learn from each other's experiences. The discussions underline the two countries' continued efforts to use institutional investment platforms and sectoral partnerships to expand bilateral investment and strengthen cooperation across strategic industries. (ANI)
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