From steel to satellites, Japan bets big on India

India and Japan on Friday reached a new high in their strategic and economic partnership with the unveiling of over 170 memoranda of understanding (MoUs) in the past two years, representing more than USD 13 billion in fresh investment commitments.

- ABHINANDAN MISHRA

The agreements, consolidated and highlighted during Prime Minister Narendra Modi's visit to Tokyo for the India-Japan Economic Forum on 29 August, underline Japan's growing confidence in India's economic trajectory and its willingness to integrate with the country's industrial and human capital future.

Major Japanese corporations have committed to large-scale projects across sectors. Nippon Steel, through AM/NS India, will invest Rs 15 billion in Gujarat and Rs 56 billion in an integrated steel plant in Andhra Pradesh. Suzuki Motor Corporation will put in Rs 350 billion for a new plant in Gujarat and Rs 32 billion for production line expansion. Toyota Kirloskar has announced Rs 33 billion for Karnataka and Rs 200 billion for a new facility in Maharashtra. Sumitomo Realty will invest USD 4.76 billion in real estate, while JFE Steel will spend Rs 445 billion to strengthen electrical steel production. Osaka Gas will set up 400 MW of renewable power capacity with plans for green hydrogen in future projects, and Astroscale will become the first Japanese private company to launch satellites using ISRO's PSLV platform.

The agreements are also set to transform India's small and medium enterprises (SMEs) by integrating them into global supply chains. Tokyo Electron and Fujifilm, working with Tata Electronics, are developing a semiconductor ecosystem where Indian SMEs will become suppliers of high-value components. The Toyota-Suzuki partnership will bring hundreds of tier-2 and tier-3 Indian firms into their ecosystem, while Fujitsu will hire 9,000 engineers for its Global Capability Centre, boosting demand for IT-linked SMEs.

Officials said such collaborations would allow Indian firms to adopt global standards, infuse new technologies and access wider markets, strengthening India's export competitiveness.