India and Japan sign 170 MoUs worth over $13 billion in two years

As Prime Minister Narendra Modi embarks on a two-day visit to Japan from August 29–30 for the 15th India-Japan Annual Summit, the bilateral partnership has entered a new phase of accelerated economic and strategic engagement.

Over the past two years, 170+ Memorandums of Understanding (MoUs) have been signed, representing more than $13 billion in committed investments across sectors ranging from steel and automotive to clean energy and technology. This collaboration is reshaping industries, boosting exports, and creating opportunities for human capital development in both countries.

Strategic Industrial Investments

India and Japan are fostering large-scale industrial projects across the nation:

• Nippon Steel (AM/NS India) is expanding in Gujarat with a ₹15 billion investment and establishing a ₹56 billion integrated steel plant in Andhra Pradesh.

• Suzuki Motor Corporation plans a ₹350 billion plant in Gujarat and an additional ₹32 billion to enhance production lines.

• Toyota Kirloskar Motors is investing ₹33 billion in Karnataka and launching a ₹200 billion greenfield plant in Maharashtra.

• Sumitomo Realty has invested $4.76 billion in real estate projects, while JFE Steel is committing ₹445 billion to strengthen electrical steel production.

• In aerospace, Astroscale became the first Japanese commercial satellite launched via ISRO’s PSLV.

These investments are supporting India’s “Make in India, Make for the World” vision, enhancing manufacturing capabilities and strengthening global supply chains.

Boosting SMEs and Technology Transfer

Japanese partnerships are integrating Indian small and medium enterprises (SMEs) into global value chains:

• Tokyo Electron, Fujifilm, and Tata Electronics are developing India’s semiconductor ecosystem, allowing SMEs to supply high-value components.

• Toyota and Suzuki are expanding their value chains to include hundreds of Tier 2 and Tier 3 Indian SMEs.

• Fujitsu is hiring 9,000 Indian engineers at its Global Capability Centre, enhancing IT-linked SME growth.

These initiatives enable SMEs to adopt global best practices, embrace advanced technology, and gain access to international markets, thereby increasing India’s export competitiveness.

Green Energy and Rural Development

Japan is actively supporting India’s rural and clean energy sectors:

• Sojitz Corporation, with Indian Oil, is investing $395 million to establish 30 biogas plants producing 1.6 million tonnes annually, converting agri-waste into energy while creating farmer income streams.

• Suzuki Motor Corporation, in partnership with the National Dairy Development Board and local cooperatives, is setting up four biogas plants in Gujarat (₹2.3 billion investment) to convert cattle waste into carbon-neutral biogas for CNG vehicles.

These projects will:

• Reduce carbon emissions.

• Strengthen energy security.

• Generate employment in rural areas.

• Increase farmer incomes while embedding Japanese clean-energy technology in India.

Export Opportunities and Global Reach

• Nippon Steel projects will boost speciality steel exports for automotive and energy sectors worldwide.

• Toyota and Suzuki’s hybrid and electric vehicles produced in India are planned for export to Africa, the Middle East, and Southeast Asia.

This positions India as a regional hub for manufacturing and exports, while reinforcing India-Japan economic cooperation.

Human Capital and Talent Exchange

The partnership is also strengthening human capital development:

• Under the India-Japan Talent Bridge programme and METI initiatives, 50,000 Indians and Japanese are expected to participate in exchanges over five years.

• Programs include study abroad, internships, and employment opportunities, enabling students, young professionals, and faculty to engage with Japanese companies and universities.

• Structured networking events and roundtables promote collaboration, skills development, and cultural exchange.

This initiative is fostering knowledge sharing, innovation, and workforce development between both countries.

Conclusion

India-Japan ties are now more comprehensive than ever, spanning industrial investment, SMEs, clean energy, exports, and human capital exchange. With $13 billion in committed investments and 170 MoUs signed in two years, this partnership exemplifies strategic collaboration that benefits both nations, their economies, and the wider global market.