Japanese firms to invest $12.5 billion in India during PM Takaichi's visit
Synopsis
As Japanese PM Sanae Takaichi touched down in New Delhi, over 150 Japanese firms lined up to announce $12.5 billion in investments — part of a decade-long 10 trillion yen commitment. With Maruti Suzuki's new Haryana plant on the agenda and defence ties set for a boost, this visit could be the most consequential Japan-India summit in years.
Key Takeaways
Japanese companies are set to announce investments worth $12.5 billion (approximately 2 trillion yen ) during PM Takaichi's three-day visit to India beginning 2 July .
More than 150 Japanese companies are participating in the Japan-India Economic Forum alongside the bilateral summit.
The commitment is part of a broader pledge to facilitate 10 trillion yen in private Japanese investments in India over a decade .
PM Modi and PM Takaichi are set to jointly inaugurate Maruti Suzuki India's new plant at Kharkhoda, Haryana — the company's fourth in India, with cumulative plant costs of around ₹35,000 crore .
India and Japan are also expected to advance energy security and defence cooperation during the visit.
Japanese companies are set to announce investments worth nearly $12.5 billion (approximately 2 trillion yen) in India as Japanese Prime Minister Sanae Takaichi kicked off a three-day official visit to New Delhi on 2 July. The commitment forms part of a broader pledge made last year to channel 10 trillion yen in private Japanese investments into India over a decade.
Japan-India Economic Forum
More than 150 Japanese companies are participating in the Japan-India Economic Forum, held alongside the bilateral summit. Japan's Deputy Chief Cabinet Secretary Masanao Ozaki, who travelled to New Delhi with Prime Minister Takaichi, noted the scale of corporate participation in a post on X. He also shared a report by Japanese newspaper The Yomiuri Shimbun, which indicated that the initiatives — valued at approximately 2 trillion yen on the Japanese side — are aimed at deepening Japan's commercial footprint in India.
Maruti Suzuki Plant and Make in India Push
In a significant boost to the Make in India initiative, Prime Minister Narendra Modi and PM Takaichi are set to jointly inaugurate Maruti Suzuki India's new manufacturing plant at Kharkhoda in Haryana. This marks the fourth Maruti plant in India, with the cumulative cost of all plants reportedly standing at around ₹35,000 crore.
Strategic and Defence Cooperation
Beyond economics, India and Japan are expected to explore joint stockpiling initiatives to strengthen energy security. Defence cooperation is also anticipated to receive a significant push during the visit, reflecting the deepening strategic partnership between the two nations amid a shifting global security landscape.
What Takaichi Said
Prior to departing Tokyo, PM Takaichi outlined three priorities for her India visit: deepening the Japan-India strategic partnership in light of the current international situation, promoting cooperation in economic security, and strengthening business collaboration in investment and innovation. 'Through this visit, I hope to advance concrete cooperation with Prime Minister Modi in three key areas,' she told reporters in Tokyo on Wednesday.
Summit Talks at Hyderabad House
PM Modi received PM Takaichi at Hyderabad House in New Delhi for bilateral talks. The two leaders exchanged warm greetings ahead of their meeting, with Takaichi bowing to the national flags of both India and Japan as they walked towards the meeting room — a gesture widely noted for its diplomatic warmth. The visit signals a new chapter in one of Asia's most consequential bilateral relationships, with further announcements expected before Takaichi's departure.
Point of View
But the more consequential number is the 10 trillion yen decade-long commitment announced last year — this visit is an early test of whether that pledge translates into binding, disbursed capital or remains aspirational. Japan's strategic pivot toward India is unmistakably driven by geopolitical hedging against China, and New Delhi knows it has leverage. The Maruti Suzuki plant inauguration is symbolically sharp — a Japanese-origin brand manufacturing in India is exactly the optics both governments want. The real watch, however, is defence: if joint stockpiling and co-production frameworks move from discussion to signing, this summit will have delivered something structurally durable beyond the investment headline.
NationPress
2 Jul 2026
Frequently Asked Questions
How much are Japanese companies investing in India during PM Takaichi's visit?
Japanese companies are set to announce investments worth approximately $12.5 billion, or around 2 trillion yen, during Prime Minister Sanae Takaichi's three-day visit to India beginning 2 July. This forms part of a broader 10 trillion yen private investment commitment over a decade.
What is the Japan-India Economic Forum?
The Japan-India Economic Forum is a bilateral business summit being held alongside PM Takaichi's state visit to New Delhi, with over 150 Japanese companies participating. It serves as the primary platform for formalising investment and trade commitments between the two countries.
What is the significance of the Maruti Suzuki Kharkhoda plant?
The new Maruti Suzuki manufacturing plant at Kharkhoda in Haryana is the company's fourth plant in India, with the cumulative cost of all plants reportedly around ₹35,000 crore. PM Modi and PM Takaichi are set to jointly inaugurate it, making it a centrepiece of the Make in India push during the summit.
What are the key areas of cooperation discussed during Takaichi's India visit?
PM Takaichi identified three priorities: deepening the Japan-India strategic partnership, promoting economic security cooperation, and strengthening business collaboration in investment and innovation. Energy security through joint stockpiling and defence cooperation are also expected to feature prominently.
Why is PM Takaichi's India visit significant?
The visit marks a major step in the Japan-India bilateral relationship, combining a large-scale investment push with strategic and defence cooperation discussions. It comes amid shifting global geopolitics, with both nations seeking to deepen ties as part of a broader Indo-Pacific alignment.
