Japan to invest Rs 2.95 tn in India across various sectors, including steel
ECONOMY & POLICY

Japan to invest Rs 2.95 tn in India across various sectors, including steel

Union Minister Jyotiraditya Scindia announced that Japan is eager to invest ¥5 trillion, approximately Rs 2.95 trillion, in various sectors in India, including steel. This decision came as the two countries signed a memorandum of cooperation (MoC) with a focus on semiconductors, encompassing research and development (R&D), manufacturing, design, and talent development. The MoC was formalised during a meeting between high-ranking Indian government officials and a Japanese delegation led by Nishimura Yasutoshi, Japan's Minister of Economy, Trade, and Industry.

During the meeting, there were detailed discussions about mutual strategies, exchange of best practices, and sharing new technologies. The Japanese investment in India is expected to be around 5 trillion yen over the next few years, covering not only the steel sector but also other industries.

Union Minister of Communications and Information Technology, Ashwini Vaishnaw, emphasised the importance of a resilient semiconductor supply chain, with India and Japan being crucial partners in this endeavour. Both countries plan to establish an implementation organisation under the new pact to facilitate collaboration between industries and governments. Rapidus, a Japanese government-backed chipmaker, will play a significant role in this partnership.

Notably, this announcement follows a recent Memorandum of Understanding (MoU) signed between India and the US on semiconductor supply chain and innovation. In line with this, both India and Japan have introduced schemes to incentivise local semiconductor manufacturing.

Vaishnaw highlighted the need for talent development in the semiconductor industry, and Japan views India as a suitable partner to leverage their complementary strengths.

Regarding the steel sector, Scindia mentioned that India and Japan will collaborate closely. They discussed the immense growth potential in India's steel industry, which is projected to reach a capacity of 300 million tonnes by 2030, up from the current 160 million tonnes.

In addition to the steel sector, the delegation also discussed decarbonisation and green steel production, affirming their commitment to the Make in India program and partnerships in these new domains. The historical ties between India and Japan are expected to strengthen further in the future.

The steel ministry stated that the meeting also addressed cooperation in the steel sector and decarbonisation issues. They acknowledged the recent increase in investment activities in India by Japanese steel producers and agreed to support cooperation between the public and private sectors of both countries to enhance the global steel industry. Both sides emphasised the significance of collaboration to achieve their respective net-zero goals, recognising the diverse approaches to steel decarbonisation pathways. Future discussions will be held through the Steel Dialogue and other cooperation programs to continue this partnership.

Union Minister Jyotiraditya Scindia announced that Japan is eager to invest ¥5 trillion, approximately Rs 2.95 trillion, in various sectors in India, including steel. This decision came as the two countries signed a memorandum of cooperation (MoC) with a focus on semiconductors, encompassing research and development (R&D), manufacturing, design, and talent development. The MoC was formalised during a meeting between high-ranking Indian government officials and a Japanese delegation led by Nishimura Yasutoshi, Japan's Minister of Economy, Trade, and Industry.During the meeting, there were detailed discussions about mutual strategies, exchange of best practices, and sharing new technologies. The Japanese investment in India is expected to be around 5 trillion yen over the next few years, covering not only the steel sector but also other industries.Union Minister of Communications and Information Technology, Ashwini Vaishnaw, emphasised the importance of a resilient semiconductor supply chain, with India and Japan being crucial partners in this endeavour. Both countries plan to establish an implementation organisation under the new pact to facilitate collaboration between industries and governments. Rapidus, a Japanese government-backed chipmaker, will play a significant role in this partnership.Notably, this announcement follows a recent Memorandum of Understanding (MoU) signed between India and the US on semiconductor supply chain and innovation. In line with this, both India and Japan have introduced schemes to incentivise local semiconductor manufacturing.Vaishnaw highlighted the need for talent development in the semiconductor industry, and Japan views India as a suitable partner to leverage their complementary strengths.Regarding the steel sector, Scindia mentioned that India and Japan will collaborate closely. They discussed the immense growth potential in India's steel industry, which is projected to reach a capacity of 300 million tonnes by 2030, up from the current 160 million tonnes.In addition to the steel sector, the delegation also discussed decarbonisation and green steel production, affirming their commitment to the Make in India program and partnerships in these new domains. The historical ties between India and Japan are expected to strengthen further in the future.The steel ministry stated that the meeting also addressed cooperation in the steel sector and decarbonisation issues. They acknowledged the recent increase in investment activities in India by Japanese steel producers and agreed to support cooperation between the public and private sectors of both countries to enhance the global steel industry. Both sides emphasised the significance of collaboration to achieve their respective net-zero goals, recognising the diverse approaches to steel decarbonisation pathways. Future discussions will be held through the Steel Dialogue and other cooperation programs to continue this partnership. 

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