New Delhi, October 17, 2026: India and Japan are exploring expanded cooperation in clean energy, critical minerals, semiconductor manufacturing and electric mobility as both countries seek to strengthen economic ties and build more resilient global supply chains. The discussions gained momentum after Union Finance Minister Nirmala Sitharaman met Kazuhiko Amakawa, Governor of the Japan Bank for International Cooperation (JBIC), in Bangkok on October 16, on the sidelines of the World Bank-IMF Annual Meetings.
The meeting focused on attracting long-term investment into strategic industries, supporting India’s energy transition and expanding opportunities for Japanese businesses in the country’s growing technology and infrastructure markets.
$600 Million India-Japan Fund at the Centre of Investment Plans
A key focus of the discussions was the $600 million India-Japan Fund, an investment platform designed to strengthen economic cooperation between the two countries. The fund has supported projects in sectors including electric mobility and bioethanol, according to the officials.
Amakawa highlighted the fund’s progress and expressed hope for a possible follow-on fund, which could provide additional financing for businesses operating in emerging industries. However, no new fund or binding financial commitment was announced during the meeting.
The discussions also covered Japanese participation in India’s National Investment and Infrastructure Fund (NIIF), which works to mobilise domestic and international capital for infrastructure and growth-oriented businesses.
Greater cooperation through these investment platforms could help Indian companies access international capital, technology and industrial expertise while giving Japanese investors opportunities in one of the world’s major growth markets.
Critical Minerals and Clean Energy Gain Strategic Importance
Critical minerals have become increasingly important as countries expand renewable energy capacity, electric vehicle production, battery manufacturing and advanced electronics. Minerals such as lithium, nickel and rare earth elements are essential to several of these industries.
For India, stronger international partnerships could help diversify mineral supply sources, develop processing capabilities and reduce vulnerabilities caused by concentrated global supply chains. Japan, meanwhile, has a strong interest in securing reliable access to materials required by its advanced manufacturing industries.
The two sides discussed expanding collaboration in clean energy, energy transition, advanced manufacturing and resilient supply chains. Electric mobility also featured prominently, reflecting the growing need for investment in charging infrastructure, battery technologies and cleaner transport systems.
Although the discussions identified areas for cooperation, they did not establish specific new mineral procurement agreements or announce individual clean energy projects.
Semiconductor Manufacturing and Data Centres Offer New Opportunities
Semiconductors, artificial intelligence and digital infrastructure emerged as additional areas of potential cooperation. Amakawa highlighted growing Japanese interest in India’s semiconductor sector, including opportunities at Dholera in Gujarat.
India has been working to develop its domestic semiconductor ecosystem, attract manufacturing investment and strengthen its position in global technology supply chains. Japanese participation could contribute industrial expertise, investment and technology partnerships.
Sitharaman also encouraged Japanese investors to explore data-centre opportunities in Tier-II and Tier-III cities, including Visakhapatnam. Expanding digital infrastructure beyond established metropolitan centres could support regional economic development, create skilled employment and improve access to technology services.
Demand for data centres is rising alongside cloud computing, artificial intelligence and digital business services. However, successful projects will require reliable electricity, water availability, robust connectivity and long-term investment.
A Broader Partnership With Long-Term Economic Potential
The meeting reflects the continuing effort by India and Japan to deepen financial cooperation and strengthen economic security through investment, technology and industrial partnerships.
For Indian businesses, closer engagement with Japanese institutions could open opportunities in renewable energy, advanced manufacturing, electric mobility and digital infrastructure. Japanese investors could benefit from India’s expanding domestic market and infrastructure development.
The next phase will depend on translating discussions into funded projects, commercial partnerships and measurable investment commitments. While the October 16 meeting did not produce a new agreement, it reinforced the strategic importance of India-Japan cooperation as both countries navigate energy transition, technological competition and global supply-chain uncertainty.
