Japan promises to invest Rs 2.10 lakh crore in Indian infrastructure sector over the next five years
India and Japan have strengthened their global partnership with Prime Minister Shinzo Abe promising to invest USD 35 billion (3.5 trillion Yen or Rs 2,10,000 crore) in various developmental projects in India over the next five years, including building of smart cities and next generation infrastructure.
Prime Minister Abe pledged Overseas Development Assistance (ODA) loan of 50 billion yen to India Infrastructure Finance Company Limited (IIFCL) for a public-private partnership infrastructure project in India during the visit of Prime Minister Narendra Modi.
“Prime Minister Abe affirmed a broader and stronger Japanese partnership for Prime Minister Modi’s bold and ambitious vision for accelerating inclusive development in India, particularly by transforming the infrastructure and manufacturing sectors,” said the Tokyo Declaration for Japan-India Special Strategic and Global Partnership. The USD 35 billion funding, at an average of USD 7 billion per year, would be the highest from any country.
Expressing his appreciation for Japan’s continuous support, PM Modi said, “Prime Minister Abe understands my vision and agreed to help… Japan will play an increasingly important role in India’s economic transformation and development. Prime Minister Abe has pledged a qualitatively new level of Japanese support and partnership for India’s inclusive development, including transformation of India’s manufacturing and infrastructure sectors.”
Both the Abe and Modi welcomed the idea of public and-private initiatives between two countries to set up Electronics Industrial Parks in India. The two Prime Ministers placed special emphasis on Japan’s cooperation for enhanced connectivity and development in Northeast India and linking the region to other economic corridors in India and to Southeast Asia, which would catalyse economic development and increase prosperity in the region.
On his maiden bilateral visit, PM Modi briefed Prime Minister Abe on his initiative for Smart Cities and renewal of heritage cities, including the city of Varanasi. The two Prime Ministers welcomed the signing of the document to promote partnership city arrangement between the ancient cities of Varanasi and Kyoto.