India, Japan Explore Cooperation in Key Sectors

Bangkok Finance Minister Nirmala Sitharaman met Japan Bank for International Cooperation (JBIC) Governor Kazuhiko Amakawa on Friday on the sidelines of the World Bank-IMF Annual Meetings to discuss expanding bilateral cooperation across several strategic sectors, including clean energy, semiconductors and critical minerals. According to the Finance Ministry, discussions focused on strengthening cooperation in energy transition, advanced manufacturing, electric mobility, resilient supply chains and other emerging industries. The talks also covered opportunities through the $600 million India-Japan Fund and Japanese participation in the National Investment and Infrastructure Fund (NIIF). Amakawa highlighted the fund’s investments in electric mobility and bioethanol, describing its performance as encouraging. He also expressed hope for a follow-on fund to deepen investment cooperation between the two countries. The JBIC governor pointed to the institution’s stake in the National Industrial Corridor Development Corporation (NICDC) and growing Japanese interest in semiconductor manufacturing. Opportunities at Dholera, along with potential investments in artificial intelligence and data centres, were also discussed. Sitharaman encouraged Japanese companies to explore investment opportunities in data centres in Tier 2 and Tier 3 cities, including Visakhapatnam. Such investments, she indicated, could contribute to more balanced urban development while supporting India’s expanding digital infrastructure. Both sides acknowledged the potential to strengthen economic and financial cooperation by sharing experiences and expanding investments in emerging sectors. The discussions come amid India’s efforts to attract foreign capital into infrastructure, advanced manufacturing and clean technology. Earlier, Sitharaman delivered a keynote address on India’s urban development programmes, focusing on mobilising private capital for urban and water infrastructure.