PM Modi's Japan-China Visit is Crucial for India's Economy and Diplomacy. Key aspects of this trip include investment agreements with Japan, improving relations with China, and preparing a new economic strategy amidst US tariffs.
PM Modi Visit: Prime Minister Narendra Modi's current tour of Asia is considered significant not only for India but for the entire world. While global trade is being affected by US President Donald Trump's tariff policies, India has 'switched on' its diplomacy. PM Modi is first visiting Japan and then China. Several economic and strategic agreements are expected during this period, which will provide new momentum to India's economy.
Major Investment Package during Japan Visit
The biggest highlight of PM Modi's Japan visit is the expected agreements related to investment. It is being reported that over 100 Memoranda of Understanding (MoUs) may be signed between India and Japan. Through these agreements, cooperation will increase in critical minerals, high-value manufacturing, green energy, digital technology, and infrastructure development.
This is also crucial for India because global supply chains are facing pressure due to American tariff policies. In such a scenario, the support of a b partner like Japan will give new energy to India.
Suzuki Motor's 8 Billion Dollar Investment
Japan's major company, Suzuki Motor, has announced an investment of 8 billion dollars in India over the next 6 years. This investment will be in electric vehicles, battery manufacturing, and hybrid technology.
India has already become the world's third-largest automobile market. In such a situation, Japanese investment can take India's auto industry to new heights and create thousands of employment opportunities.
India-Japan Partnership in Critical Minerals and Rare Earth Sector
India has significant reserves of Rare Earth Minerals, which are essential for high-tech industries. However, India currently lacks the advanced technology for their extraction and processing.
Japan is a world leader in this sector with advanced technology. Major decisions are expected between the two countries this time on investment and technology transfer in the Rare Earth sector. This will not only make India a manufacturing hub but also enable it to become self-reliant in the supply of essential materials for electric vehicles and green energy.
Strengthened Relations in the Last Five Years
In the last five years, people-to-people relations between India and Japan have also strengthened. More than 25,000 Indian professionals have become part of Japan's workforce. Indian professionals have made a distinct mark in Japan in sectors like IT, engineering, healthcare, and education.
This cooperation will now also promote technology and knowledge sharing between the two countries.
PM Modi's China Visit: First Encounter Since 2020
After his Japan visit, PM Modi will travel to China. He will participate in the Shanghai Cooperation Organisation (SCO) summit. This meeting is significant because relations between the two countries have been extremely tense since the Galwan Valley conflict in 2020.
PM Modi's visit to China after seven years signals that both countries are ready for a new beginning in their relationship. This meeting will not only open avenues for dialogue on border disputes but also create new opportunities for economic cooperation.
India-China Proximity Amidst the US Tariff War
Both China and India have been affected by US President Donald Trump's tariff policies. China has already made statements in support of India. Now, it is expected that both countries can jointly explore new avenues for trade and investment to counter American pressure.
