Sitharaman, JBIC chief discuss clean energy, semiconductor investments

Finance Minister Nirmala Sitharaman on Friday met Japan Bank for International Cooperation (JBIC) Governor Kazuhiko Amakawa and discussed expanding bilateral cooperation in clean energy, advanced manufacturing, semiconductors, critical minerals and electric mobility, with both sides exploring opportunities to strengthen investment flows and build resilient supply chains.

The meeting, held on the sidelines of the World Bank-International Monetary Fund Annual Meetings in Bangkok, focused on deepening India-Japan economic engagement through existing financial mechanisms, including the USD 600 million India-Japan Fund and Japanese participation in the National Investment and Infrastructure Fund (NIIF).

"Discussions focused on expanding cooperation in clean energy, energy transition, advanced manufacturing, semiconductors, critical minerals, electric mobility and resilient supply chains, including through the USD 600 million India-Japan Fund and Japanese participation in the National Investment and Infrastructure Fund," the finance ministry said in a post on X.

The discussions highlighted growing opportunities for Japanese investment in India's emerging technology, infrastructure and energy sectors, particularly as both countries seek to strengthen industrial cooperation and diversify supply chains.

𝗜𝗻𝗱𝗶𝗮-𝗝𝗮𝗽𝗮𝗻 𝗙𝘂𝗻𝗱 𝗶𝗻 𝗳𝗼𝗰𝘂𝘀

During the meeting, Amakawa highlighted the performance of the India-Japan Fund, which has supported investments in sectors such as electric mobility and bioethanol.

He expressed hope for the establishment of a follow-on fund to build on the existing investment partnership and expand financing opportunities in priority sectors.

The USD 600 million fund has emerged as an important mechanism for facilitating investment cooperation between the two countries, particularly in areas linked to sustainable development and the energy transition.

The JBIC governor also referred to the institution's stake in the National Industrial Corridor Development Corporation (NICDC), underscoring Japan's continuing participation in India's industrial infrastructure development.

Both sides discussed opportunities to expand Japanese involvement in manufacturing and technology-driven industries, with particular attention to sectors considered strategically important for future economic growth.

𝗦𝗲𝗺𝗶𝗰𝗼𝗻𝗱𝘂𝗰𝘁𝗼𝗿𝘀, 𝗔𝗜 𝗮𝗻𝗱 𝗱𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗿𝗲𝘀

Amakawa noted increasing interest among Japanese investors in India's semiconductor industry, including opportunities at Dholera, which is emerging as a major destination for advanced manufacturing investments.

He also highlighted potential cooperation in artificial intelligence and data centres, reflecting the growing importance of digital infrastructure in bilateral economic engagement.

Sitharaman encouraged Japanese investors to explore opportunities in the data centre sector beyond India's major metropolitan centres.

She specifically referred to Tier 2 and Tier 3 cities, including Visakhapatnam, as potential investment destinations that could support more balanced urban development.

The Finance Minister's emphasis on smaller cities reflected the government's interest in broadening the geographical distribution of infrastructure and technology investments.

Expanding data centre infrastructure outside established metropolitan hubs could also create opportunities for regional economic activity and supporting industries.

Both sides acknowledged the potential to strengthen India-Japan economic and financial relations further while drawing lessons from each other's development experiences.

𝗦𝗶𝘁𝗵𝗮𝗿𝗮𝗺𝗮𝗻 𝗺𝗲𝗲𝘁𝘀 𝗕𝗵𝘂𝘁𝗮𝗻 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗶𝗻𝗶𝘀𝘁𝗲𝗿

Separately, Sitharaman held bilateral discussions with Bhutanese Finance Minister Lyonpo Lekey Dorji on strengthening economic cooperation between the two neighbouring countries.

The meeting covered a range of issues, including engagement with Gujarat International Finance Tec-City (GIFT City), energy collaboration, bilateral trade, connectivity and financial integration.

Sitharaman reiterated India's commitment to supporting Bhutan's development priorities and welcomed progress in bilateral cooperation.

According to the finance ministry, the discussions also explored opportunities for expanding the use of the Indian rupee in bilateral payments and settlements.

"Discussions also focused on exploring INR currency payments and settlements and exchanged views on advancing energy cooperation and enhancing bilateral trade facilitation," the ministry said in a separate post on X.

The proposed expansion of rupee-based transactions was discussed as part of wider efforts to strengthen financial connectivity and facilitate economic exchanges between the two countries.

𝗘𝗻𝗲𝗿𝗴𝘆, 𝘁𝗿𝗮𝗱𝗲 𝗮𝗻𝗱 𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝘃𝗶𝘁𝘆

Energy cooperation featured prominently in the discussions between the Indian and Bhutanese finance ministers, alongside measures to improve trade facilitation and connectivity.

Both sides exchanged views on ways to advance existing economic cooperation and explore new opportunities for financial integration.

Engagement with GIFT City was also discussed as a potential avenue for strengthening financial-sector ties and expanding economic opportunities.

The ministers reaffirmed their commitment to advancing the longstanding India-Bhutan partnership through closer economic engagement, improved connectivity and mutually beneficial development initiatives.

The discussions with Japan and Bhutan formed part of Sitharaman's bilateral engagements during the World Bank-IMF Annual Meetings, with a focus on attracting investment, strengthening regional economic partnerships and expanding cooperation in sectors central to India's development priorities.