Modi Meets Fukushiro: Focus on Green Energy and 5 Trillion Yen Investment

Prime Minister Narendra Modi welcomed the Speaker of the House of Representatives of Japan, Nukaga Fukushiro, along with his delegation, which included Japanese Parliament members and business leaders from major Japanese companies. The meeting emphasised the India-Japan Special Strategic and Global Partnership, focusing on deepening cooperation in both traditional and modern sectors.

Discussions centred on enhancing collaboration in traditional manufacturing, known as ‘Monzukuri,’ and exploring new opportunities in modern domains such as semiconductors, electric vehicles (EVs), and green and clean energy. The leaders also reviewed progress on the ambitious target of 5 trillion Japanese Yen investment set between India and Japan for 2022-2027 and explored ways to further consolidate economic ties beyond 2027.

Both parties acknowledged the significance of the Mumbai-Ahmedabad High-Speed Rail project, stressing the importance of its successful and timely completion. Prime Minister Modi highlighted the conducive business environment and recent reforms in India, encouraging more investment and technology transfers from Japan. He assured the visiting delegation of the Government of India's full support for these initiatives.

In March 2022, India and Japan set an ambitious target of 5 trillion yen (approximately USD 42 billion) for public and private investment and financing over five years. Additionally, the India-Japan Clean Energy Partnership was announced to focus on collaborative efforts in climate conservation. 

Over the past several years, Japan has introduced energy policies aimed at achieving carbon neutrality or net-zero greenhouse gas emissions by 2050. These policies target significant reductions in emissions from the electric power, industrial, and transportation sectors. Japan’s 6th Strategic Energy Plan (released in 2021) and the GX (Green Transformation) Decarbonization Power Supply Bill (released in 2023) aim to increase the share of non-fossil fuel generation sources to 59 percent by 2030, up from 31 percent in 2022. This includes boosting the share of renewable energy sources such as solar, wind, hydropower, geothermal, and biomass from 26 percent in 2022 to 36-38 percent by 2030, and increasing the share of nuclear power from 5 percent to 20-22 percent by 2030. Consequently, the reliance on fossil fuels for electricity generation is projected to decline from 69 percent in 2022 to 41 percent by 2030.

These policies could also expand the use of hydrogen and ammonia in natural gas and coal co-fired power generation, address difficult-to-electrify end-use sectors, and advance carbon capture and storage technology development.

The Indian Prime Minister’s interaction with the Japanese Speaker and his delegation marks another step in reinforcing the strategic and economic ties between India and Japan, paving the way for increased cooperation and shared growth in the coming years.