During his recent visit to India, Japanese Prime Minister Fumio Kishida signed a loan agreement worth 300 billion yen (around ₹18,000 crore) with India for the fourth tranche of a Japanese loan to help build the Mumbai-Ahmedabad High Speed Rail Corridor. This project, which was originally slated for completion in 2023, faced delays related to land acquisition. To address cost overruns and delays, a high-level Japanese delegation, led by a special advisor to Kishida, visited India in January of this year. The loan from Japan will provide 80% of the funding for the project as an easy loan.
During the visit, the leaders discussed the development of the Northeast region of India, which Japan has undertaken through agencies like the Japan International Cooperation Association. They agreed to promote the Bay of Bengal-North East India industrial value chain concept in cooperation with India and Bangladesh to foster growth in the entire region. By linking regional infrastructure development efforts and removing policy barriers through economic cooperation agreements, the three countries hope to develop the Northeast and Bangladesh as manufacturing hubs.
Japan is also ready to make investments to support this expansive ambition. The Japanese Embassy in New Delhi announced that Japan would mobilize more than $75 billion in public and private funds in the Indo-Pacific region by 2030 for infrastructure and to grow together with other countries.