India, Japan deepen ties on clean energy and critical minerals

India and Japan are moving to strengthen their strategic partnership across key sectors identified as crucial for regional economic growth and energy transition. The discussions between Finance Minister Nirmala Sitharaman and the Governor of Japan Bank for International Cooperation (JBIC) highlighted shared priorities in clean energy infrastructure and securing supply chains for critical minerals essential to modern manufacturing.

The two nations plan to channel resources through the India-Japan Fund, a $600 million mechanism designed to facilitate joint ventures and technology transfer initiatives. This financing vehicle will focus on three primary domains: semiconductor manufacturing and design, electric mobility solutions including battery production, and data centre development to support India's digital infrastructure expansion.

The collaboration reflects both countries' commitment to reducing dependence on external supply chains while addressing the global energy transition. Japan's expertise in advanced manufacturing and green technology complements India's growing capabilities and vast market potential, positioning the partnership to generate mutual economic benefits.

These initiatives align with India's broader industrial policy objectives under 'Make in India' and Japan's regional economic engagement strategy. The structured cooperation framework is expected to accelerate technology adoption, create high-skilled employment opportunities, and strengthen both nations' resilience in critical economic sectors facing global supply chain uncertainties.