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2 days ago
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Where does India's EV policy stand in global green energy push?
Electric vehicles are now mainstream, accounting for one in five cars sold globally in 2023. In the first quarter of 2024, global EV sales rose by 25% year-over-year, sustaining a growth rate similar to 2022. The International Energy Agency estimated that electric cars would represent 45% of new car sales in China, 25% in Europe, and over 11% in the US in 2024. From January-November 2024, China led the global EV market, with 9.7 million of the 15.2 million EVs sold. Vietnam and Thailand have also seen substantial EV adoption, reaching 15% and 10% of sales, respectively, in 2023. Emerging markets like Brazil (3%), Indonesia (2%), and Malaysia (2%) show potential due to favorable policies. However, the discontinuation of purchase incentives poses a potential risk to the industry's growth. India, with a modest 2% market share, has relied on the Production Linked Incentive Scheme to support domestic EV and battery manufacturing. Unlike most countries, India's EV transition is led by two-wheelers – motorbikes and scooters. Here, we examine the role of policy in shaping India's electric mobility landscape while drawing lessons from countries like China, the US, and others. Although significant progress has been made, the effectiveness of these policies in fully developing the EV ecosystem and addressing existing gaps warrants further examination. India's policies India's national level EV framework under the aegis of the National Mission for Electric Mobility promotes the development of sustainable automotive technologies. This includes the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) schemes. FAME I (2015) aimed to promote EV adoption through subsidies for electric two-wheelers, three-wheelers (such as auto-rickshaws), buses and hybrid vehicles, while FAME II (2019) shifted focus toward infrastructure development by incentivising the establishment of charging stations and mandating higher localisation requirements for subsidised EVs. Another cornerstone is the Production Linked Incentive Scheme, which aims to boost domestic manufacturing of Advanced Cell Chemistry batteries and EV components through subsidies, thereby reducing import dependence. FAME I and FAME II were considered successful by the government and observers. FAME III was expected to be launched in 2024 while addressing FAME II's shortcomings. The PLI Scheme, on the other hand, is unlikely to be extended beyond the 14 sectors currently included and is expected to be modified. Complementing these initiatives, the government has introduced measures like reducing Goods and Services Tax on EVs from 12% to 5%, exempting EVs from permit requirements, and allowing electricity to be sold as a service for EV charging. Budget provisions such as additional income tax deductions on loans for EV purchases further incentivise adoption. Charging infrastructure development, such as charging stations at 25 km intervals on highways encouraged by offering tax rebates, is also a priority. State governments have also played a critical role by creating tailored policies that include demand-side incentives, research and development (R&D) support, labour incentives, and infrastructure development. States such as Karnataka, Maharashtra, and Tamil Nadu, which lead in EV registrations, have introduced comprehensive policies to attract investments and foster local EV ecosystems. Policies in other countries The global push toward EV adoption is evident in policies implemented by major economies like the US, China, and the European Union. The US Inflation Reduction Act, China's New Energy Vehicles Act, and the EU's Net-Zero Industry Act reflected a global shift toward clean energy and electric mobility while showcasing varied strategies and implications for international trade and competition. Each region's approach corresponds to its unique priorities, yet common themes include financial incentives, infrastructure development and strategic trade policies. The US has leveraged policies such as Corporate Average Fuel Economy standards and a national subsidy programme to promote EV adoption. The IRA allocated $370 billion toward climate and clean energy investments, emphasising domestic EV production. Protectionist measures, such as raising import tariffs on Chinese EVs to 100% as of May 2024, underscore efforts to bolster the US's competitive position in global EV markets. However, the administration of US President Donald Trump has set out to dismantle the IRA. The Net-Zero Industry Act aims to enhance the competitiveness of its net-zero industrial base, particularly in battery and storage technologies. Complemented by the European Critical Raw Materials Act, the Net-Zero Industry Act secures supply chains and diversifies partnerships to mitigate reliance on non-EU resources. The EU has also imposed tariffs on Chinese EVs, citing concerns over unfair subsidies and competitive practices in 2024. China's New Energy Vehicles policy is integral to its leadership in electrification. Characterised by extensive subsidies, investments in battery technology, and regulatory mandates, it captures significant portions of the lithium-based battery supply chain. China's dominance in EV production aligns with its strategic priorities to upgrade its automotive industry and combat air pollution. China is now the leader in batteries for electric vehicles and solar panels. It has capitalised on expertise in lithium-ion battery manufacturing, gained from producing consumer electronics, to solidify its position in the EV market. Policy support in other countries includes support for the purchase of EVs and the roll-out of charging infrastructure, while others try to disincentivise the use of internal combustion engine cars. Direct support measures include purchase subsidies, import tax exemptions, and purchase and operational tax exemptions for electric vehicles. Other G20 countries, except Saudi Arabia and South Africa, have implemented mechanisms to support EV adoption. For instance, France and Italy employ indirect measures like the 'malus' system, which imposes higher taxes on vehicles with high CO₂ emissions. Policy effectiveness and challenges Can countries like Brazil, India, or South Africa replicate China's green industrial policy? These three emerging economies have structurally different automotive industries, domestic preconditions, policy and enterprise responses, and preliminary industrial development outcomes. In India, national policies like FAME and local initiatives have supported charging infrastructure and facilitated the emergence of domestic EV manufacturers like Tata Motors. Since India has homegrown automobile brands, the level of investment in the EV supply chain is higher than in Brazil and especially South Africa. The Indian EV market is still tiny compared to the Chinese: 250 million units were sold in China instead of 0.6 million in India in 2019. While the Indian initiatives outlined above have spurred growth, critical questions remain about their sufficiency in fully developing the EV ecosystem. While India has established R&D centers to advance EV technologies, its academic output and patenting activities remain low compared to China and the US. The typical lifecycle of a disruptive industry involves innovators, early adopters, and subsequent scaling. In India, the EV sector has reached a critical inflection point, with scaled manufacturing expected within the next few years. Government measures, such as customs duty cuts on lithium-ion batteries and capital goods for EV manufacturing, are poised to accelerate this transition. This year's budget provided customs duty exemptions to 25 critical minerals, and the Critical Minerals Mission has been established, which is likely to help in battery development. India's coal-dependent electricity mix also hampers EVs' environmental benefits. Addressing these challenges will require substantial investment in renewable energy and the decarbonisation of India's power sector. Similarly, enhancing R&D capabilities and expanding affordable charging infrastructure are necessary to sustain momentum. Globally, competition in the EV market has led to geopolitical tensions. The US and EU's tariff hikes on Chinese EVs and China's export restrictions on critical minerals illustrate the intersection of industrial policy with international trade dynamics. Conclusion In the first eleven months of 2024, 70% of global EV and hybrid sales took place in China. At the same time, China's trade surplus was at a record high of nearly $1 trillion. The new US administration's tariffs, imposed on China, among others, as well as on specific sectors like iron, steel, and aluminium, are an attempt to reshape these markets. Earlier, the EU has imposed tariffs on Chinese EVs, citing unfair subsidies and competitive practices. Other concerns regarding Chinese EVs exist in the EU, the US, and elsewhere. Brazil, Turkey, India, and Indonesia have imposed larger barriers on China's exports, fearing their nascent industries might wither against the Chinese onslaught. China, too, retaliated by banning the export of critical minerals and now restricting exports of machinery for electronics, solar panels, and EVs. India's EV policies reflect a sustained effort to transition to green energy, with initiatives like FAME II, PLI schemes, and state-level incentives forming the backbone of its strategy. However, challenges such as a nascent battery industry, inadequate charging infrastructure, and coal-intensive electricity generation must be addressed to realise the full potential of EV adoption. Moreover, Indian consumers are price sensitive, and electric cars are more expensive. Small and Medium Enterprise support will be vital for realising the full potential of the EV transition. Small and Medium Enterprises, which form a significant portion of India's automotive sector, require tailored incentives to strengthen the EV component supply chain. Replicating China's green industrial policies poses challenges for emerging economies like Brazil, India, and South Africa due to structural differences in their automotive industries and policy environments. Brazil has a large auto industry dominated by foreign original equipment manufacturers, serving as South America's assembly hub. South Africa's smaller industry focuses on exports to Europe, relying heavily on imported components with minimal domestic innovation. India has the strongest automotive component sector (primarily ICE) among the three countries, with domestic firms generating 70% of revenue. India's EV transition trajectory also depends on geopolitics, including access to critical minerals, technology, and financing. Ensuring this transition aligns with broader decarbonisation goals will require coordinated efforts across policy, industry, and academia and international cooperation to secure resources and technology. By addressing these challenges, India can position itself as a leader in the global shift toward sustainable mobility. As the global EV landscape evolves, India's industrial policy must balance immediate incentives and long-term sustainability goals. Drawing lessons from China's market strategies, the US's incentive structures, and the EU's regulatory frameworks, India can refine its policies to create a competitive and environmentally sustainable EV ecosystem. Strategic investments in infrastructure, partnerships with global original equipment manufacturers, and fostering local innovation will be crucial in shaping India's electric mobility future. As India continues refining its policies, these lessons can guide effective implementation that supports economic growth and environmental sustainability. (Springer, 2024).
Business Standard
3 days ago
- Business
- Business Standard
Piyush Goyal reviews PLI scheme, emphasises on quality over quantity in skilling initiatives
India must focus on the sectors in which India has competitive edge over other countries and address the problems faced by the various stakeholders so that countrys exports can grow, Union Minister of Commerce and Industry, Piyush Goyal said at the review meeting on Production Linked Incentive Scheme, one of the notable initiatives for making India Aatmanirbhar in the manufacturing sector. Goyal urged the need for becoming self-reliant in the key sectors covered under the PLI Scheme. Emphasizing that the Ministries should focus on creating quality skilled manpower instead of focusing on the quantity and resolve infrastructure bottlenecks in collaboration with NICDC, Shri Goyal stressed on preparing a roadmap for the next five years both on investment and disbursement.
India Gazette
3 days ago
- Business
- India Gazette
Piyush Goyal reviews PLI scheme, emphasises need for self-reliance and export competitiveness
New Delhi [India], June 25 (ANI): India must focus on the sectors in which it has a competitive edge over other countries and address the problems faced by the various stakeholders so that the country's exports can grow, Union Minister of Commerce and Industry Piyush Goyal said at the review meeting on the Production Linked Incentive Scheme. Goyal urged the need to become self-reliant in the key sectors covered under the PLI Scheme. Emphasising that the Ministries should focus on creating quality skilled manpower instead of focusing on quantity and resolving infrastructure bottlenecks in collaboration with the National Industrial Corridor Development Corporation (NICDC), Goyal stressed the need to prepare a roadmap for the next five years, both for investment and disbursement. All the concerned ministries attended the meeting. The PLI Scheme is under various stages of implementation in 14 key sectors. The scheme has witnessed investments worth Rs 1.76 lakh crores, which has generated production/ sales of over Rs 16.5 lakh crores and employment of over 12 lakhs (Direct and Indirect) till March 2025. A cumulative incentive amount of Rs 21,534 crore has been disbursed under PLI Schemes for 12 Sectors: Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom and Networking Products, Food Processing, White Goods, Automobiles and Auto components, Specialty Steel, Textiles, drones, and Drone Components. 'The impact of PLI Schemes has been significant across various sectors in India. These schemes have incentivised domestic manufacturing, leading to increased production, job creation and a boost in exports,' the commerce ministry said. Pharmaceutical Drugs: The sector has witnessed cumulative sales of Rs 2.66 lakh crore, which includes exports of Rs 1.70 lakh crore, in the first three years of the scheme. Export sales of eligible products under the scheme for 2024-25 were Rs 0.67 lakh crore, which is approximately 27 per cent of the country's total pharma exports during the same period. The approved companies have undertaken 40 per cent of the total investment (Rs 37,306 crore), amounting to Rs 15,102 crore in Research and Development (R&D) for eligible products under the scheme. The overall Domestic Value Addition in the Sector has been 83.70 per cent as of March 2025. Bulk Drugs: The PLI Scheme for Bulk Drugs aims to boost domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) in India. The scheme has contributed to India becoming a net exporter of bulk drugs (Rs 2,280 crore) from a net importer (Rs (-) 1,930 crore) as was the case in 2021-22. It has also significantly reduced the gap between the domestic manufacturing capacity and the demand for critical drugs. Food Products: PLI Scheme for food products has reported investments worth Rs 9,032 crore, resulting in production/sales of Rs 380,350 crores and employment of 340,116 (Direct and indirect). By mandating the use of domestically grown agricultural products (excluding additives, flavours, and edible oils) in manufacturing, the scheme has substantially increased local raw material procurement, benefiting underdeveloped and rural areas while supporting farmers' incomes. Under the PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies. This has strengthened SMEs by fostering innovation, improving competitiveness, expanding market access, generating employment opportunities, and supporting the broader value chain in the food processing industry. The sales of Value-Added Marine products increased at a CAGR of 22 per cent during the PLI period. With the launch of the PLI Millet Scheme, the Sales of Millet-Based Products increased 25 times in 2024-25 over the Base Year (2020-21). The procurement of millets by the PLI beneficiaries has increased from 4081 MT in 2022-23 to 16130 MT in 2024-25, which has led to an increase in the rural household income. Textiles: Exports of Indian Man-made Fibre (MMF) Textiles have reached USD 6 billion during 2024-25 as against exports of USD 5.7 billion during 2023-24. The overall exports of Technical Textiles from India reached USD 3,356.5 million during 2024-25 as against exports of USD 2,986.6 million during 2023-24. (ANI)
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Business Standard
23-05-2025
- Business
- Business Standard
India not just future-ready, but shaping that future: FS Misri in Tokyo
Foreign Secretary Vikram Misri delivered the spotlight address at the 2nd edition of the Raisina Tokyo Dialogue, highlighting the multifaceted nature of the India-Japan partnership, including new greenfield sectors for cooperation. Speaking on India's economic landscape at the event, Misri highlighted that the country continues to be a highly attractive destination for global capital, backed by strong foreign exchange reserves, declining inflation, and a large, young, and dynamic workforce. He noted that India's foreign exchange reserves have exceeded USD 690 billion, and retail inflation dropped to 3.16 per cent in April 2025, the lowest in nearly six years. With a population of 1.4 billion and a median age under 29, India remains one of the world's largest and most promising consumer markets. This demographic strength, combined with a rising middle class and an expanding workforce, positions India to play a key role in the technology-driven future. He emphasized the strategic shift in India's economic model, with a renewed focus on manufacturing-led growth. The "Make in India" initiative, launched in 2014, has led to increased investment across diverse sectors, including electronics, defence, pharmaceuticals, and textiles. Misri highlighted the Production Linked Incentive Scheme, which is projected to attract USD 520 billion in investment and includes more than two dozen Japanese companies. India has also allocated USD 10 billion to develop a semiconductor ecosystem, while collaboration with Japan in this sector is expected to enhance talent and innovation on both sides. "We are also nurturing semiconductor-ready talent, which will supplement similar efforts by Japan to rediscover its traditional strength in this sector," he said. India's electric vehicle sector is also undergoing transformation, supported by policies such as FAME-II and new incentives for battery manufacturing. As the world's fourth-largest vehicle producer, India is aiming to replicate the India-Japan success of Maruti-Suzuki in the age of electric mobility. India has made significant reforms to foster a transparent and efficient business environment, liberalizing foreign direct investment (FDI) limits in defence, insurance, and space technology, while simplifying business compliance and tax structures. The country's ranking in the World Bank's Ease of Doing Business index improved from 142nd in 2014 to 63rd in 2020. Legal reforms have reduced over 39,000 business compliances and decriminalized hundreds of minor offences, streamlining enterprise operations. The government has prioritized transparency and digital governance, with tools like the National Single Window System providing access to over 150 approvals and clearances. Initiatives such as MCA21 and GSTN have simplified filings and compliance for businesses. Misri said, "The simplification of India's complex labour regulations into four unified labour codes has reduced the compliance burden while balancing workers' rights with industry flexibility." He noted that the Goods and Services Tax has created a unified national market, while the Insolvency and Bankruptcy Code has transformed corporate insolvency resolution by ensuring time-bound processes and boosting creditor confidence. Infrastructure development has been a major focus, with the PM Gati Shakti National Master Plan aligning investments across transport and logistics. The Bharatmala initiative aims to upgrade and construct 65,000 kilometres of highways, while Sagarmala is enhancing port infrastructure. The modernization of Indian Railways, full electrification, smart stations, and dedicated freight corridors have all contributed to reducing logistics costs and improving competitiveness. "Japan has been our preferred partner in urban mobility, with metro rail emerging as the new ambition of even second tier cities in India," he said, citing the Mumbai-Ahmedabad High-Speed Rail corridor as a flagship project in bilateral cooperation. India's aviation sector is growing rapidly through the UDAN scheme, expanding regional connectivity and targeting the operation of over 200 airports by 2040. Integrated logistics parks are further improving freight movement. In energy, India is now the world's third-largest renewable energy producer, targeting 500 GW of non-fossil fuel capacity by 2030, with green hydrogen identified as a major area for future India-Japan cooperation. The Digital India mission has revolutionized public service delivery, expanding e-governance, online education, and telemedicine. Misri noted that India's national AI strategy and rollout of 5G have democratized digital opportunities, fostering the growth of the startup ecosystem in areas such as fintech, agritech, clean energy, and health tech. India's space program, including missions like Chandrayaan and Gaganyaan, is now open to private enterprise and has become a major driver of innovation, with Japanese capital and expertise seen as potential partners for the future. A parallel focus on education and skilling is equipping India's youth for the new industrial revolution, with India and Japan collaborating on training and language initiatives. Misri pointed to India's strategic positioning for manufacturing, digital empowerment, and infrastructure development, asserting that India is not only future-ready, but "shaping that future." He underscored the importance of the Special Strategic and Global Partnership between India and Japan, calling it one of the most significant relationships of the 21st century. The bilateral partnership, he said, spans "Industrial Competitiveness, Clean Energy Partnership, Digital Partnership, Semiconductor Supply Chains, infrastructure development, energy, space, food-processing, science and technology, healthcare, and R & D cooperation." Trilateral initiatives, such as the India-Japan Cooperation Initiative for Sustainable Economic Development in Africa, reflect the growing scope of collaboration. Japanese investment in India continues to grow, with Misri noting that in 2022, the countries set a target of 5 trillion yen in public and private investment and financing from Japan to India between 2022 and 2027, with 3.7 trillion yen realized by August 2024. He encouraged Japanese companies to expand in India and tap into its large pool of skilled personnel, saying, "Businesses in Japan must also recognise the immense pool of skilled personnel available in India to meet the changing needs of Japan." He further urged Japanese businesses to broaden their engagement with India into sectors such as digital services, renewable energy, critical minerals, and semiconductors. "A broader trade engagement across sectors will not only unlock new business potential but also enhance economic stability, reduce over-dependence on concentrated markets, ensure supply chain resilience and strengthen long term economic security for both India and Japan." Misri expressed confidence that the India-Japan partnership, rooted in mutual trust and shared principles, would drive sustainable growth, innovation, and prosperity for both nations well into the future. The Foreign Secretary expressed deep appreciation for Japan's support in the aftermath of the April 22 terror attack in Pahalgam, Jammu and Kashmir. He acknowledged the solidarity extended by Japan and several colleagues present, reflecting the strength of the India-Japan relationship during challenging times. "India is deeply appreciative of the support that is being extended by Japan, as we have dealt with the tragedy that took place on the 22nd of April in Pahalgam, Jammu and Kashmir in India," Misri said. He stressed the need for global clarity on the issue of terrorism, urging against equating victims and perpetrators. "As we deal with the scourge that is terrorism that doesn't distinguish and that impacts everybody in the world from time to time, it is important that we don't equate the victim and the perpetrator of these attacks," he said.
India Gazette
23-05-2025
- Business
- India Gazette
India is not only future-ready, it is shaping that future: Foreign Secy Misri in Tokyo
Tokyo [Japan], May 23 (ANI): Foreign Secretary Vikram Misri delivered the spotlight address at the 2nd edition of the Raisina Tokyo Dialogue, highlighting the multifaceted nature of the India-Japan partnership, including new greenfield sectors for cooperation. Speaking on India's economic landscape at the event, Misri highlighted that the country continues to be a highly attractive destination for global capital, backed by strong foreign exchange reserves, declining inflation, and a large, young, and dynamic workforce. He noted that India's foreign exchange reserves have exceeded USD 690 billion, and retail inflation dropped to 3.16 per cent in April 2025, the lowest in nearly six years. With a population of 1.4 billion and a median age under 29, India remains one of the world's largest and most promising consumer markets. This demographic strength, combined with a rising middle class and an expanding workforce, positions India to play a key role in the technology-driven future. He emphasized the strategic shift in India's economic model, with a renewed focus on manufacturing-led growth. The 'Make in India' initiative, launched in 2014, has led to increased investment across diverse sectors, including electronics, defence, pharmaceuticals, and textiles. Misri highlighted the Production Linked Incentive Scheme, which is projected to attract USD 520 billion in investment and includes more than two dozen Japanese companies. India has also allocated USD 10 billion to develop a semiconductor ecosystem, while collaboration with Japan in this sector is expected to enhance talent and innovation on both sides. 'We are also nurturing semiconductor-ready talent, which will supplement similar efforts by Japan to rediscover its traditional strength in this sector,' he said. India's electric vehicle sector is also undergoing transformation, supported by policies such as FAME-II and new incentives for battery manufacturing. As the world's fourth-largest vehicle producer, India is aiming to replicate the India-Japan success of Maruti-Suzuki in the age of electric mobility. India has made significant reforms to foster a transparent and efficient business environment, liberalizing foreign direct investment (FDI) limits in defence, insurance, and space technology, while simplifying business compliance and tax structures. The country's ranking in the World Bank's Ease of Doing Business index improved from 142nd in 2014 to 63rd in 2020. Legal reforms have reduced over 39,000 business compliances and decriminalized hundreds of minor offences, streamlining enterprise operations. The government has prioritized transparency and digital governance, with tools like the National Single Window System providing access to over 150 approvals and clearances. Initiatives such as MCA21 and GSTN have simplified filings and compliance for businesses. Misri said, 'The simplification of India's complex labour regulations into four unified labour codes has reduced the compliance burden while balancing workers' rights with industry flexibility.' He noted that the Goods and Services Tax has created a unified national market, while the Insolvency and Bankruptcy Code has transformed corporate insolvency resolution by ensuring time-bound processes and boosting creditor confidence. Infrastructure development has been a major focus, with the PM Gati Shakti National Master Plan aligning investments across transport and logistics. The Bharatmala initiative aims to upgrade and construct 65,000 kilometres of highways, while Sagarmala is enhancing port infrastructure. The modernization of Indian Railways, full electrification, smart stations, and dedicated freight corridors have all contributed to reducing logistics costs and improving competitiveness. 'Japan has been our preferred partner in urban mobility, with metro rail emerging as the new ambition of even second tier cities in India,' he said, citing the Mumbai-Ahmedabad High-Speed Rail corridor as a flagship project in bilateral cooperation. India's aviation sector is growing rapidly through the UDAN scheme, expanding regional connectivity and targeting the operation of over 200 airports by 2040. Integrated logistics parks are further improving freight movement. In energy, India is now the world's third-largest renewable energy producer, targeting 500 GW of non-fossil fuel capacity by 2030, with green hydrogen identified as a major area for future India-Japan cooperation. The Digital India mission has revolutionized public service delivery, expanding e-governance, online education, and telemedicine. Misri noted that India's national AI strategy and rollout of 5G have democratized digital opportunities, fostering the growth of the startup ecosystem in areas such as fintech, agritech, clean energy, and health tech. India's space program, including missions like Chandrayaan and Gaganyaan, is now open to private enterprise and has become a major driver of innovation, with Japanese capital and expertise seen as potential partners for the future. A parallel focus on education and skilling is equipping India's youth for the new industrial revolution, with India and Japan collaborating on training and language initiatives. Misri pointed to India's strategic positioning for manufacturing, digital empowerment, and infrastructure development, asserting that India is not only future-ready, but 'shaping that future.' He underscored the importance of the Special Strategic and Global Partnership between India and Japan, calling it one of the most significant relationships of the 21st century. The bilateral partnership, he said, spans 'Industrial Competitiveness, Clean Energy Partnership, Digital Partnership, Semiconductor Supply Chains, infrastructure development, energy, space, food-processing, science and technology, healthcare, and R&D cooperation.' Trilateral initiatives, such as the India-Japan Cooperation Initiative for Sustainable Economic Development in Africa, reflect the growing scope of collaboration. Japanese investment in India continues to grow, with Misri noting that in 2022, the countries set a target of 5 trillion yen in public and private investment and financing from Japan to India between 2022 and 2027, with 3.7 trillion yen realized by August 2024. He encouraged Japanese companies to expand in India and tap into its large pool of skilled personnel, saying, 'Businesses in Japan must also recognise the immense pool of skilled personnel available in India to meet the changing needs of Japan.' He further urged Japanese businesses to broaden their engagement with India into sectors such as digital services, renewable energy, critical minerals, and semiconductors. 'A broader trade engagement across sectors will not only unlock new business potential but also enhance economic stability, reduce over-dependence on concentrated markets, ensure supply chain resilience and strengthen long term economic security for both India and Japan.' Misri expressed confidence that the India-Japan partnership, rooted in mutual trust and shared principles, would drive sustainable growth, innovation, and prosperity for both nations well into the future. The Foreign Secretary expressed deep appreciation for Japan's support in the aftermath of the April 22 terror attack in Pahalgam, Jammu and Kashmir. He acknowledged the solidarity extended by Japan and several colleagues present, reflecting the strength of the India-Japan relationship during challenging times. 'India is deeply appreciative of the support that is being extended by Japan, as we have dealt with the tragedy that took place on the 22nd of April in Pahalgam, Jammu and Kashmir in India,' Misri said. He stressed the need for global clarity on the issue of terrorism, urging against equating victims and perpetrators. 'As we deal with the scourge that is terrorism that doesn't distinguish and that impacts everybody in the world from time to time, it is important that we don't equate the victim and the perpetrator of these attacks,' he said. (ANI)
