Prime Minister Narendra Modi’s recent Tokyo visit promised to mark a new chapter in India–Japan relations. As part of its move to forge the next-generation economic partnership, Japan is doubling down on green energy in India – a key initiative that will not only help India cut down its heavy dependence on imported oil and coal, but also bring the country a step closer to its ambitious green goals – which is to reach 500GW of renewable energy capacity by 2030.
Modi’s tour went viral on social media, as videos of Japanese women welcoming him with the Gayatri Mantra, Bharatanatyam, and the Rajasthani folk song “Wari Javo Re” captured wide attention. Yet beyond the warm cultural gestures and online buzz, the visit carried a far more consequential agenda with Tokyo committing ¥10 trillion (about ₹6 lakh crore) to multiple projects in India over the next decade.
This investment lies in a shared vision: two of Asia’s leading democracies deepening a partnership that is economic, strategic, and increasingly ecological.
India–Japan relations have consistently gone beyond just business. Over the years, the partnership has spanned infrastructure projects like the Mumbai–Ahmedabad bullet train, defence cooperation in the Indo-Pacific, and close coordination in multilateral forums. This week’s investment announcement builds on that steady foundation.
According to Reuters, it also ranks among the largest bilateral pledges Tokyo has ever made, underlining both nations’ intent to take the relationship to the next level.
The two countries signed a Joint Crediting Mechanism, which means Japanese-backed clean energy projects in India will help both nations meet their climate goals. This also ties in with the global drive for sustainability under the Paris Agreement.
The cooperation is already beginning to translate into action on the ground. In Assam, a ₹3,500-crore loan has been sanctioned for an ethanol project under a green financing arrangement between India’s Power Finance Corporation and the Japan Bank for International Cooperation. This is more than just a financial deal.
It signals how investments are beginning to flow into projects that will create local opportunities, support farmers, and add to India’s clean energy capacity. With similar initiatives in solar, hydrogen and wind on the anvil, the partnership is gradually moving from intent to tangible change.
Japan’s own green journey
To understand why Japan is betting big on India’s green energy story, it helps to look at its own recent struggles and choices. The Fukushima disaster in 2011 shook the nation’s faith in nuclear power and left it searching for safer, cleaner answers. That turning point pushed Japan to diversify its energy sources and experiment with alternatives at a pace it had not attempted before.
As reported by the Financial Times, Japan is investing in ultra-thin solar cells that, by 2040, could generate power equal to 20 nuclear plants. Reuters notes that fossil fuels, which once dominated its electricity supply, have for the first time fallen below 60%, while renewable energy has risen to around 41%.
These shifts show a country trying to strike a balance between energy security, climate responsibility, and public trust. With targets like net zero by 2050 and nearly halving emissions by 2030, Japan has already had to innovate in fields like offshore wind and green hydrogen. That experience now shapes its partnership with India in the capacity of a nation bringing lessons it has learned through an experience rich past.
What it means for India
For India, the gains from this partnership will be felt in several ways. In the immediate term, projects in ethanol, solar and biomass are expected to create jobs in rural and semi-urban regions where opportunities are often scarce. Cleaner air, cheaper electricity and healthier cities are benefits that touch every citizen directly.
In the longer run, Japan’s investments could help India cut down its heavy dependence on imported oil and coal, a weakness that has repeatedly exposed the country to global price shocks. They also bring India a step closer to its ambitious green goals which is to reach 500 GW of renewable energy capacity by 2030, cutting the carbon intensity of its economy by 45% from 2005 levels, and achieving net zero by 2070. For a country that still relies on coal for nearly 70% of its electricity, such targets demand not only domestic resolve but also trusted international partners.
There are challenges along the way. India’s fuel infrastructure was largely built with petrol and diesel in mind, and much of it is not yet equipped to handle higher ethanol blends. Storage depots, tankers and retail pumps will all require upgrades. On the roads too, most vehicles remain only partially compatible, making the rollout of flex-fuel models a priority for manufacturers.
Second but equally important is consumer confidence. Many motorists worry about whether ethanol will affect mileage or engine durability. These concerns cannot be dismissed. To make the transition credible, the new fuels must be backed by clear information, reliable supply, and a visible assurance of quality.
Even so, the direction is unmistakable. With Japanese technology meeting India’s scale, the partnership offers a rare combination of promise with practicality. As the New York Times has observed, Tokyo is seeking dependable partners in Asia to guard against both energy insecurity and shifting geopolitics. India, with its vast market and democratic stability, fits that role.
For Modi, the visit to Tokyo delivers on multiple fronts ranging from energy security, climate commitments, job creation and foreign policy. For Japan, it is a chance to channel its green expertise into one of the world’s fastest-growing economies. And for ordinary Indians, it holds out the prospect of a future where power is cleaner, cities less polluted, and growth more sustainable.
Facebook
Twitter
Linkedin
Email
Disclaimer
Views expressed above are the author’s own.
END OF ARTICLE
AloJapan.com