Beyond the bullet train: Japan's expanding role in India's infrastructure

India and Japan ramp up ties with a $67 billion investment plan as Tokyo's funding footprint grows beyond bullet trains to metros, freight corridors, bridges, and water projects

Amid shifting geopolitics and new economic alignments, India and Japan are strengthening their partnership across transport, energy, trade and security. Prime Minister Narendra Modi’s recent visit to Japan produced a slew of joint investment programmes that stretch well beyond the much-discussed Mumbai–Ahmedabad bullet train.

 

Alongside Japanese Prime Minister Shigeru Ishiba, PM Modi unveiled a “Joint Vision for the Next Decade”, targeting $67 billion in private investment and focusing on critical sectors from clean energy and semiconductors to defence cooperation. The announcements underscore a broader truth: Japan is already India’s biggest infrastructure partner, with decades of funding deployed in metros, highways, freight lines and water projects.

 

 

What did the India–Japan summit deliver?

 

The leaders announced a private investment target of $67 billion over the next 10 years, alongside an economic security initiative focusing on semiconductors, clean energy, pharmaceuticals and critical minerals.

 

India welcomed Japan’s offer to supply the E10 series of Shinkansen in the early 2030s, and both sides agreed to adopt Japanese signalling systems. The two countries also renewed their 2008 Joint Security Declaration, a move aimed at keeping the Indo-Pacific free of coercion—though without naming either China or the US. 

How is Japan financing India’s metro rail systems?

 

Japan International Cooperation Agency (JICA) is financing nearly every major metro rail system in India. In March this year, JICA signed a loan of ₹4,649 crore for Delhi Metro Phase 4, which involves adding new corridors to address congestion and pollution.

 

Over the last two decades, JICA has extended loans of more than ¥1.3 trillion to metro systems in Delhi, Bengaluru, Chennai, Mumbai, Kolkata and Ahmedabad (over ₹87,000 crore). Chennai Phase 2, Bengaluru Phase 2 and Mumbai Metro Line-3 are all funded by Japan, as is the Kolkata East–West Metro.

 

Which roads and bridges are backed by Japan?

 

India’s longest sea bridge—the 21.8 km Mumbai Trans Harbour Link (Atal Setu), which opened in January 2024—had substantial JICA backing. It financed approximately 85 per cent of the total project cost through Official Development Assistance (ODA) loans. The total cost is estimated at ₹17,843 crore (about $3 billion), with JICA financing multiple tranches since 2017, including a ₹1,927 crore loan in 2023. The Government of India acts as the guarantor for the loans. The bridge has halved travel time between Mumbai and Navi Mumbai.

 

Japan is also backing the Chennai Peripheral Ring Road with a loan of approximately ₹2,809 crore for Phase 2, intended to improve freight and passenger movement.

 

Meanwhile, Japan has funded the Dhubri–Phulbari bridge over the Brahmaputra, a critical link between Assam and Meghalaya, expected to boost cross-border trade with Bangladesh. Japan is financing it with a loan of about ₹1,573 crore.

 

Where is Japan supporting freight infrastructure?

 

Japan is the principal financier of the Western Dedicated Freight Corridor (WDFC), linking Delhi and Mumbai. In February 2024, JICA extended a loan of about ₹2,254 crore for the project.

 

The WDFC, part of the Delhi–Mumbai Industrial Corridor, is designed to shift cargo from road to rail, reducing both costs and emissions.

 

How is Japan investing in water and urban resilience?

 

Japanese funding is flowing into major water and resilience projects. In March this year, JICA signed a nearly ₹3,065 crore loan for Chennai’s Seawater Desalination Plant (Phase II) to boost supply in the fast-growing city. Bengaluru’s water and sewerage systems are also being expanded with a ₹2,391 crore loan.

 

Where does the bullet train project stand today?

 

The Mumbai–Ahmedabad High-Speed Rail (MAHSR) remains the most visible symbol of India–Japan cooperation. In 2023, JICA approved a ₹18,750 crore loan—the largest in its history—to support the project’s construction. This followed earlier tranches, including a ₹7,000 crore loan in 2022. JICA’s financial support now covers nearly 88 per cent of the total project cost via ODA loans.

 

The funds support civil works and systems based on Japan’s Shinkansen technology. With adoption of the E10 series and Japanese signalling, the high-speed rail corridor is expected to begin operations in the early 2030s.

 

How strong are India–Japan trade and investment ties?

 

Bilateral trade between the two countries was $22.8 billion in FY24, with $21 billion traded between April 2024 and January 2025. India’s exports include chemicals, vehicles, aluminium and seafood, while imports from Japan include machinery, steel, copper and reactors.

 

Japan is India’s fifth-largest source of foreign direct investment (FDI), with $43.2 billion in cumulative inflows through December 2024. In FY24, annual inflows were $3.1 billion, and during April–December FY25, they stood at $1.36 billion. There are about 1,400 Japanese companies and nearly 5,000 establishments in India, and over 100 Indian companies in Japan.

 

The latest summit also highlighted new areas of cooperation: semiconductors, clean energy, digital infrastructure, supply chain resilience and workforce skilling. Japanese investors consistently rank India as one of the most attractive long-term growth markets.