Japan–India set a ¥10 trillion investment goal: Is Dholera Smart City poised to gain?
TOKYO/NEW DELHI — Updated Sept 9, 2025 (IST): India and Japan have agreed on a fresh 10-year target of ¥10 trillion (~$68 billion) in private-sector investment into India, outlined during Prime Minister Narendra Modi’s Tokyo visit and talks with Japanese Prime Minister Shigeru Ishiba. The roadmap expands cooperation across technology, clean energy, supply chains, mobility and security, and is designed to channel long-horizon Japanese capital into Indian growth sectors. Reuters AP News
The Big Number—What It Really Means (and What It Doesn’t)
Why Dholera is in the spotlight
- Anchor semiconductor fab: The Government of India approved Tata Electronics’ 300 mm semiconductor fab at Dholera (Gujarat) with technology and execution support from PSMC (Taiwan)—a keystone for India’s chip ecosystem. Tata Group
- Top suppliers moving in: Japan’s equipment major Tokyo Electron (TEL) will open offices in Dholera and Assam to support Tata’s fab and AT/OSAT facilities, including a 200–300-engineer hub, training centre and spares warehouse at Dholera.
- Ecosystem build-out: Industrial-gases leader Linde is advancing a new plant plan in Dholera to serve semiconductor demand—another building block for the cluster.
- Hard infrastructure coming together:
- Dholera Greenfield International Airport is targeted for completion by December 2025, per data tabled in Parliament. The Ahmedabad–Dholera Expressway (NH-751, ~109 km) under construction will connect the city to the airport and Dholera SIR.
Sectors likely to attract flows
The Japan–India vision emphasises semiconductors & electronics, AI, clean energy, mobility/rail, and skills. With an anchor fab and Tier-1 suppliers on the ground, Dholera looks well-positioned to attract a share of those flows; however, investment will spread across multiple Indian cities and corridors.
What to watch (next 6–18 months)
- Supplier announcements (gases, ultrapure chemicals, CMP, cleanroom, specialty utilities).
- TEL’s hiring and training ramp to support fab readiness.
- Milestones on airport and expressway handover to operational agencies.
Editorial note: The ¥10 trillion figure is a private-sector target over a decade. It signals strategic intent but is not a lump-sum allocation; disbursal depends on project execution, permitting, and macro cycles.
