The Japan Bank for International Cooperation (JBIC) and the National Investment and Infrastructure Fund (NIIF) have teamed up to launch the $600 million India Japan Fund (IJF), with JBIC and the Indian government serving as anchor investors.
This joint initiative signals a key dimension of collaboration between the two countries in an area that is a shared priority, and includes climate and environment. The Centre contributed 49% of the target corpus, while the JBIC contributed the remaining 51%, making this the first bilateral fund announced by NIIF. According to an official release, the fund will be managed by NIIF (NIIFL), while JBIC IG (a subsidiary of JBIC) would assist NIIFL in encouraging Japanese investments in India.
The IJF will focus on investing in environmental sustainability and low carbon emission strategies, and aims to play the role of being a ‘partner of choice’ to further enhance Japanese investments into India.
A significant turning point in Japan and India's strategic and economic alliance was the establishment of the IJF. IJF will actively invest in India's environmental preservation industry, which includes enterprises involved in e-mobility, renewable energy, and circular economy industries like waste and water management.