Prime Minister Modi Strengthens Ties with Japan Amid Diplomatic Engagements
Prime Minister Narendra Modi concluded a significant visit to Japan on August 29, 2025, reinforcing strategic partnerships and economic cooperation. During his visit, Japan pledged a substantial private investment target of Ā„10 trillion (approximately $68 billion) for India over the next decade, primarily targeting infrastructure and manufacturing sectors. The two nations also unveiled a significant revamp of their security cooperation, emphasizing mutual defence readiness, coordination on risk assessments, collaboration between special forces, and joint exercises focused on the Indo-Pacific region. This move is seen as a strategic alignment with an eye on China.
Following his engagements in Japan, PM Modi is set to visit China to attend the annual summit of the Shanghai Cooperation Organisation (SCO) on August 31, a visit that could mark a turning point in India-China relations.
US-India Trade Tensions Escalate with New Tariffs
In a concerning development for bilateral trade, the United States imposed a 50% tariff on Indian goods. This significant increase in duties follows stalled trade negotiations between the two countries, escalating economic tensions. The surge in U.S. duties underscores a growing diplomatic and trade rift between the two democratic allies.
Key Economic and Technological Advancements in India
India made notable progress on its economic and technological fronts. Mukesh Ambani, Chairman and Managing Director of Reliance Industries Ltd., announced at the company's Annual General Meeting (AGM) that Jio is set to file for an Initial Public Offering (IPO) in 2026. Ambani also unveiled "Reliance Intelligence," a new wholly-owned subsidiary aimed at making artificial intelligence accessible to everyone. He reiterated confidence in India's economic growth, stating that the country's GDP is growing faster than all major economies and that India aims to become the world's third-largest economy "very soon."
Further bolstering its self-reliance in critical sectors, India launched its first National Biofoundry Network under the BioE3 Policy. This initiative aims to accelerate biotechnology innovation, scale up indigenous biomanufacturing, and contribute to a projected bioeconomy target of $300 billion by 2030. Additionally, a major milestone in semiconductor manufacturing was achieved with the inauguration of one of the country's first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facilities by CG Power in Sanand, Gujarat.
Other Notable Developments
In other news, former RBI Governor Urjit Patel was appointed as the International Monetary Fund's (IMF) Executive Director for a three-year term. The Ministry of Minority Affairs launched a new module on the UMEED Portal to assist vulnerable groups, including widows, divorced women, and orphans, in applying for maintenance support. On the sports front, India is set to host the Hero Men's Asia Cup Hockey 2025, with its campaign beginning against China in Rajgir, a tournament offering direct qualification to the 2026 Hockey World Cup. The nation also celebrated National Sports Day on August 29, honoring Major Dhyan Chand.