Modi, SoftBank’s Son discuss investments in tech sector

NEW DELHI: Prime Minister Narendra Modi and SoftBank Group founder Masayoshi Son met on Monday to discuss more investments by the country’s biggest tech backer, as a startup boom appears to cool in India amid worries about the global economy.

The Japanese firm has injected more than $14 billion into India’s tech industry, including in payments app Paytm whose market value has sunk since listing in Mumbai in November.

The prime minister is in Tokyo for a summit of the leaders of the Quad group of countries, India, the US, Japan and Australia, and the launch of the Indo-Pacific Economic Framework for Prosperity.

Fund raising has become much more difficult this year for Indian startups after they attracted a record $35 billion in 2021, while SoftBank this month posted a record $26.2 billion loss at its Vision Fund investment arm.

“Further propelling Japanese investments in India,” Indian foreign ministry spokesperson Arindam Bagchi said on Twitter posting pictures of Son and the prime minister in a meeting in Tokyo.

The talks focused on “SoftBank’s future participation in India in technology, energy, finance, and research and development,” Bagchi said without giving details.

India is growing “very quickly” and had become the third-biggest generator of startups in the world, Son said. “India’s future is bright,” he said, adding that Modi is keen to support the startup sector.

Modi also met officials from Suzuki Motor Corp, the majority owner of India’s biggest automaker, Maruti Suzuki, and discussed investment in electric vehicles and batteries.

In a separate meeting with the chief of Uniqlo parent Fast Retailing Co Ltd, Modi urged the retailer to invest in India’s upcoming all-in-one mega textile parks.