New Delhi: Japan will invest Rs 3.2 lakh crore in the next five years in India, Prime Minister Narendra Modi said on Saturday, noting that the two countries have already achieved the investment target that was set in 2014.

In a joint press statement with visiting Japan Prime Minister Fumio Kishida after the 14th summit meeting between the two countries, he said strengthening of bilateral ties will encourage peace, prosperity and stability in the Indo-Pacific region and in the world.

He said both India and Japan understand the importance of "secure, trusted, predictable aur stable energy supply" and this is important to achieve goals of sustainable economic growth and dealing with climate change.

"PM Kishida has been an old friend of India. I have had the opportunity to exchange views with him when he was the Foreign Minister of Japan. Japan is one of the largest investors in India," he said.

"I am happy that we have crossed the investment target of 3.5 trillion Yen set in 2014 and we have decided to increase our aspirations. In the coming five years, we have set a new target of 5 trillion Yen investment i.e. about 3.20 lakh crore," he added.

The Prime Minister said the world is still coping with the ill effects of COVID-19.

"There are obstacles in the global economic recovery process. The geopolitical developments are also posing new challenges. In this context, it is not only important for India and Japan to strengthen their bilateral partnership but it will encourage peace, prosperity and stability in the Indo-Pacific region and in the world," he said.

He said Japan has made a notable contribution in the flagship projects like Dedicated Freight Corridor and Mumbai-Ahmedabad High-Speed Rail project.

"Good progress is being made on Mumbai-Ahmedabad High-Speed Rail," the Prime Minister said.

Kishida arrived here in the national capital earlier today for his first visit to India as Japan Prime Minister. The previous India-Japan Annual Summit took place in Tokyo in October 2018.