Japanese Deputy Chief of Mission in India Kawazu Kunihiko on Sunday said the investment target of five trillion yen over the next five years from his country will depend on the "investment atmosphere" in India.
The diplomat, however, asserted that the relationship between Japan and India is on the rise in every field.
"We have already announced a target to invest five trillion yen in the next five years in India. This will be by both public and private sectors, including debts to India for various projects," Kunihiko told PTI on the sidelines of a conclave here.
The major areas likely to attract the chunk of the investment will be manufacturing, climate change and infrastructure, he added.
"That's the target and we hope to achieve that figure. However, it's up to improvement of investment atmosphere in India. Without the effort and cooperation from the Indian side, it'll be very difficult to achieve that investment target," Kunihiko said.
When asked what he meant by "investment atmosphere", he said stable energy supply, thrust on infrastructure development and stability in policy are prime to attract capital to India.
"The relation between India and Japan has always been on the rise in the 21st century," the Japanese Embassy official in New Delhi said, adding that his country's exposure to India currently stands at around USD 30 billion.
In March, Japanese Prime Minister Fumio Kishida announced an investment target of five trillion yen (Rs 3,20,000 crore) in India over the next five years after holding talks with his Prime Minister Narendra Modi on a wide range of issues, including the Ukraine crisis.
Speaking at the 'Natural Allies in Development and Interdependence' conclave here, Kunihiko said that India and Bangladesh are the top two nations in the world receiving Japanese assistance for various development projects.
"Japan would like to be the natural ally of India and the neighbouring countries. I'm looking forward to working with the Indian government," he added.
Kunihiko stressed that Japan does not prefer the supremacy of one country, surrounded by other less empowered nations.
"We believe in economic self-reliance and political autonomy. We are in association with India in the Indo-Pacific by becoming a leader in the region," he added.
Kunihiko also emphasised on the importance of the Bay of Bengal and Northeastern regions in Japan's cooperation with India over foreign policy.