Davos 2026: Hitachi India bets big on rail, energy, payments sectors; lauds faster implementations

Core Insights - The economic engagement between India and Japan is evolving, with increasing deal sizes and a shift from government-only deals to private sector involvement across equity, debt, and partnerships [1][9] - The Indian government's improved implementation processes have significantly transformed project execution, particularly in sectors like railways and urban mobility [1][9] - The energy sector in India is undergoing a major transformation, becoming more integrated across various economic aspects [2][9] Investment Focus Areas - Approximately USD 45-50 billion is being invested in the rail sector, including urban mobility, while around USD 40 billion is allocated to the energy sector [5][9] - The payment business, encompassing both cash and digital transactions, is highlighted as a unique and growing segment, contributing to the narrative of Digital India [6][9] Deal Dynamics - The absorption capacity for Japanese funding has improved, leading to faster utilization of investments and larger deal sizes [7][9] - In 2022, commitments of USD 42 billion were made, with most of the funds expected to be utilized by the end of 2025, alongside new private sector commitments emerging [8][10] Technological Impact - Artificial intelligence is recognized as a transformative force, akin to the internet, with potential benefits in cost savings, productivity improvements, and enhanced capabilities across manufacturing and other sectors [10]