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Indian PM set to meet leaders of Japan, China and Russia

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Visit comes amid backdrop of rising trade tension with

U.S.

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Japan expected to pledge investments of up to $68 billion

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China visit is Modi's first in more than seven years

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India eyes deeper ties on critical minerals, manufacturing

By Krishna N. Das and Tamiyuki Kihara

NEW DELHI/TOKYO, Aug 28 (Reuters) - Indian Prime

Minister Narendra Modi heads overseas on Thursday to meet the

leaders of China, Japan and Russia, seeking to build closer

diplomatic ties as New Delhi battles fallout from U.S. President

Donald Trump's escalating tariff offensive.

By drawing nearer to some of the world's largest economies,

including his first visit to China in seven years, Modi hopes to

to boost support for his flagship "Make in India" initiative,

mainly from Japan, as Trump's measures spur new partnerships.

"This will be an opportunity to launch several new

initiatives to build greater resilience in the relationship, and

to respond to emerging opportunities and challenges," Foreign

Secretary Vikram Misri said of the Japan visit.

While New Delhi says it is relying on talks to resolve

Trump's additional tariffs of up to 50% on Indian exports,

Japan's top trade negotiator cancelled a U.S. visit over a snag

in the two nations' tariff deal.

Modi's visit to Japan on Friday and Saturday gains

significance as both belong to the Quad grouping, along with

Australia and the United States, which seeks to counter China's

growing influence in the Indo-Pacific region.

Despite strained ties with Washington, India said Modi and

Japanese Prime Minister Shigeru Ishiba would discuss expanding

cooperation within the framework of the regional security

grouping.

Japanese companies are set to invest up to 10 trillion yen

($68 billion) in India in the next decade, public broadcaster

NHK said, as Suzuki Motor ( SZKMF ) pledged to pump in about $8

billion over the next five to six years.

The two nations were partners "made for each other", Modi

said this week, after visiting a Suzuki plant in India.

Their leaders are expected to discuss tie-ups on critical

minerals and Japanese investments in high-value manufacturing in

India, officials said.

India is believed to hold substantial deposits of rare

earths, used in everything from smartphones to solar panels, but

lacks the technology to mine and process them extensively.

INDIA, CHINA RAPPROCHEMENT

Modi next travels to China for a two-day summit of regional

security bloc Shanghai Cooperation Organisation from Sunday. His

visit comes as the neighbours strive to defuse tension following

deadly border clashes in 2020.

He is expected to meet both Chinese President Xi Jinping and

Russian President Vladimir Putin for two-way talks.

China and India seek to resume direct flights after a gap of

five years and are discussing easing trade barriers, including

reopening border trade at three Himalayan crossings.

India is also considering easing investment rules that put

greater scrutiny on Chinese companies, while Beijing recently

agreed to lift curbs on exports of fertilisers, rare earth

minerals and tunnel boring machines to India.

The meeting comes against the backdrop of Washington's

long-held desire for the world's largest democracy to act as a

counterweight to China, which analysts say could offer New Delhi

leverage in the effort to secure lower tariffs.

Otherwise, India could get pushed towards China and possibly

join a Beijing-led free-trade pact, the Regional Comprehensive

Economic Partnership, said Devashish Mitra, an economics

professor at New York's Syracuse University.

"In the situation and climate President Trump has created,

it won't be surprising if both India and China find this a

mutually beneficial transaction," he said.

But there is limited scope to improve relations with China,

said William Yang, senior Northeast Asia analyst for the

International Crisis Group.

"For now, China will be happy to reciprocate India's desire

to mend some areas of the strained ties by holding high-level

diplomatic talks, but is unlikely to pursue a broader diplomatic

breakthrough while existing differences remain," he warned.

($1=147.3300 yen)