Recent borrowing trends indicate a significant shift towards debt denominated in Japanese yen among major infrastructure projects in India. The Indian government and states like Tamil Nadu have secured substantial loans from international financial institutions such as the Asian Development Bank and the World Bank, with a tendency to favor yen over US dollars. This transition is rooted in historical economic patterns, notably Japan's past economic boom and subsequent collapse in the 1990s when high debt levels became unmanageable due to increased interest rates. Understanding this context is vital as the current reliance on yen-denominated debt might expose borrowers to similar vulnerabilities if economic conditions shift, emphasizing the need for caution in managing such financial strategies.