India and Japan on Thursday signalled a deeper strategic alignment as Prime Minister Narendra Modi and Prime Minister Sanae Takaichi set out a roadmap anchored in “trust”, resilient supply chains and long-term economic convergence.
“Trust is the new currency of global partnerships,” Modi said, highlighting that the India–Japan relationship has now matured into what he described as “exceptional trust”, capable of shaping outcomes not just in bilateral ties but across the Indo-Pacific and beyond.
Takaichi said India and Japan, “as two of the world’s largest economies”, share a responsibility to shape stability in the region. “A free, prosperous, and rules-based Indo-Pacific is our shared priority… these initiatives will pave the way for peace, stability and progress.”
Foreign secretary Vikram Misri in a special media briefing described the outcome as a shift from intent to implementation, particularly in areas that directly impact supply chains and industrial cooperation.
A major focus of the talks was economic security, with both sides acknowledging that national security is now inseparable from the stability of supply chains.
“Economic security interests are increasingly intertwined with overall national security interests,” he noted, pointing to the need for “reliable and unstressed supply chains” in a volatile global environment.
The discussions placed particular emphasis on critical minerals and rare earths, materials essential for semiconductors, electronics, electric vehicles and defence-adjacent technologies. Both sides agreed on the importance of diversifying sourcing and developing new exploration and processing partnerships.
An Economic Security Declaration and an updated Economic Security Fact Sheet (2.0) were issued, outlining ongoing cooperation between governments and industry. Among the key institutional steps was enhanced collaboration between the Geological Survey of India and Japan Organization for Metals and Energy Security, aimed at joint exploration and mapping of critical mineral resources.
Both leaders agreed that energy security and transition must now be pursued together. A new Energy Resilience Initiative will focus on strategic stockpiles, petroleum reserves and maritime energy transport corridors.
One of the most visible outcomes was the launch of the India–Japan Cooperative Biogas for Growth Initiative, under which 1,000 biogas plants will be set up across India. The programme will leverage India’s dairy cooperative networks to convert rural biomass into bioenergy and organic fertiliser, linking energy transition with rural livelihoods.
Both sides released a joint statement on AI, committing to a “safe, secure and trustworthy” development framework. The cooperation spans the entire AI stack, from infrastructure to applications for public services. Indian and Japanese institutions also signed multiple agreements to jointly develop large language models and foundational AI systems.
Among them, IIT Bombay’s BharatGen initiative and Japan’s National Institute of Informatics will collaborate on multilingual scientific large language models and advanced reasoning systems. Another partnership between India’s Sarvam AI and Japan’s Preferred Networks will focus on foundational model development across the AI technology stack.
Misri said the goal is to ensure that AI development is not only commercially competitive but also aligned with public interest and digital trust.
Investment momentum strengthens
Economic ties were reinforced by a strong pipeline of business agreements. Around 120 business-to-business memorandums of understanding were signed, with estimated investment commitments of about $10 billion across sectors.
Major corporate commitments include MUFG Bank’s investment of Rs 40,000 crore in Shriram Finance, one of the largest Japanese financial sector investments in India to date.
In manufacturing, Sumitomo Chemical and Tata Electronics announced cooperation in semiconductor materials, building on existing collaboration with Tokyo Electron.
In the clean energy space, IHI Corporation and ACME Group agreed to jointly produce 400,000 tonnes of green ammonia annually in Odisha, strengthening India’s emerging green hydrogen and ammonia ecosystem.
Misri said the breadth of engagement, from semiconductors and energy to financial services and advanced materials, reflects what both sides see as a “diversified and future-facing” economic partnership.
The leaders also agreed to move forward on upgrading the Comprehensive Economic Partnership Agreement (CEPA), which both sides acknowledged no longer reflects current global trade realities.
The review is expected to modernise trade rules, improve market access and better align the agreement with emerging supply chain and technology-driven economic structures.
Both sides reaffirmed their commitment to a free, open and rules-based regional order. While not a standalone agenda item, the Indo-Pacific remained a shared strategic priority underpinning all areas of cooperation.
Looking ahead, both countries agreed to mark 2027—the 75th anniversary of diplomatic relations, as the “India–Japan Year of Shared Horizons”, with a strong emphasis on youth engagement and innovation.
Modi is also expected to visit Japan for the next annual summit, continuing what both sides described as a “high-trust, high-ambition partnership”.
As Misri summed up, the engagement reflects a relationship where economic strategy, technology cooperation and global stability are increasingly intertwined.
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