Modi-Takaichi Meet: AI, Defence, $10 Bn Investment In India-Japan New Deals

Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi on Thursday outlined a broader roadmap to strengthen the India-Japan Special Strategic and Global Partnership, placing greater emphasis on energy resilience, defence cooperation, artificial intelligence (AI), investment and supply chain security.

India and Japan are entering a new phase of cooperation built on trust and shared strategic priorities, PM Modi said after the 16th India-Japan Annual Summit in New Delhi.

"Just a few days ago at the G7 Summit, I remarked that in today's climate of global turbulence, mutual trust is our greatest strategic asset; I am proud that the India-Japan partnership fully lives up to this standard," he said, referring to the evolving partnership.

PM Modi Modi said both countries consider technology cooperation to be a major pillar of future ties.

"Prime Minister Takaichi and I believe that a technology partnership will become the strongest pillar of our cooperation," he said, adding that both sides had issued a joint statement on AI and signed agreements between institutions in India's AI ecosystem and their Japanese counterparts.

"In the defence sector, we have signed an agreement today on the first co-development project between India and Japan. This project — involving the Naval Radio Antenna 'Unicorn' will open a new chapter in our defence technology partnership," the PM said.

He also said around 120 new business agreements concluded over the past year and are expected to bring over $10 billion in Japanese investment into India.

"Our goal is clear: to attract 10 trillion Yen in investment from Japan to India and to double the number of Japanese companies operating in India over the next decade," he said.

The two leaders have reported agreed to deepen cooperation in semiconductors, quantum technologies, critical minerals and resilient supply chains, while agreements covering financial cooperation, next-generation mobility and energy security were exchanged during the summit, as per a report by The Economic Times (ET).

Shared Focus On Energy And Regional Security

Energy security featured prominently during the discussions. PM Modi announced the India-Japan Biogas Initiative, under which 1,000 biogas and organic fertiliser plants will be established across India.

"The India-Japan Biogas Initiative will assist us in establishing 1000 biogas and organic fertilizer plants across India," he said, adding that the initiative would strengthen rural livelihoods and sustainability.

Both countries had launched an initiative on energy resilience to address disruptions such as oil shocks while expanding cooperation in batteries, green hydrogen and nuclear energy, the PM said.

Takaichi said India and Japan had agreed to strengthen cooperation on economic and energy security amid growing geopolitical uncertainty.

"As both countries face challenges such as economic weaponisation and non market practices, we need to urgently build resilience in our critical minerals supply chains," she said.

She added that the two sides would launch a bilateral dialogue to strengthen India's petroleum stockpiling system and confirmed Japan's support for India's membership of the International Energy Agency (IEA).

On strategic cooperation, Takaichi said that expansion of maritime security cooperation is important for regional peace and stability, adding that both countries would enhance naval exercises, maintenance cooperation and defence equipment collaboration under the Make in India framework.