Modi-Takaichi Summit Today; AI, Critical Minerals, Trade Deals On Agenda

Prime Minister Narendra Modi will hold summit-level talks with Japanese Prime Minister Sanae Takaichi in New Delhi on Thursday as India and Japan seek to deepen cooperation across trade, investment, defence, energy security and emerging technologies.

The meeting, to be held at Hyderabad House as part of the 16th India-Japan Annual Summit, is expected to result in the signing of at least 10 memoranda of understanding (MoUs) covering sectors such as artificial intelligence, critical minerals, batteries, pharmaceuticals, biogas and energy resilience. The two leaders will also exchange views on regional and global developments, with a particular focus on the Indo-Pacific.

Takaichi arrived in New Delhi on Wednesday on her first official visit to India at the invitation of Prime Minister Modi. The three-day visit, from July 1 to 3, comes nearly a year after Modi travelled to Tokyo, where both countries unveiled the Japan-India Joint Vision for the Next Decade.

According to The Hindu, Takaichi will receive a ceremonial welcome at the Forecourt of Rashtrapati Bhavan, a special gesture generally reserved for visiting heads of government, before holding bilateral talks with Modi.

Trade, Energy And Technology Cooperation On Agenda

Economic cooperation is expected to dominate the discussions, with both countries looking to expand collaboration in clean energy, critical minerals, upstream oil and gas development, artificial intelligence and advanced manufacturing.

According to The Hindu, the two sides are expected to sign at least 10 MoUs covering energy resilience, biogas, upstream oil and gas development, critical minerals, batteries, artificial intelligence and pharmaceuticals after the summit talks. The report added that Takaichi will also address a business meeting attended by more than 100 Japanese business leaders, where additional agreements are expected to be signed.

The Hindu further reported that discussions are likely to cover the Green Ammonia Project in Odisha, which is being developed with Japanese assistance, as well as other initiatives under India's mobility-focused engagement with key economic partners.

The Ministry of External Affairs (MEA) has said the summit will focus on strengthening cooperation under the Japan-India Joint Vision for the Next Decade, particularly in areas related to economic security, investment, innovation and emerging technologies.

Welcoming the Japanese Prime Minister on Wednesday, Modi wrote on X that he looked forward to "wide-ranging discussions" that would further deepen the India-Japan Special Strategic and Global Partnership and advance peace, stability and prosperity in the Indo-Pacific.

Yen-Rupee Settlement Framework

One of the key outcomes expected from the summit is progress towards establishing a local-currency settlement framework for bilateral trade.

According to a Nikkei Asia report, India and Japan are expected to include plans for a direct yen-rupee settlement mechanism in the joint statement following the summit.

Under the proposed framework, Japanese entities that are non-residents in India would be allowed to open accounts with Indian banks, enabling financial institutions in both countries to settle cross-border payments directly in yen and rupees instead of routing transactions through the US dollar. The report said the move is aimed at lowering transaction costs, improving payment efficiency and strengthening bilateral financial cooperation.

Visit Comes Amid Global Uncertainty

The summit takes place against the backdrop of rising geopolitical tensions and growing uncertainty in the global economy, making closer cooperation between India and Japan increasingly significant.

Ahead of her visit, Takaichi said collaboration with India had become even more important as both countries share fundamental values and strategic interests.

"I will visit India shortly. Amid growing uncertainty in the international situation, the importance of collaboration with India, which shares fundamental values and strategic interests, is only increasing," she said ahead of her visit, adding that she intended to advance concrete cooperation with Prime Minister Modi.

India and Japan currently share a Special Strategic and Global Partnership, with cooperation spanning infrastructure, defence and security, trade and investment, clean energy and advanced technologies. During Modi's visit to Japan in August 2025, Tokyo announced a target of investing 10 trillion yen in India over the coming decade, further reinforcing the long-term economic partnership between the two countries.