India and Japan agreed on Thursday to enhance cooperation across several key sectors, including artificial intelligence, metals, energy, and defense, as part of efforts to deepen their bilateral relationship. The agreements were finalized during talks between Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi, who is currently on a three-day visit to New Delhi.
Following the discussions, Takaichi emphasized the importance of the partnership in an increasingly complex global environment, stating that the two nations would leverage each other’s strengths to achieve mutually prosperous growth. Her visit comes nearly a year after Modi’s trip to Tokyo, during which Japan committed to increasing its investments in India to over $61 billion in the next decade, signaling a deepening economic alliance.
According to official Indian government data, bilateral trade between the two countries reached $27.5 billion in the fiscal year 2025/26. Japanese investment in India surpassed $3.2 billion between April and December 2025. These figures underscore the growing economic engagement, supported by major Japanese backing of infrastructure projects such as the Mumbai-Ahmedabad high-speed rail corridor. Japanese firms have also scaled up their stake in Indian businesses, including a recent $1.6 billion acquisition of a 20% share in Yes Bank.
During their meeting, the two leaders discussed a broad range of issues encompassing trade, investment, economic security, energy, emerging technologies, defense, and people-to-people ties. The Indian Ministry of External Affairs noted that both parties adopted three significant documents focusing on economic security, energy resilience, and artificial intelligence.
Prime Minister Modi highlighted the complementary nature of Japan’s precision technology and India’s software capabilities, suggesting this collaboration will significantly advance global AI development. Additionally, the two countries signed an agreement marking their first joint defense co-development project, reflecting heightened strategic cooperation.
India and Japan are members of the Quadrilateral Security Dialogue, or Quad, which also includes Australia and the United States. This grouping is widely viewed as a strategic platform to counterbalance China’s growing influence in the Indo-Pacific region.
Takaichi’s visit is accompanied by a considerable business delegation, and she is scheduled to address a business conference on Thursday, further strengthening commercial ties between the two countries.