India and Japan have agreed to deepen their cooperation across multiple sectors, including artificial intelligence, metals, energy, and defense, while also preparing a joint roadmap for economic security. The agreements were signed following talks on Thursday between Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi during her three-day visit to New Delhi.
The two leaders held extensive discussions covering trade, investment, economic security, emerging technologies, and people-to-people exchanges. Both sides formalized three significant documents focusing on economic security, energy resilience, and artificial intelligence. Modi highlighted the synergy between Japan’s precision technology and India’s software expertise as a catalyst for advancing global AI development.
Highlighting strategic economic collaboration, Modi said the nations had agreed to enhance resilience in the supply chains of critical minerals, a move aimed at reducing dependence on dominant exporter China. These minerals are essential for producing a range of technologies, including electric vehicles, solar panels, smartphones, and defense equipment. Both countries have been exploring alternative suppliers, including the United States and other partners, amid concerns over supply vulnerabilities linked to China’s influence.
The bilateral economic relationship continues to grow robustly. Bilateral trade reached $27.5 billion in the fiscal year 2025/26, with Japanese investment in India totaling $3.2 billion between April and December 2025. Japan remains one of India’s largest investors, supporting major infrastructure projects such as the high-speed rail corridor connecting Mumbai and Ahmedabad. Recently, Japanese firms committed $1.6 billion for a 20 percent stake in Yes Bank. During the visit, Japanese and Indian businesses agreed on investment deals worth $12.3 billion, contributing to Japan's broader pledge to invest $68 billion in India over the next decade.
In defense cooperation, India and Japan signed an agreement marking their first co-development project, involving the creation of a naval radio antenna system aimed at strengthening maritime surveillance capabilities. Both countries are members of the Quad security grouping, along with the United States and Australia, which is widely viewed as a strategic response to China’s rising influence in the Indo-Pacific region.
Takaichi’s visit included a formal welcome at the presidential palace in Delhi, accompanied by a large Japanese business delegation. She is also scheduled to speak at a business forum aimed at further bolstering economic ties between the two Asian economies, which rank as the second and third largest globally.
Both leaders emphasized the importance of building resilient and complementary partnerships amid an evolving and uncertain international landscape. Takaichi pointed to challenges such as the “weaponization of the economy” and non-market practices, underscoring the urgency for strengthened collaboration in critical sectors. Modi’s remarks reflected a warm rapport between the two, referring to Takaichi as his "little sister," a characterization met with a reciprocal “elder brother” reference from the Japanese prime minister.