Prime Minister Takaichi’s visit to India in July 2026 was a landmark for several reasons. This was her first official visit to India after becoming the Prime Minister of Japan. The focus of the India-Japan Annual Summit is to elevate the Special Strategic and Global Partnership. Building on the success of the 15th edition of the summit, both countries were in agreement on advancing cooperation based on four priority areas: defence and security cooperation; economic security and energy resilience, technology and innovation; and people-to-people exchanges.
The ties between India and Japan have moved into a phase of operational maturity. PM Modi’s visit to Tokyo in August 2025 set out a 10-year road map for India-Japan Joint Vision for the coming 10 years. This vision covered eight areas of cooperation and was backed by a ¥10 trillion (roughly US$ 67 billion) private investment target by Japan in India. The 16th India-Japan Annual Summit in New Delhi in July 2026 saw a significant shift and efficiency. The relationship shifted from setting directions to signing contracts. Year 2025 produced strategic intentions and targets; 2026 converted them into Memoranda of Cooperation (MoCs), working mechanisms, and named projects. The foundational pillars of the summit were visible in every project. The 2025 India-Japan AI (Artificial Intelligence) initiative culminated in a joint statement of cooperation in AI along with MoCs that connect India’s AI mission with Japan’s GENIAC programme. In the energy sector, the 2026 Cooperative Biogas for Growth (CBG) initiative, which was part of the 2025 Sustainable Fuel initiative, aims at building 1,000 biogas and organic fertiliser plants across India.
Economic security is the anchor of this relationship. The annual meeting in New Delhi took place against the backdrop of dramatic geopolitical developments that affected both the economy and stability.
| Metric | Figure | Detail |
|---|---|---|
| Investment target | US$ 67 billion (¥ 10 trillion / ₹ 5.6 lakh crore) | Bilateral commitment across priority technology sectors |
| Committed to date | US$ 12.5 billion (¥ 2 trillion / ₹ 1 lakh crore) | Committed over the past year; about 20% of the overall target |
| MoUs and pacts signed | 120+ | Signed at the India-Japan Joint Economic Forum, covering G2G and B2B agreements |
| Priority sectors | 5 | Semiconductors, critical minerals, ICT, clean energy, and pharmaceuticals – under the Joint Declaration on Economic Security Cooperation |
| Key manufacturing hubs | Gujarat, Assam | Active semiconductor deployments with Tokyo Electron, Tata, and other partners; expansion of Honda car manufacturing facilities |
Both countries want to de-risk the supply chain and shield critical technology from geopolitical pressures and non-market economic coercion. Building on the economic security initiative, the 2026 summit shaped the India-Japan Joint Declaration on Economic Security Cooperation with an updated fact sheet tracking active government-to-government and business-to-business projects. Among these five priority sectors are semiconductors, critical minerals, information and communication technology (ICT), clean energy, and pharmaceuticals.
In semiconductors, partnership is built on the Indian Semiconductor Mission (ISM), moving into joint design and workforce training under the ISM 2.0. This initiative is a collaboration between firms like Tokyo Electron and Tata in Gujarat and Assam. To reduce dependence on a single source country, the latest MoC targets supply chain resilience for Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs). With regard to batteries and clean energy storage, a dedicated MoC covers mining, processing, and recycling to build a trusted battery supply chain.
A joint statement addressing maritime energy transportation routes and crude oil strategic reserves to bolster energy resilience has been signed. This was jointly issued by India’s Ministry of Petroleum and Natural Gas and Japan’s Ministry of Economy, Trade and Industry (METI). The progress on the investment front was accelerated with Japan committing close to US$ 12.5 billion over the last year. This helped achieve about 20% of the overall ¥ 10 trillion target. In addition, it is clear that Japanese companies consider India a production hub instead of an export market. This is evident from the fact that automotive makers like Honda continue to scale up car manufacturing capacity in India.
The 2025 Summit has already put in place an updated joint declaration on security cooperation. What the 2026 Summit added was not a new export policy announcement but a concrete co-development project. A joint effort to build an integrated antenna and sensor system for a stealth naval platform is a first of its kind. This instance of India and Japan co-developing defence hardware signifies a shift from defence exports to defence co-development. Additionally, both sides expanded satellite-based Maritime Domain Awareness, naval maintenance, repair and overhaul cooperation, and continue routine naval drills via the Japan-India Maritime Exercise (JIMEX).
Critical minerals sit at the centre of both nations’ agenda. This extends into clean energy, semiconductors, and defence manufacturing plans. Cooperation has moved from a broad framework to specific actions. At the last Summit, an MoC on mineral resources was curated that set out the initial intent of joint investment in processing technology, mining, and stockpiling. The 2026 Summit converted the intent into the MoC on geology and mineral exploration. The minerals which are important for both countries fall into three categories: (1) Rare earth elements such as neodymium, dysprosium, and terbium, used in permanent magnets that go into electric vehicles; (2) battery metals including lithium, cobalt, nickel, and manganese, used for grid-scale energy storage; and (3) inputs for semiconductors such as gallium and indium.
The India-Japan Joint Economic Forum produced over 120 agreements. These cover government and business teamwork in areas like clean energy and tech. This large number shows that Japanese firms are actively looking at India for manufacturing and R&D partnerships. Some of the other important agreements that were signed are:
- Memorandum of Cooperation for India-Japan Cooperative Biogas for Growth (CBG) Initiative: Advances the 2025 Sustainable Fuel Initiative by establishing a concrete programme to build 1,000 biogas and organic fertiliser plants across India utilising the dairy cooperative networks.
- Memorandum of Cooperation in the Field of Geology and Mineral Exploration: Builds on the 2025 MoC in Mineral Resources by shifting focus toward upstream critical mineral exploration and technical exchanges in extraction and mining.
- Memorandum of Cooperation between IndiaAI Mission and Ministry of Economy, Trade and Industry (METI), Japan: Operationalises the 2025 AI Initiative by directly linking IndiaAI Mission with Japan’s GENIAC programme for compute access, B2B matchmaking, and joint AI project development.
- Memoranda of Understanding on Large Language Model (LLM) Research Partnerships: Translates AI commitments into deep R&D collaboration across two key agreements: one between IIT Bombay, BharatGen, and Japan’s National Institute of Informatics (NII), and another between SarvamAI and Preferred Networks, both supported by scientific institutions like RIKEN.
- Memorandum of Cooperation on Next Generation Mobility Partnership (NGMP): Converts the 2025 intent statement into a signed, operational framework to accelerate private sector investments across railways, logistics, aviation, ports, and urban transport under ‘Make in India for the World’.
- Memorandum of Understanding between Centre for Cellular and Molecular Platforms (C-CAMP) and RIKEN, Japan: Establishes a cooperative framework for academic research, translational life sciences, and deep-tech startup innovation across healthcare, agriculture, and environmental fields.
- Memorandum of Understanding between National Centre for Biological Sciences (NCBS-TIFR) and RIKEN, Japan: Creates a partnership between premier research institutions to advance joint studies and exchanges in fundamental biological and neuroscience research.
- Exchange of Letters between International Financial Services Centres Authority (IFSCA) and Financial Services Agency, Japan (JFSA): Links financial regulators to promote cooperation in market supervision, regulatory best practices, and innovation trends, with a focus on FinTech and RegTech.
- Memorandum of Understanding between National Internet Exchange of India (NIXI) and Japan Network Information Centre (JPNIC): Enhances collaboration in internet infrastructure and governance, covering National Internet Registry operations, IPv6 adoption, cybersecurity, and capacity building.
Finally, the partnership extends beyond bilateral trade into shared regional strategy. Japan remains India’s leading foreign partner in developing the Northeastern Region (NER). They have supported the building of roads, bridges, power grids, and sustainable forestry through Official Development Assistance. This directly supports India’s Act East policy by turning the landlocked NER region into a salient region by connecting India’s ASEAN markets and the Bay of Bengal. The focus aligns with both Japan’s Free and Open Indo-Pacific (FIOP) and India’s Indo-Pacific Oceans’ initiative and MAHASAGAR. This highlights India and Japan working to keep sea lanes open and supply chains secure. Japan and India are also joining forces to build a brighter future across Africa. Japan provides advanced technology, economic development, and sustainable investment and is highlighted by the Tokyo International Conference on African Development (TICAD). On the other hand, India brings strong local trust, South-South solidarity, trade, and maritime security. Key areas of cooperation include economic cooperation and strategic competition. This teamwork is helping African communities grow stronger, healthier, and more connected.
Even with this progress, some friction points remain. For India, Japan remains an important source of technology and finance. India needs to reassure Japan about the importance of Japanese investment for the Indian economy. A helping hand from the Central government to Japanese companies will help navigate complex procedures. Both India and Japan play a crucial role in building a multipolar Asia. Both Prime Ministers and their governments are invested in strengthening economic growth, stability in the region, and overall partnership. The 2025 and 2026 editions of the annual summit have moved from initiatives to actions and operational maturity. Next year marks 75 years of diplomatic ties; India and Japan have designated 2027 as the India-Japan Year of Shared Horizons. Cultural connections will be expanded through creative projects in anime, gaming, and the performing arts. At the same time, youth ideathons will help shape future policy recommendations. Economic and scientific links will also grow stronger. Regional business ties will expand, alongside joint tech projects such as the LUPEX lunar mission. Overall, these events will strengthen regional cooperation, economic synergy, and youth exchanges. The stage is set for a resilient, peaceful bilateral future.
