India and Japan Launch New Era of Strategic Partnership with Focus on AI, Defence, Investment and Clean Energy
Prime Ministers Narendra Modi and Sanae Takaichi Hold Annual Summit in New Delhi
By Suman Munshi | IBG NEWS
New Delhi, July 2, 2026: India and Japan have announced a major expansion of their Special Strategic and Global Partnership following high-level bilateral talks between Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi during the India-Japan Annual Summit held in New Delhi.
Welcoming Prime Minister Takaichi on her first official visit to India, Prime Minister Modi described the visit as the beginning of a new chapter in bilateral relations. He noted that Takaichi, Japan’s first woman Prime Minister, represents Nara Prefecture, a region that shares deep Buddhist cultural ties with India.
Trust Remains the Foundation of India-Japan Relations
Addressing the joint press conference, Prime Minister Modi emphasized that in an increasingly uncertain global environment, mutual trust has become the most valuable strategic asset. He said the India-Japan relationship has consistently demonstrated this trust through decades of cooperation spanning the automotive, electronics and manufacturing sectors.
He stated that both countries, as leading democratic and market economies in the Indo-Pacific, are committed to promoting a free, open, prosperous and rules-based regional order.
Artificial Intelligence Becomes the New Growth Engine
One of the summit’s most significant outcomes was the announcement of an enhanced technology partnership centered on Artificial Intelligence.
The two leaders released a Joint Statement on AI, while several leading Indian AI institutions signed agreements with Japanese counterparts. According to Prime Minister Modi, Japan’s precision engineering combined with India’s software expertise has the potential to accelerate global AI innovation and create next-generation technological solutions.
First India-Japan Defence Co-development Project
India and Japan also signed their first-ever defence co-development agreement.
The project will jointly develop Naval Radio Antenna systems, marking a significant milestone in defence technology collaboration. Both countries also agreed to work together on future defence technologies aimed at strengthening maritime security, regional peace and a rules-based international order across the Indo-Pacific.
Healthcare Collaboration to Strengthen Global Health Security
The summit also witnessed multiple agreements in pharmaceuticals, medical devices and biotechnology.
Prime Minister Modi said the partnership would combine India’s large-scale manufacturing capabilities with Japan’s high-quality technological expertise to deliver affordable, reliable and advanced healthcare solutions worldwide while contributing to global health security.
Investment Target of 10 Trillion Yen
Economic cooperation featured prominently during the discussions.
Prime Minister Modi revealed that more than 100 new business agreements have been concluded over the past year, expected to generate over US$10 billion in new Japanese investments in India.
Both nations have now set an ambitious goal of attracting 10 trillion yen in Japanese investment into India over the next decade, while also aiming to double the number of Japanese companies operating in the country.
An agreement between the financial regulatory agencies of both countries is expected to simplify investment and capital flows, further improving the business environment.
Economic Security and Semiconductor Cooperation
Recognising growing global uncertainties, India and Japan unveiled a Joint Roadmap on Economic Security.
The roadmap focuses on strengthening resilient supply chains in strategic sectors such as:
- Semiconductors
- Quantum technologies
- Advanced materials
- Critical technologies
The initiative seeks to reduce vulnerabilities in global supply chains while enhancing technological cooperation between the two nations.
Major Push for Clean Energy
Energy security emerged as another major pillar of cooperation.
The two countries announced the India-Japan Bio-Gas Initiative, under which support will be extended for establishing 1,000 biogas and organic fertilizer plants across India. The initiative is expected to strengthen India’s GOBARdhan programme while promoting sustainable rural development and improving livelihoods.
India and Japan also agreed to expand cooperation in:
- Green hydrogen
- Battery technologies
- Nuclear energy
- Energy resilience initiatives
Prime Minister Modi said both nations view energy transition as a shared opportunity and economic security as a shared responsibility.
Expanding Partnership in Mobility and Infrastructure
The summit also resulted in the launch of the India-Japan Next Generation Mobility Partnership Framework.
Building upon the success of Japanese investments in India’s automobile sector, the new framework aims to expand collaboration into:
- Shipbuilding
- Aviation
- Logistics
- Future mobility technologies
Stronger People-to-People Connections
Recognising that bilateral ties extend beyond governments and businesses, both leaders agreed to expand cooperation in:
- Talent mobility
- Skill development
- Technical internship programmes
- Higher education
- Scientific research
- Startup innovation
The initiatives are expected to strengthen long-term human resource partnerships between the two countries.
Celebrating 75 Years of Diplomatic Relations
India and Japan will celebrate the 75th anniversary of diplomatic relations in 2027.
To commemorate the milestone, both governments plan to organise a series of cultural, tourism and creative economy initiatives designed to deepen people-to-people engagement and reinforce historical ties.
A Shared Vision for the Indo-Pacific
Concluding his address, Prime Minister Modi observed that India and Japan are complementary economies bound together by shared democratic values, technological ambition and deep mutual trust.
He expressed confidence that the strengthened partnership would support Japan’s vision of a prosperous nation, India’s aspiration of becoming a Viksit Bharat, and contribute meaningfully to peace, stability and sustainable development across the Indo-Pacific and the wider international community.
