Newsletter
Japan's Prime Minister Sanae Takaichi wrapped up her three-day India visit with a bunch of new deals covering AI, semiconductors, defence, energy and economic security, taking the India-Japan partnership up a notch.
What’s cookin’: the biggest announcement was the first-ever India-Japan defence co-development agreement, allowing both countries to jointly develop defence equipment instead of simply buying and selling military hardware.
The two countries also adopted three key roadmaps on -
- economic security
- energy resilience and
- artificial intelligence.
They agreed to work together on strengthening semiconductor supply chains, developing critical technologies and securing key minerals used in industries like EVs and electronics.
Another major announcement was the India-Japan Bio-Gas Initiative, under which the two countries plan to set up 1,000 biogas and organic fertiliser plants across India.
Speaking after the talks, PM Modi said the combination of Japan's precision manufacturing and India's software capabilities could give global AI development a major boost.
Big picture: bilateral trade between India and Japan touched $27.5 billion in FY26, while Japanese companies invested $3.2 billion in India between April and December 2025 alone.
Last year, Japan also pledged to invest over $61 billion in India over the next decade, backing projects ranging from the Mumbai-Ahmedabad bullet train to manufacturing, clean energy and semiconductors.
