India and Japan signed pacts on July 2 to deepen cooperation in artificial intelligence, metals, energy and defence, and to build a joint roadmap for economic security. The deals came after Prime Ministers Narendra Modi and Sanae Takaichi met in New Delhi, with two-way trade running at $27.5 billion a year.
India and Japan agreed on Thursday to boost cooperation in artificial intelligence, metals, energy and defence, signing the deals after talks between Modi and Takaichi during her three-day visit to New Delhi. The two sides also agreed to prepare a joint roadmap for economic security.
Both governments adopted three documents that the Indian foreign ministry called landmark, covering economic security, energy resilience and AI. Modi pointed to complementary strengths behind the technology deal. According to Reuters, he said "The convergence of Japan's precision technology and India's software capabilities" would give new momentum to global AI development. Neither leader took questions afterward.
Trade and investment figures
Bilateral trade reached $27.5 billion in fiscal year 2025/26, while Japanese investment in India was $3.2 billion between April and December 2025, according to Indian government data.
During Modi's trip to Tokyo last year, Japan pledged to more than double its investment in India to more than $61 billion over the next decade. Japanese firms have also moved into Indian companies, including a recent $1.6 billion deal for a 20% stake in Yes Bank.
Defence, rail and energy projects
Beyond trade, the leaders signed an agreement on their first co-development project in the defence sector. Both countries belong to the Quad, alongside Australia and the United States, a grouping widely seen as a bloc formed to counter China's rising influence in the Indo-Pacific. Takaichi arrived with a large business delegation and was due to speak at a business conference later on Thursday.
Japan remains one of India's largest investors in infrastructure, backing a high-speed rail corridor between Mumbai and Ahmedabad. On the metals and energy side, the two governments launched an initiative to set up 1,000 biogas and organic fertiliser plants in India.
Sources: Reuters, The Straits Times
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