Introduction:

India and Japan today stand as two of Asia’s leading democracies and major global economies, bound together by shared values of peace, stability, and development. Their partnership has grown steadily over the past two decades—from being primarily economic and developmental to encompassing strategic, technological, and security dimensions. Japan has emerged as India’s largest development partner, while India provides Japan with a vast market, skilled workforce, and a reliable partner in shaping regional stability.

• Prime Minister Narendra Modi’s visit to Japan in August 2025 for the 15th Annual Summit came at a crucial juncture. The global order is in flux, marked by economic uncertainties, trade tensions, and rising security challenges in the Indo-Pacific. Against this backdrop, the visit was more than a routine diplomatic engagement. It signaled the deepening of a partnership that now spans infrastructure, digital technologies, clean energy, semiconductors, defence, and even outer space. At its core, the visit reinforced the idea that India and Japan are not just economic partners but also strategic allies with a shared vision for the future.

About India-Japan Relationship:

India and Japan share a long history of friendship, but in the past two decades, the relationship has acquired unprecedented depth and strategic significance. The progression of ties is evident in the successive upgradation of the partnership:

• 2000 – Global Partnership
• 2006 – Strategic and Global Partnership
• 2014 – Special Strategic and Global Partnership

Both nations today stand as major Asian democracies and are among the top five global economies. Their cooperation extends well beyond bilateral ties, encompassing regional and global platforms such as the Quad, the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI), and the Supply Chain Resilience Initiative (SCRI).

Japan is also India’s largest overseas development partner, with Tokyo’s Official Development Assistance (ODA) shaping some of India’s most ambitious infrastructure projects, including the Mumbai-Ahmedabad bullet train.

Key Agreements and MoUs during the summit:

The summit produced several landmark agreements and MoUs that deepen cooperation across multiple fields:

• Decarbonising Technologies – Establishment of a Joint Crediting Mechanism to help reduce greenhouse gas emissions.
• Digital Partnership 2.0 – Collaboration in Artificial Intelligence, semiconductors, and digital infrastructure to prepare for the next wave of technological transformation.
• Wastewater Management – Adoption of decentralised, sustainable solutions tailored to Indian cities.
• Skilled Workers Agreement – Japan will provide opportunities for 5 lakh Indian workers, including 50,000 skilled professionals, over the next five years.
• Mineral Resources Cooperation – Strengthening the supply chains of critical minerals under initiatives like the Minerals Security Partnership (MSP) and the Quad.
• Cultural Exchange – New initiatives between the foreign service institutes of both countries to encourage cultural understanding and people-to-people ties.

In addition, both leaders adopted a Joint Vision Statement, a forward-looking document outlining cooperation for the next decade across eight key areas: economy, security, sustainability, innovation, technology, regional stability, connectivity, and people-to-people relations.

Space Cooperation: Chandrayaan-5 Mission

Space collaboration featured prominently in the summit. ISRO and JAXA (Japan Aerospace Exploration Agency) signed an agreement for the Chandrayaan-5 Lunar Polar Exploration (LUPEX) Mission.

• Objective: To explore the Moon’s south pole with a focus on studying water and other critical resources.
• Launch: Japan’s H3-24L rocket will carry ISRO’s lander, which will deploy a Japanese rover.
• Significance: This mission not only advances India’s space ambitions but also deepens Indo-Japanese cooperation in cutting-edge science and technology.

Japan’s Big Investment Plan in India:

A major highlight of the visit was Japan’s announcement of a ¥10 trillion (approximately ₹6 lakh crore) investment plan in India over the next decade.

• Focus areas: Artificial Intelligence, semiconductors, clean energy, startups, and medical innovation.
• Surveys show that 80% of Japanese companies in India plan to expand operations, while 75% are already profitable.
• India’s advantages – political stability, sustained economic growth, and a large skilled workforce – make it an attractive investment hub.

This investment commitment also comes at a crucial time for India, as it faces new U.S. tariffs on its exports, making Japanese support all the more vital for economic resilience.

Focus on Semiconductors and Artificial Intelligence: The two nations launched the Economic Security Cooperation Initiative, aimed at securing critical sectors for the future:

• AI development and applications
• Semiconductor manufacturing
• Rare earth mineral supply chains
• Digital public infrastructure

PM Modi visited the Sendai semiconductor plant, which is set to produce 12-inch wafers and expand into advanced 28 nm and 55 nm node technologies.

Defence and Security Agreements: Security cooperation was another major pillar of the summit. India and Japan signed a Joint Declaration on Security Cooperation, which includes:

• Regular institutional dialogue between the National Security Advisers (NSAs) of both countries.
• More frequent joint military exercises across the Army, Navy, and Air Force.
• Enhanced naval cooperation for secure sea lanes, anti-piracy measures, and freedom of navigation in the Indo-Pacific.
• Joint work in counter-terrorism, cybersecurity, disaster relief, and defence R&D.

Infrastructure and Development Projects: Japan continues to be India’s largest aid donor, providing about $4.5 billion in 2023–24 alone.

• The Mumbai-Ahmedabad bullet train project remains the flagship symbol of Indo-Japanese cooperation.
• New commitments include broader mobility partnerships (rail, roads, and bridges), renewable energy projects, and hydrogen-based energy solutions.
• Expanded opportunities for both Japanese private and public investments in Indian infrastructure.

People-to-People and Cultural Exchange:

Cultural and human linkages remain central to the partnership.

• Education: Over 665 academic partnerships now exist between Indian and Japanese universities.
• Skill Connect: A platform launched in 2023 linking Indian youth with Japanese employers.
• Tourism: The year 2023–24 was celebrated as the “Year of Tourism Exchange – Connecting Himalayas with Mount Fuji.”
• Diaspora: Around 54,000 Indians live in Japan, mostly working in IT, engineering, and skilled sectors.

Significance of the Visit:

• At a time when India’s ties with the U.S. are strained due to new tariffs, Japan’s economic and diplomatic support provides crucial balance.
• India’s Act East Policy and Indo-Pacific Oceans Initiative align with Japan’s Free and Open Indo-Pacific (FOIP) vision.
• Cooperation in semiconductors and critical minerals strengthens supply chain resilience, a pressing global concern.
• Expanded defence and space cooperation demonstrate that India-Japan relations now extend well beyond economics to strategic, technological, and security domains.

Conclusion

Prime Minister Modi’s two-day visit to Japan was both substantive and symbolic. It delivered progress in critical areas such as technology, space, defence, and infrastructure, while also reaffirming the central role of cultural and people-to-people linkages. For India, the visit reaffirmed that Japan is not just a trusted economic partner but a key pillar of its Indo-Pacific strategic vision. With new investments, upgraded defence ties, and a clear roadmap for the coming decade, the visit has elevated the India-Japan partnership to a new, future-oriented phase.