Prime Minister Narendra Modi’s visit to Japan (Aug 29–30, 2025) marks the 15th India–Japan Annual Summit, focusing on security, economy, energy, and digital cooperation.
Key Areas of Discussion on the Table
- Upgradation of Security Cooperation: India and Japan plan to revise the 2008 Joint Declaration on Security Cooperation.
- This reflects changing regional realities, with emphasis on defence technology transfer, maritime security, and Indo-Pacific stability.
- Economic Security Initiative: Launch of a new initiative covering semiconductors, AI, telecommunication, critical minerals, and clean energy.
- Visit to Sendai (Japan’s semiconductor hub) highlights the focus on technology-led growth and resilient supply chains.
- Enhanced Japanese Investments in India
- Original target : ¥5 trillion (~$34 billion) investment (by 2026) already achieved in 2025.
- New target: ¥7–10 trillion (~$68 billion) over the next decade.
- Focus sectors: Infrastructure, manufacturing, mobility, and green energy.
- New Partnerships: Digital, Energy, and Mobility
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- Digital partnership: AI, semiconductors, and public digital infrastructure.
- Energy partnership: Hydrogen economy and renewable projects.
- Mobility partnership: Railways, roads, bridges, and expansion of bullet train projects.
- People-to-People relation: Addressing Japan’s ageing population through Indian skilled youth mobility and training initiatives.
- Local Governance Exchange: Engagement between Japanese prefectures and Indian states/municipalities.
Current Challenges for India and Japan
- Indo-Pacific Security Concerns: China’s maritime assertiveness and growing presence in the East and South China Seas.
- Both nations committed to “Free and Open Indo-Pacific” (FOIP) principles.
- US Strategic Uncertainty under Trump 2.0: The US administration’s tariff policies and episodic engagement raise doubts.
- Trump’s unpredictability undermines the Quad’s coherence, affecting India-Japan security planning.
- Managing India–China Relations: Tentative easing of tensions post-Galwan clash (2020) with resumed flights and visa relaxations.
- Still, trust deficit remains; Tokyo visit precedes Modi’s trip to the SCO Summit in Tianjin, signalling careful balancing.
- Supply Chain Disruptions: Global concerns over over-dependence on China for critical minerals and semiconductors.
- India–Japan partnership aims to diversify and secure supply chains.
- Demographic and Economic Pressures: Japan faces an ageing workforce; India must create jobs for its young population.
- Complementarities open avenues for migration, skill development, and social security dialogues.
Implications of the Talks
- Strengthening Defence and Security Cooperation: Revising the 2008 security pact modernises defence ties.
- Potential for deeper naval exercises, technology co-development, and sharing intelligence on Indo-Pacific threats.
- Boosting India’s Technology and Infrastructure Base: Japanese investments in semiconductors, Shinkansen trains, and clean energy expand India’s tech and infra landscape.
- Example: E10 series Shinkansen for Mumbai–Ahmedabad corridor reflects technology transfer.
- Strategic Balancing with China and the US: By engaging Japan before heading to China, India signals strategic autonomy.
- Balancing partnerships with Tokyo and Beijing reflects India’s multipolar diplomacy.
- Economic Growth and Job Creation: The ¥10 trillion investment pledge provides stimulus to India’s infrastructure, digital, and green economy sectors.
- Job creation potential for India’s youth while addressing Japan’s ageing labour gap.
- Indo-Pacific Stability and Rules-Based Order: India–Japan alignment strengthens the regional architecture to counter unilateralism in the Indo-Pacific.
- Reinforces partnerships within and beyond the Quad framework, even as US reliability remains in question.
India–Japan Relations
India and Japan share a Special Strategic and Global Partnership, rooted in civilizational links, deepened through economic cooperation, security dialogue, and people-to-people exchanges.
Historical Background
- Cultural Exchange (6th Century): Buddhism introduced from India to Japan, shaping Japanese spirituality, art, and philosophy.
- Post-War Relations: In 1949, PM Nehru gifted an elephant to Tokyo’s Ueno Zoo, symbolising goodwill after WWII.
- Diplomatic Relations (1952): A peace treaty signed on April 28, 1952, made India one of the first nations to restore ties with Japan.
- Economic Recovery Role: Indian iron ore exports aided Japan’s post-war industrial revival; Japan extended its first yen loan to India in 1958.
Defence and Strategic Relations
Strategic Deals
- Joint Declaration on Security Cooperation (2008): Basis of bilateral defence ties.
- Acquisition and Cross-Servicing Agreement (2020, effective 2021): Enabled reciprocal provision of supplies/services between armed forces.
- Transfer of Defence Equipment & Technology Agreement (2015): Facilitated joint projects and defence technology sharing.
Defence Dialogues and Exercises
- 2+2 Ministerial Dialogue: Second meeting held in 2022 in Tokyo.
- It is a high-level diplomatic dialogue involving the foreign and defence ministers of two countries.
- Annual Defence Ministerial Dialogue & Coast Guard-to-Coast Guard cooperation.
- Bilateral Exercises: JIMEX (naval),‘Veer Guardian’ and SHINYUU Maitri (Air Force) and Dharma Guardian (Army)
- Malabar Naval Exercise: Conducted with US and Australia, strengthening Indo-Pacific maritime security.
Economic Relations
Trade and Investment
- Trade Growth: Bilateral trade rose from ¥1.57 trillion ( $10.5 billion) in 2015 to over ¥3.7 trillion ($24.8 billion) in 2024.
- Trade Balance: Japan exports more to India than it imports; in 2024, India’s exports stood at ¥1,059 billion (~$7.1 billion) vs Japan’s ¥2,651 billion (~$17.8 billion)
- Investment: Japan is among India’s top 5 investors; direct investment peaked at ¥1,137 billion (~$7.6 billion) in 2023.
Economic Assistance
- Japan is the largest ODA (Official Development Assistance) donor to India.
- Delhi Metro is a flagship success story of Japan’s ODA to India.
- Cooperation extends to high-speed rail (Mumbai–Ahmedabad Shinkansen), clean energy, and supply chain diversification.
People-to-People Relations
- Cultural Exchange: 2012 marked the 60th anniversary of diplomatic ties; 2017 was declared the “Year of Friendly Exchanges.”
- Resident Communities: By 2024, about 8,102 Japanese lived in India and 53,974 Indians in Japan.
- Skill & Youth Exchange: Collaboration to address Japan’s ageing population and India’s youth employment challenge.
Important Agreements between India and Japan
| Year |
Agreement |
Objective |
| 1952 |
Treaty of Peace |
Established post-war diplomatic relations |
| 1957 |
Cultural Agreement |
Promoted cultural and academic exchanges |
| 1985 |
Science & Technology Cooperation |
Advanced joint research and technology collaboration |
| 2011 |
Comprehensive Economic Partnership Agreement (CEPA) |
Expanded trade, investment, and services |
| 2015 |
Defence Equipment & Technology Transfer Agreement |
Enabled defence co-production and joint R&D |
| 2017 |
Nuclear Energy Cooperation Agreement |
Allowed Japan to supply nuclear technology for peaceful use |
|
Conclusion
The 2025 India–Japan summit marks a decisive shift towards strategic, economic, and technological deepening of ties. While challenges persist from US unpredictability to China’s assertiveness Japan emerges as India’s most consistent and long-term partner in Asia. The summit not only consolidates an old partnership but also anchors future collaboration in defence, digital, energy, and people-to-people domains, ensuring that India–Japan ties remain a stabilising factor in an uncertain global order.
27 Aug 2025
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