India, Japan Deepen Ties In AI, Defence And Energy; USD 10 Bn Investment Announced

New Delhi, Jul 2 (KNN) Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi on Thursday unveiled an ambitious agenda to deepen the India–Japan Special Strategic and Global Partnership, with agreements across AI, defence co-development, energy security, next-generation mobility, and supply chain resilience.

More than USD 10 billion in fresh Japanese investments were also announced at the India-Japan Annual Summit in New Delhi.

The two leaders reiterated a shared target of attracting JPY 10 trillion in Japanese investment into India and doubling the number of Japanese companies operating in the country over the next decade. 

Japan is currently India's fifth-largest investor, with cumulative investments of over USD 48 billion between April 2000 and March 2026. Around 1,500 Japanese companies currently operate in India.

AI and Defence

The two leaders released a joint statement on AI and signed a bilateral cooperation agreement on the sector, with several leading institutions from India's AI ecosystem signing agreements with Japanese counterparts. 

Modi said the combination of Japan's precision technology and India's software capabilities would give new momentum to global AI development.

In defence, India and Japan signed their first co-development agreement, covering the Naval Radio Antenna project codenamed Unicorn. 

Economic and Energy Security

Economic security was a central theme of the summit, with both countries releasing a Joint Roadmap for economic security to strengthen supply chain resilience in semiconductors, quantum technologies, critical minerals, and advanced materials. 

The two sides identified semiconductors, pharmaceuticals, clean energy, and information and communication technology as priority sectors for deeper strategic cooperation.

On energy, both countries signed a pact on metals and energy security and launched the India-Japan Bio-gas Initiative, under which Japan will support the establishment of 1,000 biogas and organic fertiliser plants in India — aimed at strengthening the GOBARdhan initiative and rural livelihoods. 

Cooperation in batteries, green hydrogen, and nuclear energy was also announced as part of broader clean energy collaboration.

Multi-Sector Deals

The two leaders also announced the India-Japan Next Generation Mobility Partnership Framework, aimed at extending bilateral success in the automotive sector to shipbuilding, aviation, and logistics. 

Agreements in pharmaceuticals, medical devices, and biotechnology were also signed, aimed at combining India's manufacturing scale with Japan's quality standards to deliver affordable healthcare solutions.

An agreement between the two countries' financial services agencies was signed to facilitate capital and investment flows, while a financial cooperation pact was also concluded. Bilateral trade between India and Japan crossed USD 27 billion in FY2025-26.

(KNN Bureau)