Modi, Takaichi deepen India-Japan ties with AI, energy and military agreements

India and Japan on Thursday signed agreements on artificial intelligence, energy, economic security and defence following talks between prime minister Narendra Modi and his Japanese counterpart Sanae Takaichi, as the two countries moved to deepen their strategic and economic partnership.

Takaichi is on a three-day visit to New Delhi. Her trip comes after Modi visited Tokyo last year, when Japan pledged to more than double its investment in India to over $61 billion in the next decade.

The two leaders held what India’s foreign ministry described as “wide-ranging talks on the full spectrum of India-Japan ties, including trade and investment, economic security, energy, emerging technologies, defence and people-to-people exchanges”.

Both sides adopted three “landmark” documents on economic security, energy resilience and artificial intelligence.

“Japan and India will leverage each other’s strengths to grow strong and prosperous together,” Takaichi told reporters after the talks. “Amid a turbulent international landscape, building such a mutually complementary cooperative relationship has become increasingly important.”

Addressed the India-Japan Joint Economic Forum along with Prime Minister Sanae Takaichi. It was gladdening to interact with business leaders from both countries, whose enterprise and innovation continue to add new momentum to the India-Japan economic partnership.… pic.twitter.com/hGXrYcDBw7

— Narendra Modi (@narendramodi) July 2, 2026

In his media statement, Modi highlighted the complementary nature of the two economies.

“The economies of India and Japan are complementary. From cultural values to modern technology, there is similarity in our thinking and approach as well,” PM Modi said.

“And above all, the foundation of our relations rests on unbreakable mutual trust,” he said.

The prime minister said the two countries have prepared a joint roadmap on economic security.

“Through this, we will strengthen supply chain resilience in strategic areas such as semiconductors, quantum, and advanced materials,” he said.

Modi also underlined cooperation in artificial intelligence.

“The convergence of Japan’s precision technology and India’s software capabilities will give a new momentum and strength to global AI development,” Modi told reporters.

Neither prime minister took questions following their statements.

The two sides also announced several measures in the field of energy security.

“Through the India-Japan bio-gas initiative, we will set up one thousand bio-gas and organic fertiliser plants in India. This will give new strength to sustainability, prosperity, and rural livelihoods in India’s villages,” Modi said.

The leaders signed an agreement on the first co-development project in the defence sector between the two countries. India and Japan are also members of the Quad grouping, alongside Australia and the United States, which is widely seen as a bloc formed to counter China’s rising influence in the Indo-Pacific region.

Japan remains among India’s largest investors and has backed major infrastructure projects, including the high-speed rail corridor linking Mumbai and Ahmedabad. Japanese companies have also increased investments in Indian firms, including a recent $1.6 billion deal for a 20 per cent stake in Yes Bank.

Bilateral trade between India and Japan reached $27.5 billion in fiscal year 2025/26, while Japanese investment in India stood at $3.2 billion between April and December 2025, according to Indian government data.

The relationship between the two countries was elevated to a Special Strategic and Global Partnership in 2014. As India and Japan approach the 75th anniversary of diplomatic relations in 2027, cooperation continues to expand across trade and investment, economic security, defence, science and technology, culture and people-to-people exchanges.

The bilateral framework now comprises more than 70 dialogue mechanisms, with the annual summit remaining the flagship platform guiding the strategic partnership. Modi visited Japan for the 15th Annual Summit in Tokyo in August last year.

Takaichi is accompanied by a large business delegation and is due to address a business conference later on Thursday.