Japan’s Prime Minister Sanae Takaichi announced nearly $12 billion in investments in commercial projects in India during summit talks with her Indian counterpart, Narendra Modi.
The announcement came after India and Japan agreed to deepen cooperation in areas including artificial intelligence, critical minerals, energy and defense, while also committing to develop a joint roadmap on economic security as the two Asian nations moved to strengthen bilateral ties.
The agreements were signed following talks in New Delhi between the two Prime Ministers.
India and Japan exchange 130 cooperation documents
Speaking to reporters after the bilateral talks in New Delhi, Sanae said the volatile international situation makes cooperation and integration between Japan and India even more important, adding that she and Modi discussed several shared objectives in this regard.
Regarding economic relations, the Japanese Prime Minister noted that companies from both countries have exchanged approximately 130 cooperation documents and that they also discussed cooperation in maritime security and other areas.
“Japan and India will leverage each other’s strengths to grow strong and prosperous together. Amid a turbulent international landscape, building such a mutually complementary cooperative relationship has become increasingly important,” Takaichi told reporters after the talks.
The talks are part of Sanae’s current visit to India, during which she is focusing on trade and investment, as well as economic and defense security.
Japan to more than double its investment in India to over $61 billion
Takaichi’s visit comes after Modi traveled to Tokyo last year, where Japan pledged to more than double its investment in India to over $61 billion during the next decade, underscoring the growing economic partnership between the two countries.
Bilateral trade reached $27.5 billion in the 2025/26 fiscal year, while Japanese investment in India totaled $3.2 billion between April and December 2025, according to Indian government data.
Indian Prime Minister Narendra Modi and his Japanese counterpart held wide-ranging talks covering trade and investment, economic security, energy, emerging technologies, defence and people-to-people ties, according to India’s foreign ministry.
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Japan and India sign agreements on economic security, energy resilience and AI
The two sides also adopted three “landmark” agreements focused on economic security, energy resilience and artificial intelligence.
Speaking after the meeting, Modi said the combination of Japan’s precision technology and India’s software expertise would provide fresh momentum for global AI development.
Modi also announced that India and Japan had signed an agreement for their first joint defense co-development project. Both countries are members of the Quad, alongside the United States and Australia, a strategic grouping widely viewed as a counterbalance to China’s growing influence in the Indo-Pacific.
Japan is one of India’s largest foreign investors and has supported several major infrastructure projects, including the high-speed rail link connecting Mumbai and Ahmedabad. Japanese companies have also expanded their presence in the Indian market, highlighted by a recent $1.6 billion investment for a 20 percent stake in Yes Bank.
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