The Prime Minister of Japan, Fumio Kishida, emphasized the expansion of relations between the two countries in the fields of defense, economic security, energy, technology, and cultural exchanges during his recent visit to India. This trip reflects Tokyo's increasing attention to India as a key partner in a changing global economy.
Key Agreements in Defense and Security
During the annual Japan-India summit, the two countries emphasized deepening defense and security cooperation. This summit particularly focused on maritime interactions and military training, and it was also agreed to collaborate on the use of composite antennas on Mogami-class ships in the field of technology. The topic of economic security included discussions on semiconductors, critical minerals, information and communication technology, clean energy, and pharmaceuticals.
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Growth of Japanese Investments in India
In recent years, trade interactions between Japan and India have significantly increased. According to statistics, 1,434 Japanese companies are operating in India, and major companies such as Suzuki, Bridgestone, and Unicharm are increasing their production capacity. Additionally, brands like Uniqlo, Nitori, and 7-Eleven are expanding their presence in the Indian consumer market.
Infrastructure is also another crucial pillar of this cooperation. Japan has facilitated metro projects in Delhi, Mumbai, Bangalore, and other cities through yen loans. Japan's support for the high-speed rail project in India between Mumbai and Ahmedabad, which is 508 kilometers long, is also very impactful, with minor operations expected to begin in 2027.
Business surveys indicate increasing optimism about this cooperation. India has been identified as the best destination for expanding Japanese business activities for four consecutive years in a JBIC survey, and 75.5% of Japanese companies operating in India expect profitability.
Japanese investments in India have reached $48.1 billion from April 2000 to March 2026, with Japanese investments in India amounting to $3.74 billion in 2025 alone.
The relationship between the two countries is not limited to countering China. India maintains strategic relations with China and Russia and is pursuing its national interests. For Japan, understanding this independent approach from India will be essential.
Given the demographic challenges and shortage of skilled labor in Japan, India offers many opportunities to strengthen supply chains, develop new markets, and attract scientific and technical talent. Despite occasional differences and negotiation challenges, the two countries have strong incentives to build a mature and resilient partnership.
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