India-Japan Relations

Why in the News?

1. Prime Minister Narendra Modi is visiting Japan (August 29-30, 2025) for the 15th India-Japan Annual Summit with Japanese Prime Minister Shigeru Ishiba.
2. This is PM Modi’s eighth visit to Japan, but his first bilateral summit with PM Ishiba, which is expected to consolidate the Special Strategic and Global Partnership.
3. The visit comes at a time of global uncertainties-trade tensions with the US, changing Indo-Pacific dynamics, and the need for resilient supply chains.

Key Highlights

1. Historical and Strategic Foundations
   1. India-Japan ties have evolved from a Global Partnership (2000) to a Strategic and Global Partnership (2006), and finally to a Special Strategic and Global Partnership (2014).
   2. The partnership rests on civilizational ties, shared democratic values, and mutual trust.
   3. Japan and Russia are India’s two oldest Annual Summit-level mechanisms.
2. Defence and Security Cooperation
   1. Key agreements:
      1. Joint Declaration on Security Cooperation (2008)
      2. Defence Cooperation & Exchanges MoU (2014)

• Information Protection Agreement (2015)

1. Reciprocal Provision of Supplies & Services Agreement (2020)
2. Co-development of UNICORN naval mast (2024)

1. Regular exercises: Malabar, JIMEX, Milan, Dharma Guardian, Coast Guard cooperation.
2. Dialogue mechanisms: Defence Ministers’ meetings, service chiefs’ visits, Joint Staff Talks (2024).
3. Both countries will work on upgrading the 2008 framework in light of new security challenges.

3. Economic and Trade Relations
   22. Bilateral trade: $22.8 billion in 2023-24; $21 billion in Apr-Jan 2024-25.
   23. Investment: Japan is India’s 5th largest FDI source with cumulative $43.2 billion up to Dec 2024.
   24. Business presence: ~1,400 Japanese companies in India; >100 Indian companies in Japan.
   25. Emerging focus: digital economy (AI, semiconductors), clean energy, supply chain resilience, critical minerals, skill development.
   26. New initiatives: Economic security partnership and possible revision of the investment target from 5 trillion yen to 7-10 trillion yen.
4. Development and Infrastructure Cooperation
   4. Japan has been India’s largest ODA donor since 1958; disbursed ~JPY 580 billion ($4.5 billion) in 2023-24.
   5. Flagship project: Mumbai-Ahmedabad High-Speed Rail (bullet train). Latest tranche: JPY 300 billion in March 2023.
   6. Plans to expand into a Mobility Partnership covering railways, bridges, and roadways.
   7. PM Modi and PM Ishiba to travel on a bullet train to Sendai, showcasing Japan’s expertise in semiconductors and transport infrastructure.
5. Multilateral and People-to-People Cooperation
   1. Multilateral platforms: Quad, International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), Supply Chain Resilience Initiative (SCRI). Focus on a Free and Open Indo-Pacific (FOIP).
   2. Tourism & culture: 2023-24 celebrated as Year of Tourism Exchange (“Himalayas with Mount Fuji”).
   3. Education: 665 academic partnerships, Edu-Connect platform, Universities Forum.
   4. Skill Connect platform (2023) links Indian youth with Japanese employers.
   5. Diaspora: ~54,000 Indians in Japan, mainly IT professionals and engineers.

Implications

1. Strategic & Security Outcomes
   1. Strengthened defence cooperation ensures greater interoperability between armed forces.
   2. Upgradation of 2008 declaration provides a modern framework against rising regional tensions.
   3. Indo-Pacific coordination deepens alignment with FOIP & Act East Policy.
2. Economic & Trade Benefits
   1. Rising Japanese investment will boost manufacturing, digital innovation, and clean energy in India.
   2. The semiconductor & AI initiative will help India become a global tech hub.
   3. Revised investment targets (7-10 trillion yen) show deepening long-term trust.
3. Infrastructure and Development Impact
   1. The bullet train project sets a model for technology transfer, skills, and connectivity.
   2. ODA-backed projects strengthen urban development, energy efficiency, and sustainable growth.
   3. Broader Mobility Partnership may accelerate modernization of India’s transport networks.
4. Regional & Multilateral Dimensions
   1. Quad and SCRI cooperation diversifies supply chains away from China.
   2. Coordination in the Indo-Pacific enhances maritime security and ensures an inclusive order.
   3. Joint stand on global issues strengthens India’s and Japan’s diplomatic leverage.
5. Socio-Cultural Impact
   1. Growing academic and cultural exchanges deepen people-to-people trust.
   2. Indian diaspora contributes to Japan’s workforce amid aging population challenges.
   3. Skill Connect will integrate Indian youth into Japanese industries, creating a mutually beneficial labour partnership.

Challenges and Way Forward

Conclusion

PM Modi’s visit to Japan comes at a crucial time when the world faces economic and security uncertainties. The India-Japan partnership, built on trust and shared values, is expanding across defence, trade, technology, infrastructure, and people-to-people ties. With enhanced strategic convergence in the Indo-Pacific and a strong push for digital and clean energy cooperation, the visit is likely to mark a new phase in bilateral relations, making the partnership a pillar of stability, growth, and innovation in Asia.