India-Japan ties expand with AI alliance, defence co-development and energy security roadmap

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India and Japan have strengthened their strategic partnership with major agreements on artificial intelligence, military hardware co-development, and energy supply chains. Prime Minister Narendra Modi and Japanese counterpart Sanae Takaichi unveiled an ambitious ¥10 trillion investment target over the next decade, alongside initiatives in semiconductors, critical minerals, and green hydrogen. The partnership aims to build a safe, secure, and human-centric AI ecosystem while addressing economic security challenges.

India-Japan Ties Enter New Strategic Phase with Technology Focus

India and Japan have elevated their Special Strategic and Global Partnership through a comprehensive set of agreements announced during the 16th India-Japan Annual Summit between Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi. The partnership emphasizes artificial intelligence, defence co-development, and economic security as central pillars of bilateral cooperation

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. The two nations unveiled an ambitious target of ¥10 trillion in Japanese investment over the next decade, with plans to double the number of Japanese companies operating in India

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. This strategic AI alliance marks a significant shift in how both countries approach emerging technologies and supply chain resilience in an increasingly complex geopolitical environment.

Source: ET

Source: ET

Strategic AI Alliance Builds Safe Secure and Human-Centric AI Ecosystem

The India-Japan roadmap for AI collaboration spans the entire technology stack, from governance and infrastructure to model development and talent exchange. Both leaders agreed to jointly develop a "safe, secure, trustworthy, inclusive, human-centric, sustainable, accountable, and innovation-orientated AI ecosystem"

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. Foreign Secretary Vikram Misri described artificial intelligence as a "major sunrise sector" in bilateral cooperation, with both countries aligning their vision on governance, innovation, infrastructure and applications. The partnership leverages India's strengths in software engineering, digital public infrastructure, and AI talent alongside Japan's expertise in advanced manufacturing, robotics, semiconductors, and precision engineering

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. Modi emphasized that "the convergence of Japan's precision technology and India's software capabilities will give a new momentum and strength to global AI development"

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Source: DT

Source: DT

Defence Co-Development and Military Hardware Partnership Takes Shape

India and Japan signed an agreement for their first co-development project in the defence sector, marking a watershed moment in bilateral strategic partnership. The Naval Radio Antenna Unicorn project will serve as the inaugural collaboration, opening new possibilities for defence technology partnerships between the two nations

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. This military hardware cooperation reflects both countries' commitment to strengthening their defence capabilities amid regional security challenges. The agreement builds on existing frameworks and positions India and Japan as key partners in the Quad grouping, which also includes the United States and Australia

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Semiconductors and Critical Minerals Drive Economic Security

The two countries identified semiconductors and critical minerals as priority areas under economic security, alongside pharmaceuticals, clean energy, and information and communication technology

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. India and Japan agreed to strengthen cooperation in secure digital ecosystems, including data centres, GPU capacity, semiconductors, and AI compute resources, while assessing vulnerabilities across the AI technology stack from an economic-security perspective

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. This focus on trusted digital innovation addresses growing concerns about supply chain weaponization and the need for diversified, resilient supply chains in critical sectors.

Energy Supply Chain Resilience and Green Hydrogen Initiatives

Both nations launched a joint statement to bolster engagement in the energy supply chain, with specific focus on stockpiling systems and reserve mechanisms for crude oil and petroleum products

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. The partnership includes initiatives in green hydrogen and next-generation mobility, reflecting shared commitments to clean energy transitions. Modi announced the India-Japan bio-gas Initiative, which will establish 1,000 bio-gas and organic fertilizer plants in India

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. These energy supply chain resilience measures come as both countries seek to reduce vulnerabilities and ensure stable access to critical energy resources.

Source: ET

Source: ET

Global Governance Frameworks and Indo-Pacific Strategy Alignment

The AI collaboration aligns with India's MAHASAGAR vision and Japan's updated Free and Open Indo-Pacific strategy, including strengthening AI collaboration with like-minded countries across the Indo-Pacific and the Global South

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. Both sides reaffirmed support for the Hiroshima AI Process and coordination in multilateral platforms, including the G20, OECD, GPAI and the United Nations. This emphasis on global governance frameworks demonstrates both nations' commitment to shaping international AI standards and ensuring that AI development follows principles of safety, transparency, and accountability.

Research Institutions and Startups Drive Innovation

Key memorandums of understanding include collaboration between IIT Bombay's BharatGen and Japan's National Institute of Informatics on multilingual scientific large language models, and between Sarvam AI and Preferred Networks on full-stack AI development

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. The partnership encourages closer collaboration between governments, research institutions, universities, startups, and industry to accelerate innovation, commercialisation, and responsible AI adoption across key sectors

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. Japan has committed to inviting 500 highly skilled AI professionals from India by 2030, along with measures to promote joint research, internships and employment opportunities

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. Bilateral trade between the two countries reached $27.5 billion in fiscal year 2025/26, while Japanese investment in India totaled $3.2 billion between April and December 2025

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. The two governments will celebrate 2027 as the India-Japan Year of Shared Horizons, marking 75 years of diplomatic relations

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