Semiconductors to biogas: What’s really on the table at the Modi-Takaichi summit? | WION Decodes

Japanese Prime Minister Sanae Takaichi arrives in New Delhi this week for her first official state visit to India. According to India's Ministry of External Affairs, the summit offers a chance to "review and strengthen the full spectrum of bilateral cooperation as well as exchange views on regional and global issues of mutual interest."

What are New Delhi and Tokyo actually trying to get done? WION Decodes.

The Core Agenda

The upcoming talks will cover everything from microchips and rare earths to clean energy and workforce migration. The timing is no coincidence. Both nations are actively trying to insulate their economies from China while handling an increasingly volatile Indo-Pacific.

Japan’s Ministry of Foreign Affairs confirmed the visit, noting that the two leaders want to advance the "Japan-India Joint Vision for the Next Decade"—a framework established during Prime Minister Modi's visit to Japan last September. The goal is simple: tie Japan's tech and capital to India's scale to build economic security.

Here is a breakdown of what is driving the talks behind closed doors.

Semiconductors: Tying together equipment and scale

Microchips are expected to feature prominently in the talks. India is spending billions in subsidies to turn itself into a global electronics manufacturing hub. Japan, meanwhile, doesn’t just make chips; it controls the specialised chemicals, precision equipment, and advanced machinery required to build them.

The two countries laid the groundwork last year with the India-Japan Economic Security Initiative. During the upcoming July 1 to 3 summit, officials are expected to focus on moving beyond high-level agreements to secure actual technology transfers, factory investments, and bulletproof supply chains.

Critical minerals: Breaking the monopoly on rare earths

Building semiconductors or electric vehicles without critical minerals isn’t possible, and right now, China controls the lion's share of them. Tokyo has spent over a decade trying to diversify its supply of rare earths, lithium, and cobalt. India, meanwhile, boasts the world’s third-largest reserves at 7.2 million tonnes.

The summit will likely yield concrete plans for joint exploration, processing, and sourcing agreements. The goal is to create a secure pipeline of materials for EV batteries, defence hardware, and green tech that doesn't rely on a single geopolitical rival.

Clean energy: The shift to biogas

Energy security is a massive vulnerability for both countries. Thus, this summit is expected to also focus on biogas-powered mobility.

Notably, Japanese automaker Suzuki is already producing biogas in India, using agricultural waste to power vehicles. It fits perfectly with New Delhi's push to cut its massive crude oil import bill.

Supply chains: The China factor

The pandemic and rising geopolitical friction proved that concentrated supply chains are a massive liability. Japan and India increasingly view each other as trusted partners. Modi and Takaichi are also expected to look into expanding alternative manufacturing networks for pharmaceuticals, automotive parts, and advanced industrial goods.

Talent exchange: Filling Japan's labour gap

One of the most significant pieces of this partnership isn't about freight; it’s about people. During the August 2025 summit in Tokyo, Modi and Takaichi’s predecessor, Ishiba Shigeru, unveiled a human resource Action Plan aimed at exchanging over 500,000 people over five years.

A major pillar of that plan includes sending 50,000 skilled Indian professionals to Japan to help ease critical labour shortages in the tech and engineering sectors.

Defence and Indo-Pacific security

Finally, we can expect a heavy focus on security. Last year, the two nations signed a landmark Joint Declaration on Security Cooperation, pledging deeper military ties. According to Japan’s Kyodo news agency, the two sides pledged to bolster security cooperation and agreed to expand drills between Japan's Self-Defence Forces and the Indian Armed Forces.