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Sushi to Okonomiyaki: 8 Japanese dishes every food lover should try

Japanese Prime Minister Sanae Takaichi's maiden visit to India saw both countries unveil a 16- point roadmap to deepen cooperation in economic security, artificial intelligence, semiconductors, clean energy and critical technologies.


In pics: India welcomes Japanese PM Sanae Takaichi on her maiden visit

India and Japan have unveiled a 16-point roadmap to deepen their Special Strategic and Global Partnership, signalling a major expansion of cooperation beyond traditional trade and investment. Announced after the 16th India-Japan Annual Summit in New Delhi, the roadmap places economic security, artificial intelligence (AI), resilient supply chains and clean energy at the centre of bilateral ties.&nbsp;Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi also released three key policy documents covering economic security, AI cooperation and energy resilience, alongside a series of agreements across emerging technologies, mobility, critical minerals and financial services.<h2>What is the 16-point roadmap?</h2>The roadmap outlines a broad framework for cooperation across strategic sectors that both countries consider essential for future economic growth and national security.According to India's Ministry of External Affairs, economic security will now serve as a foundational pillar of the partnership. The two sides said their cooperation is based on "mutual trust, shared values and aligned interests", while recognising that their economic prosperity and security are increasingly interconnected.&nbsp;The initiative also reflects growing concerns over economic coercion, arbitrary export restrictions and non-market practices that can disrupt global supply chains, particularly for critical minerals and strategic industries.

<blockquote class="twitter-tweet">List of outcomes (16 in total) : Meeting between PM <a href="https://x.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> and PM <a href="https://x.com/takaichi_sanae?ref_src=twsrc%5Etfw">@takaichi_sanae</a> of Japan on her Official Visit to India ⬇️ 🇮🇳 🇯🇵 <a href="https://t.co/jgxHibuxVW">pic.twitter.com/jgxHibuxVW</a>&mdash; Randhir Jaiswal (@MEAIndia) <a href="https://x.com/MEAIndia/status/2072618844334838114?ref_src=twsrc%5Etfw">July 2, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

<h2>Which sectors will receive priority?</h2>The roadmap identifies five priority sectors under the economic security partnership.Semiconductors: India and Japan will work to diversify semiconductor supply chains, strengthen manufacturing, research, chip design and skill development, while encouraging greater participation of Japanese firms in India's Semiconductor Mission 2.0.&nbsp;Critical minerals: Both countries will expand technical cooperation between the Geological Survey of India and Japan's JOGMEC. They also plan to develop an ecosystem for e-waste recycling to improve the recovery of critical minerals.&nbsp;Information and communication technology: Cooperation will include 5G Advanced, Open RAN, data centres, submarine cables, AI infrastructure and standards for beyond 5G and 6G technologies. A Track 1.5 Economic Security Dialogue involving governments, industry and experts will also be launched.<h2>AI collaboration central to the partnership</h2>Artificial intelligence has emerged as one of the biggest pillars of the roadmap.India and Japan agreed to build a safe, secure, trustworthy, inclusive and human-centric AI ecosystem. Their cooperation will cover the entire AI technology stack, including secure digital infrastructure, semiconductors, GPUs, compute resources, multilingual and open-source AI models, cybersecurity, AI governance and public sector applications.&nbsp;Several institutional partnerships were also announced. IIT Bombay's BharatGen Technology Foundation will collaborate with Japan's National Institute of Informatics on multilingual scientific large language models. Sarvam AI and Preferred Networks will jointly develop foundational AI models, while the IndiaAI Mission and Japan's Ministry of Economy, Trade and Industry will support AI startups and innovation.&nbsp;Recognising India's growing AI talent pool, both governments reaffirmed their target of bringing 500 highly skilled Indian AI professionals to Japan by 2030 through expanded research, internships and industry partnerships.<h2>Partnership to strengthen energy security</h2>India and Japan also adopted a Joint Statement on Energy Resilience aimed at improving cooperation in strategic petroleum reserves, crude oil stockpiling, maritime energy transport and clean energy.&nbsp;The two countries will exchange best practices on emergency response systems, reserve management and stockpiling while exploring joint investments across maritime energy transport value chains.&nbsp;The summit also launched the India-Japan Cooperative Biogas for Growth Initiative, under which Japan will support the establishment of 1,000 biogas and organic fertiliser plants across India using dairy cooperative networks.&nbsp;Beyond biogas, both countries agreed to promote hydrogen and ammonia projects, strengthen battery supply chains, encourage cooperation in solar and nuclear energy, and expand collaboration in international carbon credit trading.<h2>What other agreements were signed?</h2>The summit produced agreements across several strategic sectors.India and Japan signed a memorandum on trusted battery supply chains, strengthened cooperation on pharmaceutical supply chains for Active Pharmaceutical Ingredients and Key Starting Materials, and agreed to deepen collaboration in geological exploration of critical minerals.&nbsp;The Next Generation Mobility Partnership will expand cooperation in railways, automobiles, aviation, shipbuilding, logistics, ports and urban infrastructure while promoting India as a global manufacturing hub.&nbsp;Both countries also signed agreements in biotechnology, internet governance and financial regulation, covering deep tech research, internet security, IPv6 adoption, FinTech and RegTech.

Prime Minister Narendra Modi and his Japanese counterpart, Sanae Takaichi, unveiled three key policy documents on economic security, artificial intelligence and energy resilience after delegation-level talks in New Delhi.

India and Japan have unveiled a 16-point roadmap to deepen their Special Strategic and Global Partnership, signalling a major expansion of cooperation beyond traditional trade and investment. Announced after the 16th India-Japan Annual Summit in New Delhi, the roadmap places economic security, artificial intelligence (AI), resilient supply chains and clean energy at the centre of bilateral ties. Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi also released three key policy documents covering economic security, AI cooperation and energy resilience, alongside a series of agreements across emerging technologies, mobility, critical minerals and financial services. What is the 16-point roadmap? The roadmap outlines a broad framework for cooperation across strategic sectors that both countries consider essential for future economic growth and national security. According to India's Ministry of External Affairs, economic security will now serve as a foundational pillar of the partnership. The two sides said their cooperation is based on "mutual trust, shared values and aligned interests", while recognising that their economic prosperity and security are increasingly interconnected. The initiative also reflects growing concerns over economic coercion, arbitrary export restrictions and non-market practices that can disrupt global supply chains, particularly for critical minerals and strategic industries.

Prime Minister Narendra Modi and his Japanese counterpart, Sanae Takaichi, unveiled three key policy documents on economic security, artificial intelligence and energy resilience after delegation-level talks in New Delhi.

WION Decodes | India-Japan 16-point roadmap on economic security, AI, energy resilience

As Japanese Prime Minister Sanae Takaichi marks her first India visit for the 16th India-Japan Annual Summit, she is set to hold bilateral talks with Indian Prime Minister Narendra Modi. The two leaders are set to hold discussions over a range of topics on Thursday (Jul 2), aiming to strengthen ties between the two nations. Key areas of talks are expected to be economic security, investment growth, innovation and energy. As the high-stakes summit takes place in New Delhi, focus has also shifted to how global energy shocks are influencing the relations between the two countries.The Russia-Ukraine conflict and Iran war have reshaped traditional energy supply routes, triggering uncertainty over global oil prices. These disruptions have prompted India and Japan, which are heavily dependent on oil imports, to look for alternative solutions to navigate the crisis.<h2>India and Japan: Shared vulnerabilities</h2>India imports 85-90 per cent of its crude oil needs, relying on supplies from the Middle East and discounted Russian oil. Japan also imports more than 85 per cent of its total energy needs, depending on crude and LNG supplies from the Middle East.In response to the global energy shocks, India has diversified suppliers, expanded strategic petroleum reserves and increased refining exports. Meanwhile, Japan has focused on long-term LNG contracts, stockpiling, and energy efficiency measures.<h2>How Russia-Ukraine war re-routed oil flows</h2>Western sanctions on Russia have pushed the majority of its crude supply towards Asia, with India becoming a key exporter, deepening its exposure to geopolitical discount-driven supply chains. In recent years, Russia’s share in Indian crude imports rose to 35-50 per cent from below 1 per cent before 2022.Meanwhile, Japan has largely avoided the purchase of Russian oil due to sanctions, and has shifted its reliance on Middle Eastern suppliers and long-established LNG contracts.<h2>Iran war and Strait of Hormuz disruption</h2>The second energy supply shock came after disruption of maritime traffic of commercial vessels in the Strait of Hormuz due to the conflict in the Middle East. The blockade of the strategic waterway, the only maritime outlet for ports located in the Persian Gulf accounting for a quarter of global oil trade and one-fifth of LNG flows, has triggered a sharp rise in oil prices.Both India and Japan have faced delays in supplies and price spikes due to the tension in the region.<h2>India-Japan cooperation</h2>Amid the volatile global situation, both India and Japan are increasing cooperation in energy diversification, maritime security, and clean energy transition technologies. Reaffirming their commitment to work on shared goals, Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi announced key initiatives to strengthen energy security at the India-Japan Summit 2026 in New Delhi on Thursday (Jul 2).“In today’s era of uncertainty, both India and Japan fully understand the importance of economic and energy security,” PM Modi said.“We have launched a key initiative on energy resilience to tackle situations like oil shocks. Furthermore, our cooperation in batteries, green hydrogen, and nuclear energy will make a significant contribution to the global clean energy future. India and Japan view economic security as shared security and energy transition as a shared opportunity; we are committed to advancing this agenda together,” the prime minister added.Speaking on the matter, PM Takaichi said, “In the area of energy security impacted by the Middle East situation, both Japan and India bear the responsibility to provide for region-wide energy security as I presented in Power Asia. That is why we have released a document for the public and private sectors, a joint statement to engage in concrete action for economic security cooperation under the Power Asia Initiative; we will launch a bilateral dialogue to strengthen India’s petroleum stockpiling system.”Both leaders also announced launching the Japan-India Cooperative Biogas for Growth or CBG initiative. Takaichi added that Japan supports India’s membership of the International Energy Agency. “In the area of energy transition, India has set a goal of leveraging cooperatives to secure energy from cow faeces to build 1,000 biogas plants.”

India and Japan deepened energy cooperation at the 2026 summit, unveiling initiatives on energy resilience, petroleum stockpiling and clean energy amid global oil supply disruptions caused by Russia and Iran.

As Japanese Prime Minister Sanae Takaichi marks her first India visit for the 16th India-Japan Annual Summit, she is set to hold bilateral talks with Indian Prime Minister Narendra Modi. The two leaders are set to hold discussions over a range of topics on Thursday (Jul 2), aiming to strengthen ties between the two nations. Key areas of talks are expected to be economic security, investment growth, innovation and energy. As the high-stakes summit takes place in New Delhi, focus has also shifted to how global energy shocks are influencing the relations between the two countries. The Russia-Ukraine conflict and Iran war have reshaped traditional energy supply routes, triggering uncertainty over global oil prices. These disruptions have prompted India and Japan, which are heavily dependent on oil imports, to look for alternative solutions to navigate the crisis. India and Japan: Shared vulnerabilities India imports 85-90 per cent of its crude oil needs, relying on supplies from the Middle East and discounted Russian oil. Japan also imports more than 85 per cent of its total energy needs, depending on crude and LNG supplies from the Middle East. In response to the global energy shocks, India has diversified suppliers, expanded strategic petroleum reserves and increased refining exports. Meanwhile, Japan has focused on long-term LNG contracts, stockpiling, and energy efficiency measures. How Russia-Ukraine war re-routed oil flows Western sanctions on Russia have pushed the majority of its crude supply towards Asia, with India becoming a key exporter, deepening its exposure to geopolitical discount-driven supply chains. In recent years, Russia’s share in Indian crude imports rose to 35-50 per cent from below 1 per cent before 2022. Meanwhile, Japan has largely avoided the purchase of Russian oil due to sanctions, and has shifted its reliance on Middle Eastern suppliers and long-established LNG contracts. Iran war and Strait of Hormuz disruption The second energy supply shock came after disruption of maritime traffic of commercial vessels in the Strait of Hormuz due to the conflict in the Middle East. The blockade of the strategic waterway, the only maritime outlet for ports located in the Persian Gulf accounting for a quarter of global oil trade and one-fifth of LNG flows, has triggered a sharp rise in oil prices. Both India and Japan have faced delays in supplies and price spikes due to the tension in the region. India-Japan cooperation Amid the volatile global situation, both India and Japan are increasing cooperation in energy diversification, maritime security, and clean energy transition technologies. Reaffirming their commitment to work on shared goals, Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi announced key initiatives to strengthen energy security at the India-Japan Summit 2026 in New Delhi on Thursday (Jul 2). “In today’s era of uncertainty, both India and Japan fully understand the importance of economic and energy security,” PM Modi said. “We have launched a key initiative on energy resilience to tackle situations like oil shocks. Furthermore, our cooperation in batteries, green hydrogen, and nuclear energy will make a significant contribution to the global clean energy future. India and Japan view economic security as shared security and energy transition as a shared opportunity; we are committed to advancing this agenda together,” the prime minister added. Speaking on the matter, PM Takaichi said, “In the area of energy security impacted by the Middle East situation, both Japan and India bear the responsibility to provide for region-wide energy security as I presented in Power Asia. That is why we have released a document for the public and private sectors, a joint statement to engage in concrete action for economic security cooperation under the Power Asia Initiative; we will launch a bilateral dialogue to strengthen India’s petroleum stockpiling system.” Both leaders also announced launching the Japan-India Cooperative Biogas for Growth or CBG initiative. Takaichi added that Japan supports India’s membership of the International Energy Agency. “In the area of energy transition, India has set a goal of leveraging cooperatives to secure energy from cow faeces to build 1,000 biogas plants.”

India and Japan deepened energy cooperation at the 2026 summit, unveiling initiatives on energy resilience, petroleum stockpiling and clean energy amid global oil supply disruptions caused by Russia and Iran.

India-Japan Summit: How global energy shocks are bringing India and Japan closer

Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi on Thursday (Jul 2) reaffirmed their commitment to maintain regional security during the joint press conference following bilateral talks in New Delhi as part of the India-Japan Summit 2026. The two leaders also announced the signing of a defence agreement on the first co-development project between India and Japan, which involves the Naval Radio Antenna ‘Unicorn’. This project is set to deepen defence ties between the two countries.“Today, both India and Japan are among the world's largest economies. A free, prosperous, and rules-based Indo-Pacific is our shared priority. As the region’s largest democratic and market economies, we have undertaken several significant initiatives today. Together, these will pave the way for peace, stability, and progress across the entire region,” PM Modi said.“In the defence sector, we have signed an agreement today on the first co-development project between India and Japan. This project, involving the Naval Radio Antenna Unicorn, will open a new chapter in our defence technology partnership.”The prime minister added that India and Japan will jointly develop defence technologies that strengthen regional peace, maritime security, and the rules-based order.Also read | <a href="https://www.wionews.com/india-news/japan-essential-part-of-india-s-growth-pm-modi-takaichi-announce-moc-what-they-said-in-opening-remarks-1782974988715">‘Japan essential part of India’s growth’: PM Modi, Takaichi announce MoC – What they said in opening remarks</a>Speaking at the presser, Takaichi said, “Our two countries share the vision on the profile of the international order we should establish under the current international situation. I recently announced the updated FOIP (Free and Open Indo-Pacific), which focuses on self-reliance and resilience to realise FOIP.”She added, “On the other hand, Prime Minister Modi positions the ocean as a shared space that supports regional stability and growth and is promoting the Mahasagar, the Great Ocean Initiative for countries across the Indian Ocean to defend their sovereignty and the sea through their own efforts, which is perfectly aligned with FOIP. Thus, we agreed to deepen the strategic cooperation between Japan and India to achieve such common goals. Expansion of maritime security cooperation is especially important for regional peace and stability.”Takaichi also announced India-Japan joint naval exercises in the Indian Ocean involving a Japanese Maritime Self-Defense Force destroyer and an Indian Navy vessel to promote naval maintenance, repair and overhaul cooperation and strengthen equipment cooperation under the Make in India framework.“In order to deepen such cooperation, I have instructed the relevant departments to hold discussions and to organise the next Japan-India 2+2 before the end of the year,” she added.The two leaders also signed a Memorandum of Cooperation (MoC), announcing a joint declaration on key issues, including economic security, energy resilience, artificial intelligence, critical minerals, pharma, gen mobility, biogas, and upstream development of oil and gas.Watch | India-Japan summit: PM Modi says 'adding new chapter in strategic ties' <a href="https://www.wionews.com/videos/india-japan-summit-pm-modi-says-adding-new-chapter-in-strategic-ties-1782987135673/embed">https://www.wionews.com/videos/india-japan-summit-pm-modi-says-adding-new-chapter-in-strategic-ties-1782987135673/embed</a>&nbsp;

PM Modi and Japan's PM Sanae Takaichi signed the first defence co-development pact with Japan involving the Unicorn naval antenna, while expanding cooperation on Indo-Pacific security, energy and AI.

Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi on Thursday (Jul 2) reaffirmed their commitment to maintain regional security during the joint press conference following bilateral talks in New Delhi as part of the India-Japan Summit 2026. The two leaders also announced the signing of a defence agreement on the first co-development project between India and Japan, which involves the Naval Radio Antenna ‘Unicorn’. This project is set to deepen defence ties between the two countries. “Today, both India and Japan are among the world's largest economies. A free, prosperous, and rules-based Indo-Pacific is our shared priority. As the region’s largest democratic and market economies, we have undertaken several significant initiatives today. Together, these will pave the way for peace, stability, and progress across the entire region,” PM Modi said. “In the defence sector, we have signed an agreement today on the first co-development project between India and Japan. This project, involving the Naval Radio Antenna Unicorn, will open a new chapter in our defence technology partnership.” The prime minister added that India and Japan will jointly develop defence technologies that strengthen regional peace, maritime security, and the rules-based order. Also read | ‘Japan essential part of India’s growth’: PM Modi, Takaichi announce MoC – What they said in opening remarks Speaking at the presser, Takaichi said, “Our two countries share the vision on the profile of the international order we should establish under the current international situation. I recently announced the updated FOIP (Free and Open Indo-Pacific), which focuses on self-reliance and resilience to realise FOIP.” She added, “On the other hand, Prime Minister Modi positions the ocean as a shared space that supports regional stability and growth and is promoting the Mahasagar, the Great Ocean Initiative for countries across the Indian Ocean to defend their sovereignty and the sea through their own efforts, which is perfectly aligned with FOIP. Thus, we agreed to deepen the strategic cooperation between Japan and India to achieve such common goals. Expansion of maritime security cooperation is especially important for regional peace and stability.” Takaichi also announced India-Japan joint naval exercises in the Indian Ocean involving a Japanese Maritime Self-Defense Force destroyer and an Indian Navy vessel to promote naval maintenance, repair and overhaul cooperation and strengthen equipment cooperation under the Make in India framework. “In order to deepen such cooperation, I have instructed the relevant departments to hold discussions and to organise the next Japan-India 2+2 before the end of the year,” she added. The two leaders also signed a Memorandum of Cooperation (MoC), announcing a joint declaration on key issues, including economic security, energy resilience, artificial intelligence, critical minerals, pharma, gen mobility, biogas, and upstream development of oil and gas. Watch | India-Japan summit: PM Modi says 'adding new chapter in strategic ties' https://www.wionews.com/videos/india-japan-summit-pm-modi-says-adding-new-chapter-in-strategic-ties-1782987135673/embed

PM Modi and Japan's PM Sanae Takaichi signed the first defence co-development pact with Japan involving the Unicorn naval antenna, while expanding cooperation on Indo-Pacific security, energy and AI.

‘New chapter in India-Japan partnership’: PM Modi, PM Takaichi announce defence agreement, naval exercises

Beyond the signed MoUs and the listed plan for the India-Japan summit, bets are on currency plumbing. The headline story for Prime Minister Modi and his Japanese counterpart Sanae Takaichi's summit could be Rupee-Yen bilateral trade settlement. &nbsp;<h2>Will India-Japan trade go local-currency?</h2>India and Japan are expected to advance a direct yen-rupee settlement framework, letting Japanese non-resident entities open accounts with Indian banks and allowing both sides' financial institutions to settle cross-border payments without routing through the dollar. Also read: <a href="https://www.wionews.com/world/watch-pm-modi-japan-pm-sanae-takaichi-exchange-warm-handshake-as-india-japan-summit-begins-what-it-signifies-1782968755332">Watch: PM Modi, Japan PM Sanae Takaichi exchange warm handshake</a>&nbsp;The arrangement would eliminate the intermediary currency, lowering forex conversion costs, cutting remittance charges and speeding up settlement. The signal matters more than the mechanism. If it makes the joint statement, it would be the first time currency cooperation of this kind has been formally written into a leaders' statement between the two countries. That will also be an upgrade from the softer language in last year's Japan-India joint vision. India-Japan: joint statement The scale justifies the urgency. Also read: <a href="https://www.wionews.com/india-news/what-is-joint-crediting-mechanism-and-how-japan-plans-to-bankroll-part-of-india-s-decarbonisation-1782975320349">Joint Crediting Mechanism: Japan's roadmap to funding India's green transition</a>&nbsp;Bilateral trade hit $27.47 billion in fiscal year 2025-26, with Japan exporting $21.43 billion in goods to India. A $75-billion bilateral currency swap agreement, extended through 2026, already gives both central banks the baseline infrastructure needed. Japan's Ministry of Finance is reportedly targeting a formal memorandum of cooperation with the RBI within fiscal 2026.

<h2> Will the global rupee plan get a G7 ally?</h2> This isn't India's first local-currency experiment. Since 2022, the RBI's special rupee vostro account mechanism has expanded across roughly 150 accounts spanning 30 countries, mostly with sanctioned or deficit-strapped partners like Russia. Adding Japan, a G7 economy and major reserve-currency issuer, will be different. That signals local-currency settlement graduating from crisis workaround to corporate standard among trusted allies. &nbsp;Markets and investors will watch adoption and not just an announcement. A joint statement is a political commitment. &nbsp;But actual usage depends on how fast banks build settlement rails and whether exporters in autos, electronics and capital goods, the sectors most exposed to Japan, use the mechanism. Takaichi's China problem, India's gain. Geopolitics adds urgency. With Tokyo-Beijing relations deteriorating over Taiwan and China's fresh export curbs on Japanese firms, Takaichi has a clear incentive to diversify financial and supply-chain dependencies towards India.

India and Japan are expected to advance a local-currency trade mechanism, allowing direct Rupee-Yen bilateral settlements to lower forex transaction costs and bypass the US dollar for cross-border payments.

Beyond the signed MoUs and the listed plan for the India-Japan summit, bets are on currency plumbing. The headline story for Prime Minister Modi and his Japanese counterpart Sanae Takaichi's summit could be Rupee-Yen bilateral trade settlement. Will India-Japan trade go local-currency? India and Japan are expected to advance a direct yen-rupee settlement framework, letting Japanese non-resident entities open accounts with Indian banks and allowing both sides' financial institutions to settle cross-border payments without routing through the dollar. Also read: Watch: PM Modi, Japan PM Sanae Takaichi exchange warm handshake The arrangement would eliminate the intermediary currency, lowering forex conversion costs, cutting remittance charges and speeding up settlement. The signal matters more than the mechanism. If it makes the joint statement, it would be the first time currency cooperation of this kind has been formally written into a leaders' statement between the two countries. That will also be an upgrade from the softer language in last year's Japan-India joint vision. India-Japan: joint statement The scale justifies the urgency. Also read: Joint Crediting Mechanism: Japan's roadmap to funding India's green transition Bilateral trade hit $27.47 billion in fiscal year 2025-26, with Japan exporting $21.43 billion in goods to India. A $75-billion bilateral currency swap agreement, extended through 2026, already gives both central banks the baseline infrastructure needed. Japan's Ministry of Finance is reportedly targeting a formal memorandum of cooperation with the RBI within fiscal 2026.

India and Japan are expected to advance a local-currency trade mechanism, allowing direct Rupee-Yen bilateral settlements to lower forex transaction costs and bypass the US dollar for cross-border payments.

India-Japan Summit: Will dollar bypass take shape?

For decades, oil has shaped global geopolitics, forcing nations to secure crude supplies, as energy has always meant economic power, military strength and diplomatic leverage. However, today, critical minerals have outpaced oil. Instead of competing for oil reserves in West Asia, countries are now racing to secure supplies of lithium, cobalt, nickel and rare earth elements—minerals essential for electric vehicles, smartphones, wind turbines, missiles and advanced semiconductors. In terms of India and Japan, the critical minerals have become a new race other than oil as both the nation has signed an MoU on critical minerals, batteries and AI. Critical minerals act as the foundational building blocks of modern technology, clean energy transitions, and national defence.<h3>Why do these minerals matter?</h3>Silicon, tellurium, and indium are essential for the photovoltaic cells in solar panels, while rare earth elements (like neodymium) are used to create the powerful permanent magnets inside wind turbines. Lithium, nickel, cobalt, manganese, and graphite are the backbone of lithium-ion batteries powering EVs and grid storage systems. Similarly, rare earths, gallium, and germanium are mandatory for manufacturing semiconductors, microchips, LEDs, and smartphones. Whereas, minerals like titanium, beryllium, and tantalum are heavily relied upon to construct fighter jets, submarines, satellites, and precision weaponry. In addition, &nbsp;Copper and aluminium are vital for building and expanding electricity networks.&nbsp;Also read: <a href="https://www.wionews.com/photos/from-blue-waters-to-desert-sands-all-about-india-japan-military-ties-and-defence-agreements-1782977531774">From blue waters to desert sands: All about India-Japan military ties and defence agreements</a><h3>Japan-India critical mineral security partnership</h3>The critical mineral security partnership between both nations has emerged as a cornerstone of Indo-Pacific economic resilience, directly countering China's export restrictions on rare earth elements. Bolstered by frameworks like the Supply Chain Resilience Initiative (SCRI) and bilateral pacts, the collaboration secures the production pipelines for electric vehicles, defence hardware, and semiconductors. India's wider reserves of lithium, cobalt, and copper merge with Japan’s advanced processing tech and financial capital, will help both the nation accomplishing to meet their need while making components for essential technological items. This strategic synergy ensures a stable, diversified supply of essential minerals, reducing supply-chain vulnerabilities and guaranteeing technological sovereignty for both democracies against geopolitical coercion. Interestingly, India and Japan offer complementary advantages in the critical minerals sector. India has substantial reserves of several critical minerals and continues to discover new deposits, but it still lacks adequate large-scale refining and processing capacity. Japan, by contrast, possesses advanced expertise in metallurgy, battery technology and high-end material processing, while having very limited domestic mineral resources. This creates a strong basis for cooperation between the two countries. Under such a partnership, India can provide the mineral resources, while Japan can contribute technology, investment and manufacturing know-how to transform them into higher-value products. Rather than simply exporting raw ore, India aims to expand domestic refining and processing capabilities, and Japanese investment could play a significant role in accelerating that shift up the value chain. Hence, the recent deal between India and Japan will pave the way to de-risk supply chains and reduce dependence on dominant single-source suppliers. Japan's advanced processing technology combined with capital and India's substantial raw reserves as well as manufacturing capacity will increasingly formalise wider Indo-Pacific and Quad security frameworks countering China's supply chain dominance.&nbsp;

The critical mineral security partnership between both nations has emerged as a cornerstone of Indo-Pacific economic resilience, directly countering China's export restrictions on rare earth elements. 

For decades, oil has shaped global geopolitics, forcing nations to secure crude supplies, as energy has always meant economic power, military strength and diplomatic leverage. However, today, critical minerals have outpaced oil. Instead of competing for oil reserves in West Asia, countries are now racing to secure supplies of lithium, cobalt, nickel and rare earth elements—minerals essential for electric vehicles, smartphones, wind turbines, missiles and advanced semiconductors. In terms of India and Japan, the critical minerals have become a new race other than oil as both the nation has signed an MoU on critical minerals, batteries and AI. Critical minerals act as the foundational building blocks of modern technology, clean energy transitions, and national defence. Why do these minerals matter? Silicon, tellurium, and indium are essential for the photovoltaic cells in solar panels, while rare earth elements (like neodymium) are used to create the powerful permanent magnets inside wind turbines. Lithium, nickel, cobalt, manganese, and graphite are the backbone of lithium-ion batteries powering EVs and grid storage systems. Similarly, rare earths, gallium, and germanium are mandatory for manufacturing semiconductors, microchips, LEDs, and smartphones. Whereas, minerals like titanium, beryllium, and tantalum are heavily relied upon to construct fighter jets, submarines, satellites, and precision weaponry. In addition, Copper and aluminium are vital for building and expanding electricity networks. Also read: From blue waters to desert sands: All about India-Japan military ties and defence agreements Japan-India critical mineral security partnership The critical mineral security partnership between both nations has emerged as a cornerstone of Indo-Pacific economic resilience, directly countering China's export restrictions on rare earth elements. Bolstered by frameworks like the Supply Chain Resilience Initiative (SCRI) and bilateral pacts, the collaboration secures the production pipelines for electric vehicles, defence hardware, and semiconductors. India's wider reserves of lithium, cobalt, and copper merge with Japan’s advanced processing tech and financial capital, will help both the nation accomplishing to meet their need while making components for essential technological items. This strategic synergy ensures a stable, diversified supply of essential minerals, reducing supply-chain vulnerabilities and guaranteeing technological sovereignty for both democracies against geopolitical coercion. Interestingly, India and Japan offer complementary advantages in the critical minerals sector. India has substantial reserves of several critical minerals and continues to discover new deposits, but it still lacks adequate large-scale refining and processing capacity. Japan, by contrast, possesses advanced expertise in metallurgy, battery technology and high-end material processing, while having very limited domestic mineral resources. This creates a strong basis for cooperation between the two countries. Under such a partnership, India can provide the mineral resources, while Japan can contribute technology, investment and manufacturing know-how to transform them into higher-value products. Rather than simply exporting raw ore, India aims to expand domestic refining and processing capabilities, and Japanese investment could play a significant role in accelerating that shift up the value chain. Hence, the recent deal between India and Japan will pave the way to de-risk supply chains and reduce dependence on dominant single-source suppliers. Japan's advanced processing technology combined with capital and India's substantial raw reserves as well as manufacturing capacity will increasingly formalise wider Indo-Pacific and Quad security frameworks countering China's supply chain dominance.

The critical mineral security partnership between both nations has emerged as a cornerstone of Indo-Pacific economic resilience, directly countering China's export restrictions on rare earth elements.&nbsp;

India-Japan critical minerals pact: How partnership aims to de-risk supply chains of both nations

India and Japan have deepened defence ties through high-level dialogues, security agreements, and joint exercises, including Dharma Guardian, JIMEX, Malabar and Veer Guardian. Recent cooperation includes JMSDF's Yudachi, MILAN 2026, and UNICORN Mast technology transfer.

From blue waters to desert sands: All about India-Japan military ties and defence agreements

India’s maritime defence strategy is taking a practical turn as the Indian Navy revives its long-standing interest in amphibious aircraft. Following a request for information (RFI) issued in January 2026, the defence ministry is looking to wet-lease four fixed-wing seaplanes for a four-year period. This move brings Japan’s formidable ShinMaywa US-2 back into the spotlight. By opting for a wet lease, the Navy aims to quickly plug crucial capability gaps without the delays of a traditional procurement programme.<h3>The wet lease approach</h3>The decision to wet-lease four aircraft marks a pragmatic shift in India’s defence acquisition. Under this arrangement, the chosen operator will provide the aircraft along with the complete operating package. This includes the flight crew, cabin crew, maintenance, and insurance.&nbsp;By avoiding a long-drawn tender process, the Indian Navy gains immediate operational capabilities. This temporary solution allows the armed forces to evaluate the practical utility of amphibious aircraft before making a heavy financial commitment.<h3>Why the ShinMaywa US-2?</h3>New Delhi and Tokyo have discussed the ShinMaywa US-2 for over a decade. While previous attempts stalled primarily due to high costs and pricing disagreements, the aircraft remains a prime candidate to fulfil the current RFI.The US-2 is highly regarded for its short take-off and landing (STOL) capabilities. It can operate in rough seas with wave heights of up to three metres. Powered by four Rolls-Royce engines, plus an additional engine specifically for boundary layer control, it can land on both conventional runways and open water. The seaplane recently demonstrated its versatility during the multinational Balikatan 2026 exercises in the Philippines, highlighting its value in regional maritime security.<h3>Strategic maritime roles</h3>India’s growing maritime responsibilities require a robust presence across a coastline of over 7,500 kilometres. Amphibious aircraft are crucial for monitoring the Indian Ocean and providing logistical support to remote territories such as the Andaman and Nicobar Islands and the Lakshadweep archipelago.&nbsp;The primary duties outlined for the leased seaplanes include long-range search and rescue, operational logistics support, and casualty evacuation. Secondary roles will involve anti-piracy missions, maritime patrols, and anti-narcotics operations in areas lacking conventional airfields.&nbsp;Leasing these aircraft will immediately enhance India’s ability to respond to maritime emergencies and security threats across the Indo-Pacific. If the four-year deployment proves successful, it will likely lay the necessary groundwork for a permanent amphibious aviation wing within the Indian Navy.

The Indian Navy is looking to wet-lease four amphibious aircraft for a four-year period to strengthen its maritime security and search-and-rescue capabilities. This recent requirement brings Japan's ShinMaywa US-2 seaplane back into consideration.

India’s maritime defence strategy is taking a practical turn as the Indian Navy revives its long-standing interest in amphibious aircraft. Following a request for information (RFI) issued in January 2026, the defence ministry is looking to wet-lease four fixed-wing seaplanes for a four-year period. This move brings Japan’s formidable ShinMaywa US-2 back into the spotlight. By opting for a wet lease, the Navy aims to quickly plug crucial capability gaps without the delays of a traditional procurement programme. The wet lease approach The decision to wet-lease four aircraft marks a pragmatic shift in India’s defence acquisition. Under this arrangement, the chosen operator will provide the aircraft along with the complete operating package. This includes the flight crew, cabin crew, maintenance, and insurance. By avoiding a long-drawn tender process, the Indian Navy gains immediate operational capabilities. This temporary solution allows the armed forces to evaluate the practical utility of amphibious aircraft before making a heavy financial commitment. Why the ShinMaywa US-2? New Delhi and Tokyo have discussed the ShinMaywa US-2 for over a decade. While previous attempts stalled primarily due to high costs and pricing disagreements, the aircraft remains a prime candidate to fulfil the current RFI. The US-2 is highly regarded for its short take-off and landing (STOL) capabilities. It can operate in rough seas with wave heights of up to three metres. Powered by four Rolls-Royce engines, plus an additional engine specifically for boundary layer control, it can land on both conventional runways and open water. The seaplane recently demonstrated its versatility during the multinational Balikatan 2026 exercises in the Philippines, highlighting its value in regional maritime security. Strategic maritime roles India’s growing maritime responsibilities require a robust presence across a coastline of over 7,500 kilometres. Amphibious aircraft are crucial for monitoring the Indian Ocean and providing logistical support to remote territories such as the Andaman and Nicobar Islands and the Lakshadweep archipelago. The primary duties outlined for the leased seaplanes include long-range search and rescue, operational logistics support, and casualty evacuation. Secondary roles will involve anti-piracy missions, maritime patrols, and anti-narcotics operations in areas lacking conventional airfields. Leasing these aircraft will immediately enhance India’s ability to respond to maritime emergencies and security threats across the Indo-Pacific. If the four-year deployment proves successful, it will likely lay the necessary groundwork for a permanent amphibious aviation wing within the Indian Navy.

The Indian Navy is looking to wet-lease four amphibious aircraft for a four-year period to strengthen its maritime security and search-and-rescue capabilities. This recent requirement brings Japan's ShinMaywa US-2 seaplane back into consideration.

Seaplane redux: ShinMaywa's US-2 back in contention for the Indian Navy lease

Former Japanese Prime Minister Fumio Kishida proposed the Bay of Bengal–Northeast India Industrial Value Chain Concept during his 2023 visit to India. It was envisioned as a core pillar of Japan's updated Free and Open Indo-Pacific (FOIP) vision. Its primary aim was to form a trilateral economic cluster by linking Northeast India with Bangladesh and leveraging deep-water access to the Indian Ocean.&nbsp;Kishida's idea was to treat the landlocked Northeast India, which is rich in resources, and Bangladesh, in need of industrial diversification, as a single interconnected economic zone. It was supposed to be done in three ways. First, by developing the Matarbari Deep-Sea Port in Bangladesh under Japan's "BIG-B" (Bay of Bengal Industrial Growth Belt) initiative. Kishida wanted it to be like a high-capacity gateway equivalent to major global ports. Second, strengthening connectivity through the Northeast.&nbsp;This included constructing robust road, rail, and bridge infrastructure across Indian states like Assam, Mizoram, and Tripura. All of these would hook directly into Bangladesh’s transport networks. Third, Japanese and global private sectors would be encouraged to invest in building manufacturing and supply hubs. Raw materials from Northeast India could flow smoothly to Bangladesh for processing and be exported globally via the Bay of Bengal.Also Read: <a href="https://www.wionews.com/india-news/semiconductors-to-biogas-what-s-really-on-the-table-at-the-modi-takaichi-summit-wion-decodes-1782721446269">Semiconductors to biogas: What’s really on the table at the Modi-Takaichi summit? | WION Decodes</a><h2>Progress and current status</h2> Work on the infrastructural front has made reasonable progress. As part of India’s "Act East" policy, transport corridors have been expanded. This includes national highway coverage in the Northeast under the Bharatmala scheme. Budget allocations for the region's rail connectivity has risen sharply.&nbsp;&nbsp;The Japan International Cooperation Agency (JICA) has funded critical highways, bridges, and continued with the multi-phase construction of the Matarbari Deep-Sea Port, maintaining its heavy ODA loan commitments in both India and Bangladesh. The project aligns closely with broader regional goals, notably the BIMSTEC Masterplan for Transport Connectivity. It aims to seamlessly integrate waterways, rail, and digital networks across the Bay of Bengal.Also Read: <a href="https://www.wionews.com/world/the-10-trillion-test-can-japan-double-its-india-investment-push-after-early-5-trillion-success-1782811143826">The ¥10 trillion test: Can Japan double its India investment push after early ¥5 trillion success?</a><h2>Challenges</h2> However, the political and strategic landscape is posing significant challenges to the progress of the plan. Japan and India planned to use this value chain to counter Chinese maritime influence in the Bay of Bengal. However, a change in regional dynamics has created a challenging situation. For example, Bangladesh has awarded the development of an economic zone at Mongla Port, its second-largest seaport, to a Chinese state-owned enterprise. While roads and ports are being built, "soft infrastructure" is still moving along slowly.&nbsp;&nbsp;This includes harmonising customs procedures, aligning maritime tariffs, and establishing standard cross-border regulations. A &nbsp;high-efficiency industrial value chain cannot happen with these bureaucratic trade barriers acting as a roadblock.&nbsp;The Bay of Bengal–Northeast value chain has moved from being just a conceptual blueprint into an operational economic corridor. The Northeast is being connected to the sea. However, its ultimate success as a strictly Japan-India-backed manufacturing hub depends on how the two countries navigate the regulatory bottlenecks and growing economic competition in the Bay.&nbsp;

The Bay of Bengal–Northeast India Industrial Value Chain Concept was proposed by former Japanese Prime Minister Fumio Kishida to form a trilateral economic cluster between Northeast India and Bangladesh. 

Former Japanese Prime Minister Fumio Kishida proposed the Bay of Bengal–Northeast India Industrial Value Chain Concept during his 2023 visit to India. It was envisioned as a core pillar of Japan's updated Free and Open Indo-Pacific (FOIP) vision. Its primary aim was to form a trilateral economic cluster by linking Northeast India with Bangladesh and leveraging deep-water access to the Indian Ocean. Kishida's idea was to treat the landlocked Northeast India, which is rich in resources, and Bangladesh, in need of industrial diversification, as a single interconnected economic zone. It was supposed to be done in three ways. First, by developing the Matarbari Deep-Sea Port in Bangladesh under Japan's "BIG-B" (Bay of Bengal Industrial Growth Belt) initiative. Kishida wanted it to be like a high-capacity gateway equivalent to major global ports. Second, strengthening connectivity through the Northeast. This included constructing robust road, rail, and bridge infrastructure across Indian states like Assam, Mizoram, and Tripura. All of these would hook directly into Bangladesh’s transport networks. Third, Japanese and global private sectors would be encouraged to invest in building manufacturing and supply hubs. Raw materials from Northeast India could flow smoothly to Bangladesh for processing and be exported globally via the Bay of Bengal. Also Read: Semiconductors to biogas: What’s really on the table at the Modi-Takaichi summit? | WION Decodes Progress and current status Work on the infrastructural front has made reasonable progress. As part of India’s "Act East" policy, transport corridors have been expanded. This includes national highway coverage in the Northeast under the Bharatmala scheme. Budget allocations for the region's rail connectivity has risen sharply. The Japan International Cooperation Agency (JICA) has funded critical highways, bridges, and continued with the multi-phase construction of the Matarbari Deep-Sea Port, maintaining its heavy ODA loan commitments in both India and Bangladesh. The project aligns closely with broader regional goals, notably the BIMSTEC Masterplan for Transport Connectivity. It aims to seamlessly integrate waterways, rail, and digital networks across the Bay of Bengal. Also Read: The ¥10 trillion test: Can Japan double its India investment push after early ¥5 trillion success? Challenges However, the political and strategic landscape is posing significant challenges to the progress of the plan. Japan and India planned to use this value chain to counter Chinese maritime influence in the Bay of Bengal. However, a change in regional dynamics has created a challenging situation. For example, Bangladesh has awarded the development of an economic zone at Mongla Port, its second-largest seaport, to a Chinese state-owned enterprise. While roads and ports are being built, "soft infrastructure" is still moving along slowly. This includes harmonising customs procedures, aligning maritime tariffs, and establishing standard cross-border regulations. A high-efficiency industrial value chain cannot happen with these bureaucratic trade barriers acting as a roadblock. The Bay of Bengal–Northeast value chain has moved from being just a conceptual blueprint into an operational economic corridor. The Northeast is being connected to the sea. However, its ultimate success as a strictly Japan-India-backed manufacturing hub depends on how the two countries navigate the regulatory bottlenecks and growing economic competition in the Bay.

The Bay of Bengal–Northeast India Industrial Value Chain Concept was proposed by former Japanese Prime Minister Fumio Kishida to form a trilateral economic cluster between Northeast India and Bangladesh.&nbsp;

A look at the status of Bay of Bengal–Northeast value-chain concept proposed by former Japan PM Kishida

Japanese Prime Minister Sanae Takaichi is set to mark her first official state visit to India from July 1 to July 3, taking part in the 16th India-Japan Annual Summit. Takaichi will hold bilateral talks with Indian Prime Minister Narendra Modi, aiming to strengthen ties between the two countries. The leaders will discuss mutually complementary cooperation under the Japan-India Joint Vision for the Next Decade, which was announced when PM Modi visited Japan last August. The plan includes several areas of economic security, including energy, investment growth, and innovation.The upcoming visit by Takaichi has brought focus to Japan’s pledge of ¥10 trillion (around $65–70 billion) in investment and financing into India over the next decade (2025–2035), one of the most ambitious bilateral economic commitments in Asia. The investment, which was announced at the India-Japan summit in Tokyo last year, doubles the earlier ¥5 trillion goal that was achieved ahead of schedule. The question for now is whether Japan can hit its ten-year target.<h2>From ¥5 trillion success to ¥10 trillion ambition</h2>The earlier ¥5 trillion target was widely viewed as a success, driven by coordinated capital flows between Japanese corporations, banks, and public financing institutions. Supported by Japanese manufacturing giants and infrastructure lenders, the investment push helped the development of India’s metro rail systems, industrial corridors, and urban mobility projects.According to Japanese government estimates, Tokyo is among the top five sources of foreign direct investment in India, with cumulative inflows exceeding $40-45 billion since 2000. Motivated by the momentum of the five-year goal of ¥5 trillion, which was initially established in March 2022 and was achieved two years ahead of its schedule in 2026, Tokyo has now raised its ambition to a 10-year ¥10 trillion investment goal. The new ¥10 trillion commitment signals confidence in India’s long-term growth trajectory and Japan’s strategic need to diversify supply chains away from China.Also read | <a href="https://www.wionews.com/india-news/india-eu-free-trade-agreement-what-landmark-deal-means-for-india-1782126858649">India-EU Free Trade Agreement: What landmark deal means for India</a><h2>What the investment actually means</h2>Unlike sovereign aid packages, the ¥10 trillion figure is not a government cheque. It is a mobilisation target covering multiple channels, including private-sector FDI from Japanese corporations, concessional and commercial loans via institutions such as the Japan Bank for International Cooperation, export credit and insurance support mechanisms, and public-private infrastructure financing. This means that the target depends heavily on corporate decisions, global liquidity conditions, and project pipelines in India.The ¥10 trillion roadmap is concentrated in strategic sectors aligned with both economic and geopolitical priorities. Much of the investment has gone to infrastructure, with several flagship projects including the Delhi-Mumbai Industrial Corridor (DMIC), metro rail systems, and the Mumbai-Ahmedabad High-Speed Rail project, which is based on Japan’s Shinkansen technology.Apart from this, other sectors for investments include semiconductors, clean energy, hydrogen, artificial intelligence (AI), digital infrastructure, critical minerals and advanced manufacturing.<h2>India-Japan economic ties</h2>The bilateral trade between New Delhi and Tokyo stands around the $20-22 billion range annually, with over 1,400 Japanese companies operating in India. Japan also ranks as India’s 5th largest FDI contributor overall. As per recent estimates, Japanese investment inflows have crossed over $30 billion. However, despite the numbers, Japan’s investments are heavily concentrated in North America and Southeast Asia. This implies that India has to compete for capital allocation.Also read | <a href="https://www.wionews.com/world/the-politics-of-perception-decoding-the-g7-s-most-viral-moments-1781782259617">The politics of perception: Decoding G7 Summit’s most viral moments</a><h2>The real test ahead</h2>Despite strong intent, execution risks remain significant. A weakening yen reduces dollar-equivalent investment value. Japan’s ageing population constrains outward capital expansion. On India’s side, bottlenecks such as land acquisition delays and regulatory fragmentation can slow project conversion.Most importantly, historical data shows that while headline FDI commitments are large, actual yearly disbursement fluctuates sharply depending on global conditions.The ¥10 trillion pledge is best understood not as a fixed investment pool, but as a directional economic signal of deepening Japan–India integration. The success of this ambition will depend less on announcements and more on whether capital moves consistently into factories, infrastructure, and technology ecosystems over the next decade.

Japan PM Sanae Takaichi’s India visit spotlights Tokyo’s ¥10 trillion investment pledge. After beating its ¥5 trillion goal early, attention turns to whether Japan can deliver again.

Japanese Prime Minister Sanae Takaichi is set to mark her first official state visit to India from July 1 to July 3, taking part in the 16th India-Japan Annual Summit. Takaichi will hold bilateral talks with Indian Prime Minister Narendra Modi, aiming to strengthen ties between the two countries. The leaders will discuss mutually complementary cooperation under the Japan-India Joint Vision for the Next Decade, which was announced when PM Modi visited Japan last August. The plan includes several areas of economic security, including energy, investment growth, and innovation. The upcoming visit by Takaichi has brought focus to Japan’s pledge of ¥10 trillion (around $65–70 billion) in investment and financing into India over the next decade (2025–2035), one of the most ambitious bilateral economic commitments in Asia. The investment, which was announced at the India-Japan summit in Tokyo last year, doubles the earlier ¥5 trillion goal that was achieved ahead of schedule. The question for now is whether Japan can hit its ten-year target. From ¥5 trillion success to ¥10 trillion ambition The earlier ¥5 trillion target was widely viewed as a success, driven by coordinated capital flows between Japanese corporations, banks, and public financing institutions. Supported by Japanese manufacturing giants and infrastructure lenders, the investment push helped the development of India’s metro rail systems, industrial corridors, and urban mobility projects. According to Japanese government estimates, Tokyo is among the top five sources of foreign direct investment in India, with cumulative inflows exceeding $40-45 billion since 2000. Motivated by the momentum of the five-year goal of ¥5 trillion, which was initially established in March 2022 and was achieved two years ahead of its schedule in 2026, Tokyo has now raised its ambition to a 10-year ¥10 trillion investment goal. The new ¥10 trillion commitment signals confidence in India’s long-term growth trajectory and Japan’s strategic need to diversify supply chains away from China. Also read | India-EU Free Trade Agreement: What landmark deal means for India What the investment actually means Unlike sovereign aid packages, the ¥10 trillion figure is not a government cheque. It is a mobilisation target covering multiple channels, including private-sector FDI from Japanese corporations, concessional and commercial loans via institutions such as the Japan Bank for International Cooperation, export credit and insurance support mechanisms, and public-private infrastructure financing. This means that the target depends heavily on corporate decisions, global liquidity conditions, and project pipelines in India. The ¥10 trillion roadmap is concentrated in strategic sectors aligned with both economic and geopolitical priorities. Much of the investment has gone to infrastructure, with several flagship projects including the Delhi-Mumbai Industrial Corridor (DMIC), metro rail systems, and the Mumbai-Ahmedabad High-Speed Rail project, which is based on Japan’s Shinkansen technology. Apart from this, other sectors for investments include semiconductors, clean energy, hydrogen, artificial intelligence (AI), digital infrastructure, critical minerals and advanced manufacturing. India-Japan economic ties The bilateral trade between New Delhi and Tokyo stands around the $20-22 billion range annually, with over 1,400 Japanese companies operating in India. Japan also ranks as India’s 5th largest FDI contributor overall. As per recent estimates, Japanese investment inflows have crossed over $30 billion. However, despite the numbers, Japan’s investments are heavily concentrated in North America and Southeast Asia. This implies that India has to compete for capital allocation. Also read | The politics of perception: Decoding G7 Summit’s most viral moments The real test ahead Despite strong intent, execution risks remain significant. A weakening yen reduces dollar-equivalent investment value. Japan’s ageing population constrains outward capital expansion. On India’s side, bottlenecks such as land acquisition delays and regulatory fragmentation can slow project conversion. Most importantly, historical data shows that while headline FDI commitments are large, actual yearly disbursement fluctuates sharply depending on global conditions. The ¥10 trillion pledge is best understood not as a fixed investment pool, but as a directional economic signal of deepening Japan–India integration. The success of this ambition will depend less on announcements and more on whether capital moves consistently into factories, infrastructure, and technology ecosystems over the next decade.

Japan PM Sanae Takaichi’s India visit spotlights Tokyo’s ¥10 trillion investment pledge. After beating its ¥5 trillion goal early, attention turns to whether Japan can deliver again.

The ¥10 trillion test: Can Japan double its India investment push after early ¥5 trillion success?