Japan can fulfil India's long standing requirement of a amphibious aircraft with ShinMaywa US-2

India and Japan have entered a new phase of defence industrial cooperation, with SIDM pushing industry-led collaboration in drones, AI-enabled systems, and secure communications, while the UNICORN naval mast project and Mogami-class frigate proposal signal Tokyo’s greater willingness to share high-end technologies.

The opportunity is substantial, but execution will depend on overcoming cost, intellectual property, and localisation hurdles.

India’s premier defence industry body, the Society of Indian Defence Manufacturers, has invited inputs on collaboration opportunities with Japan following Tokyo’s relaxation of its long-standing restrictions on defence exports.

The areas identified include unmanned systems, counter-UAS technologies, autonomous defence platforms, AI-enabled systems, and software-defined radios. The scope could expand to electronic warfare, secure communications, radar, electro-optics, advanced composites, gallium nitride-based RF systems, mission computers, and defence software.

Japan’s revised “Three Principles on Transfer of Defence Equipment and Technology”, approved in April 2026, marks a significant departure from its post-war caution. For India, the opening is attractive because Japan offers strengths in precision manufacturing, advanced materials, semiconductors, robotics, miniaturisation, and reliability engineering. These are capabilities Indian defence manufacturers need to compete globally.

The current moment is distinct because the conversation is shifting from buyer-seller transactions to co-development, co-production, supply-chain integration, and technology transfer. Analysts such as Dr Satoru Nagao argue that Japan’s shift is driven more by strategic logic than economics, with China being the central factor. He noted that Japan wants countries around China to strengthen their military capabilities, thereby easing Japan’s own security burden.

Recent developments underscore this logic. Defence Secretary Rajesh Kumar Singh visited Tokyo in mid-July for talks covering defence industry cooperation, maritime security, cyber, space, and advanced technologies.

His visit coincided with Japan’s renewed push for the Mogami-class stealth frigate proposal under a technology-transfer and local-production arrangement. Earlier in July, Prime Minister Sanae Takaichi’s visit to New Delhi saw the signing of the first India–Japan defence co-development pact, focused on the UNICORN naval communications mast.

The system, developed by NEC and used on Mogami-class frigates, integrates multiple antennas into a single mast to improve stealth and secure communications. Bharat Electronics Limited will manufacture the system in India, with localisation and integration of Indian sensors.

Nagao emphasised that the UNICORN project is not just technical but strategic, as Japan wants India aligned when facing China. He also highlighted ongoing cooperation between Japan’s ATLA and India’s DRDO on unmanned ground vehicles, which could be relevant for operations along the India–China border. He argued that future cooperation must extend beyond technology sharing to production lines, repair facilities, spare parts, and ammunition support.

Despite the enthusiasm, barriers remain. India’s emphasis on indigenisation under ‘Make in India’ often clashes with Japan’s cautious approach to intellectual property and export controls. Japanese firms, long accustomed to a protected domestic market, remain wary of deep overseas commitments.

Cost competitiveness is another hurdle, as Japanese systems are built for performance and reliability rather than price-sensitive export markets.

Past projects, such as the US-2 amphibious aircraft negotiations, stalled over cost and technology transfer issues.

Nagao acknowledged these difficulties but argued that successful collaboration could create momentum, citing Maruti-Suzuki as an example. He suggested that the UNICORN project could pave the way for cooperation on the Mogami-class frigate, with Japanese support extending to shipbuilding facilities in India. This could allow both Indian and Japanese naval ships to be maintained in India, expanding defence collaboration.

Japan remains one of the world’s leading investors in research and development, ranking third globally. Its technological base in AI, autonomous systems, advanced sensors, semiconductors, and space technologies is highly relevant to future warfare. For India, access to trusted high-end technology from a Quad partner fits well with efforts to reduce dependence on traditional suppliers while strengthening domestic manufacturing.

The partnership is clearly moving beyond exercises and dialogue. The first co-development project has been launched, a major naval proposal is under discussion, and industry has been asked to identify opportunities.

The test will be execution—resolving questions of intellectual property, production responsibility, cost-sharing, and export restrictions. If projects such as UNICORN and the Mogami proposal move from discussion to production, the partnership could become a serious pillar of India’s defence industrial strategy. If not, it risks remaining strategically aligned but industrially under-realised.

Agencies