Japanese private companies are preparing to inject $12.5 billion into India’s expanding market through around 120 cooperation agreements announced at the 16th Japan-India Annual Summit. This coincides with Prime Minister Sanae Takaichi’s first official visit to New Delhi, underscoring the scale of bilateral economic and strategic engagement.

Japan’s Deputy Chief Cabinet Secretary Masanao Ozaki, who accompanied Prime Minister Takaichi, confirmed that more than 150 companies are participating in the Japan-India Economic Forum. He emphasised that this initiative will strengthen government-to-government relations in critical areas such as security and economic security, while also serving as a catalyst for deeper economic ties.

Japanese newspaper The Yomiuri Shimbun reported that these initiatives, valued at approximately 2 trillion yen, aim to expand Japan’s footprint in India’s fast-growing market.

The draft joint statement between the two governments highlights intensified cooperation in maritime and energy security, reflecting shared concerns over regional stability and supply chain resilience.

The agreements span multiple sectors. Fujifilm will collaborate on a semiconductor materials plant, Suzuki is advancing a biogas facility initiative, and Japanese and Indian startups are joining forces on artificial intelligence application development. These projects align with the broader bilateral commitment established last year, which set a target of 10 trillion yen in private Japanese investments in India over a decade.

The draft joint statement also reinforces last year’s accord, calling for “mutually complementary cooperation” between the two nations. It welcomes the evolution of Prime Minister Takaichi’s “Free and Open Indo-Pacific” concept, which has become central to Japan’s regional strategy.

Defence cooperation is highlighted, with appreciation expressed for ongoing maritime security collaboration and Japan’s updated guidelines on defence equipment transfers. Plans are also outlined to convene a Japan-India Foreign and Defence Ministerial Meeting (2+2) before the end of the year.

The document addresses concerns over China’s recent export curbs on rare earth elements, noting apprehensions about nonmarket policies and economic coercion. On energy, both countries pledge to strengthen supply integrity through joint stockpiling initiatives.

The statement also supports small and medium-sized enterprises entering India, advocates improvements to India’s domestic business environment, and promotes cooperation on introducing JR East’s developing E10 series Shinkansen train to India. Technological collaboration is emphasised, with innovation in artificial intelligence described as vital for expanding the foundation of cooperation.

Prime Minister Takaichi arrived in New Delhi on Wednesday, marking her first official visit to India since assuming office. Before departing Tokyo, she highlighted the role of the private sector in expanding bilateral ties, noting that more than 150 representatives from Japan’s business community would participate in the forum. She stressed that uniting government and private sectors would broaden cooperation and strengthen economic resilience.

Regional security is also a priority. Takaichi stated that discussions with Prime Minister Modi would focus on urgent issues such as economic and energy security, while deepening the strategic cooperative relationship in light of the evolving international situation. She reaffirmed her commitment to advancing the “Special Strategic and Global Partnership” between the two nations.

India and Japan elevated their relationship to this partnership in 2014, steadily expanding cooperation across defence, infrastructure, trade, digital technologies, clean energy, mobility, healthcare and people-to-people exchanges. The current summit builds on this trajectory, reinforcing both economic and strategic convergence while advancing a shared vision for a free, open and rules-based Indo-Pacific.

ANI