India, Japan Ink AI, Metals and Energy Cooperation Pacts
India and Japan have signed a series of agreements to strengthen cooperation in artificial intelligence, critical minerals, energy, and economic security, following talks between Indian Prime Minister Narendra Modi and his Japanese counterpart, Sanae Takaichi, in New Delhi.
Takaichi is on a three-day visit to India as the two countries hold their 16th annual summit, aimed at deepening strategic and economic ties between the Asian partners.
Speaking after the meeting, Modi said the two leaders agreed to expand collaboration in emerging technologies and establish a joint roadmap on economic security. He said the combination of Japan's expertise in precision technology and India's software capabilities would provide fresh momentum to global AI development and create new opportunities for innovation.
The two countries also finalized an agreement for their first joint defense co-development project, marking a significant step in expanding bilateral security cooperation. Both India and Japan are members of the Quad grouping alongside the United States and Australia.
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Modi also announced the launch of the India-Japan Bio-Gas Initiative, under which the two nations plan to establish 1,000 bio-gas and organic fertilizer plants across India. The initiative is expected to support clean energy goals, strengthen rural economies, and promote sustainable agriculture.
According to Indian government data, bilateral trade between India and Japan reached $27.5 billion during the 2025-26 fiscal year. Japanese investment in India totaled $3.2 billion between April and December 2025, reflecting continued business confidence in the country's growth prospects.
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Japan remains one of India's largest foreign investors, backing major infrastructure projects, including the Mumbai-Ahmedabad high-speed rail corridor. Japanese firms have also increased investments in Indian companies, highlighted by a recent $1.6 billion deal to acquire a 20% stake in Yes Bank.
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Takaichi is accompanied by a large business delegation and is scheduled to address a business conference in New Delhi.