Modi hosts ‘sister’ Takaichi as India, Japan announce first-ever defence co-development project, deepen AI ties

India and Japan announced their first-ever defence co-development project on Thursday, July 2, marking a major milestone in bilateral security ties, as the two countries also unveiled a broad strategic partnership spanning artificial intelligence, semiconductors, energy and critical minerals.

The announcements came during the 16th India-Japan Annual Summit, where Prime Minister Narendra Modi hosted his Japanese counterpart Sanae Takaichi on her first visit to India.

The summit also comes amid expectations that Japanese companies will announce investments worth nearly 2 trillion yen (about $12.5 billion) through around 120 cooperation agreements, spanning semiconductors, AI, clean energy, mobility, manufacturing and infrastructure, MoneyControl reported.
More than 150 Japanese firms are participating in the Japan-India Economic Forum alongside the summit.

“We are beginning a new chapter in our Special Strategic and Global Partnership,” Modi said, calling India and Japan “among the world’s largest economies” with a shared commitment to “a free, prosperous and rules-based Indo-Pacific.”

Tech as pillar of India-Japan cooperation

Besides the landmark defence project, the two countries adopted a joint statement on AI, a joint declaration on economic security cooperation, signed MoUs on energy and pharmaceuticals, and agreed to pursue cooperation in critical minerals, batteries and next-generation mobility.

They also agreed to strengthen supply-chain resilience in semiconductors and advanced materials, sectors increasingly viewed as strategically important amid global geopolitical tensions.

“Technology partnership will become the strongest pillar of our cooperation. To realise this vision, today we have also issued a joint statement in the field of Artificial Intelligence,” Modi said.

He further added that the two countries had set a goal to double the number of Japanese businesses operating in India while working towards 10 trillion yen in investment.

“The economies of India and Japan are complementary. From cultural values to modern technology, there is similarity in our thinking and approach as well. And above all, the foundation of our relations rests on unbreakable mutual trust,” he said.

Takaichi said India and Japan should leverage their respective strengths to become “stronger and more prosperous together” at a time when “international affairs are in disarray.”

“Our two countries share the vision on the profile of international order we should establish under the current international situation,” she said, adding that Japan’s updated Free and Open Indo-Pacific (FOIP) strategy and India’s MAHASAGAR initiative were “perfectly aligned.”

She said the two leaders had agreed to deepen strategic cooperation, with maritime security remaining a key pillar of cooperation in the Indo-Pacific.