Monday 05 / October / 2026
New Delhi: Japan and India are deepening ties across defence, economic security, energy, technology and people-to-people exchanges, as Tokyo increasingly views India as a key partner in a changing global economy.
Prime Minister Takaichi Sanae’s recent first visit to India underscored the breadth of the relationship. The two countries agreed to strengthen defence cooperation, energy security and critical-mineral supply chains, while Japanese investment in India continues to expand.
Defence and security featured prominently at the 16th Japan-India Annual Summit, with the two sides committing to greater naval engagement and training. They also agreed on technology cooperation involving UNICORN, Japan’s shipborne composite antenna used on its Mogami-class frigates. Economic security discussions focused on semiconductors, critical minerals, information and communications technology, clean energy and pharmaceuticals.
Japanese business engagement in India has grown significantly. According to JETRO, 1,434 Japanese companies operated in India at 5,205 locations as of October 2024. Major firms including Suzuki, Bridgestone and Unicharm are expanding manufacturing capacity, while companies such as Uniqlo, Nitori and 7-Eleven are increasing their presence in India’s consumer market.
Investment is also spreading into steel, logistics, energy, technology and startups. ArcelorMittal Nippon Steel India, a joint venture involving Nippon Steel, has invested more than ¥1 trillion in India. Prime Minister Shigeru Ishiba announced in 2025 a goal of attracting ¥10 trillion in Japanese public and private investment over a decade. At this year's summit, companies highlighted investment commitments of about ¥2 trillion made during the preceding year.
Infrastructure remains another major pillar. Japan has financed metro projects in Delhi, Mumbai, Bengaluru and other cities through concessional yen loans. Japanese support is also central to India’s first high-speed rail project between Mumbai and Ahmedabad, with the 508-km line scheduled to begin partial operations in 2027.
Business surveys underline the growing optimism. India ranked as the most promising overseas expansion destination for Japanese companies for a fourth consecutive year in a 2025 JBIC survey, while 75.5% of Japanese companies operating in India expected to be profitable.
Japanese investment in India reached $48.1 billion cumulatively between April 2000 and March 2026, while Japanese companies invested $3.74 billion in India in 2025 alone.
The relationship, however, is not simply about countering China. India maintains strategic ties with China and Russia while pursuing its own national interests. For Japan, understanding this independent approach will be essential.
With Japan facing demographic decline and shortages of skilled workers, India offers opportunities to strengthen supply chains, develop new markets and attract scientific and technical talent. Despite differences and occasional negotiating challenges, the two countries have strong incentives to build a more mature and resilient partnership.
