India and Japan have agreed to significantly deepen their economic and strategic partnership by setting an ambitious target of attracting 10 trillion yen in Japanese investment into India over the next decade. The announcement came after bilateral talks between Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi at Hyderabad House in New Delhi.

The two leaders also unveiled a series of initiatives covering artificial intelligence (AI), energy security, supply chain resilience, and next-generation mobility, reaffirming their commitment to strengthening the Special Strategic and Global Partnership.

Over 120 Business Agreements to Bring $10 Billion Investment

Prime Minister Modi said the India-Japan investment partnership continues to grow steadily, with more than 120 new business agreements signed over the past year. These agreements are expected to generate over $10 billion in fresh Japanese investment across multiple sectors in India.

He said both governments are committed to creating a favorable business environment and encouraging more Japanese companies to establish operations in India.

The leaders also welcomed a new agreement between the financial regulatory agencies of both countries, which is expected to facilitate smoother capital flows and encourage greater cross-border investments.

Goal to Double Japanese Companies in India

PM Modi announced that India aims to double the number of Japanese companies operating in the country over the next ten years.

He highlighted India's continuous economic reforms, improved infrastructure, digital transformation, and ease of doing business as major factors attracting foreign investment.

The initiative is expected to boost manufacturing, technology, infrastructure development, logistics, and high-value industries while creating employment opportunities and enhancing industrial cooperation.

AI and Technology Become Key Pillars of Partnership

Technology cooperation emerged as one of the biggest outcomes of the summit.

India and Japan issued a joint statement on Artificial Intelligence (AI), recognizing emerging technologies as central to future economic growth and innovation.

Both countries agreed to strengthen collaboration in:

• Artificial Intelligence (AI)
• Semiconductors
• Quantum technology
• Advanced materials
• Digital innovation
• Next-generation mobility

The leaders said these sectors will play an important role in ensuring long-term economic competitiveness and technological leadership.

Clean Energy and Economic Security Roadmap

India and Japan also expanded cooperation in clean energy and energy security.

Both countries launched an India-Japan Energy Resilience Initiative to improve preparedness against future global energy disruptions such as oil supply shocks.

They also announced cooperation in:

• Green hydrogen
• Battery technology
• Nuclear energy
• Renewable energy
• Energy transition

A major announcement was the India-Japan Biogas Initiative, under which nearly 1,000 biogas and organic fertilizer plants will be established across India. The initiative is expected to strengthen rural livelihoods, promote sustainable agriculture, and support India's GobarDhan programme.

Supply Chains and Indo-Pacific Cooperation

Recognizing changing global economic conditions, India and Japan adopted a Joint Roadmap for Economic Security.

The roadmap focuses on strengthening resilient supply chains in strategic industries, including semiconductors, advanced manufacturing, and critical technologies.

Both leaders reaffirmed their commitment to maintaining a free, open, prosperous, and rules-based Indo-Pacific, describing regional peace and stability as a shared strategic priority.

The summit also resulted in the launch of the India-Japan Next-Generation Mobility Partnership Framework, aimed at promoting innovation in electric vehicles, smart transportation, and future mobility technologies.

Why This Partnership Matters

The agreements signal a significant expansion of India-Japan relations beyond traditional trade and infrastructure cooperation. By focusing on technology, clean energy, resilient supply chains, and long-term investments, both countries aim to strengthen economic growth while addressing future geopolitical and energy challenges.

The partnership also reinforces India's position as a preferred investment destination for Japanese businesses and highlights the growing strategic alignment between the two Indo-Pacific democracies.