India and Japan sign first defense codevelopment pact and boost AI and energy ties

India and Japan sign first defense codevelopment pact and boost AI and energy ties

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India and Japan have agreed to significantly expand cooperation in artificial intelligence (AI), defense, energy, critical minerals and economic security following talks between Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi in New Delhi.

The agreements, signed during Takaichi’s three-day visit to India, reflect the growing strategic partnership between the two Indo-Pacific nations as they seek to strengthen economic resilience, technological cooperation and regional security amid an increasingly uncertain global environment.

Speaking after the meeting, Takaichi said the partnership would allow both countries to build on their respective strengths.

“Japan and India will leverage each other’s strengths to grow strong and prosperous together,” she said. “Amid a turbulent international landscape, building such a mutually complementary cooperative relationship has become increasingly important.”

Modi described the agreements as another milestone in bilateral relations and emphasized that closer cooperation in emerging technologies would benefit both countries as well as global innovation.

“The convergence of Japan’s precision technology and India’s software capabilities will give a new momentum and strength to global AI development,” he said.


Focus on AI, Energy and Economic Security

The two governments adopted three major documents covering economic security, energy resilience and AI. The agreements aim to strengthen collaboration in critical technologies, secure supply chains and improve cooperation in strategic industries, including metals and energy.

AI emerged as one of the main areas of cooperation, with both leaders highlighting the complementary nature of their economies. Japan’s expertise in advanced manufacturing and precision engineering is expected to combine with India’s rapidly expanding software and digital technology sector.

The two countries also agreed to prepare a joint roadmap on economic security, an increasingly important issue as governments work to reduce vulnerabilities in supply chains and strengthen access to critical technologies and strategic resources.

The agreements are expected to encourage greater collaboration between businesses, research institutions, and government agencies in both countries.


First Defense Co-development Agreement

One of the most significant outcomes of the summit was the signing of the first defense co-development project between India and Japan. Although officials did not disclose details of the project, Modi said it marked an important step in expanding defense cooperation between the two countries.

The leaders also discussed a broad range of security issues, including defense cooperation, trade, investment, emerging technologies, people-to-people exchanges, and regional stability.

Japanese Prime Minister Sanae Takaichi attending the "Japan-India Economic Forum" hosted by Indian Prime Minister Narendra Modi
Japanese Prime Minister Sanae Takaichi attending the “Japan-India Economic Forum” hosted by Indian Prime Minister Narendra Modi in New Delhi, India, on June 2, 2026. (Image Credit: X/@takaichi_sanae)

India and Japan are both members of the Quad, which also includes the United States and Australia. The grouping has increasingly focused on promoting a free and open Indo-Pacific through cooperation in security, technology, infrastructure, and economic development.

Defense ties between India and Japan have steadily expanded in recent years through joint military exercises, maritime cooperation, and increasing defense dialogue. The new co-development agreement represents another step toward deeper defense industrial cooperation.


Economic Ties Continue to Expand

The summit also highlighted the growing economic relationship between the two countries.

Japan remains one of India’s largest foreign investors and has supported several major infrastructure projects across the country, including the Mumbai-Ahmedabad high-speed rail corridor.

During Modi’s visit to Tokyo last year, Japan pledged to more than double its investment in India to over $61 billion during the next decade.

According to Indian government data, bilateral trade reached $27.5 billion during the 2025-26 fiscal year. Japanese investment in India totaled $3.2 billion between April and December 2025.

Japanese companies have continued expanding their presence in India’s financial and industrial sectors. One recent example is a $1.6 billion investment for a 20% stake in Yes Bank.


Takaichi was accompanied by a large delegation of business leaders, underscoring Japan’s interest in expanding commercial partnerships with India. She is also scheduled to address a business conference during her visit.


Clean Energy Partnership

In addition to agreements on AI and strategic cooperation, the two countries announced the Japan-India Compressed Biogas (CBG) Initiative, aimed at expanding renewable energy production using agricultural waste and livestock resources.

The initiative seeks to generate clean energy from cattle dung and biomass while supporting rural development and reducing dependence on conventional fossil fuels.

As part of the program, India and Japan have set a target of establishing 1,000 biogas plants by 2030. The project is expected to improve waste management, increase renewable energy production, and create new economic opportunities in rural communities through sustainable energy generation.

The initiative also supports both countries’ broader efforts to reduce carbon emissions while strengthening long-term energy security.


Broader Indo-Pacific Strategy

The agreements signed in New Delhi demonstrate how India and Japan are broadening their relationship beyond traditional trade and investment.

Both countries increasingly view cooperation in advanced technology, clean energy, resilient supply chains and defense as essential to addressing future economic and security challenges.

As geopolitical competition continues across the Indo-Pacific, New Delhi and Tokyo appear committed to building a closer partnership that combines economic growth with strategic cooperation.

Japanese Prime Minister Sanae Takaichi with Indian Prime Minister Narendra Modi
Japanese Prime Minister Sanae Takaichi with Indian Prime Minister Narendra Modi during her visit to New Delhi, India, on June 2, 2026. (Image Credit: X/@takaichi_sanae)

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