15th Annual Summit of India and Japan

The two parties are anticipated to enhance the 2008 Declaration on Security Cooperation, encompassing defense equipment acquisitions, initiate an “Economic Security” program to establish robust supply chains, and raise Japan’s investment goals to approximately $68 billion.

The summit aims to strengthen economic and investment collaborations, as well as improve cultural connections between the two countries.

The two parties are anticipated to initiate a digital collaboration centered around AI and semiconductors, with an emphasis on public infrastructure.

They are also expected to advocate for a bilateral energy collaboration in hydrogen and renewable energy initiatives.

Overview of India-Japan Relations

Formation of Ties: Following WWII, India chose to negotiate an independent Peace Treaty with Japan, which was signed in 1952, signifying the beginning of official diplomatic relations.

Expansion of Bilateral Relations: The bilateral relationship between India and Japan was upgraded to Global Partnership in 2000, then to Strategic and Global Partnership in 2006, and further to Special Strategic and Global Partnership in 2014.

Strategic Alignment: India's Act East Policy and Indo-Pacific Oceans Initiative (IPOI) closely correspond with Japan's Free and Open Indo-Pacific (FOIP) strategy.

Joint Efforts on Global Projects: Japan and India work together on projects such as the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), and Leadership Group for Industry Transition (LeadIT).

The two nations collaborate within multilateral structures such as the Japan-Australia-India-U.S. Quad and the India-Japan-Australia Supply Chain Resilience Initiative (SCRI).

Defence and Security: Joint Declaration on Security Collaboration (2008), Defence Cooperation and Exchange Memorandum of Understanding (2014), Information Protection Accord (2015), Reciprocal Supply and Service Provision Agreement (2020), and co-development of the UNICORN naval mast (2024).

Exercises such as Malabar (involving the US and Australia), Milan (multilateral naval), JIMEX (bilateral maritime), Dharma Guardian (Army), and cooperation among Coast Guards occur on a regular basis.

In 2024-25, service chiefs from India and Japan participated, enhancing interoperability.

Bilateral trade hit $22.8 billion in 2023-24.

Imports from Japan still exceed exports. India primarily exports chemicals, vehicles, aluminium, and seafood, while its imports consist of machinery, steel, copper, and reactors.

Investment: Japan ranks as India’s fifth-largest FDI source, contributing $43.2 billion in cumulative investments until 2024.

Japan has consistently identified India as the most favorable long-term investment location.

Space Partnership: ISRO and JAXA work together in X-ray astronomy, satellite navigation, lunar exploration, and the Asia Pacific Regional Space Agency Forum (APRSAF).

In 2016, they entered into a Memorandum of Cooperation (MoC) for the peaceful exploration and utilization of space.

Evolving Key Areas: Digital collaboration (semiconductors, startups), renewable energy, supply chain robustness, industrial strength, and skills enhancement.

Cooperation in Development and Infrastructure: Since 1958, Japan has been the largest donor of ODA to India, aiding essential infrastructure and human development initiatives.

ODA disbursement was approximately JPY 580 billion ($4.5 billion) for the period of 2023-24.

The Mumbai-Ahmedabad High Speed Rail is the premier project representing the transfer of advanced technology and the development of skills.

Tourism: The period of 2023-24 was marked as the Year of Tourism Exchange, centered around the theme “Linking the Himalayas with Mount Fuji.”

Diaspora: Approximately 54,000 Indians reside in Japan, primarily as IT specialists and engineers.

Path Forward

Boost Trade and Investment: Aim to decrease the trade deficit by raising Indian exports to Japan and promoting Japanese investment in India’s tech and manufacturing industries.

Enhance Connections Among Individuals: Promote cultural exchanges, tourism, and educational partnerships to strengthen mutual understanding.

Technology and Innovation Collaboration: Utilize Japan’s technological knowledge and India’s expanding digital domain to work together in AI, robotics, renewable energy, and space research.

Tackle Environmental Issues: Enhance collaboration on sustainability, climate change, and disaster preparedness to advance both nations' renewable energy objectives.