Takaichi’s Delhi Visit Highlights Deepening Japan-India Economic Ties
India continues to experience economic growth surpassing even China’s. Amid a turbulent international landscape, both the public and private sectors in Japan are paying increased attention to this major power of 1.4 billion people.
Prime Minister Takaichi Sanae's recent visit to India marked a significant milestone in the deepening economic ties between Japan and India. During the sixteenth Japan-India Annual Summit held on July 1–3, 2026, both nations committed to enhancing security and defense collaboration, energy security cooperation, and the resilience of critical mineral supply chains. The visit underscored Japan's increasing investment in India, a trend that now outpaces Japan's business engagement with China.
Japan and India's bilateral cooperation has expanded beyond commerce to include minilateral initiatives such as the Quad, which includes Australia and the United States. These initiatives bolster Tokyo's "Free and Open Indo-Pacific" vision and foster people-to-people connections through international student exchanges, cultural initiatives, and enhanced collaboration in IT and AI domains.
The visit included a strong focus on defense and security cooperation, with commitments to strengthen maritime security through enhanced naval engagements and training exercises. India welcomed Japan's reform of the Three Principles on Transfer of Defense Equipment and Technology, signaling a bolstered defense partnership. Economic and energy security cooperation was also prioritized, with both countries agreeing to focus on five key sectors: semiconductors, minerals, information and communication technology, clean energy, and pharmaceuticals.
This cooperation is particularly significant given global concerns about supply chain access to strategic resources.
The expansion of Japan-India economic ties has been rapid, with 1,434 Japanese companies operating in India as of October 2024, compared to China's 30,000 operational locations. Japanese firms have resumed expansion into India following the COVID-19 pandemic slump, with companies like Suzuki, Bridgestone, and Unicharm building second or third India-located factories.
High-profile acquisitions and investments in Indian startups have diversified Japanese business interests, with consumer goods manufacturers and retailers showing increased interest in India.
Prime Minister Takaichi's predecessor, Ishiba Shigeru, played a crucial role in advancing the relationship when he hosted Indian Prime Minister Narendra Modi in Japan in August 2025, setting a goal of facilitating ¥10 trillion in Japanese investment into India over a decade. The current summit successfully highlighted Japan's growing business presence in India, signing various memorandums of understanding and disseminating detailed fact sheets to underscore the deepening ties between the two nations.
Written by urgent.news from Nippon.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
