India Japan Trade

Recent Trends & developments

• On January 17, 2026, India and Japan held a strategic dialogue focusing on bolstering cooperation in critical minerals, AI and defence ties, aiming to enhance economic security, supply chain resilience and technology collaboration across strategic sectors.
• As part of the 2025 Summit outcomes, India and Japan renewed the Digital Partnership 2.0 MoC, promoting collaboration in semiconductors, AI, Digital Public Infrastructure, R&D and startups, and strengthened human resource exchanges including joint research and student internships
• On November 23, 2025, on the sidelines of the G20 Summit, Prime Minister Mr. Narendra Modi and Japanese Prime Minister H.E. Sanae Takaichi reaffirmed commitment to deepen the special strategic and global partnership across trade, investment, defence, semiconductors, infrastructure, and technology.
• On October 18, 2025, the India-Japan Maritime Exercise (JAIMEX 2025) showcased growing defence cooperation, emphasising shared commitment to a free, open and inclusive Indo-Pacific, and strengthened naval interoperability and maritime security cooperation.
• On October 14, 2025, the Indian digital payments ecosystem expanded as NPCI International and NTT DATA Japan signed an MoU to enable UPI acceptance in Japan, enhancing economic integration and cross-border digital transactions between the two nations
• On August 29, 2025, during the 15th India-Japan Annual Summit in Tokyo, India and Japan adopted a Joint Vision for the next decade to deepen economic, technological, and strategic cooperation, prioritising economic partnership, economic security, mobility, and innovation, while enhancing defence and overall bilateral engagement.
• In August 2025, both countries agreed on a Joint Declaration to expand defence collaboration, strengthen interoperability of forces, enhance logistical support, and explore new avenues for cooperation in counterterrorism, cyber-defence and joint operations across the Indo-Pacific region.
• On August 29, 2025, India and Japan set a 10-year investment roadmap targeting about US$ 67.56 billion (10 trillion yen) of Japanese private investment in India across critical sectors including semiconductors, defence, clean energy, and high-technology industries, reinforcing economic ties and supply-chain integration.
• In February 2025, Tokyo hosted this high-level forum launching the Japan‑India Cooperation Initiative for Sustainable Economic Development in Africa, reinforcing joint efforts to foster economic growth across Africa.
• A formal agreement targets transforming the Andaman & Nicobar and Lakshadweep islands into “Smart Islands” via renewable energy, port digitalisation and shipping infrastructure. Plans include Imabari Shipbuilding’s greenfield shipyard in Andhra Pradesh and technology-transfer projects.
• India and Japan signed a Memorandum of Implementation on November 15, 2024, in Tokyo to co-develop the Unified Complex Radio Antenna (UNICORN) mast for Indian Navy ships. The mast, integrating advanced communication systems, enhances stealth capabilities. This marks the first co-development of defence equipment between the nations, with Bharat Electronics Limited leading India's role.
• The Union Minister of New and Renewable Energy, Mr. Pralhad Joshi, chaired the signing ceremony of the first-ever agreement for the export of Green Ammonia from India to Japan. The project offtake agreement marks a significant step forward in India’s journey to becoming a global leader in green hydrogen and ammonia production.
• In a significant step towards sustainable development in India, REC Limited, a Maharatna Central Public Sector Enterprise and leading NBFC under the Ministry of Power, has successfully availed a Green Loan of Japanese Yen (JPY) 60.536 billion to finance eligible green projects in India.
• In 2023, Foreign Minister, Mr. Yoshimasa Hayashi mentioned that 2023 is a crucial year as Japan chairs G7 and India chairs G20. As the premier forum for international economic cooperation, G20 is of paramount importance for responding effectively to issues facing the international community, such as food security and development. As the G7 President, Japan wishes to coordinate closely with the G20 President, India.
• Japan-India Foreign Ministers’ Meeting was held on February 11, 2022, wherein it was reaffirmed to promote economic cooperation including in digital, climate change countermeasures, healthcare, as well as economic security cooperation in fields such as Beyond 5G, undersea cables, and supply chain resilience, in addition to cooperation in India’s North-eastern region and steadily advancing the High-Speed Rail Project, the flagship project of Japan and India. Moreover, views on cooperation in regional affairs such as Myanmar and international cooperation including WTO, disarmament and non-proliferation, and UN Security Council reform were also exchanged.
• In March 2022, Prime Minister of Japan visited India for the first time in four and a half years as Prime Minister of Japan. In May 2022, Prime Minister Mr. Narendra Modi visited Japan for the Japan-Australia-India-U.S. Summit Meeting held in Japan. The two leaders concurred to further develop Japan-India relations and work closely toward the realisation of a “Free and Open Indo-Pacific”.
• The Fourth Japan-India Cyber Dialogue was held virtually on June 30, 2022. Areas of discussion included national cyber policies and cybersecurity strategies, the recent cyber threat landscape, ICT supply chain risks and 5G policies. Both sides also discussed bilateral cooperation in the field of capacity building as well as cooperation under the UN, QUAD (Japan-Australia-India-U.S.) and ASEAN Regional Forum.