Amid US chill, warmth in Tokyo: 10-trillion yen investment, digital ties

Describing the talks as “productive” and “purposeful”, Modi said “strong democracies are natural partners in shaping a better world”.

He spelt out key sectors for partnership that included environment, technology, health, mobility and people-to-people ties besides a slew of key initiatives in the next generation mobility partnership, digital partnership 2.0 and AI cooperation initiative. He said semiconductors and rare earth minerals will remain at the top of their agenda.

Ishiba by his side, Modi said, “We have set a goal of investment of 10 trillion yen from Japan in India in the next 10 years. Special emphasis will be laid on connecting India and Japan’s small and medium enterprises and startups.”

The two sides had set a target of 5 trillion yen for public and private investments and financing by 2026. That, sources said, had already been achieved in 2025, and the target was increased to 10 trillion yen.

This comes amid concerns in India that US tariffs, which have strained ties between Delhi and Washington, may hit the domestic MSME sector in the coming days.

Modi said his visit heralds a new chapter in the India-Japan partnership. “We agree that as the two largest economies of the world and living democracies, our partnership is essential not just for the two countries but also for global peace and security. Strong democracies are natural partners in shaping a better world,” he said.

“Today, we have laid the foundation of a new and golden chapter in our special strategic and global partnership. We have charted a roadmap for the next decade with investment, innovation, economic security, environment, technology, health, mobility and people-to-people exchanges at the centre of our vision,” he said.

“Our joint credit mechanism is a big win for energy. It shows that our green partnership is as strong as our economic partnership. In this direction, we are also launching the sustainable fuels initiative and the battery supply chain partnership,” he said.

“We are launching the Economic Security Cooperation Initiative. Under this, we will move forward with a comprehensive approach in critical and strategic areas,” he said.

“Cooperation in the field of high technology is a priority for both of us. In this context, Digital Partnership 2.0 and AI cooperation initiatives are being taken. Semiconductors and rare earth minerals will remain at the top of our agenda,” he said.

In his address, Ishiba recalled the cultural and spiritual bonds between the two countries: “Our relationship dates back to the 6th century, when Buddhism was introduced to Japan. We have a long shared relationship culturally and spiritually, we are able to influence each other.”

The two sides agreed on an annual dialogue of their National Security Advisors who will take comprehensive stock of the security situations facing India and Japan.

A dialogue on Economic Security, including Strategic Trade and Technology, between India’s Foreign Secretary and Japan’s Vice-Minister for Foreign Affairs was also established.

Also, a high-level dialogue aimed at joint and cross-services cooperation between the Japan Self-Defense Forces and the Indian Armed Forces was set up.

On furthering cooperation in defence and security, Modi said India and Japan are committed to a free, open, peaceful, prosperous and rules-based Indo-Pacific. “We have common concerns about terrorism and cyber security. We have common interests in defence and maritime security. We have decided to further strengthen our cooperation in the field of defence industry and innovation,” he said.

“Under the human resource exchange action plan, exchange of 5 lakh people will be encouraged from both sides in different fields in the next five years. In this, 50,000 skilled Indians will actively contribute to the economy of Japan,” Modi said.

“The partnership between India and Japan will not be limited to Delhi and Tokyo. Now the engagement will deepen through institutional cooperation between Indian states and Japanese prefectures. This will open new doors for trade, tourism, education and cultural exchanges,” he said.

Later, Foreign Secretary Vikram Misri said, “In addition to bilateral issues, the two Prime Ministers also discussed the regional and global situation. And, it was clear that in the midst of considerable geopolitical flux, the ties between India and Japan remain a pillar of stability in the international system.”

“Both the Prime Ministers exchanged views on the global situation, the impact that some of these moves have had, and how that essentially creates the ground and the logic for closer cooperation between India and Japan, especially in the field of business, the economy, supply chains, making them more resilient, diversifying our resource bases and our supply chains as well.”

Modi also invited Ishiba to India for the next edition of the annual summit. The two leaders are expected to take a bullet train to Sendai, a city known for its semiconductor prowess.

Former Japanese Prime Ministers Yoshihide Suga and Fumio Kishida called on Modi. In a post on X on his “wonderful meeting” with Kishida, Modi said, “He has always been a great advocate of closer India-Japan relations. We discussed the progress in our bilateral partnership across trade, critical technologies and human resource mobility. We also discussed the vast potential in emerging areas such as technology and semiconductors.”

After meeting Suga, who is chairman of the Japan-India Association, Modi said, “Our discussions covered how to build closer collaboration, including in technology, AI, trade, investment and beyond.” He also met Fukushiro Nukaga, Speaker of Japan’s House of Representatives.