About 1,400 Japanese companies operate in India, nearly half of them in manufacturing.
Bilateral trade reached USD 27.5 billion in fiscal year 2025/26, while Japanese investment in India totalled USD 3.2 billion between April and December 2025, according to Indian government data.
Published: July 1, 2026, 9:21 AM IST
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Why does Japan PM’s India visit matter for Indian economy and security?
New Delhi: Japanese Prime Minister Sanae Takaichi will arrive in New Delhi today on a three-day visit for the 16th India-Japan Annual Summit. In a statement, the External Affairs Ministry said that the summit will provide an opportunity for both sides to review and strengthen the full spectrum of bilateral cooperation and exchange views on regional and global issues of mutual interest. This is Prime Minister Takaichi’s first official visit to India.
It is important to note that the visit follows Prime Minister Narendra Modi’s visit to Tokyo in August last year for the 15th India-Japan Annual Summit and reflects the shared commitment of the two countries to further strengthen the India-Japan Special Strategic and Global Partnership.
As per the schedule, Prime Minister Takaichi will be accorded a ceremonial reception at Rashtrapati Bhavan on the second day of the visit. She will then hold talks with Prime Minister Narendra Modi. The two leaders are expected to review progress in bilateral ties and discuss ways to further deepen cooperation across key sectors.
This will be followed by the exchange of Memoranda of Understanding and joint press statements. In the afternoon, Prime Minister Takaichi will participate in the India-Japan Business Forum at the national capital.
Deeper India and Japan ties on trade and security
Japanese Prime Minister Sanae Takaichi talks with Prime Minister Narendra Modi, likely to focus on boosting trade, investment, and strategic cooperation between the two Asian partners. To recall, during PM Modi’s visit to Japan, the country pledged to more than double its investment in India to more than USD 61 billion over the next decade, highlighting deepening economic ties.
In the 16th India-Japan Annual Summit, the prime ministers of both India and Japan will review progress across trade, technology, infrastructure, defence and people-to-people ties, while also addressing regional and global issues, according to a statement from Japan’s foreign ministry.
According to the reports, PM Modi and Takaichi will attend business events with executives from both countries. About 1,400 Japanese companies operate in India, nearly half of them in manufacturing.
Bilateral trade reached USD 27.5 billion in fiscal year 2025/26, while Japanese investment in India totalled USD 3.2 billion between April and December 2025, according to Indian government data.
Discussion on security:
Reports also suggest that the leaders are also expected to discuss security cooperation and efforts to advance a free and open Indo-Pacific. Notably, both India and Japan are members of the Quad grouping alongside the United States and Australia. In the due course of time, they have steadily expanded defence and strategic collaboration in recent years.
Japan is among India’s largest investors, backing major infrastructure projects including a high-speed rail corridor between the cities of Mumbai and Ahmedabad. Japanese firms have also increased investments in Indian companies, including a recent USD 1.6 billion deal for a 20% stake in Yes Bank.
Focus on cooperation in the Indo-Pacific
India and Japan are expected to focus on cooperation in the Indo-Pacific as well as new projects on critical and emerging technologies as Japanese Prime Minister Sanae Takaichi arrives on Wednesday (July 1, 2026) evening for her first visit to New Delhi as Prime Minister.
“India is an indispensable partner in advancing the updated Free and Open Indo Pacific put forward by Prime Minister Takaichi. It is important that Japan and India jointly promote the maintenance and strengthening of a free and open international order based on the rule of law,” diplomatic sources said to The Hindu. They also indicated that the two sides will announce a joint declaration on economic safety cooperation and a joint statement on cooperation in the field of AI during the visit.
Defence cooperation against regional challenges
Notably, India and Japan share concerns over China’s growing military assertiveness in the Indo-Pacific. Maritime security, military exercises, and defence technology cooperation are expected to feature prominently when prime ministers of both the countries meet on Thursday. Unlike earlier summits focused mainly on trade, this visit will emphasise “economic security”—protecting critical technologies, supply chains and energy resources from geopolitical disruptions.
New Announcements Likely:
A series of major announcements could be made during the visit, particularly in areas that are likely shape India’s economic and strategic future. These include fresh Japanese investments in manufacturing and technology sectors, new partnerships in semiconductors and artificial intelligence, and agreements on LNG supplies and clean energy cooperation aimed at strengthening India’s energy security.
The visit could also result in more focus on defence and maritime engagement as both countries seek to ensure stability in the Indo-Pacific region. In addition to these, announcements related to infrastructure development, industrial corridors and high-speed rail projects are expected to feature prominently in the discussions.
