PM Modi will travel to Japan on August 30, where he will participate in the 17th annual India-Japan Summit with Japanese Prime Minister Fumio Kishida. It will be PM Modi’s 8th visit to this strategically important friend of India. The only countries he has made a large number of visits to are the USA (10), France (8), Russia (7), and the United Arab Emirates (7). The visit to Tokyo will provide an opportunity to strengthen bilateral ties. The meeting will be crucial in reinforcing India‘s strategic partnerships in the region, particularly in the face of rising tensions with the US. Interestingly, Japan too is facing steep tariffs from the US, despite remaining a very close ally of the United States for the past several decades. India and Japan have been working closely on defence and economic cooperation, and this meeting is expected to further solidify their relationship. India has been strengthening its strategic partnerships with other nations in the region, including the Philippines.
India and Japan share a “Special Strategic and Global Partnership,” rooted in strong historical and cultural ties. Their relationship is characterized by a shared vision of peace, prosperity, and a rules-based international order. Both countries are committed to a free, open, and inclusive Indo-Pacific region. The Quad (Quadrilateral Security Dialogue) plays a crucial role in this context, focusing on maritime security, cyber-security, and secure connectivity. Japan has been a key partner in India‘s “Act East Policy”. This partnership has expanded across various domains, including political, economic, and security cooperation. The India–Japan partnership is expected to remain a cornerstone of stability and prosperity in the Indo-Pacific region.
Historical and Cultural Ties
India and Japan have traditionally had a strong relationship cemented by the spread of Buddhism from India to Japan in the 6th century. The Shichifukujin or the seven lucky gods of Japan have their roots in Hindu traditions. An early documented direct contact with Japan was with the Todaiji Temple in Nara, where the consecration or eye-opening of the towering statue of Lord Buddha was performed by an Indian monk Bodhisena in 752 AD. Notable figures like Swami Vivekananda, and Nobel Laureate Rabindranath Tagore contributed to the cultural contact between India and Japan. The sole dissenting voice of Justice Radha Binod Pal at the War Crimes Tribunal struck a deep chord among the Japanese public that continues to reverberate to this day. Deepening people-to-people connections, including support for Buddhism and related studies, are areas to further strengthen ties. India and Japan have promoted sister cities like Kobe-Ahmedabad and Varanasi-Kyoto and paved the way for greater tourism opportunities especially at Buddhist sites. Around 51,000 Indians currently live in Japan. Their growing numbers had prompted the opening of three Indian schools. Military contact essentially started with Subhas Chandra Bose’s Indian National Army siding with the Japanese Imperial Army to fight the British in the Second World War even though the Indian Government and troops were supporting the British.
Economic Cooperation
As early as 1957, India became a recipient of ‘Yen’ loans. Toyota, Honda, Suzuki, Sony, Panasonic, and Hitachi, among others, are household names in India. The car manufacturing joint venture between Maruti and Suzuki was a landmark event for Indian industry. Japanese Official Development Assistance (ODA) since 1958 makes Japan a major investor in India, particularly in infrastructure projects. Japan has funded the Delhi Metro and its grant of $4 billion for the Delhi-Mumbai Industrial Corridor (DMIC), has resulted in Japanese businessmen starting to see India as a favorable destination. India is the largest recipient of Japanese development assistance. The Mumbai-Ahmedabad bullet train projects are a great example of Japanese investment and technical expertise. The Gujarat portion of the Mumbai-Ahmedabad High Speed Railway will be completed by December 2027, and the entire project is expected to be completed by December 2029. Japan currently is the third largest FDI investor in India. The Japan-India Industrial Competitiveness Partnership (IJICP) was put in place in November 2021. Japan has made a $2.7 billion investment in the India-Japan Clean Energy Partnership (CEP) projects. Japan is the largest bilateral donor to India.
Japan’s bilateral trade with India was $22.85 billion during FY 2023-24. Exports from Japan to India during this period were $17.69 billion and imports were $5.15 billion. India ranks 18th in Japan’s total trade with a 1.4 percent share, while Japan ranks 17th in India’s total trade with a 2.1 percent share. India’s primary exports to Japan are organic chemicals, vehicles, aluminum articles, fish & other aquatic invertebrates. India’s primary imports from Japan are nuclear reactors, copper articles, electrical machinery, inorganic chemicals and Iron and Steel.
Japanese FDI to India in 2023-24 stood at $3.1 billion. Cumulatively, from 2000 until December 2024, the Japanese Foreign Direct Investment to India was $43.2 billion ranking Japan fifth among source countries for FDI. The number of Japanese companies registered in India is 1400 with manufacturing firms accounting for half the total. More than 100 Indian companies are working in Japan. The India-Japan Joint Working Group on Skill Development meets regularly.
Technology Cooperation
India and Japan plan to collaborate on areas like lithium batteries, electric vehicles, and energy storage. Joint efforts in areas like modern biology, biotechnology, and ICT can lead to innovation. The two have been celebrating the India and Japan Science, Technology and Innovation year in which they have been pushing digital partnership, so that aspects of cyber-security and artificial intelligence support startups and fintech companies to invest. The India-Japan Space Dialogue allows discussions on space security, bilateral cooperation between JAXA and ISRO, their space industries and startups, global navigation satellite systems, space situational awareness (SSA), space-related rules and norms, and other areas of mutual interest. It is paving the way for joint missions between ISRO and JAXA.
The Civil Nuclear Cooperation Agreement was signed during the visit of PM Modi to Japan in November 2016. The 508.17km Mumbai-Ahmedabad High Speed Rail (MAHSR) Project with Shinkansen technology is moving on track. 2025-26 was declared as the “India-Japan Year of Science, Technology & Innovation Exchanges” to mark the 40th anniversary of the signing of the first MoU in 1985. The bilateral S&T Cooperation also has an institutional framework. Environmental Cooperation focuses on pollution control, waste management, environmental technologies and climate change, etc. The India-Japan Edu-Connect was launched on 30 September 2023.
Look East Initiative
There is synergy between India‘s Act East Policy, Indo-Pacific vision based on the principle of SAGAR, and Indo-Pacific Oceans Initiative (IPOI) on one hand, and Japan’s Free and Open Indo-Pacific Vision on the other. The India-Japan Act East Forum was established in December 2017. The Forum identifies specific projects for the economic modernization of India’s North-East region such as those pertaining to connectivity, developmental infrastructure, industrial linkages as well as people-to-people contacts. Japan has agreed to lead cooperation on the connectivity pillar of IPOI. Japan has also joined India-led initiatives such as the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI) and Leadership Group for Industry Transition (LeadIT). India and Japan are also cooperating under the Quad framework and the India-Japan-Australia Supply Chain Resilience Initiative (SCRI).
Quadrilateral Security Dialogue (QUAD)
The Quad is an informal strategic forum comprising four nations, the USA, India, Australia and Japan. One of the primary objectives of the Quad is to work for a free, open, prosperous and inclusive Indo-Pacific region. Formed in 2007, it is considered an alliance of maritime democracies, and the forum is maintained by meetings, semi-regular summits, information exchanges and military drills of all the member countries. The main motive behind the Quad is to keep the strategic sea routes in the Indo-Pacific free of any military or political influence. It is basically seen as a strategic grouping to reduce Chinese domination. The core objective of the Quad is to secure a rules-based global order, freedom of navigation and a liberal trading system.
Military and Security Links
China’s encircling of India through its ‘String of Pearls’ policy, its historic animosity and distrust of Japan, its dispute with Japan over island territories, its flexing of muscles and bulldozing the neighbours in the South China Sea, and frequent border incursions into India have pushed Japan and India closer. Signing of the ‘Japan-India Strategic and Global Partnership’ document between the two countries in December 2006 raised the level of engagement significantly. A Joint Declaration on Security Cooperation (JDSC) between India and Japan was signed in 2008. Maintaining secure sea-lanes in the Indo-Pacific region, based on the principles of international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS) is backed by both. Fighting piracy and terrorism, and checking the proliferation of weapons of mass destruction are common stated goals. Joint exercises are held between the Coast Guards of India and Japan.
The India–Japan Defence and Security partnership forms an integral pillar of bilateral ties. A Memorandum of Defence Cooperation and Exchanges was signed in 2014. The Agreement concerning Transfer of Defence Equipment & Technology Cooperation and Agreement concerning Security Measures for Protection of Classified Military information were signed in 2015. The Implementing Arrangement for Deeper Cooperation between the Indian Navy and JMSDF was signed in 2018. The Agreement concerning Reciprocal Provision of Supplies and Services (RPSS) between the Self Defense Forces of Japan and the Indian Armed Forces was signed in September 2020.
The JDSC and the Annual 2+2 Ministerial Dialogue focus on institutional defence cooperation and the reciprocal provision of supplies and services, to defence exercises and joint military drills, and strengthening naval platforms through the UNICORN (Unified Complex Radio). India and Japan participate in several joint military exercises, with the most prominent being Dharma Guardian and JIMEX. Dharma Guardian is a bilateral military exercise focusing on counter-terrorism operations. JIMEX is a naval exercise. Additionally, both countries are part of the Malabar naval exercise, which also includes the United States and Australia, among some others. The maiden India–Japan joint air exercise, named Veer Guardian 2023, took place at Hyakuri Air Base in Japan in January 2023. This exercise involved the Indian Air Force (IAF) and the Japan Air Self-Defense Force (JASDF). Japan has been an observer in many Indo-US “Cope India” air exercises. India and Japan conducted a joint air exercise, with a specific focus on transport aircraft, under the exercise name “Shinyuu Maitri” in 2023 on the sidelines of Exercise Dharma Guardian. There has been a move for a new framework for defence cooperation calling it the “Japan-India Defence Cooperation in the Indo-Pacific region”. The 12th edition of the Multilateral Naval exercise MILAN 24 was conducted at Vishakhapatnam in February 2024; Japan’s JS Sazanami participated in the exercise.
The 8th bilateral Japan-India Maritime Exercise 2024 (JIMEX 24) hosted by the JMSDF was conducted at Yokosuka in June 2024. The 5th edition of Exercise Dharma Guardian was held at the Mahajan Foreign Training Node, Rajasthan from 25 February to 09 March 2024. An IAF C17 aircraft was deployed at Kumamoto airport for the induction and de-induction of the Indian Army contingent for exercise Dharma Guardian in February-March 2025.
Defence of Japan 2025 White Paper
The Pacific military balance is tilting in China’s favour, says the new “Defence of Japan 2025” White Paper, a Defence Ministry annual document. Tokyo released the paper in early July with findings that the international community is facing its greatest risk of conflict since World War II. The paper pointed to Russia, China and North Korea as primary regional security threats. The report also found the US-China strategic competition has escalated, and that the military balance between China and Taiwan has been rapidly tilting in China’s favour. They could attempt a blockade of Taiwan. The presence of Chinese warships in the Pacific has steadily increased and the frequency of their passage off south-western Japan has tripled in the past three years, including in waters between Taiwan and the neighbouring Japanese island of Yonaguni, the report said.
Chinese bomber flight operations, and naval patrols, in the vicinity of Japan are on the increase. North Korea’s nuclear and missile developments were also highlighted as a grave threat to Japan. The importance of the US-Japan alliance was highlighted for joint deterrence. The report highlights ongoing initiatives and efforts to improve the capabilities of the Japanese Self Defence Force (JSDF). Japan is significantly bolstering its air power, particularly with the F-35 fighter jet, to counter the growing threat from China‘s expanding air force. It is conscious of the need to take on the Chinese H-6K bombers and J-20 stealth fighters, both within and beyond the First Island Chain (FIC). Also, the growing number of Chinese aircraft carriers has prompted Japan to modernize its air force and strengthen its alliances with Quad countries.
National Security Strategy (NSS)
On December 16, 2022, Japan announced its new National Security Strategy (NSS) which outlined a shift towards a more proactive and robust defence posture. Article 9 of the Japanese Constitution was a clause that renounced war as a sovereign right and permitted only self-defence forces. For a long time, Japan had a self-imposed limit on its defence budget at no more than one percent of the country’s GDP. The NSS commits to increasing Japan‘s defence budget to 2 percent of its GDP by 2027, a significant jump from the earlier limit. It calls for the development of capabilities to launch counter-strikes against potential adversaries and to disrupt invasions earlier and at greater distances. The strategy also focuses on strengthening Japan‘s domestic defence industry. It is an area for India–Japan cooperation.
Japan had offered India its ShinMaywa US-2 amphibian aircraft for surveillance, search and rescue operations, and other roles back in 2016. The subject has yet to be pursued further after initial negotiations. More recently, Japan has reportedly offered India the opportunity to participate in the Global Combat Air Program (GCAP), a sixth-generation fighter aircraft project, a joint initiative between the UK, Japan, and Italy.
To Summarise
Japan has to initially defend itself from the large PLA offensive capability. It is a tall order. China‘s official defence budget for 2025 was close to $277 billion. The Japanese defence budgets have only started going up significantly very recently. It had already hit 9.9 trillion yen ($70 billion) or 1.8 percent of GDP in 2025. Once it reaches 2 percent of GDP, it may exercise further flexibility to increase to 2.5 percent or even more.
China’s first priority is reclaiming/annexing Taiwan. Will China invade Taiwan and antagonise the entire world? Even Russia is opposed to the use of force against Taiwan. The USA, Japan, and South Korea have significant military strength. Will the USA enter a conflict against China in case China invades Taiwan? Will Japan enter such a conflict also remains a moot question. Notwithstanding, deterrence is important. The USA will be able to provide satellite-based ISR, communications and navigation, and targeting. Japanese forces will have to concentrate on air defence against cruise and ballistic missiles, and build capability and capacities. It would also need to build its own offensive weapon inventories in the long term to act as a deterrent.
Defence companies in India and Japan can co-develop and collaborate in aircraft manufacturing, radars, ship building and submarines. India and Japan can create a joint centre for training and development for cyber-security strategies and create a pool of talent of cyber-security experts. There is scope for joint work in healthcare and medicines, building digital health technologies. Other areas of cooperation can be lithium batteries, electric vehicles, and energy storage within their power grids, where currently China dominates.
Japan is one of India’s closest strategic partners. In the United Nations, both countries have supported each other in the move to attain a permanent seat at the United Nations Security Council (UNSC). Both countries have been working on the Asia-Africa Growth Corridor (AAGC) and supporting the Global South and the ASEAN countries where their focus has been on working towards digitalisation, climate change efforts, healthcare and different types of capacity development programmes. India and Japan also announced 2023 as the “India-Japan Year of Tourism Exchange” with the theme “Connecting Himalayas with Mount Fuji” which was further extended to 2024.
Apart from the annual summits, regular exchanges take place at other high levels including Foreign Minister, Defence Minister, and National Security Adviser (NSA). The 3rd round of the 2+2 Ministerial meeting was held in New Delhi on 20 August 2024. It was also the occasion for the 17th round of the Foreign Ministers’ Strategic Dialogue. During the Foreign Ministers Meeting in Washington, D.C. on 19 January 2025, the “India-Japan Science Technology and Innovation Exchange Year” was launched. Regular exchange visits have been held between parliamentarians since 2016.
PM Shinzo Abe was especially very close to India, and was conferred with the Padma Vibhushan, India’s second-highest civilian honour in 2021. PM Modi visited Japan on 27 September 2022 to participate in the State Funeral of Shinzo Abe. On 24 April 2025, PM Ishiba also called PM Modi and expressed condolences at the loss of lives in the terror attack in Pahalgam, and later for the Air India crash victims.
There is a great scope for India and Japan to work together. The desire and commitment are two-sided. PM Modi’s forthcoming summit visit will move relations further forward.
Note: The article was originally written by the Author for The First Post on 22nd August 2025; it has since been updated.
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