India, Japan sign key agreements on AI, Defence, Energy, and Economic Security

Mangalore Today News Network

New Delhi, Jul 2, 2026: India and Japan on Thursday signed a series of agreements aimed at strengthening cooperation in artificial intelligence (AI), critical metals, energy, and economic security following bilateral talks between Prime Minister Narendra Modi and his Japanese counterpart Sanae Takaichi.

Takaichi is on a three-day visit to New Delhi to attend the 16th India-Japan Annual Summit, reflecting the growing strategic partnership between the two Asian nations.

Addressing the media after the talks, Prime Minister Modi said the two countries had also prepared a joint roadmap to enhance economic security.

"The convergence of Japan’s precision technology and India’s software capabilities will provide new momentum and strength to global AI development," Modi said.

According to Indian government data, bilateral trade between India and Japan reached USD 27.5 billion in the 2025-26 financial year. Japanese investments in India stood at USD 3.2 billion between April and December 2025.

Modi also announced that the two Quad partners had signed an agreement for their first joint defence co-development project, marking a significant milestone in bilateral defence cooperation.

In the clean energy sector, he said the two countries would establish 1,000 biogas and organic fertiliser plants across India under the India-Japan Biogas Initiative.

Japan remains one of India’s largest foreign investors, supporting major infrastructure projects, including the Mumbai-Ahmedabad high-speed rail corridor. Japanese companies have also expanded investments in Indian businesses, including a recent USD 1.6 billion investment to acquire a 20 per cent stake in Yes Bank.

Takaichi is accompanied by a high-level business delegation and is scheduled to address a business conference in New Delhi later on Thursday.