India and Japan deepen strategic, economic and technology cooperation.
Defence & Semiconductors
Indian Prime Minister Narendra Modi hosted Japanese Prime Minister Sanae Takaichi in Hyderabad House in New Delhi.
Following the bilateral talks, both leaders signed the Memorandum of Cooperation.
The areas of discussion included investments, defence, and semiconductors cooperation.
Furthermore, discussions on cooperation in critical minerals and resilient supply chains took place.
Maritime security and regional and global issues were also part of the agenda.
The bilateral discussion was held during the 16th India-Japan Annual Summit.
Prior to the summit, India had accorded a ceremonial Guard of Honour for Prime Minister Takaichi at Rashtrapati Bhavan.
This is the first ever visit of Prime Minister Takaichi to India as Prime Minister of Japan.
During the three-day tour, she will participate in the India-Japan Business Forum.
India and Japan will discuss the expansion of investments and economic cooperation between both nations.
On the other hand, both India and Japan are working to reduce reliance on the US dollar for transactions.
Both countries are looking at direct transactions through Indian Rupee and Japanese Yen.
These Japanese firms will set up exclusive accounts in Indian banks for transacting business in the local currency.
This move comes in the wake of a pact that was signed during the visit of Mr Modi to Japan last year.
A cooperation agreement will be signed by the Finance Ministry of Japan with the Reserve Bank of India.
The purpose of this agreement is to promote the use of local currencies.
The economic relations between India and Japan keep improving consistently.
The bilateral trade in India-Japan stands at $27.5 billion in the financial year 2025-26.
Japan has invested $3.2 billion in India from April 2025 to December 2025.
In addition, Japan intends to make investments more than $61 billion in India in the coming ten years.
There are roughly 1,400 Japanese firms working in India.
Also, Mr Modi and Mrs Takaichi will launch the Kharkhoda manufacturing plant of Maruti Suzuki India in the state of Haryana.
It marks a landmark achievement in terms of industry cooperation.
This plant has been constructed after investing ₹35,000 crore.
This plant will manufacture one million vehicles each year.
Moreover, the manufacturing unit will create more than 21,000 direct employment opportunities.
Defence & Semiconductors
