India-Japan partnership outlined: Key deals running through 2035

• 2025-2035: 10 trillion yen investment across technology, clean energy, semiconductors, rare earth minerals, pharmaceuticals, and digital industries.

• Next five years: Human resource exchange plan for 500,000 personnel, including 50,000 skilled Indians.

• Early 2030s: Deployment of Shinkansen high-speed rail technology and related infrastructure upgrades.

• Ongoing: Economic Security Initiative, Sustainable Fuels Initiative, and Battery Supply Chain Partnership.

The agreements establish a structured roadmap for economic and strategic alignment but carry risks related to dependency, regulatory concessions, and regional diplomatic positioning.

During Prime Minister Narendra Modi’s visit to Tokyo in August 2025, India and Japan signed 21 agreements and memoranda of understanding (MOUs) aimed at shaping bilateral trade, technology, and strategic engagement over the next decade.

Central to the visit was Japan’s commitment to invest 10 trillion yen (around $67-68 billion) in India over the next ten years. The investments are directed at technology, digital industries, semiconductors, clean energy, rare earth minerals, pharmaceuticals, and information and communication technology (ICT).

Initiatives include linking Indian and Japanese small and medium enterprises (SMEs), startups, and innovation-driven industries, alongside industrial collaboration under the Make in India programme.

The Economic Security Initiative was launched to enhance supply chain resilience in semiconductors, telecom, and batteries. Defence and security cooperation, including joint exercises and logistical agreements, was expanded, while ISRO and JAXA agreed on collaboration for a lunar mission.

Plans for people-to-people exchanges and state-prefecture cooperation envisage movement of 500,000 personnel over five years, including 50,000 skilled Indian professionals in Japan.

The agreements do not introduce new tariff reductions; trade in goods remains under the 2011 Comprehensive Economic Partnership Agreement (CEPA), which already removed most tariffs.

Instead, the focus is on private investment, technology sharing, and sector-specific cooperation, particularly in AI, ICT, pharmaceuticals, and clean energy. Service sector access is enhanced through high-value sectors, building on CEPA’s liberalised framework.

Economic and Strategic Considerations

The planned Japanese investment could support industrial expansion, infrastructure development, technology transfer, and growth in high-value exports. Emphasis on clean energy, solar technology, and green hydrogen aligns with India’s sustainability objectives. High-speed rail upgrades demonstrate the use of Japanese technology in domestic infrastructure.

However, there are potential drawbacks. India’s deeper defence cooperation with Japan may complicate its regional diplomacy, particularly regarding China. The scale of Japanese investment in strategic sectors could create economic dependency or require policy adjustments favourable to foreign firms.

The large-scale human resource exchange may affect domestic talent retention and workforce integration. Commitments to supply chain partnerships and strategic industries increase reliance on Japanese technology and capital.