Japan PM Takaichi and PM Modi Unveil Economic Framework, Defence Pact in India Visit
India and Japan on Thursday announced an economic partnership framework and an agreement to co-develop military hardware, following talks between Prime Minister Narendra Modi and his Japanese counterpart, Sanae Takaichi. The leaders also pledged to strengthen cooperation in energy and critical technology.
This is Prime Minister Takaichi's first visit to India. It comes a year after the two countries expanded cooperation in areas such as economic security and digital partnerships, and amid growing geopolitical uncertainty in the Indo-Pacific region. Regional security and economic resilience featured prominently in Takaichi's statements before the visit.
Before departing for India, Takaichi said the visit was taking place 'at a time when the international situation is becoming increasingly uncertain' and that 'cooperation with India, which shares fundamental values and strategic interests with Japan, is becoming more important than ever'. Her remarks placed the visit in the context of shifting regional dynamics, highlighting emerging challenges and the importance of the India-Japan partnership for stability and security.
Takaichi's India visit follows a series of diplomatic engagements in recent months, including trips to Australia, Vietnam, and South Korea. These visits have reinforced Japan's relations with those countries and reiterated its Free and Open Indo-Pacific (FOIP) vision, which marks its tenth anniversary this year. In her message, Takaichi said: 'To fulfill Japan's responsibilities, and indeed, to play an even more proactive role than ever before in building an international order based on freedom, openness, diversity, inclusiveness, and the rule of law.'
Japan's recent diplomatic outreach has been shaped by two developments: the perceived reduction in the United States' regional role and China's intensifying economic coercion and growing military activities, particularly in the South China Sea and the Sea of Japan. India is central to Japan's Indo-Pacific strategy. The concept was first articulated by former Japanese Prime Minister Shinzo Abe in a 2007 address to the Indian Parliament, and the New Plan on FOIP was announced by former Prime Minister Kishida Fumio in India in 2023.
Takaichi's visit to India follows the announcement of Japan's updated FOIP vision during her trip to Vietnam in May. The framework emphasises three priority areas: 'building economic infrastructure for the age of AI and data, including strengthening supply chain resilience for energy and critical materials'; 'co-creation of economic growth opportunities through public-private collaboration and rule sharing'; and 'enhancing cooperation in the field of security to ensure regional peace and stability'.
Economic security has emerged as a major pillar of Japan's Indo-Pacific policy. During the energy crisis stemming from the conflict in West Asia, Japan announced $10 billion in financial aid under the POWERR (Partnership on Wide Energy and Resource Resilience) Asia initiative, aimed at helping countries in the region procure and stockpile energy resources. Japan also released 50 days' worth of oil reserves to ease supply chain disruptions. Additionally, Tokyo has worked to enhance regional supply chain resilience for energy and resource security. During Takaichi's trip to Australia, Japan signed a joint declaration and statement on economic and energy security and finalised deals to cooperate on critical mineral supply chains. Similarly, her diplomatic engagements with South Korea strengthened cooperation in areas such as energy security and critical materials.
