Latest News

After Modi-Takaichi's talks, India and Japan sign pacts in AI, metals, energy, and other areas

India and Japan signed pacts to enhance their cooperation in metals, energy and artificial intelligence on Thursday, Indian Prime Minister Narendra Modi announced after his talks with Japanese counterpart Sanae Takaichi.

Takaichi has been in New Delhi for a three-day trip as the two Asian partners celebrate their 16th annual summit.

Modi told reporters that the convergence of Japan’s precision technology with India’s software capabilities would give global AI development a new vigor and strength.

According to Indian government statistics, bilateral trade between India and Japan reached $27.5 billion during the fiscal year 2025/26. Japanese investment in India was $3.2 billion from April 2025 until December 2025.

Modi announced that both countries, which are members of the Quadrilateral grouping, had signed an agreement for their first joint development project in the defense sector.

He added, "Through the India-Japan Bio-gas Initiative we will establish 1,000 bio-gas plants and organic fertilizer factories in India."

Japan is one of India's biggest investors. It has backed major infrastructure projects, including a high-speed railway corridor connecting Mumbai and Ahmedabad. Japanese firms have increased their investments in Indian companies, including a $1.6 billion deal to buy a 20% stake at Yes Bank.

Takaichi will be speaking at a conference on business later in the day with a 'large business delegation. (Reporting and writing by Tanvi Mhta; editing by YPrajesh).

(source: Reuters)