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India-Japan ties — old partners, new priorities

26 Aug 2025
2 min

Overview of Prime Minister's Visit to Japan and China

The visit by Prime Minister to Japan and China is a crucial diplomatic engagement amidst global geopolitical changes. This visit is significant against the backdrop of fluctuating relationships, particularly with the United States.

Japan's Investment in India

  • Investment Plan: Japan has announced an ambitious ¥10 trillion (approximately $68 billion) investment in India over the next decade.
  • Focus Areas: The investment will target infrastructure, manufacturing, clean energy, and technology partnerships.
  • High-Speed Rail Collaboration: Japan's investment in the Mumbai-Ahmedabad high-speed rail corridor demonstrates economic collaboration and technology transfer.

Strategic and Security Cooperation

  • Security Partnership: India and Japan are expected to revise the 2008 Joint Declaration on Security Cooperation.
  • Economic Security Initiative: This initiative will focus on semiconductors, critical minerals, pharmaceuticals, and clean energy.
  • Digital Partnership Upgrade: New areas of cooperation include artificial intelligence and startup ecosystems.

Geopolitical Context and Balancing

  • Engagement with China: Despite past tensions, there are signs of stabilizing relations between India and China.
  • US Relationship: Uncertainty about US-India ties due to the Trump administration's policies.
  • Strategic Balancing: India's engagement with both Japan and China reflects its strategic balancing act.

The Quad and Indo-Pacific Strategy

  • Quad Importance: The Quad (India, Australia, Japan, the US) remains essential to India's Indo-Pacific vision.
  • Challenges: US episodic engagement under Trump raises concerns about the Quad's strategic coherence.

Significance of Japan's Role

  • Japan is emerging as India's anchor partner amidst geopolitical uncertainty.
  • Japan offers consistency, resources, and a shared strategic outlook anchored in democratic values.

Overall, Prime Minister's visit underscores India's strategic clarity and flexibility in diplomacy, with Japan as a key ally in navigating Indo-Pacific challenges.

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