Gajendra Singh Godara
Aug 31, 2025
20
mins read
India and Japan relationship is rooted in historical cultural ties and common democratic values. Over the years, this partnership has evolved into a Special Strategic and Global Partnership (2014) covering defence, trade, infrastructure, and people-to-people links. As leading Asian democracies and major economies, both nations cooperate closely in the Indo-Pacific to promote a free, open, and inclusive region. Japan is also India’s largest aid donor and a key investor, while India offers Japan a trusted strategic partner in Asia. The India–Japan relationship today is a multi-faceted pillar of regional stability and a vital element of India’s Act East engagement.
Prime Minister Modi’s Japan Visit (Aug 29–30, 2025): Prime Minister Narendra Modi visited Tokyo for the 15th India-Japan Annual Summit – his first summit with Japan’s new Prime Minister Shigeru Ishiba. This visit (Modi’s 8th to Japan) aimed to further consolidate the Special Strategic and Global Partnership amid regional uncertainties.
Major Investment Pledge: During the summit, Japan announced an ambitious investment plan of ¥10 trillion (≈$68 billion) in India over the next decade.
Table of content
Ancient Cultural Bonds: India and Japan have enjoyed civilizational ties for centuries, with Buddhism spreading from India to Japan in the 6th century, creating a cultural affinity.
Post-WWII Diplomacy: In 1952, the two countries signed a Peace Treaty, formally establishing diplomatic relations after WWII. Japan started Official Development Assistance (ODA) to India as early as 1958, reflecting early post-war cooperation.
“Global Partnership” (2000): A new chapter began with Prime Minster Yoshiro Mori’s 2000 visit, when India–Japan ties were elevated to a Global Partnership under Prime Minster Atal Bihari Vajpayee. Annual summit meetings were instituted, making Japan one of India’s oldest regular summit partners (alongside Russia).
Growing Strategic Alignment: Relations deepened in the 2000s – a Strategic and Global Partnership was declared in 2006, and in 2014 it was upgraded to a Special Strategic and Global Partnership, signifying shared global interests. Notably, close personal rapport between PM Narendra Modi and former PM Shinzo Abe gave a strong strategic thrust to the relationship.
Recent Milestones: The two nations declared 2017 as the Year of Japan-India Friendly Exchanges (marking 60 years of a cultural agreement). In 2022, they launched a Japan-India Vision 2025 to guide the partnership for the next decade. Frequent high-level visits continued, including annual summits (except pandemic disruptions), underpinning a consistent strategic dialogue.
From Look East to Act East:
India’s Act East Policy (AEP), launched in 2014, is an upgraded version of the earlier Look East Policy (1992).
It marked a shift from passive outreach to proactive engagement with East and Southeast Asia.
The AEP broadened India’s focus beyond ASEAN to include East Asian and Pacific countries like Japan, South Korea, and Australia.
It emphasizes not just economic ties but also strategic and cultural cooperation with the wider Indo-Pacific region.
Objectives of Act East:
Key goals include strengthening trade, connectivity, and defense links with Southeast Asia, counter-balancing China’s influence, and integrating India’s northeast with the neighbouring economies.
North-East India is a gateway for Act East, with projects like the India–Myanmar–Thailand trilateral highway improving connectivity.
Alignment with Japan’s Free and Open Indo-Pacific VIsion:
Act East dovetails with Japan’s Free and Open Indo-Pacific (FOIP) vision. Both seek a stable, rules-based regional order.
Japan leads the Connectivity pillar of India’s Indo-Pacific Oceans Initiative and partners with India on infrastructure projects in Asia and Africa, such as the Asia-Africa Growth Corridor (a joint India-Japan initiative.
Key Initiatives:
Under Act East, India engages in regional forums like ASEAN, East Asia Summit, and signs connectivity and trade agreements. Japan has been pivotal in India’s Act East success e.g. development of India’s northeast infrastructure, collaboration in ASEAN forums, and defence of Indo-Pacific maritime commons via forums like the Quad.
Read Quadrilateral Security Dialogue (Quad) blog for Indo-Pacific security cooperation.
Defence and Security Cooperation
Strategic Agreements:
Joint Declaration on Security Cooperation (2008) - institutionalized regular dialogues.
Defence Cooperation MoU (2014) → enhanced military exchanges.
Information Security Agreement (2015) → enabled intelligence sharing.
ACSA (Reciprocal Provision of Supplies and Services Agreement, 2020) - military logistics support.
Joint Military Exercises:
Malabar (naval; with US & Australia).
JIMEX (India–Japan bilateral naval).
Dharma Guardian (army).
Milan (multilateral naval).
Coast Guard joint exercises.
2024: All three service chiefs from both sides participated → sign of growing integration.
Maritime Security & Indo-Pacific:
Cooperation in maritime domain awareness & anti-submarine warfare.
Japan joined Malabar permanently.
Both are Quad core members → ensuring free sea lanes.
Japan leads the Connectivity pillar of IPOI; aligns with India’s SAGAR vision.
Defence Technology:
Joint development of UNICORN naval radar mast (2024).
Japan relaxed arms export → possibility of US-2 amphibious aircraft transfer.
Agreement to upgrade 2008 security framework for new threats.
Economic, Trade & Infrastructure Cooperation
Trade Trends:
Bilateral trade reached approximately $23 billion in 2023-24, remaining deficit-heavy despite CEPA tariff reductions since 2011.
India runs a deficit → exports (chemicals, auto parts, steel, seafood); imports (machinery, electronics, steel).
CEPA (2011) reduced tariffs, but non-tariff barriers remain.
Trade accounts for only ~2% of India’s total → under-utilized potential.
Japanese Investment in India:
5th largest FDI source.
Cumulative: $43 bn till Dec 2024.
Annual inflow: ~$3 bn (2023–24).
1,400+ Japanese firms in India (Suzuki, Toyota, Sony, Honda).
100+ Indian firms in Japan.
Infrastructure & Official Development Assistance (ODA):
Japan = largest ODA donor since 1958.
2023–24 ODA: JPY 580 bn (~$4.5 bn).
Key projects: Delhi Metro, Dedicated Freight Corridors, industrial townships.
Mumbai–Ahmedabad Bullet Train (MAHSR) → Shinkansen tech, Make in India components.
Plans for broader mobility partnership → rail, roads, bridges.
Economic Initiatives:
Economic Security Dialogue (2022): supply chains, semiconductors, rare earths.
Proposed Economic Security Initiative → AI, 5G, critical minerals.
Clean Energy Cooperation (solar, hydrogen).
Focus on Smart Cities & Start-ups.
Investment targets: achieved ¥5 tn by 2022 → new goal of ¥7–10 tn by 2030.
Development Cooperation & Connectivity
Northeast Connectivity:
ODA projects in roads, bridges, water supply, healthcare.
Supports India’s Act East Policy → links NE India with ASEAN.
Quality Infrastructure:
Japan’s Partnership for Quality Infrastructure aligns with India’s needs.
Joint projects in Sri Lanka, Myanmar, Africa → Asia–Africa Growth Corridor.
Metro & Smart Cities:
Supported Delhi, Chennai, Bengaluru Metros.
Active in Smart Cities Mission.
Japanese expertise in urban planning & disaster management.
People-to-People, Cultural & Educational Ties
Cultural Links:
2022: Japan–Southwest Asia Exchange Year.
2023–24: Year of Tourism Exchange (“Himalayas–Fuji”).
Buddhism, folklore, yoga, cuisine → soft power.
Anime & Japanese food are gaining popularity in India.
Tourism & Connectivity:
Pre-COVID tourist flow: ~250k annually.
Efforts to simplify visas.
Japan funds Buddhist site development (Sarnath, Bodh Gaya).
Educational & Skill Partnerships:
665+ university linkages.
Japanese language teaching programs in India.
India’s IT professionals are valued in Japan.
TITP & Specified Skilled Worker → Indian youth in Japanese industries.
Scholarships (MEXT) for Indian students.
Indian Diaspora in Japan:
~54,000 Indians (2024).
Mainly IT, engineering, academia, business.
State-to-prefecture partnerships (e.g. Gujarat–Hyogo).
Multilateral & Global Cooperation
Indo-Pacific & Quad:
Partners in Quad (with US & Australia).
Quad focuses on maritime security, climate, technology.
SCRI (Supply Chain Resilience Initiative) co-founded with Australia.
Global Governance:
Japan supports India’s UNSC permanent seat bid.
Cooperation in UN reforms, G20, G7 outreach.
Japan joined ISA & CDRI.
Both support the Paris Accord & SDGs.
Regional Initiatives:
Active in EAS, ARF, ADB, IORA.
Joint projects in South Asia (e.g. Colombo Port, Sri Lanka).
IPOI: Japan leads the Connectivity pillar.
Common Stance on Global Issues:
Support rules-based order, freedom of navigation (South China Sea).
Joint stance on terrorism (e.g. Pulwama 2019).
Concern on North Korea’s nuclear program.
Collaboration on WTO reform.
Despite strong ties, some differences persist in the India-Japan relationship:
China Policy: Japan takes a more openly critical stance on Chinese assertiveness (East China Sea, Taiwan), while India, given its own border issues, is more cautious and avoids direct comments on China-Taiwan tensions. India’s approach to China is balanced (“cooperate and compete”), whereas Japan under its US alliance tends to align more with Western positions on Indo-Pacific security.
Russia–Ukraine War: Japan (as a G7 member) imposed sanctions on Russia after the Ukraine invasion, but India maintained a neutral stance and continued robust trade with Russia. This divergence in approach to Russia’s actions is a notable difference – India emphasizes dialogue and its own interests (e.g. energy security), whereas Japan toes the Western line on sanctions.
Trade and Regulatory Issues: Economic ties, while cordial, face issues. India’s regulatory environment and past protectionist measures have been concerns for Japanese investors. Conversely, India has raised market access issues (e.g. for its pharma and services) in Japan. Data governance was a point of disagreement – India did not join the Osaka Track (Japan’s initiative on digital economy rules) citing concerns over data sovereignty.
Delayed Projects: Some Japanese-funded projects in India have seen delays due to land acquisition or bureaucratic hurdles (e.g. the high-speed rail project faced land acquisition delays). Such issues occasionally cause frustration, though both sides work through them via high-level monitoring.
Overall, these differences are manageable and have not derailed the broader partnership. Both nations engage in frank discussions to bridge policy gaps, reflecting the maturity of the relationship.
Regular Summit Meetings
Institutionalised PM–PM Annual Summits (since 2006); ties were earlier elevated in stages: Global Partnership (2000) → Strategic & Global Partnership (2006) → Special Strategic & Global Partnership (2014).
Venue/rotation: usually alternating between India and Japan; occasional sidelines formats when required.
Recent cadence:
Strategic Vision Documents (issued around summits)
2018 India–Japan Vision Statement: reaffirmed FOIP convergence; packaged sectoral “Fact Sheets” (defence, ODA, Act East Forum, digital partnership, rail, language).
FOIP & Act East alignment: Japan’s FOIP speech in New Delhi and India’s Shangri-La (2018) address frame the shared Indo-Pacific outlook.
Civil Nuclear Agreement: signed Nov 11, 2016 (Tokyo); entered into force July 20, 2017 a landmark enabling Japanese nuclear tech exports to India.
14th Summit (2022) – Key Takeaways
Investment pledge: ¥5 trillion (~$42 bn) over 5 years announced by PM Kishida in New Delhi.
Post-COVID agenda: joint statement emphasized supply chains, digital cooperation, climate action; marked 70 years of diplomatic ties.
15th Summit (2025, Tokyo) – Outcomes
Investment target upgraded: ¥10 trillion (~$67–68 bn) over the next decade (private-sector-led), building on the 2022 pledge.
Economic security & tech: push on semiconductors, AI, space, critical minerals, digital partnership; leaders visited a semiconductor plant in Sendai.
Defence/strategic: agreement to deepen Indo-Pacific defence cooperation and logistics/interoperability within existing frameworks (Quad context highlighted).
Symbolic diplomacy: Shinkansen ride Tokyo→Sendai by both PMs underscored HSR cooperation and skills training links.
UPSC CSE Prelims 2011: With reference to the “Look East Policy” of India, consider the following statements:
India wants to establish itself as an important regional player in East Asian affairs.
India wants to plug the vacuum created by the termination of the Cold War.
India wants to restore the historical and cultural ties with its neighbors in Southeast and East Asia.
Which of the statements given above is/are correct?
1 only
1 and 3 only
3 only
1, 2 and 3
Answer: d. 1 and 3 only
UPSC CSE Mains 2019 (GS II): “The time has come for India and Japan to build a strong contemporary relationship, one involving global and strategic partnership that will have a great significance for Asia and the world as a whole.” Comment. (10 marks)
Q. Why is the India and Japan relationship significant for both countries?
A. The India-Japan relationship is significant because it blends economic synergy (investment, trade, development aid) with strategic cooperation (maritime security, defence exercises).
Q. What were the outcomes of the 15th India-Japan Annual Summit 2025?
A.Key outcomes included Japan’s pledge of ¥10 trillion investment in India over the next decade, agreement to launch a new Economic Security Initiative (focusing on semiconductor supply chains, AI, critical minerals), plans to upgrade defence cooperation frameworks, and initiatives in digital tech and clean energy.
Q. How does India’s Act East Policy differ from the Look East Policy? (UPSC Perspective)
A. Look East Policy (LEP) was India’s 1990s strategy (launched 1992 under PM Narasimha Rao) to engage Southeast Asia economically and culturally after the Cold War. Act East Policy (AEP), introduced in 2014, broadened and intensified this approach. The AEP not only covers Southeast Asia but also extends to East Asia and the Pacific (including Japan, South Korea, Australia).
Q. Why are India-Japan relations important for UPSC preparation (Prelims & Mains)?
A. India-Japan relations are a high-yield topic for UPSC because they encompass multiple syllabus areas: international relations (bilateral ties, regional groupings like Quad, SCRI), economy (trade, investment, ODA, infrastructure development), security (defence exercises, maritime strategy), and cultural exchange.
India–Japan relations today represent a model bilateral partnership in Asia, characterized by a high level of trust and convergence. The two countries have successfully transcended their historical ties of culture to build a modern multidimensional alliance – from infrastructure building in India to joint naval exercises in the Indo-Pacific.
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