PM Narendra Modi is in Japan for the 15th annual India–Japan summit; will meet PM Shigeru Ishiba.
Buzz is Japan will double its target of FDI into India from 5 to 10 trillion yen by 2027.
India seeks job opportunities in Japan with signs the US less welcoming to H1B visa holders.
Prime Minister Narendra Modi leaves this morning (August 29, 2025) for Japan for a two-day visit during which he is scheduled to meet his Japanese counterpart, Shigeru Ishiba, and hold talks on "shaping the next phase" in the "Special Strategic and Global Partnership" between the two countries. The visit comes amid widespread global economic and geopolitical churn as tariff wars unsettle trade flows.
Before leaving for Tokyo, Modi said in a statement that India and Japan would focus on developing the steady and significant progress in ties they have made over the past eleven years. He said that the two nations would endeavour to give "new wings" to their existing collaborations, expanding their ambitions in the economic and investment fields. The specific sectors for expanded relations mentioned in the statement include the new and emerging technologies in the Artificial Intelligence and semiconductor sectors.
India and Japan have had excellent political relations and are long-time strategic partners working together in the Indo-Pacific region through QUAD, the India, Japan, US, Australia grouping, that China views as a policy to contain its growing clout in the region. Modi’s visit is expected to reaffirm strong bilateral ties as the two Asian economies look to shield themselves from U.S. trade shocks.
“The Modi visit to Japan, though an annual feature, comes at an important inflection point globally and for the Indo-Pacific. Japan is a steadfast pole and friend of India and to intensify relations with it at this time is extremely important,’’ says retired Ambassador Gurjit Singh, just back from a visit to that country. “Japan has announced a new regional approach, where India and Africa will be part of a regional community with which Japan would like to engage. This trilateral approach is welcome. I expect that during the Modi visit some ideas on this will be fleshed out and a clearer approach will emerge,’’ the ambassador explains.
Prime Minister Narendra Modi is in Japan for the 15th annual India–Japan summit, where he will hold candid discussions with his host, Prime Minister Shigeru Ishiba, on bilateral ties and global issues. The annual summit with Japan began in 2006, at that time it was the second country besides Russia, that India held yearly meetings at the highest level, indicating the importance of the relations. The summit allows leaders to review bilateral ties and give political guidance to set future goals. Today, India–Japan ties are broad-based and well-structured, with regular ministerial dialogues in the “2+2” format between defence and foreign ministers, as well as exchanges between the National Security Advisors. Together, these engagements provide a comprehensive framework that integrates security, economic, and political cooperation.
“The mechanism of an annual summit is a very important platform to give direction and thrust to bilateral relations. This visit will see some big ticket agreements, as well as review sectors where progress has been slow,’’ says Deepa Wadhwa, India’s former ambassador to Japan.
Clutch of agreements to be signed
A score of agreements are expected to be signed during the visit, though specifics as always are not revealed till the signing ceremony is done. There is talk of agreements on defence, mobility, renewable energy, as well as speculation of some major investment announcements.
Japanese companies have been operating in India for several decades, many of them like Maruti Suzuki are household names. Other prominent companies are Honda, Toyota, Sony, and Panasonic, with strong investments in the automotive, electronics, and manufacturing sectors. As also Hitachi, NEC, and Denso. Ahead of his trip to Japan Prime Minister Modi inaugurated and flagged off the “e Vitara’’ Suzuki’s first made in India Electric Vehicle, in his home state of Gujarat. “Make in India, Make for the World, EV vehicles made in India to be exported to 100 countries from today, hybrid battery electrode manufacturing is also starting today,’’ the PM said. It is these kinds of investment opportunities that India is now looking for world-wide. And Suzuki has answered Modi’s call.
“The buzz is that Japan will double its target of FDI into India from the five trillion yen up to 2027, to 10 trillion yen in the next five years. This is a significant approach and will encourage Japanese companies to move to India, either as China-Plus-One or as direct approaches to India in deeper and diverse sectors like semiconductors, electronics and the like,’’ says Ambassador Gurjit Singh. China-Plus-One refers to a strategy in which companies avoid investing only in China and diversify to alternative destinations. This was coined in 2013, when most companies put all their eggs in the China basket.
A mobility agreement works well for both India and Japan. India is desperate for job opportunities, and with signs that the US may not be as welcoming to H1B visa holders, a pivot to Japan for Indian IT professionals is just what the doctor ordered for India. At the same time, nurses and caregivers are also in high demand in Japan which is an ageing nation and has the maximum number of people living up to 100 years and more. There are over 95,000 centenarians living in Japan as of September 2024, according to a report in Nippon.com. This highlights the country’s longevity as well as a challenge.
“I see Japan becoming more flexible in accepting Indians for training and working in Japan. With about 50,000 Indians in Japan, India is one of the smaller foreign communities. And is known for its technological process which perhaps may lead to more interaction,’’ says ambassador Gurjit Singh.
India-Japan ties have deep cultural and historical roots, going back to the 6th century, when Bodhisena, an Indian monk landed in Japan in 736 to spread the wisdom of Buddha among the people. He lived there till his death in 760. Though British India fought the Imperial army in the Second World War, the people of India had great sympathy for Japan after the bombing of Hiroshima and Nagasaki. When Japan, together with the US and its allies took a tough stand against India’s nuclear tests in 1998, New Delhi understood that it came from Japan’s genuine stand against nuclear arms. The Vajpayee government took Japan’s criticism in its stride and never spoke out against Tokyo as it did against other countries that criticised New Delhi’s nuclear tests.
Late Japanese prime minister Shinzo Abe, played a major role in consolidating ties with India and taking it to the next stage. He was a friend of India. Abe realised early on the importance of a democratic India in the future power balance across Asia. He saw the potential of a rising India much before other Japanese leaders and was singularly responsible for transforming ties with New Delhi from what foreign minister Subramanyam Jaishankar described as a “relatively narrow bilateral level” to a significant strategic partnership. He was also the one who brought up the idea of the Quad as a bulwark against an aggressive China in the Indo-Pacific.
The Indo-Pacific and Quad is now coming increasingly into question, as the Trump administration is giving out mixed signals, keeping all the other three members of the group on edge. Trump is reaching out to China and if he is able to strike an agreement with Xi Jinping, which he desperately wants to, the future of Quad may be in question. All this will be on the table when Modi meets Shigeru Ishiba.
