PM Modi In Japan: Japanese Tech, Indian Talent Make 'Winning Combination'

A vision document released at end of the Tokyo Summit after talks between Prime Minister Narendra Modi and his Japanese counterpart Shigeru  Ishiba has laid out a roadmap for India–Japan relations over the next decade.

The focus of both nations will be on building stronger economic and trade cooperation, deepening their defence ties, and working together in emerging areas such as Artificial Intelligence, space, and critical minerals. The vision document also outlined plans for a new generation 'mobility agreement' and efforts to build secure and resilient supply chains. The two countries, who are members of the QUAD grouping, together with the United States and Australia, reinforced their vision for free and open discussions and relations.

Prime Minister Modi arrived in Japan early Friday for the 15th annual India–Japan summit, a two-day event that took place at a time of global uncertainty triggered by United States President Donald Trump’s tariff war on the world. India and Japan are looking to deepen cooperation and align strategies in an increasingly complex geopolitical environment, where the rules of economic engagement are undergoing a major shift.

The Prime Minister’s first engagement in Japan was with business leaders. Both he and Prime Minister Ishiba addressed the India-Japan Economic Forum, attended by top honchos of Japanese industry. Modi pitched hard for setting up more manufacturing units in India, saying, "Make in India, make for the world,’’ and added, "We believe that Japanese technology and Indian talent are a winning combination.’’  He thanked the captains of Japanese industry for investing in India. "Japanese companies have invested $13 billion in India in the last two years,’’ Modi said. "We believe that Japanese technology and Indian talent are a winning combination.’’

The Prime Minister’s high-pitched salesmanship got him the commitment from Japan’s private sector to invest around 10 trillion yen (roughly $67.9 billion) in India over the next ten years. That kind of large investment is exactly what India needs at the moment as it struggles to revv up manufacturing in the country.

Vision Statement

Modi and Ishiba and their respective delegations met for nearly two-and-a-half hours, holding talks that basically focused on bilateral ties, but also the current international situation. 

Eight areas of collaboration were identified as priorities in the vision statement released after the talks. These are economy, economic security, mobility, environment, technology and innovation, health, people to people ties and engagements between local governments. The mobility agreement called the Human Resources Exchange, that has set an ambitious target for a two-way exchange of 5,00,000 [workers] over the next five years, including 50,000 skilled and semi-skilled personnel, from India to Japan. While the majority will be highly skilled Information Technology (IT) professionals, caregivers for Japan’s ageing population, as well as factory workers will be in the mix for the semi-skilled category.

"Our discussion today was both productive and purposeful. We both agree that as two major economies and vibrant democracies, our partnership is very important not only for our two countries, but also for global peace and stability,’’ Modi said after the talks. "Strong democracies are natural partners in shaping a better world," he said in a statement to reporters. The Prime Minister also pitched for India-Japan partnership to lead a tech revolution. "India has taken bold and ambitious initiatives in AI, semiconductor, quantum computing, biotech, and space. The technology of Japan and the talent of India can together lead the tech revolution of this century... India-Japan have signed an agreement on Joint Credit Mechanism for cooperation on clean fuel and green future..."

Ishiba stressed the wider importance of Japan-India relations. "I believe it is in the interests of both nations to build a mutually beneficial relationship,” he said after his meeting with Modi. “This involves leveraging each other's strengths, tackling the challenges we face together, and pooling our wisdom to jointly create solutions for the next generation's problems—problems for which no one currently holds the answer,” he told reporters, as both leaders stood side by side, reading out their respective statements.

India and Japan also updated a 2008 joint statement on security cooperation to reflect new common challenges.  The updated version calls for more joint exercises and joint production of military hardware. “Now, as the international situation becomes increasingly uncertain, Japan and India must join forces to ensure peace and stability in the region,” Ishiba said, according to a Japanese foreign ministry statement quoted by Bloomberg.

At a time when American market access is becoming more unpredictable, all countries are hedging their bets by looking to expand trade with as many countries as possible.  Though Japan had tied up a trade agreement with the Donald Trump administration, it is now dragging its feet as the conditions laid down for Japanese investments in the United States have not been sorted out. A proposed visit to Washington for finalising the investment pact is now stalled.

Japan, despite its political problems with China, has continued to have excellent business ties with India's neighbour. India, too, is warming to China on the back of Trump’s 50 per cent tariff on India, including a 25 per cent penalty tariff that kicked in earlier this week. Modi is flying to China for the Shanghai Cooperation Organization (SCO) summit on Saturday. All eyes will be on Modi’s bilateral with President Xi Jinping and whether Modi, Xi and Vladimir Putin, the Russian President, will meet as a group.