India, Japan sign pacts on AI, metals, and energy after Modi-Takaichi talks

The two countries also agree on their first joint defence co-development project

Japanese Prime Minister Sanae Takaichi and her Indian counterpart Narendra Modi attend a joint press statement at Hyderabad House in New Delhi, India, Jul 2, 2026. REUTERS/Altaf Hussain

India and Japan signed pacts on Thursday to boost their cooperation in artificial intelligence, metals, energy, and prepared a joint roadmap for economic security, Indian Prime Minister Narendra Modi said after talks with his Japanese counterpart Sanae Takaichi.

Takaichi is on a three-day visit to New Delhi as the two Asian partners hold their 16th annual summit.

"The convergence of Japan's precision technology and India's software capabilities will give a new momentum and strength to global AI development," Modi told reporters.

Bilateral trade between the two countries reached $27.5 billion in fiscal year 2025/26, while Japanese investment in India was $3.2 billion between April and December 2025, according to Indian government data.

Modi said that the two countries, also members of the Quad grouping, signed an agreement on their first co-development project in the defence sector.

"Through the India-Japan bio-gas Initiative, we will set up 1,000 bio-gas and organic fertilizer plants in India," he added.

Japan is among India's largest investors, backing major infrastructure projects including a high-speed rail corridor between the cities of Mumbai and Ahmedabad. Japanese firms have also increased investments in Indian companies, including a recent $1.6 billion deal for a 20 percent stake in Yes Bank.

Takaichi is accompanied by a large business delegation and is due to speak at a business conference later on Thursday.