Japanese PM Sanae Takaichi arrives in India today: trade, investment and defense talks top agenda | Today’s news
Japanese Prime Minister Sanae Takaichi will begin her three-day visit to India today, July 1, to explore ways to expand bilateral ties in a number of areas, including trade, investment and defense.
At the invitation of Prime Minister Narendra Modi, Takaichi will be on an official visit to New Delhi from July 1 to July 3 for the 16th annual India-Japan Summit, the Ministry of External Affairs (MEA) said on Friday.
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“The summit will provide an opportunity for the two sides to review and strengthen the entire spectrum of bilateral cooperation, as well as exchange views on regional and global issues of common concern,” it said.
This would be Takaichi’s first official visit to India.
Takaichi will meet Prime Minister Narendra Modi during his visit to India. Through this visit, to strengthen relations with India, which is of utmost importance to realize a “free and open Indo-Pacific”, Japan’s foreign ministry said in a statement.
What’s on the agenda?
“The two leaders will discuss further strengthening of complementary cooperation under the joint vision of Japan and India for the next decade announced during Prime Minister Modi’s visit to Japan last August in the areas of economic security including energy as well as economic growth through investment and innovation,” the ministry said.
Takaichi’s visit follows Prime Minister Modi’s trip to Tokyo in August 2025, during which the two countries unveiled A shared vision of Japan and India for the next decade and Japan has announced a target to invest ¥10 trillion in India in the coming decade.
“Local Currency Settlement Framework”
Expected output documents of the visit include a joint statement on the annual summit, energy resilience and a memorandum of understanding covering sectors such as artificial intelligence, pharmaceuticals, batteries and critical minerals.
India and Japan are set to press ahead with plans for a local currency settlement framework to enable this direct yen-rupee transactions for bilateral trade, according to a Nikkei Asia report.
The proposal is expected to be included in a joint statement after Modi and Takaichi meet at the 16th annual India-Japan summit, the report said.
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Under the proposed framework, Japanese entities that are non-residents in India they could open accounts with Indian banks. This would allow financial institutions in both countries to settle cross-border payments directly in yen and rupees, without routing transactions through the US dollar, the Nikkei reported.
The Japanese Prime Minister will also attend a meeting of the India-Japan Business Forum.
A special strategic and global partnership
India and Japan share a A special strategic and global partnershipwith cooperation spanning trade and investment, infrastructure, defense and security, clean energy and emerging technologies.
Bilateral trade reached $27.5 billion in fiscal year 2025/26, while Japanese investment in India totaled $3.2 billion between April and December 2025, according to Indian government data.
Japan is among India’s biggest investors and supports major infrastructure projects including the high-speed rail corridor between the cities of Mumbai and Ahmedabad. Japanese firms have also increased investment in Indian companies, including a recent $1.6 billion deal for a 20 percent stake in Yes Bank, Reuters reports.
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After last year’s summit, Japan set an investment target of 10 trillion yen (approx ₹60,000 cr) in India in ten years. The two sides have also concluded a number of major pacts, including a framework for defense ties and a 10-year plan to significantly strengthen the economic partnership.
About 1,400 Japanese companies operate in India, almost half of them in manufacturing.
The summit will provide an opportunity for both sides to review and strengthen the entire spectrum of bilateral cooperation.
Earlier this week, a plan to hold a summit in Assam was postponed due to Takaichi’s tight schedule and logistical problems.
