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India and Japan have entered a new phase of strategic collaboration, signing a landmark agreement to deepen cooperation in defence manufacturing and critical mineral supply chains. The announcements were made during Prime Minister Narendra Modi’s two-day visit to Tokyo for the 15th India-Japan Annual Summit, held from August 29 to 30, 2025. The summit marked Modi’s first bilateral engagement with Japanese Prime Minister Shigeru Ishiba and laid the foundation for a decade-long roadmap under the Special Strategic and Global Partnership.
The partnership comes at a time of shifting geopolitical dynamics and growing concerns over supply chain vulnerabilities, particularly in sectors like clean energy, semiconductors, and advanced manufacturing. The new pact aims to reduce dependence on Chinese exports, enhance regional security, and foster industrial collaboration between government and private entities.
Key Highlights From The Summit
- India and Japan signed a Memorandum of Cooperation on Mineral Resources, focusing on exploration, processing, and refining of critical minerals
- Defence industrial collaboration will include co-development and co-production of equipment and technology
- Special forces from both countries will increase joint training and operational exchanges
- Toyota Tsusho’s rare earth refining project in Andhra Pradesh will be scaled up to establish a stable supply chain
- Over 70 companies participated in a battery and critical minerals matchmaking roundtable hosted by JETRO and the Government of Japan
- A Joint Declaration on Security Cooperation and a Vision Statement for the Next Decade were issued
Defence Collaboration: From Concept To Co-Production
The defence component of the agreement emphasizes industrial collaboration across both public and private sectors. India and Japan will jointly explore opportunities to co-develop high-tech equipment, including submarine masts and maritime systems. Japan’s advanced naval technologies are expected to complement India’s growing defence manufacturing capabilities under the Make in India initiative.
The pact also includes:
1. Enhanced cooperation between special forces
2. Exchange of research and development insights
3. Technology transfer mechanisms for future security needs
4. Joint participation in Indo-Pacific maritime exercises
Critical Minerals: Securing The Supply Chain
India and Japan are aligning their economic security strategies to secure access to critical minerals essential for clean energy, electronics, and defence. The Mineral Security Partnership, Indo-Pacific Economic Framework, and Quad Critical Minerals Initiatives form the backbone of this collaboration.
Key areas of focus include:
- Rare earth elements for battery and semiconductor production
- Joint investments in mineral exploration and stockpiling
- Development of refining technologies and processing infrastructure
- Academic and industry-level exchanges to build technical expertise
Toyota Tsusho’s rare earth project in Andhra Pradesh is central to this effort, with plans to expand refining capacity and integrate with global supply chains. The initiative is expected to reduce India’s reliance on Chinese mineral exports and support domestic manufacturing.
Economic Security And Technology Exchange
Beyond minerals and defence, the summit also launched the India-Japan Digital Partnership 2.0, aimed at fostering collaboration in artificial intelligence, semiconductors, and digital public infrastructure. A new Dialogue on Economic Security was initiated at the Foreign Secretary level, covering strategic trade, technology, and foreign policy challenges.
The two nations agreed to:
- Promote joint R&D in emerging technologies
- Facilitate movement of skilled professionals and researchers
- Expand bilateral energy cooperation in hydrogen and renewables
- Encourage Japanese investments in Indian infrastructure and mobility projects
Diplomatic Outlook: A Decade Of Shared Vision
The summit concluded with the adoption of a Joint Vision for the Next Decade, identifying eight priority areas including defence, economic security, clean energy, digital innovation, and cultural exchange. The leaders reaffirmed their commitment to a rules-based order in the Indo-Pacific and pledged to work closely through platforms like the Quad and SCO.
Strategic Outlook: A Partnership Built On Trust And Technology
India and Japan’s renewed partnership signals a strategic pivot toward resilience, innovation, and shared prosperity. By integrating defence capabilities and securing critical mineral supply chains, both nations are positioning themselves as key players in the Indo-Pacific’s evolving security and economic architecture. As the roadmap unfolds, this alliance is set to shape the region’s future with stability and purpose.
Sources: Republic World, Tribune India, Indian Express, News18, Economic Times