Quick Read
- Indian PM Modi and Japanese PM Ishiba pledged $68 billion investments in India.
- Key sectors include clean energy, semiconductors, and AI, with a focus on biogas plants.
- Modi presented culturally significant gifts to Ishiba, symbolizing Indo-Japanese ties.
- Both leaders launched an Economic Security Initiative targeting supply chain resilience.
- The visit underscored shared goals for a stable and prosperous Indo-Pacific.
Indian Prime Minister Narendra Modi’s recent visit to Japan marked a significant step forward in Indo-Japanese relations, as both nations committed to deepening their economic, technological, and cultural ties. During his two-day visit in late August 2025, Modi met with Japanese Prime Minister Shigeru Ishiba to discuss a range of strategic partnerships. The visit concluded with groundbreaking agreements in clean energy, semiconductors, and cultural diplomacy, demonstrating the two nations’ shared vision for a stable and prosperous Indo-Pacific region.
A Landmark Visit Strengthening Economic and Technological Partnerships
On August 29 and 30, Prime Minister Modi participated in the 15th Annual India-Japan Summit in Tokyo, where he and Prime Minister Ishiba unveiled a comprehensive roadmap for cooperation. A notable highlight was Japan’s pledge to invest $68 billion in India over the next decade, targeting key sectors such as clean energy, mobility, semiconductors, and artificial intelligence. According to Hindustan Times, this investment includes a $395 million partnership between Japan’s Sojitz Corporation and Indian Oil Corporation to establish 30 biogas plants by 2027, aimed at converting agricultural waste into biomethane. This initiative is expected to not only reduce carbon emissions but also provide farmers with sustainable income opportunities.
Another significant development is the collaboration between Suzuki Motor Corporation and the National Dairy Development Board (NDDB) to produce compressed biogas for vehicles. Suzuki has initially acquired a 26% stake in NDDB’s subsidiary, with plans to expand its involvement. These initiatives align with both nations’ commitments to achieving carbon neutrality and fostering green energy innovation.
Semiconductors and Rare Earths: Securing the Future
During the summit, both leaders emphasized the importance of securing supply chains for critical technologies. The newly launched Economic Security Initiative will focus on semiconductors, rare earth minerals, and digital technologies. Modi visited a semiconductor facility in Sendai alongside Ishiba, where the two leaders discussed joint ventures to bolster resilience in the global supply chain. According to Times of India, this collaboration aims to reduce dependency on China for critical minerals and technological components.
The two nations also agreed to deepen cooperation in pharmaceuticals and information technology, further solidifying their economic security ties. These efforts are part of a broader strategy to ensure a free, open, and inclusive Indo-Pacific region, a commitment reaffirmed in a joint statement titled “A Partnership for Security and Prosperity for Our Next Generation.”
Cultural Diplomacy: A Testament to Shared Heritage
Modi’s visit was not just about economic and technological collaboration but also about strengthening cultural bonds. The Indian Prime Minister presented Japanese PM Ishiba with unique gifts, including Ramen Bowls with Chopsticks made from Indian moonstone and Makrana marble, symbolizing a fusion of Indian craftsmanship and Japanese culinary traditions. For Ishiba’s spouse, Modi gifted a Pashmina shawl in a hand-painted papier-mâché box, showcasing the artistry of Kashmiri artisans. As reported by News18, these gestures highlighted the deep cultural and civilizational ties between the two nations.
In a reciprocal gesture, Modi was presented with a traditional Japanese Daruma doll, symbolizing perseverance and good fortune, by Rev. Seishi Hirose, Chief Priest of the Shorinzan Daruma-ji Temple. This exchange of cultural symbols reflects the mutual respect and admiration shared by the two countries.
Looking Ahead: A Vision for the Asian Century
As Modi concluded his Japan visit and headed to China for the Shanghai Cooperation Organisation (SCO) Summit, the outcomes of his Tokyo trip underscored India and Japan’s shared vision for shaping the Asian century. Speaking at the India-Japan Economic Forum, Modi highlighted the synergy between Japanese technology and Indian talent, stating, “Japan’s excellence and India’s scale can create a perfect partnership.” The agreements reached during this visit are expected to set the stage for long-term collaboration, fostering innovation and stability in the region.
With its focus on clean energy, technological resilience, and cultural diplomacy, the Modi-Ishiba partnership is poised to redefine Indo-Japanese relations and contribute to a more stable and prosperous Asia.