Japanese PM Sanae Takaichi Arrives In India Today: Trade, Investment And Defence Talks Top Agenda

(MENAFN- Live Mint) Japanese Prime Minister Sanae Takaichi will begin her three-day visit to India today, 1 July to explore ways to expand bilateral ties in a range of areas including trade, investment and defence.

At the invitation of Prime Minister Narendra Modi, Takaichi will be on an official visit to New Delhi from 1 July to 3 July for the 16th India-Japan annual summit, the Ministry of External Affairs (MEA) said on Friday.

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"The Summit will provide an opportunity for both sides to review and strengthen the full spectrum of bilateral cooperatio as well as exchange views on regional and global issues of mutual interest," it said.

It would be the first official visit of Takaichi to India.

Takaichi will meet Prime Minister Narendra Modi during her India visit. Through this visit, in order to strengthen relations with India, which is of utmost importance for the realization of a "Free and Open Indo-Pacific," the Japanese Foreign Ministry said on a statement.

What's on the agenda?

“The two leaders will discuss the further strengthening of mutually complementary cooperation under the Japan-India Joint Vision for the Next Decade announced at 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 PM Modi's trip to Tokyo in August 2025, during which the two countries unveiled the Japan-India Joint Vision for the Next Decade and Japan announced a target of investing 10 trillion yen in India over the coming decade.

'Local-currency settlement framework'

Expected outcome documents of the visit include a Joint Statement on the Annual Summit, energy resilience, and MOUs covering sectors like AI, pharmaceuticals, batteries, and critical minerals.

India and Japan are set to advance plans for a local-currency settlement framework that would allow direct yen-rupee transactions for bilateral trade, according to a Nikkei Asia report.

The proposal is expected to be included in the joint statement following Modi and Takaichi's meeting at the 16th India-Japan Annual Summit, according to the report.

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Under the proposed framework, Japanese entities that are non-residents in India would be allowed to open accounts with Indian banks. This would enable financial institutions in both countries to settle cross-border payments directly in yen and rupees, without routing transactions through the US dollar, Nikkei reported.

Japan PM will also attend the India-Japan Business Forum meeting.

Special Strategic and Global Partnership

India and Japan share a Special Strategic and Global Partnership, with cooperation spanning trade and investment, infrastructure, defence and security, clean energy and emerging technologies.

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

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 per cent stake in Yes Bank, according to Reuters.

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Following last year's summit, Japan set an investment target of 10 trillion yen (approx ₹60,000 cr) in India over a decade. The two sides also sealed a raft of big-ticket pacts including a framework for defence ties and a 10-year roadmap to largely boost economic partnership.

About 1,400 Japanese companies operate ‌in India, nearly half of them ‌in manufacturing.

The Summit will provide an opportunity for both sides to review and strengthen the full spectrum of bilateral cooperation.

Earlier this week, a plan to hold the summit in Assam was shelved due to Takaichi's tight schedule and logistical issues.

(With agency inputs)

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