India and Japan announced a series of agreements and initiatives during the India-Japan Economic Forum held in Tokyo on 29 August 2025. The meeting was attended by Prime Minister Narendra Modi and Prime Minister Shigeru Ishiba, along with industry leaders and members of the India-Japan Business Leaders’ Forum.
A joint vision for the next decade was unveiled, outlining eight areas of cooperation including economic partnership, economic security, mobility, ecological sustainability, technology and innovation, health, people-to-people exchanges and state-prefecture engagements. A private investment target of JPY 10 trillion from Japan to India over the next ten years was also announced.
Agreements signed included a Memorandum of Cooperation on the Joint Crediting Mechanism to support decarbonising technologies and promote Japanese investment in India, and the India-Japan Digital Partnership 2.0 aimed at advancing collaboration in digital public infrastructure, talent development and research in fields such as AI, IoT and semiconductors. Another memorandum was signed for cooperation in mineral resources, with a focus on building supply chain resilience for critical minerals through joint investments, exploration, mining and stockpiling.
Space collaboration was formalised through an implementing arrangement between the Indian Space Research Organization (ISRO) and the Japan Aerospace Exploration Agency (JAXA) on the Chandrayaan-5 mission, focusing on joint lunar polar exploration. Additionally, a declaration of intent on clean hydrogen and ammonia was issued to promote joint research, investments and projects in the sector.
In his address, Modi identified five key areas for business collaboration between India and Japan: manufacturing in fields such as batteries, robotics, semiconductors, ship-building and nuclear energy; cooperation in advanced technologies including AI, quantum computing, space and biotechnology; green energy transition; infrastructure development in mobility, high-speed rail and logistics; and skill development. He further stated that India was contributing around 18 percent to global growth and was on course to become the third largest economy in the world in a few years.
Prime Minister Ishiba stated that Japanese companies were interested in building resilient supply chains by combining Indian talent with Japanese technology. He emphasised priorities including people-to-people partnerships, green initiatives and cooperation in emerging technologies such as semiconductors.
The forum also witnessed the release of the 12th India-Japan Business Leaders’ Forum report. Norihiko Ishiguro, Chairman and CEO of the Japan External Trade Organization (JETRO), announced that several business-to-business memoranda of understanding had been signed across sectors including steel, AI, space, education, clean energy and human resource exchanges.
Other initiatives launched included the India-Japan AI Initiative to support collaboration on large language models and start-ups, the Next-Generation Mobility Partnership to promote joint work in logistics, infrastructure and railways, and the Sustainable Fuel Initiative to advance biogas and biofuels research. The two sides also agreed to strengthen collaboration between small and medium enterprises, increase high-level state and prefecture exchanges, and establish new regional business forums in Kansai and Kyushu.
The Confederation of Indian Industry (CII) and Keidanren, Japan Business Federation, organised the forum, which was attended by chief executives and representatives of leading companies from both countries.
Keidanren, also known as the Japan Business Federation, is a comprehensive economic organisation comprising major Japanese companies, industry associations and regional economic organisations. It engages in policy advocacy, promotes international economic cooperation and provides a platform for business dialogue between Japan and global partners.
