Prime Minister Narendra Modi’s visit to Japan on August 29–30, 2025, for the 15th India–Japan Summit, marks a significant milestone in the long journey of India–Japan relations. The visit came at a time of profound changes in the global order: the United States under President Trump is pursuing protectionist trade policies, the World Trade Organization (WTO) is weakening, China–India relations are tentatively stabilizing, and the Indo-Pacific is emerging as the theater of strategic competition. Against this backdrop, India and Japan are consolidating their historical goodwill into a multidimensional partnership—encompassing security, trade, technology, and cultural diplomacy.
This article explores the full arc of India–Japan relations: from ancient cultural ties to post-war diplomacy, through economic engagement in the late 20th century, to the strategic depth of the 21st century. It also examines the outcomes of Modi’s 2025 visit and the road ahead.
Ancient Cultural and Civilizational Ties
The foundation of India–Japan relations lies in spiritual and cultural exchanges.
- Buddhism, which spread to Japan via China and Korea around the 6th century CE, remains the most profound civilizational link. Japanese monks and scholars have long traced the roots of their faith to India, and Indian leaders have often highlighted this shared heritage.
- Artistic, linguistic, and philosophical exchanges enriched both civilizations, creating a sense of civilizational kinship that continues to underpin diplomatic relations today.
This deep cultural resonance makes India–Japan ties distinct from India’s relations with many other major powers—it is not merely transactional but rooted in shared traditions of thought.
Post-War Diplomacy: Building Trust After 1945
Following Japan’s defeat in World War II and its devastation by nuclear bombings, the country faced international isolation. India extended a hand of friendship:
- In 1952, India signed a peace treaty with Japan, becoming one of the first countries to normalize relations.
- In 1958, Japan launched its first-ever Official Development Assistance (ODA) program, with India as the inaugural recipient. This gesture set the tone for Japan’s role as a consistent developmental partner for India.
- High-level visits established goodwill. Indian Prime Minister Jawaharlal Nehru visited Japan in 1957, and Japan’s Prime Minister Nobusuke Kishi reciprocated. Crown Prince Akihito and Princess Michiko also visited India in 1960, creating a lasting impression.
During the Cold War, relations remained cordial though not intensive, as Japan aligned with the U.S. while India leaned toward non-alignment and sometimes the Soviet bloc. Nevertheless, aid and cultural ties kept the relationship warm.
Transformation After 1991: From Economic to Strategic
Economic Liberalization
India’s economic reforms of 1991 opened doors to Japanese capital and technology. Japanese companies like Suzuki, Sony, and Honda became household names in India. Infrastructure development, particularly the Delhi Metro (supported by Japanese soft loans), symbolized Japan’s role as a trusted partner in India’s modernization.
Strategic Recalibration
The 1990s also saw India and Japan rethink their strategic outlook. The end of the Cold War and the rise of China as an economic and military power pushed both countries closer.
- In 2000, the partnership was upgraded to a “Global Partnership.”
- In 2006, it became a “Strategic and Global Partnership.”
- Japanese PM Shinzo Abe’s 2007 speech in the Indian Parliament, titled “Confluence of the Two Seas,” laid the intellectual foundation of the Indo-Pacific vision.
Nuclear Dilemma and Resolution
India’s 1998 nuclear tests strained relations initially, as Japan, the only country to have suffered atomic bombings, imposed sanctions. But by the 2000s, trust was restored. In 2016, India and Japan signed a civil nuclear cooperation agreement, allowing Japan to supply nuclear technology despite India not being a signatory to the Nuclear Non-Proliferation Treaty (NPT). This was a landmark moment, showcasing Japan’s faith in India’s responsible nuclear posture.
Security and Defense Cooperation
The 21st century has seen a steady deepening of India–Japan security ties, driven largely by the rise of China and uncertainties in the U.S. role in Asia.
Key Agreements
- 2015: Agreements on Defense Equipment & Technology Cooperation and on Security of Classified Military Information.
- 2020: The Acquisition and Cross-Servicing Agreement (ACSA) was signed (ratified in 2022), allowing reciprocal access to military bases and logistics.
- 2023: Japan revised its defense technology transfer principles, explicitly enabling co-development with trusted partners like India.
Military Exercises
- Malabar Naval Exercise (with the U.S. and Australia) demonstrates growing interoperability.
- Milan Naval Exercise and bilateral coast guard drills highlight maritime cooperation.
- Japan is also assisting India’s Navy in developing the UNICOM Radio Navigation System.
Emerging Areas
India and Japan are exploring collaboration in cybersecurity, space security, AI, quantum computing, and CBRN (Chemical, Biological, Radiological, Nuclear) defense. These emerging areas signal a shift from traditional defense to comprehensive security cooperation.
Economic and Trade Partnership
Bilateral Trade Snapshot
- In FY 2024–25, bilateral trade was about $21 billion.
- Japan exported ~$16B worth of goods to India, while India exported ~$5B to Japan.
- Japan is India’s 17th largest trading partner, while India ranks 18th for Japan.
Clearly, there is vast untapped potential compared to India’s trade with the U.S., EU, or even China.
Japanese Investments in India
Japan remains a top 5 investor in India, with $43 billion cumulative FDI since 2000.
Key projects:
- Delhi Metro – iconic urban infrastructure project.
- Delhi–Mumbai Industrial Corridor (DMIC) – linking industrial hubs.
- Mumbai–Ahmedabad Bullet Train Project – Japan’s Shinkansen technology.
- Smart cities, renewable energy, and digital projects.
CEPA Agreement (2011)
The Comprehensive Economic Partnership Agreement (CEPA) liberalized tariffs on most goods and created a framework for services and labor mobility. While implementation has faced hurdles, CEPA provides a solid foundation for trade growth.
Cultural and People-to-People Ties
Cultural diplomacy is a cornerstone of the relationship:
- The 1957 Cultural Agreement institutionalized exchanges.
- 2017 was celebrated as the “Year of India–Japan Friendly Exchanges.”
- Japan has contributed to the restoration of Nalanda University and supports India’s Buddhist tourism circuits.
- Student exchanges, yoga promotion in Japan, and Japanese studies in Indian universities are expanding.
- Japan is increasingly opening its labor market to Indian professionals—especially in IT, healthcare, and caregiving.
These soft power links strengthen the political and strategic partnership.
Modi’s 2025 Visit: Why It Matters
This visit must be understood against the backdrop of shifting geopolitics.
- U.S. Protectionism under Trump:
- Tariffs on Indian goods have strained India–U.S. trade.
- With the WTO weakened, bilateral and regional partnerships like India–Japan become more important.
- China Factor:
- India–China relations are seeing cautious stabilization.
- Yet, India seeks strong ties with Japan to balance Chinese dominance in Asia.
- Japan’s Big Bet on India:
- Tokyo has pledged $68 billion investment over the next decade, covering infrastructure, green energy, and technology.
- Quad and Indo-Pacific:
- With uncertainties in U.S. commitment, India and Japan are working together to keep the Quad relevant and maintain a Free and Open Indo-Pacific (FOIP) vision.
Key Outcomes of the 2025 India–Japan Summit
- Vision Document for the Next Decade: Cooperation across eight domains including economy, technology, mobility, sustainability, and health.
- Revised Joint Declaration on Security Cooperation: Expanded to cover economic security, cyber defense, and defense co-production.
- Human Resource Exchange Plan: Movement of 500,000 Indians to Japan in 5 years, including 50,000 skilled workers.
- Lunar Polar Exploration Mission (LUPEX): ISRO–JAXA collaboration linked to India’s Chandrayaan-5.
- Clean Hydrogen and Ammonia Declaration: Partnership in green energy and decarbonization.
- Digital Partnership: Focus on semiconductors, AI, and digital connectivity.
- Climate Collaboration: Japan’s Joint Crediting Mechanism to support India’s renewable goals.
Way Forward
- Economic Integration
- Revitalize CEPA through regular reviews.
- Encourage rupee–yen trade to reduce dollar dependence.
- Promote SME and startup ecosystems.
- Defense and Security
- Implement the 2025 Security Cooperation Declaration.
- Expand defense co-development beyond navigation systems.
- Increase intelligence-sharing.
- Geopolitical Coordination
- Reinforce the FOIP vision.
- Promote ASEAN centrality.
- Jointly lobby for UN reforms.
- Technology and Climate Cooperation
- Expand green hydrogen, renewable energy, and climate resilience projects.
- Push forward with space exploration missions.
- Collaborate in AI, cybersecurity, and quantum technologies.
Conclusion: A Transformational Partnership
India and Japan’s relationship has matured from ancient cultural affinity to modern strategic convergence. The partnership has weathered shifts in global politics, economic challenges, and regional tensions. Today, it stands as one of Asia’s most important bilateral relationships.
Prime Minister Modi’s 2025 visit has reaffirmed that India and Japan are not just partners of convenience, but partners of conviction—bound by history, trust, and a shared vision of a peaceful, prosperous, and secure Indo-Pacific. As the global order becomes more uncertain, the India–Japan partnership will increasingly act as a stabilizing pillar in Asia and a key driver of India’s path toward becoming a global power.
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