As Japan revives its policies on foreign skilled talent to meet the domestic workforce shortage, close strategic partner India appears to be the solution.
IndBiz India flags India Japan

The flags of India and Japan. (Courtesy of IndBiz, an economic diplomacy division of the government of India.)

The strong and healthy relations between Japan and India, having withstood the test of time, are now gaining renewed momentum. That is thanks to the expanding cultural exchanges, deepening economic and technological cooperation, as well as a shared vision for peace in Indo-Pacific and global stability. 

The boost in their friendship reflects the people-to-people exchange program and growing Japanese investments. And collaboration in advanced technologies. Now, one can see evident developments in this regard, as both countries undertake relevant activities to boost their friendship. 

When the Indian prime minister visited Japan in August 2025, Shigeru Ishiba, then the Japanese prime minister, said that the bilateral relations had made great progress in one decade. He further promised to use the summit to take the partnership to even greater heights, stressing security cooperation. 

"Japan and India, which share fundamental values, share the responsibility to maintain and strengthen a free and open international order based on the rule of law in the Indo-Pacific region," he said. "With the international situation becoming increasingly uncertain, Japan and India must join forces to ensure peace and stability in the region."

They vowed to elevate the "Special Strategic and Global Partnership" in different areas as Ishiba highlighted the success of bilateral collaboration in the fields of investment, manufacturing and technology. "The two leaders also agreed that Japan and India will build a complementary relationship in the future, leveraging each other's strengths and co-creating the social and economic values necessary to solve the challenges facing future generations," Japan's Ministry of Foreign Affairs said. 

When Prime Minister Narendra Modi met the current Japanese Prime Minister Sanae Takaichi in December 2025, they also agreed to advance the India–Japan Special Strategic Partnership.

Prime Minister Sanae Takaichi and Indian Prime Minister Narendra Modi meet in South Africa. (Courtesy of Japan's Cabinet Office.)

Human Resources Action Plan

Under the Action Plan for Japan-India – Japan Human Resource Exchange and Cooperation, a two-way exchange of 500,000 personnel is planned in the next five years. Both countries aim to achieve the goal of improving mutual perception. This includes facilitating bi-directional cultural, educational and grass-roots exchanges, tapping economically beneficial complementarities, along with economic, technology and security cooperation. 

"We chalked out a roadmap for the coming years, which will focus on sectors like investment, innovation, environment, technology, health, mobility, people-to-people exchanges and state-prefecture partnerships," Modi said.  

What was discussed and pledged during the meetings between the leaders can now be seen materialising on the ground. Japan Travel Fair 2026 has been organized by the Japan National Tourism Organization in India. It would deepen people-to-people connections through culture, cuisine, festivals, and travel experiences. Interestingly, Japan traces the roots of its bilateral connection to when Buddhism was introduced in the country in the sixth century.

On August 29, 2025, Prime Minister Shigeru Ishiba met with India's Prime Minister, Narendra Modi in Tokyo. (Courtesy of Cabinet Secretariat)

Building the Bilateral Relationship

Notably, Japanese Foreign Minister Toshimitsu Motegi presented Japan's national cricket team jersey to his Indian counterpart, Dr S Jaishankar, during the latest edition of the Japan-India Strategic Dialogue. Noriaki Abe, Minister at the Embassy of Japan in New Delhi, said it was not just sporting memorabilia. Rather, it symbolized trust, shared values and a willingness to engage beyond conventional diplomacy. "It also carried meaning. Cricket, a sport deeply woven into India's social fabric, is emerging as an unexpected but powerful bridge between our two nations," he said.

Japanese Foreign Minister Toshimitsu Motegi and Indian External Affairs Minister S Jaishankar shake hands at the two nation's 18th Strategic Dialogue. January 16, 2026 (©Ministry of Foreign Affairs.)

Growing Chinese aggression is also contributing to an improvement in Indo-Japanese relations. The Taiwan Strait conflict, tensions near the Senkaku Islands, a ban on Japanese seafood and artists, have strained Japan-China relations. 

Besides defense and security cooperation, India provides Japanese investors with a broad market and a reliable environment in India. "A survey among Japanese companies, conducted by the Japan Bank for International Cooperation, has ranked India as the most promising destination for overseas business expansion for four consecutive years," Motegi said.

Setting the Tone for Success

The bilateral trade was $21 billion USD in 2023-24, which increased to $25.17 billion in 2026. Japan has been one of the top sources of Foreign Direct Investment in India, amounting to $43 billion in the past quarter-century. 

Tokyo also plans to invest $68 billion in India over the next decade in different areas. Those include artificial intelligence and semiconductors, as well as supporting startups and technology collaborations. "If the manufacturing sector is our forte, India leads in digital technology, which needs to be adopted by Japanese industries," said Takashi Suzuki, Chief Director General of the Japanese External Trade Organization.

Also, as Japan is reviving its policies to allow foreign skilled talent to meet the domestic workforce shortage, India appears to be the solution, said Sagar Bahadur. He is the executive director of Acumen, a global consultancy firm. "India, with its young, skilled, and increasingly global talent pool, is emerging as a natural partner to Japan. 

India and Japan are entering a new phase of partnership, built not on formal communiqués but on the steady movement of people," he said. "Though they speak different languages, both share respect, reliability, and a quiet focus on getting things done, setting the tone for success."

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(Read this article in Japanese.)

Author: Professor Pema Gyalpo, PhD

Dr Pema Gyalpo is a Visiting Professor at the Takushoku University Center for Indo-Pacific Strategic Studies. 

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