Why the Recent Modi Visit to Japan is Significant

Indian Prime Minister Narendra Modi visited Japan from August 29-30. This was a significant trip for a host of reasons. It was PM Modi's first standalone visit to Japan in 7 years. Also, it was his first summit meeting with Prime Minister Shigeru Ishiba.

Modi's last visit to Japan was for the G7 Summit in Hiroshima, under Japan's Group of Seven presidency, back in May 2023.

After his Japan visit, PM Modi visited China for the Shanghai Cooperation Organization summit on August 31. There, he met Chinese President Xi Jinping and Russian President Vladimir Putin, among others.

Chinese President Xi Jinping, Russian President Vladimir Putin, and Indian PM Narendra Modi pose with other world leaders at the Shanghai Cooperation Organization summit ceremony in Tianjin, China, on August 31. (©TASS via Kyodo)

From an Indian perspective, it seems that Tokyo will also need more options on the economic stage, especially in light of trade tensions with the United States. For that, India is a very good option, especially given its huge population and close historical ties with Japan.

Areas of Convergence

Due to the domestic flux in Japan, relations with India have not been a priority. PM Ishiba took over in October 2024, and it has been quite a rough ride since. The ruling Liberal Democratic Party-Komeito coalition lost its majority in the Lower House of the Japanese Parliament in an October 2024 election. Then, once again, it lost its majority in the Upper House elections held in July 2025.

The Quad is one area of common interest. Japan and India are members, along with the United States and Australia. A free and open Indo-Pacific is in the common interests of all four Quad members.

In addition, India and Japan share common concerns about China's growing belligerence. Therefore, they have been carrying out a host of military exercises with each other between all three wings of their defense forces. This is something which was unthinkable in the past, especially during the Cold War era.

Obviously, there will be no going back to the glorious days of the Shinzo Abe era when it comes to the India-Japan bilateral relationship. However, there are many areas where the two countries are coming closer, especially in the wake of tariffs imposed on the two countries by the Trump Administration.

Challenges

There are challenges here as well. The numbers of Indians living and working in Japan pales when compared to the number of Chinese nationals doing the same. It has been estimated that roughly 870,000 Chinese were living in Japan at the end of 2024.

Also, the two countries do not see eye to eye with each other on the Russian war with Ukraine. Japan has stood steadfastly behind its main ally, the United States, while India's position has been very nuanced. New Delhi has abstained on some key resolutions at the United Nations which were critical of Russia.

As well, the US has imposed punitive sanctions on India to the tune of 25% because it imports Russian oil.

In the past, India and Japan have tried to work out defense deals, but they were not very successful. There was much talk about India importing Japanese defense equipment like the ShinMaywa US-2 amphibious aircraft, but the deal did not work out.

What Has Changed Now?

US President Donald Trump's foreign policy has sent the entire world into a tizzy. In spite of Japan being one of the United States' closest security partners, it is facing 15% tariffs (which were 25% earlier before a trade deal was inked). Meanwhile, in the case of India, US tariffs are set at 50%.

Japan has huge investments in China, but those could be risky in light of the political tensions between the two countries. Clearly, Japan needs to diversify. In addition, the US-Japan trade deal is not without its share of difficulties for Japan. For example, it must increase the import of US agricultural products, which can be a highly sensitive issue in Japan.

Takeaways from Modi's Visit

The most important takeaway from this visit by PM Modi was the pledge by Tokyo to invest ¥10 trillion JPY, or approximately $68 billion USD, in private investments for India over the next decade. The main thrust areas for this investment will be areas like semiconductors, rare earths, digital technology, and clean energy. This builds on the promise of the ¥5 trillion JPY ($34 billion USD) investment during former Japanese PM Fumio Kishida's visit to India in March 2022.

*Prime Ministers Ishiba and Modi attend the India-Japan Economic Forum in Tokyo on August 29. (©Prime Minister's Office of Japan)*

In Tokyo, it was also announced that the Indian Space Research Organization (ISRO) and the Japan Aerospace Exploration Agency (JAXA) will work closely on the upcoming Chandrayaan-5 mission.

Prime Minister Modi, along with his Japanese counterpart PM Ishiba, also visited Sendai together. There, they interacted with Indian train operators undergoing training in Japan for the upcoming Mumbai-Ahmedabad bullet train. This is a project which is being built with Japanese technical and financial support. They also visited the Sendai semiconductor facility in Miyagi Prefecture. India is looking to enter the semiconductor industry in big way.

One important aspect is bilateral cooperation is in the field of infrastructure development. This is very important for India's continued economic growth. Japan has been providing funding to India for the development of its infrastructure sector. This includes projects like the Delhi Metro and the Dedicated Freight Corridor.

Long Term Prognosis

The Joint Statement also mentions the launching of "an Action Plan for India-Japan Human Resource Exchange and Cooperation." It aims at exchanging more than 500,000 personnel in both directions over the next five years, "including 50,000 skilled personnel and potential talents from India to Japan."

While the present visit of PM Modi was hugely successful, there is no denying that Japan and India have to realize the long-term benefits of a mutually beneficial relationship. India is the world's fifth-largest economy and has a huge pool of highly talented human resources. This can be important for the success of the Japanese economy.

However, at the same time, New Delhi is looking at increasing its partners, especially in the economic realm.

This visit by PM Modi to Japan definitely sets the stage for the next phase of India-Japan ties.

As PM Modi mentioned during the Japan-India Economic Forum "In the end I would like to say this - India and Japan's partnership is strategic and smart. Powered by economic logic, we have turned shared interests into shared prosperity. India is the springboard for Japanese businesses to the Global South. Together, we will shape the Asian Century for stability, growth, and prosperity."

Author: Dr Rupakjyoti Borah

Dr Rupakjyoti Borah is a Senior Research Fellow with the Japan Forum for Strategic Studies, Tokyo. The views expressed here are personal.