India-Japan Summit 2026: PM Modi, Japan PM Announce Over $10 Billion Investment, AI and Defence Agreements

Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi on July 2, 2026, unveiled a multi-billion-dollar roadmap to strengthen the India-Japan Special Strategic and Global Partnership during the 16th India-Japan Annual Summit in New Delhi. The two countries unveiled more than $10 billion in fresh Japanese investments, signed agreements across multiple strategic sectors, and reaffirmed their target of attracting ¥10 trillion in Japanese investment into India over the next decade. 

India and Japan Announce Over $10 Billion Investment 

Addressing a joint press statement after the summit, Prime Minister Modi said the India-Japan investment partnership was "steadily strengthening" and noted that around 120 new business agreements concluded over the past year would bring more than $10 billion in Japanese investment into India. 

Modi reiterated the long-term goal of attracting ¥10 trillion in Japanese investment from Japan while doubling the number of Japanese companies operating in India over the next decade. 

He also said an agreement between the financial services agencies of both countries would facilitate the flow of capital and investment, adding that India's economic reforms have improved the ease of doing business and created new opportunities for Japanese companies. 

AI, Defence and Next-Generation Mobility Agreements Signed 

The two leaders oversaw the exchange of agreements covering: 

India and Japan also released a joint statement on artificial intelligence and signed an agreement to advance bilateral cooperation in the sector. 

In the defence sector, the two countries signed their first co-development agreement for the Naval Radio Antenna "Unicorn." Modi said the project would "open a new chapter in our defence technology partnership." 

In a social media post, External Affairs Ministry spokesperson Randhir Jaiswal described the summit as taking forward "a partnership anchored in trust, shared values and strategic convergence." 

Cooperation to Expand Across Semiconductors and Critical Technologies 

The two leaders agreed to strengthen cooperation across: 

Speaking after the summit, Modi said India and Japan would strengthen resilient supply chains in semiconductors, quantum technologies, and other advanced technologies while adopting an agreement on next-generation mobility. 

Economic security remained a central theme of the summit, with both countries identifying semiconductors, critical minerals, pharmaceuticals, clean energy, information and communication technology, and artificial intelligence as priority sectors for deeper cooperation. 

The two countries have steadily expanded this framework over recent years, including signing a memorandum on semiconductor supply chains in 2023, an agreement on mineral resources in 2025, and holding the second India-Japan Economic Security Dialogue in May 2026. 

India-Japan Bio-Gas Initiative Announced 

Energy security also featured prominently during the summit. 

Modi announced the launch of the India-Japan Bio-Gas Initiative, under which 1,000 bio-gas and organic fertiliser plants will be established across India. 

The two countries also signed a pact on metals and energy security. 

The Economic Times had reported ahead of the summit that India and Japan were considering cooperation on liquefied natural gas (LNG) stockpiling and information sharing as part of broader efforts to strengthen energy security. 

According to reports in Japanese media citing the draft joint statement, both governments are also expected to express concerns over economic coercion and non-market practices affecting global supply chains, including restrictions on rare earth exports. 

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Japanese Companies Expand Their Presence in India 

The summit coincided with a significant investment push by Japanese industry. 

More than 150 Japanese companies participated in the Japan-India Economic Forum, alongside approximately 120 cooperation agreements expected to be announced. 

According to Japanese newspaper The Yomiuri Shimbun, the proposed initiatives could be worth around ¥2 trillion (approximately $12.5 billion) and span sectors including semiconductors, clean energy, artificial intelligence, and manufacturing. 

It reported that the proposed projects include Fujifilm's semiconductor materials facility, Suzuki's bio-gas initiative, and collaborations between Japanese and Indian AI startups. 

The proposed investments build on the commitment announced at last year's annual summit to facilitate ¥10 trillion in private Japanese investment into India over the next decade. 

India-Japan Economic Partnership 

Japan remains India's 5th-largest investor, with cumulative investments exceeding $48 billion between April 2000 and March 2026. 

Around 1,500 Japanese companies currently operate in India. According to a recent Japan External Trade Organization (JETRO) survey, more than 4 out of 5 Japanese-affiliated companies in India intend to expand their operations over the next 1-2 years. 

Bilateral trade between India and Japan crossed $27 billion during FY26. 

Conclusion 

The 16th India-Japan Annual Summit resulted in more than $10 billion in fresh Japanese investment commitments and agreements spanning AI, defence, energy, semiconductors, and next-generation mobility. The summit also reaffirmed the long-term target of attracting ¥10 trillion in Japanese investment into India while strengthening cooperation in critical technologies, resilient supply chains, and economic security.