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India-Japan Summit Begins: Takaichi, Modi Eye AI, Trade and Strategic Deepening

India-Japan Summit Begins: Takaichi, Modi Eye AI, Trade and Strategic Deepening

Bavana Guntha
July 2, 2026

Japanese Prime Minister Sanae Takaichi landed in New Delhi on Wednesday evening, beginning her first official visit to India as prime minister, kicking off the 16th India-Japan Annual Summit with boosting economic ties, resilient semiconductor supply chains and artificial intelligence cooperation topping the agenda.

Before departing Tokyo, Takaichi said cooperation with India is becoming "increasingly important" amid growing global uncertainty, as both nations share fundamental values and strategic interests, adding that more than 150 Japanese companies would be part of her visit. She travelled with a delegation of roughly 50 business leaders, including top executives from major Japanese firms such as Suzuki Motor . Japan's Ambassador to India, Ono Keiichi , said the visit would be a "great opportunity" to advance people-to-people exchanges , calling it the cornerstone of the strategic relationship, remarks made at a Human Resource Mobility Forum session hosted by the External Affairs Ministry.

Takaichi will be accorded a ceremonial reception at Rashtrapati Bhavan on Thursday, followed by summit talks with Modi , exchange of MoUs and joint press statements, before she attends the India-Japan Business Forum in the afternoon. A joint declaration on economic security and a joint statement on AI cooperation are expected, alongside roughly 10 agreements covering critical minerals, pharmaceuticals, batteries and energy resilience. The two leaders are also likely to adopt a plan advancing the Japan-India Artificial Intelligence Cooperation Initiative , focused on joint AI development for manufacturing, healthcare and mobility.

Among the notable outcomes under discussion: a proposed framework allowing Japanese non-resident entities to open accounts with Indian banks , enabling both countries to settle cross-border payments directly in yen and rupees without routing through the US dollar . A plan to hold part of the summit in Assam was shelved this week over Takaichi's tight schedule, keeping the entire visit centered in Delhi .

The summit unfolds against a tense regional backdrop: Tokyo-Beijing relations have deteriorated after Takaichi said Chinese military action against Taiwan could pose an existential threat to Japan , prompting China to impose fresh export controls on 40 Japanese entities just days before her India trip. Both India and Japan, fellow Quad members , are expected to discuss Indo-Pacific security and defence cooperation , as bilateral trade touches USD 27.5 billion (2025-26) and the two nations approach 75 years of diplomatic ties in 2027 .

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India-Japan Summit Begins: Takaichi, Modi Eye AI, Trade and Strategic Deepening - The Morning Voice