Prime Minister Narendra Modi’s two-day visit (August 29-30) to Japan has crystallised a fundamental shift in Asian geopolitics, with US protectionism driving its own Indo-Pacific partners into deeper collaboration, potentially undermining Washington’s containment strategy against China.
Japan’s unprecedented $68 billion investment pledge to India over the next decade is likely to turbocharge India’s growth as Japan pivots to more overseas investments to offset slowdown at home.
The Trade Deficit Imperative
Away from the warm glow of a deep India-Japan friendship and the good news that bilateral trade reached $22.85 billion in FY24, there is some bad news. India faced a substantial $12.5 billion deficit, with Japanese exports to India at $17.69 billion against Indian exports of a paltry $5.15 billion. PM Modi’s call for Japanese investments to “Make in India, Make for the World” is not merely industrial policy—it is a strategic recalibration designed to address this imbalance. Put differently, India seeks to offset the debt deficit with an investment surplus.
The investment pledge encompasses critical sectors where Japan’s technological superiority aligns with India’s service strengths and manufacturing ambitions. Semiconductors and artificial intelligence top the agenda, alongside cooperation in critical minerals—domains where both nations seek to reduce dependence on Chinese supply chains.
Military Convergence and the Defence-Industrial Complex
The deepening military cooperation between India and Japan reflects both nations’ recognition that the Indo-Pacific’s strategic balance is shifting rapidly. The Joint Declaration on Security Cooperation signed during Modi’s visit institutionalises defence collaboration beyond traditional exercises. New NSA-level dialogue mechanisms and expanded joint exercises across all three services—army, navy and air force—signal preparations for a more contested regional environment.
Japan’s participation in India’s Milan multilateral naval exercise and the inaugural Veer Guardian fighter aircraft exercise in 2023 demonstrate operational interoperability. India now places its fighter planes for longer durations in Japan.
Impact Shorts
More ShortsThe annual Dharma Guardian infantry exercises between the Indian Army and Japan Ground Self-Defence Force have evolved from company-strength engagements to comprehensive urban warfare and counter-terrorism training. What India needs to do with Japan is one or two co-productions of defence equipment, moving beyond buyer-seller relationships to collaborative innovation.
India’s Defence Research and Development Organisation and Japan’s Acquisition, Technology and Logistics Agency are expanding cooperation in areas ranging from missile defence to maritime surveillance systems—technologies essential for countering Chinese assertiveness across Asia.
Space: Ultimate High Ground
The Isro-Jaxa partnership on the Chandrayaan-5 mission exemplifies how space cooperation has become a cornerstone of strategic partnership. The Lunar Polar Exploration (rover expertise)—a marriage of complementary capabilities that strengthens both nations’ space ambitions. Modi’s observation that their cooperation “will cross the boundaries of the earth and become a symbol of humanity’s progress in space” reflects the broader strategic significance of this partnership.
Space cooperation extends beyond lunar exploration to encompass navigation, earth observation and space situational awareness. In an era where space assets are increasingly militarised, this collaboration provides both nations with enhanced capabilities on the final frontline.
Riding the Bullet Train
The commitment to introduce Japan’s cutting-edge E10 Shinkansen trains simultaneously in both countries by 2030 represents a technological leap that transcends transportation. These next-generation bullet trains, capable of 360 kmph and featuring 15 per cent shorter braking distances, will debut globally through the India-Japan partnership for India’s seismically active regions.
This railway cooperation builds upon Japan’s transformative role in India’s transportation infrastructure. From Maruti Suzuki’s revolution of Indian roads in the 1980s to the Delhi Metro’s Japanese-financed expansion, Japan has consistently provided the technological backbone for India’s modernisation. The Delhi Metro alone has received $2.6 billion in Japanese investment, creating one of the world’s largest metro systems.
Modi’s vision of a 7,000-kilometre high-speed rail network by 2047—India’s centennial—positions Japan as the primary technological partner for this ambitious infrastructure transformation.
Cultural Bonds and Soft Power Synergies
Japan’s soft power influence in India runs deeper than economic statistics suggest. From Doraemon cartoons that shaped Indian childhoods to Suzuki cars that democratised mobility, Japanese cultural products have woven themselves into India’s social fabric. There is also the historic tie with India having a dissenting judgement at the post-WWII trials of Japanese prisoners of war. This cultural affinity precedes strategic partnership, creating emotional bonds that facilitate deeper cooperation.
Strategic Implications
As both India and Japan navigate the dual pressures of Chinese assertiveness and American threats, their partnership represents a model for middle-power cooperation in an increasingly multipolar world. The relationship combines hard security cooperation with economic integration, technological collaboration with cultural exchange—a comprehensive partnership that provides strategic autonomy for both nations.
The timing of Modi’s visit, sandwiched between American tariff implementation and his attendance at the Shanghai Cooperation Organisation summit in China, symbolises India’s calibrated approach to great power competition. Rather than choosing sides definitively, India is building partnerships that provide strategic options—a hedging strategy that Japan increasingly shares.
In Japanese culture, there exists a concept called “ikebana”—the art of flower arrangement that emphasises patience, balance and the beauty that emerges from careful cultivation over time. Like the master who tends to each branch and blossoms with unwavering dedication, understanding that true beauty cannot be rushed, the India-Japan partnership embodies this philosophy of “jikan wo kakete sodateru”—nurturing growth through time.
Just as the gardener knows that the strongest trees are those whose roots intertwine deep beneath the surface, invisible to the casual observer, so too have India and Japan cultivated bonds that transcend mere transactional relationships. The $68 billion investment is not merely capital—it is trust made manifest, the fruit of decades of patient cultivation. From the first Maruti rolling off production lines to bullet trains that will soon streak across both nations simultaneously, this partnership has grown organically, season by season, summit by summit.
In the art of ikebana, asymmetry creates harmony, and imperfection reveals deeper beauty. Perhaps the lesson for the architects of the new great game is that true strategic partnerships, like the finest arrangements, cannot be forced into rigid forms but must be allowed to grow naturally.
The India-Japan partnership has a unique aesthetic—one that emerges not from dominance, but from mutual respect and shared cultivation of something greater than either could achieve alone.
The writer is a senior journalist with expertise in defence. Views expressed are personal and do not necessarily reflect those of Firstpost.