India-Japan Economic Security Cooperation

By R Anil Kumar

Bengaluru, August 30, 2025. The India-Japan Special Strategic and Global Partnership, anchored in our shared values and mutual respect, is critical to advancing the security and prosperity of both countries.

Cooperation in the field of economic security is a key pillar of our bilateral cooperation emanating from a growing convergence in our strategic outlook and economic imperatives.

As two vibrant democracies and free market economies, India and Japan are committed to accelerating their partnership in critical and emerging sectors based upon political trust, economic dynamism and natural complementarity.

• India and Japan launched the first round of the India-Japan Dialogue on Economic Security including Strategic Trade and Technology chaired at Vice Foreign Minister/Foreign Secretary level in November 2024.
• Through the existing government-to-government mechanisms as well as the Dialogue on Economic Security, including Strategic Trade and Technology, Indiaand Japan shared policy perspectives on foreign policy and security challenges emanating from certain economic inter-linkages.
• India and Japan resolved to advance bilateral cooperation in building resilient supply chains and secure critical infrastructure, promoting and protecting key technologies and addressing bilateral impediments to strategic trade and technology collaboration.
• India and Japan recognized key sectors that will receive heightened priority for strategic collaboration: semiconductors, critical minerals, pharmaceuticals, clean energy and information and communication technology
• The Government of India and the Government of Japan support private sector-led efforts that safeguard the national economic security interests of both countries.
• India and Japan welcomed the launch of the India-Japan Private-Sector Dialogue on Economic Security between Keidanren (Japan Business Federation) and the Confederation of Indian Industry (CII) and expressed their expectation of close public-private cooperation to advance concrete actions in strategic sectors, following the Joint Action Plan on India-Japan Economic and Security Cooperation proposed by Japan External Trade Organisation (JETRO), CII and Japan Chamber of Commerce and Industry in India (JCCII).

Semiconductors

• The Ministry of Electronics and Information Technology of India (MeitY) and the Ministry of Economy Trade and Industry of Japan (METI) signed a Memorandum of Cooperation on India-Japan Semiconductor Supply Chain Partnership in July 2023 strengthening cooperation towards enhancing the semiconductor supply chain.
• India and Japan held meetings under the India-Japan Semiconductor Policy Dialogue, which brought together government organizations, companies and educational institutions, to explore opportunities for resilient supply chains, talent and R&D in semiconductor.
• India and Japan appreciated that the private sector engages in a variety of activities including ones that contribute to economic security. The two countries welcomed the following efforts, which diversify the semiconductor supply chain and strengthen bilateral cooperation including talent and supporting development of semiconductor industries in India in line with the Make in India initiative:
• Establishment of a semiconductor OSAT in Sanand, Gujarat by Japanese semiconductor firm Renesas Electronics with CG Power
• Signing of two MoUs between Renesas and the Centre for Development of Advanced Computing in May 2025 under the Chips to Startup (C2S) programme of MeitY.
• These MoUs will enhance industry-academia collaboration and enable local startups to drive technological advancement and promote local manufacturing
• Renesas signed an MoU with IIT Hyderabad in June 2024 for research and collaboration in the field of VLSI and embedded semiconductor systems.
• Tokyo Electron and TATA Electronics launched a strategic partnership to establish a semiconductor ecosystem in India.
• Japan and India continue to strengthen collaboration on economic security and collective resilience through the Quad, particularly through the Semiconductor Supply Chains Contingency Network.
• India and Japan signed and exchanged notes concerning Japan’s yen loan project titled Tamil Nadu Investment Promotion Program (phase 3) to support the fund established by the Government of Tamil Nadu for Indian venture and start-up companies in emerging technology fields, including the semiconductor industry.

Critical Minerals

• India and Japan are working together to bolster critical minerals supply chains through partnership in the Mineral Security Partnership and the Indo-Pacific Economic Framework and Quad Critical Minerals Initiatives.
• Ministry of Mines of India and METI of Japan signed a Memorandum of Cooperation in the field of Mineral Resources in August 2025.
• India and Japan deepened their collaboration through the Toyota Tsusho’s rare earth refining project in Andhra Pradesh which aims to establish a stable supply chain for rare earth materials.

Information and Communication Technology

• Ministry of Internal Affairs and Communication (MIC) supported the Open RAN pilot project in India and resolved to further deepen their collaboration in this sector.
• NEC and Reliance Jio established a strategic partnership to collaborate on information and communication technology infrastructure and technology, particularly on 5G technology and Open RAN.
• NEC, through its Centre of Excellence Laboratory in Chennai, promoted end-to-end Open RAN system development.
• Ministry of Communications of India and MIC of Japan held the 7th India-Japan ICT Joint Working Group meeting in May 2022 under the India-Japan ICT Cooperation Framework which aims to foster collaboration in emerging technologies.
• India and Japan will continue to deepen collaboration in joint projects through the Japan ICT Fund (JICT) and the Japan Bank for International Cooperation (JBIC).
• NTT plans to continue to expand its data center business (currently 20 data centers) through implementation of investment and financing through JICT and JBIC.

Clean Energy

• India and Japan welcomed the Joint Statement of the 11th India-Japan Energy Dialogue held in August 2025.
• India and Japan welcomed the signing of the Memorandum of Cooperation on the Joint Crediting Mechanism (JCM).
• The Ministry of New and Renewable Energy of India and METI issued a Joint Declaration of Intent on Clean Hydrogen and Ammonia.
• IHI Corporation, Kowa and Adani Power Ltd. signed a collaboration for ammonia co-firing demonstration at Mundra Power Plant in Gujarat.
• JBIC and Osaka Gas signed an arrangement for forming a co-investment partnership with Clean Max, called Clean Max Osaka Gas Renewable Energy Pvt. Ltd., to own and operate a 400MW renewable energy portfolio including existing and new development assets, primarily in Karnataka, over the next three years.
• India and Japan will continue cooperation in biofuels including through international frameworks such as the Global Biofuels Alliance.
• India and Japan welcomed the initiative for promoting battery supply chain cooperation, including the business matchmaking and roundtable organized in India by JETRO and Government of Japan on battery and critical minerals supply chain with participation of over 70 companies and government organizations.
• India and Japan welcomed the promotion of investment in environmental conservation and other areas through the India-Japan Fund established by the Government of India and JBIC
• JBIC and Power Finance Corporation Limited signed a loan agreement amounting up to JPY 60 billion to support a bamboo-based bioethanol production project in Assam, Northeastern India, being implemented by Assam Bio Ethanol
• JBIC implemented measures of financing support including financing for investment projects of Japanese automotive parts companies (Yokohama Rubber, Yazaki Corporation, etc.), loans to strengthen the supply chains of Japanese automobile manufacturers (environmentally friendly vehicles) and support for railway container transport business of Japanese logistics companies (Konoike Transport) to contribute to India’s modal shift.

Scientific Cooperation

• India and Japan are deepening their S&T engagement this year celebrating it as the Year of Science, Technology and Innovation Exchanges.
• India and Japan held the 11th Joint Committee Meeting on Science and Technology Cooperation in June 2025 and held discussions on the full range of scientific cooperation particularly in new and emerging technologies such as AI, quantum technologies, biotechnology, climate change technology and space.
• India and Japan have conducted several joint demonstration experiments on Vehicle-to-Everything (V2X), held annual Technical-Workshops on V2X System since 2019, and pursued opportunities to collaborate on V2X technologies and Intelligent Transportation Systems.
• India and Japan implement international joint calls for proposals in cutting-edge fields through SICORP between the Japan Science and Technology Agency (JST) and DST.
• India and Japan launched the India-Japan AI Cooperation Initiative that will promote strategic collaboration in AI through joint research, promotion of initiatives between universities and companies, collaboration on the development of Large Language Models (LLMs), and cooperation toward fostering a trustworthy AI ecosystem.
• India and Japan renewed the MoC on Digital Partnership 2.0 in 2025 to promote collaboration in digital sector, including semiconductors, AI, Digital Public Infrastructure, R&D, start-ups.
• India and Japan strengthened the human resource exchange in cutting-edge fields by supporting Indian students, including postgraduate and doctoral students, to conduct research in Japan such as the LOTUS programme and Sakura Science Exchange Program and facilitate matching with Japanese companies through internships.
• The Ministry of Education Culture, Sports, Science and Technology (MEXT) signed a Joint Statement of Interest (JSOI) with India’s Ministry of Science and Technology to promote collaboration in scientific exchanges and research and development.
• NTT DATA, cloud platform company Neysa Networks and the Government of Telangana signed a contract to set up an AI data centre cluster in Hyderabad with an investment of INR 10,500 crores.

Pharmaceuticals

• Japan Agency for Medical Research and Development, the Department of Science and Technology and the Indian Council of Medical Research will sign an MoC on cooperation in health and medical research under Japan’s Strategic International Collaborative Research Program.
• An MOC was signed between the Central Drugs Standard Control Organization (CDSCO) of the Ministry of Health and Family Welfare of the Government of the Republic of India and the Ministry of Health, Labour and Welfare of Japan.
• India and Japan will continue to collaborate on efforts to build a resilient supply chain through the Biopharmaceutical Alliance among like-minded countries.
• JBIC is providing loans for investment projects by Japanese companies in the chemical and pharmaceutical industries for small and medium-sized enterprises.

Expanding Partnership

Japan and India, recognising the shared interest in safeguarding critical economic interests in the backdrop of evolving global challenges, commit to advancing cooperation in the field of economic security. Anchored in their common vision for a rules-based economic order in the Indo-Pacific and beyond, both countries will continue to deepen collaboration across government, industry, and academia to build resilience in strategic sectors, enhance technology and infrastructure security, and promote trusted and transparent frameworks.

(With Inputs from MEA)