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DEFENCE INDUSTRYFOREIGN AFFAIRS

India-Japan defence projects face hurdle as Tokyo’s export curbs slow progress

New Delhi, January 18. India and Japan have held discussions on a range of potential defence equipment projects, but any concrete progress will depend on Japan relaxing its stringent export and technology-transfer regulations, a media report citing official sources stated.

Responding to queries on defence-related talks between External Affairs Minister S. Jaishankar and Japanese Foreign Minister Toshimitsu Motegi, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal underscored the importance of defence cooperation in the bilateral partnership.

“Defence cooperation with Japan is an important element of our collaboration, and this was discussed between the two leaders. We look forward to strengthening our ties, and there are several projects under consideration,” he said on January 16.

According to sources cited by The Tribune, India is seeking greater flexibility in Japan’s regulatory framework governing defence exports and transfer of technology. Japan possesses advanced capabilities in areas such as submarines, aero-engines and fighter aircraft, technologies that India urgently requires. However, Tokyo’s rules, laid down by the Japanese Parliament, impose tight restrictions on such transfers.

In an official statement on the Jaishankar-Motegi talks, the MEA said the two ministers reviewed the full spectrum of India-Japan relations, including supply chain resilience in critical sectors, trade, investment, technology and innovation, alongside defence cooperation.

Over the past decade, two major defence proposals between the two countries – one related to conventional submarines and another involving a seaplane – failed to materialise. The seaplane project has now resurfaced, with the Ministry of Defence recently inviting global suppliers to lease four specialised amphibious aircraft for the Indian Navy for a four-year period. Among the contenders is the US-2 amphibious aircraft manufactured by Japan’s ShinMaywa Industries.

Earlier, in 2018, ShinMaywa had signed an agreement with Mahindra Defence Systems to manufacture and assemble amphibious aircraft in India, but the deal did not move forward.

Despite these setbacks, cooperation in defence technology has made some headway. In November 2024, India and Japan signed their first-ever military co-development and co-production agreement to build specialised radio communication equipment for naval warships. The system, known as the Unified Complex Radio Antenna (UNICORN), integrates multiple communication functions into a single mast and is currently deployed on Japanese naval vessels.

A joint declaration issued after Prime Minister Narendra Modi’s meeting with Japanese Prime Minister Shigeru Ishiba in Tokyo on August 29 last year had reiterated the intent to expand defence equipment and technology cooperation, with a focus on future security needs and joint development.

Japan’s restrictions on defence exports trace their origins to 1967, when the ‘Three Principles on Arms Exports’ were introduced, sharply limiting arms sales abroad.

Outside the defence sector, Japanese investment in India runs into billions of dollars, spanning automobiles, semiconductors, steel manufacturing and major infrastructure projects such as bullet trains, railways and metro systems, highlighting the broader strength of the bilateral economic partnership.

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