India, Japan sign defence pact as PM Modi holds talks with Takaichi

What Happened

• India and Japan concluded their 16th Annual Summit in New Delhi on 2 July 2026, signing agreements across defence, artificial intelligence, semiconductors, critical minerals, clean energy, and economic security.
• The two countries signed their first-ever defence co-development agreement — a joint project to develop the Naval Radio Antenna 'UNICORN' (Unified Complex Radio Antenna), a mast with integrated communication systems designed to improve the stealth characteristics of naval platforms.
• A joint Economic Security Roadmap was unveiled, covering cooperation in supply chain resilience for semiconductors, quantum technologies, advanced materials, critical minerals, and next-generation mobility.
• Japan pledged USD 10 billion in investment to India, covering strategic sectors including advanced manufacturing and clean energy.
• The agreements signal a transition in the India-Japan partnership from policy dialogues and joint exercises to joint production and co-development of military technologies.

Static Topic Bridges

India-Japan Special Strategic and Global Partnership — History and Architecture

India and Japan established diplomatic relations in 1952. The bilateral relationship was progressively upgraded: from a Global Partnership (2000) to a Strategic and Global Partnership (2006) to a Special Strategic and Global Partnership in 2014 — the highest level of bilateral designation between Japan and any country at the time. Annual summits between the two Prime Ministers have been institutionalised since 2006. The relationship is underpinned by over 70 bilateral dialogue mechanisms. A 2+2 Foreign and Defence Ministerial Dialogue has been held since 2018. Defence agreements progressively deepened: Memorandum of Defence Cooperation (2014), Agreement on Transfer of Defence Equipment and Technology (2015), Agreement on Protection of Classified Military Information (2015), and the Acquisition and Cross-Servicing Agreement (ACSA, signed 2020, in force July 2021).

Defence Co-Development — India's Evolving Defence Industrial Policy

India's defence production policy has evolved significantly from a model of import dependence to one emphasising self-reliance and co-development. The Defence Production Policy (DPP) framework, updated through the Defence Acquisition Procedure (DAP 2020), has introduced categories like "Make in India" (indigenously designed), "Buy Global-Manufacture in India," and strategic partnerships with foreign OEMs for technology transfer. India's Defence Research and Development Organisation (DRDO) has been the primary vehicle for domestic defence technology development. The UNICORN naval antenna co-development with Japan represents India's first co-development project with Japan and signals the maturation of the bilateral strategic partnership beyond arms-length cooperation.

Economic Security — Semiconductor and Supply Chain Resilience

Economic security has emerged as a new pillar of international relations, particularly after the COVID-19 pandemic exposed vulnerabilities in global supply chains for semiconductors, medical equipment, and critical raw materials. India and Japan have aligned interests in diversifying semiconductor supply chains away from China-dominated production, especially given both countries' dependence on TSMC (Taiwan) for advanced chip fabrication. Japan is home to major semiconductor materials and equipment companies (Shin-Etsu Chemical, Tokyo Electron, SUMCO). India's India Semiconductor Mission (ISM), launched in 2021, aims to build a domestic semiconductor fabrication ecosystem.

Quad and the Indo-Pacific Strategic Architecture

The Quadrilateral Security Dialogue (Quad), comprising India, the USA, Japan, and Australia, was revived at the leader level in 2021 after being dormant since 2008. The Quad is not a formal alliance (India is not a treaty ally of the USA, Japan, or Australia) but a strategic grouping for cooperation on the free and open Indo-Pacific vision. Working groups cover vaccines, climate, critical and emerging technologies (iCET), infrastructure (PGII/Blue Dot Network), maritime domain awareness (Indo-Pacific Partnership for Maritime Domain Awareness — IPMDA), and cybersecurity. India-Japan bilateral defence deepening is complementary to the Quad framework, reinforcing the minilateral web of partnerships in the Indo-Pacific.

Key Facts & Data

• Summit: 16th India-Japan Annual Summit, New Delhi, 2 July 2026
• First defence co-development project: Naval Radio Antenna 'UNICORN' (Unified Complex Radio Antenna)
• UNICORN purpose: integrated communication mast improving stealth of naval platforms
• Japan's investment pledge: USD 10 billion in India
• India-Japan Special Strategic and Global Partnership elevated: September 2014 (Modi-Abe Summit)
• India-Japan ACSA signed: September 9, 2020; in force: July 11, 2021
• 2+2 Dialogue (Foreign + Defence): started 2018; latest round November 2025
• India Semiconductor Mission (ISM): launched 2021, under MeitY
• PLI scheme for semiconductors: ₹76,000 crore outlay
• Japan's Three Principles on Transfer of Defence Equipment: 2014 (enabled Japan's defence exports)
• Japan's Economic Security Promotion Act: 2022
• Quad Revived at leader level: March 2021
• India-Japan diplomatic relations established: 1952
• India's defence export target: ~₹50,000 crore by 2029
• Areas of agreement at 16th Summit: defence co-development, AI, semiconductors, quantum technology, critical minerals, clean energy, advanced manufacturing, next-generation mobility