India-Japan Partnership Expands to Defense, Security, and Strategic Sectors

India-Japan Partnership Expands to Defense, Security, and Strategic Sectors

The India-Japan relationship has evolved into a comprehensive partnership encompassing defense, security, and strategic collaboration. This cooperation is unlocking new horizons, particularly in high-tech sectors such as artificial intelligence (AI) and semiconductors.

Reviving Japan’s Semiconductor Legacy

Once a global leader in consumer electronics and industrial goods, Japan has struggled to keep pace with the rapid advancements in semiconductors and AI over the past few decades. In the late 1980s, Japan controlled over 50% of the global semiconductor market, a share that has now dwindled to 10%.

In response, Japan has launched a $65 billion investment plan aimed at revitalizing its semiconductor industry and fostering AI innovation. This initiative has paved the way for deeper cooperation with India, a key partner in achieving these goals.

Milestones in India-Japan Collaboration

In July 2023, Japan’s Minister of Economy, Trade, and Industry, Yasutoshi Nishimura, and India’s Minister for Electronics and Information Technology, Ashwini Vaishnaw, signed a memorandum of understanding (MoU). The agreement focuses on semiconductor design, manufacturing, research, and supply chain stability.

This partnership will progress through both government-to-government (G2G) and business-to-business (B2B) engagements, reflecting the shared commitment to building robust and resilient supply chains in a post-COVID-19 world marked by geopolitical challenges.

Leveraging Mutual Strengths

India’s expertise in software development and its vast workforce, combined with Japan’s advanced technologies and robotics, offers the potential to create a competitive and stable ecosystem. This collaboration aligns with the “Special Strategic and Global Partnership” established between the two countries in 2014.

A History of Growing Cooperation

India and Japan’s relationship wasn’t always this strong. During the Cold War, India’s non-alignment stance contrasted with Japan’s security treaty with the United States. However, cooperation between the two nations has grown significantly since the early 2000s. Key milestones include the 2011 Civil Nuclear Agreement and the Comprehensive Economic Partnership Agreement, which have strengthened bilateral ties.

Economic and Strategic Impact

Bilateral trade between India and Japan has risen from $16.95 billion in 2019-20 to $22.85 billion in 2023-24. Japan is now India’s fifth-largest foreign investor, with cumulative investments of $41.4 billion.

This growing partnership is not only advancing economic interests but is also opening new frontiers in technological and strategic collaboration. With their shared vision of innovation and stability, India and Japan are poised to reshape the dynamics of regional and global politics.