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From Chandrayaan-5 to Hydrogen Fuel: India and Japan Sign $67 Billion Deal During Modi’s Tokyo Visit

Calender Aug 30, 2025
3 min read

From Chandrayaan-5 to Hydrogen Fuel: India and Japan Sign $67 Billion Deal During Modi’s Tokyo Visit

Prime Minister Narendra Modi’s two-day visit to Japan (August 29–30, 2025) has emerged as a defining moment in the Special Strategic and Global Partnership between India and Japan. The visit was marked by the signing of 21 agreements, high-level interactions with Japanese leaders, governors, and business communities, as well as the announcement of a ¥10 trillion ($67 billion) investment pledge from Japan to India over the next decade.

From semiconductors and AI to clean hydrogen, mobility, and people-to-people exchanges, this visit reinforced the growing synergy between India’s scale and Japan’s technological expertise.

India and Japan Sign $67 Billion Deal

Key Agreements and Memoranda of Understanding

During the visit, India and Japan signed a wide-ranging set of agreements and MoUs, reflecting the depth of bilateral cooperation across multiple sectors.

Major Agreements

  1. India-Japan Joint Vision for the Next Decade – A 10-year roadmap prioritizing cooperation across eight areas: economic partnership, economic security, mobility, ecological sustainability, technology & innovation, health, people-to-people exchange, and state-prefecture engagements.

  2. Joint Declaration on Security Cooperation – Strengthening defense ties to meet evolving global and regional challenges.

  3. Action Plan for India-Japan Human Resource Exchange – Facilitating two-way exchange of 500,000 people, including 50,000 skilled and semi-skilled Indian professionals in Japan over the next five years.

  4. ISRO–JAXA Implementing Arrangement – A landmark step to collaborate on the Chandrayaan-5 joint lunar polar exploration mission.

  5. Joint Declaration of Intent on Clean Hydrogen and Ammonia – Expanding research and innovation in green energy technologies.

  6. Joint Statement of Intent on Science and Technology Collaboration – Promoting joint research and institutional exchanges.

MoUs and MoCs

  • Joint Crediting Mechanism for diffusion of decarbonizing technologies and sustainable development.

  • India-Japan Digital Partnership 2.0 for cooperation in AI, IoT, semiconductors, and digital talent development.

  • Cooperation in Mineral Resources to secure supply chains for critical minerals.

  • Cultural Exchange MoC to deepen collaboration in art, culture, and museum partnerships.

  • MoU on Decentralized Waste Water Management for public health and environmental sustainability.

  • Environment Cooperation MoC for climate action, pollution control, and biodiversity.

  • MoU between Sushma Swaraj Institute of Foreign Service and Japan’s Ministry of Foreign Affairs to promote exchanges among diplomats, academics, and policymakers.

Major Announcements and Initiatives

The visit also witnessed the launch of ambitious initiatives and forums designed to future-proof bilateral cooperation:

  • Private Investment Target: ¥10 trillion ($67 billion) in Japanese private investment in India over 10 years.

  • Economic Security Initiative: Strengthening supply chain resilience in semiconductors, clean energy, telecom, pharmaceuticals, critical minerals, and emerging technologies.

  • India-Japan AI Initiative: Advancing collaboration in Large Language Models, training, and capacity building to develop a trustworthy AI ecosystem.

  • Next-Generation Mobility Partnership: Expanding cooperation in railways, aviation, roads, shipping, and ports, with a strong focus on Make-in-India mobility solutions.

  • India-Japan Small and Medium Enterprises Forum: Strengthening SME collaboration in innovation and entrepreneurship.

  • Sustainable Fuel Initiative: Driving R&D in biofuels, biogas, and sustainable energy solutions, supporting energy security and farmer livelihoods.

  • State-Prefecture Partnerships: Enhanced cooperation with commitments to three reciprocal visits between Indian states and Japanese prefectures.

  • Business Forums: New platforms connecting India with Kansai and Kyushu regions to boost cultural, economic, and people-to-people ties.

Strengthening State–Prefecture Partnerships

One of the highlights of PM Modi’s visit was his meeting with 16 Japanese governors in Tokyo. He emphasized the State-Prefecture Partnership Initiative, which seeks to align the strengths of Indian states with Japanese prefectures.

  • Japanese prefectures such as Toyama, Ehime, Yamanashi, and Shizuoka already have active ties with Indian states like Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Gujarat.

  • PM Modi encouraged collaboration in manufacturing, mobility, startups, and SMEs, while highlighting that combining “Japanese technology with Indian talent” could yield transformational outcomes.

  • Japanese governors expressed strong support for this initiative, underlining its importance in deepening educational, business, and cultural ties.

Economic Cooperation and Investments

At the India-Japan Economic Forum, PM Modi pitched for partnerships in manufacturing, technology, innovation, skill development, and green energy. Echoing Prime Minister Shigeru Ishiba, he highlighted that “Japan’s excellence and India’s scale can create a perfect partnership.”

  • Japan pledged $67 billion in private investment over the next decade.

  • Both countries reaffirmed commitment to strengthening semiconductor and battery supply chains, vital for future industries.

  • Ongoing work on the high-speed rail project remained a critical pillar of bilateral cooperation.

Cultural and Diplomatic Engagements

PM Modi also engaged in cultural diplomacy and high-level meetings:

  • He traveled with PM Ishiba on a bullet train from Tokyo to Sendai, symbolizing cooperation in advanced mobility.

  • He met with former Japanese Prime Ministers Yoshihide Suga and Fumio Kishida, discussing ways to enhance cooperation in AI, trade, investment, and technology.

  • Cultural exchange agreements were signed to promote art exhibitions, museum partnerships, and heritage preservation.

A New Chapter in India-Japan Strategic Partnership

Prime Minister Modi’s 2025 visit to Japan has laid the foundation for a transformative decade of cooperation between the two nations. From space exploration and AI to green hydrogen, mobility, and cultural exchanges, the agreements and initiatives mark a significant leap in bilateral ties.

The vision for the next decade, coupled with Japan’s $67 billion investment pledge, positions India and Japan as natural partners in shaping the future of technology, sustainability, and global security.

As PM Modi noted, the world is not just watching India, it is also counting on India—and Japan’s collaboration will be central to that journey.

With inputs from agencies

Image Source: Multiple agencies

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