From Chandrayaan to AI initiative, why PM Modi’s Japan visit is a big win for India

Deals, more deals and sending a message… That’s one way of summing up Prime Minister Narendra Modi’s visit to Japan.

PM Modi, who travelled to Japan on August 29 for a two-day visit, making this is his eighth visit to the Asian nation has secured significant deals for India as well as shored up support for the nation at a time when it is facing an American chill in the form of the 50 per cent tariffs that the US president has imposed.

PM Modi hailed the success of his two-day official visit to Japan, calling it a “productive” engagement that yielded several significant outcomes aimed at deepening the India-Japan Special Strategic and Global Partnership. He even wrote on X, “Productive outcomes during a productive visit. May India-Japan friendship scale newer heights in the times to come!”

This visit to Japan will be remembered for the productive outcomes which will benefit the people of our nations. I thank PM Ishiba, the Japanese people and the Government for their warmth.@shigeruishiba pic.twitter.com/kdXYeLPJ7N

— Narendra Modi (@narendramodi) August 30, 2025

But what would be the biggest takeaways for India from PM Modi’s visit?

India-Japan and MoUs galore

India has signed several new Memorandum of Understanding (MoUs) worth billions of dollars during PM Modi’s two-day visit to Japan. These MoUs cover human resource exchange, environment, digital technologies, space, and cultural cooperation.

As per the official statement by the Ministry of External Affairs (MEA), India and Japan signed MoUs on Joint Crediting Mechanism to facilitate the diffusion of decarbonising technologies. What this means is that the two nations have signed on an agreement to facilitate the diffusion of decarbonising technologies, products, systems, and infrastructure thereby contributing to India’s greenhouse gas emission reduction goals, promote Japanese investment in India and India’s sustainable development.

The two nations have also signed an MoU titled India-Japan digital partnership 2.0 to advance bilateral collaboration in digital public infrastructure, development of digital talent and joint R&D in futuristic technological fields such as Artificial Intelligence, and semiconductors.

They also signed an MoU on decentralised domestic waste water management and an MoU between Sushma Swaraj Institute of Foreign Service and Ministry of Foreign Affairs, Japan.

The countries also signed a Memorandum of Cooperation in the fields of mineral resources, cultural exchange, and environmental cooperation. On mineral resources, the MEA said, “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.”

An action plan on human resource exchange has also been adopted to enable the movement of 5,00,000 people, including 50,000 Indian skilled workers to Japan within five years.

Apart from these initiatives, the two nations also signed a Joint Vision for the next decade, identifying eight priority areas ranging from economic security to ecological sustainability, as well as a Joint Declaration on Security Cooperation, creating a fresh framework for defense and strategic collaboration.

A Chandrayaan collaboration

Amid his Japan visit, PM Modi and his Japanese counterpart Shigeru Ishiba also agreed upon an agreement for the Chandrayaan-5 mission, a joint exploration of the southern polar region of the Moon by the space agencies of the two countries.

Indian Space Research Organisation (Isro) and Japan Aerospace Exploration Agency (JAXA) have signed an agreement on the Chandrayaan-5 mission. For the unaware, the Chandrayaan-5 mission aims to study the lunar volatile materials, including lunar water, in the vicinity of a Permanently Shadowed Region (PSR) in the lunar South pole. The mission will be launched by JAXA onboard its H3-24L launch vehicle, carrying the ISRO-made lunar lander, which will carry the Japan-made lunar rover.

In an interview with the Yomiuri Shimbun, PM Modi later said, “I am glad that India and Japan are joining hands for the next edition of the Chandrayaan series or the LUPEX (Lunar Polar Exploration) mission. This will contribute to deepening our understanding of the permanently shadowed regions at the lunar south pole.”

“Our G2G collaboration in the space sector, between Isro and JAXA, is fostering a culture of cooperation between our industries and startups. This is creating an ecosystem where innovation flows both ways – from labs to launch pads, and from research to real-world applications.”

Business boost

PM Modi also pitched for greater business ties between the two nations following which Japan announced its plans to invest ¥10 trillion (nearly Rs 5.96 lakh crore) in India over the next decade. The focus is on multiple sectors, including artificial intelligence, semiconductors, environment and medicine.

Pitching India forward, PM Modi said, “Eighty per cent of companies want to expand in India. Seventy-five per cent are already in profit in India. In India, capital does not just grow; it multiplies. In the last 11 years, India has seen unprecedented transformation — political stability, economic stability, and transparency in policy. India is the world’s fastest-growing major economy and will be the third-biggest economy soon.”

This is significant for India as it comes amid concerns that the US tariffs, which have strained ties between Delhi and Washington, may hit the domestic MSME sector in the coming days.

Cooperation in AI, and semiconductors

India and Japan have also launched the Economic Security Cooperation Initiative covering artificial intelligence, a digital partnership programme, and joint development of semiconductors and rare earth minerals.

Speaking on the same, PM Modi said, “We are launching the Economic Security Cooperation Initiative. Under this, we will move forward with a comprehensive approach in critical and strategic areas.

“Cooperation in the field of high technology is a priority for both of us. In this context, Digital Partnership 2.0 and AI cooperation initiatives are being taken. Semiconductors and rare earth minerals will remain at the top of our agenda,” he added.

PM Modi also visited the Sendai semiconductor facility in Miyagi Prefecture. It has been in partnership with SBI Holdings and Japanese stakeholders under the joint venture Japan Semiconductor Manufacturing Company (JSMC).

The plant will manufacture 12-inch semiconductor wafers, starting with 40-nanometre technology, and later expanding to 28 nm and 55 nm nodes.

Expanding on security and defence

India and Japan have also agreed to strengthen cooperation in defence industry and innovation. “Our common interests are linked to defence and maritime security. We have decided to further strengthen mutual cooperation in the field of defence industry and innovation,” said PM Modi.

Later, Foreign Secretary Vikram Misri said the new joint declaration on security co-operation provides a clear framework for this area of partnership. He highlighted that the document reflects a broad concept of security, adding that a key element of the agreement is the first-ever institutionalised dialogue between the National Security Advisers (NSAs) of India and Japan.

The agreement also calls for more frequent joint exercises involving all three of their forces, the army, navy and air force. Naval cooperation will be scaled up with more ship visits, coordination to keep sea routes safe, and stronger action against piracy and other crimes at sea. The pact also goes includes closer collaboration in areas such as counter-terrorism, disaster relief, cybersecurity, defence research and even cooperation on critical minerals needed for modern industries. Both countries have also committed to sharing information on new and emerging security risks.

A strategic balancing for India

PM Modi’s visit to Japan is also significant from a geopolitical point of view. It comes at a time when New Delhi-Washington ties are facing a downturn as a result of Donald Trump’s tariff war.

It sends a clear message to Trump and his administration that India is and won’t relent on national interests and that it has been able to cultivate strong ties with other nations, especially in the Indo-Pacific region.

In fact, when India and Japan announced their partnership in critical minerals, New Delhi stated that the deals hinged on two Biden-era agreements—the Minerals Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF)—in what could be perceived as a snub at US President Donald Trump.

All in all, one could say that the PM’s visit to Japan was a successful one. Now, PM Modi is making his way to China’s Tianjin where he will attend the SCO Summit as well as hold a bilateral with Xi Jinping, signalling a thaw in India-China ties.

With inputs from agencies

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