Many important trade and strategic agreements are likely to be agreed upon between the two countries in the India-Japan summit to be held next month. New investments may be announced in sectors like semiconductor, rare minerals, automobile, renewable energy and comprehensive energy resource partnership.
Apart from this, investment agreements are also expected between the two countries to strengthen the global supply chain and develop strategic oil reserves. Japanese Prime Minister Sanayi Takaichi will visit India on July 1. He will have summit talks with Prime Minister Narendra Modi in New Delhi. Along with Takaichi, heads and representatives of 55 major Japanese companies will also come to India. Many of these companies are exploring investment opportunities in India’s renewable energy sector.
Emphasis will be on increasing trade and investment
Bilateral trade between India and Japan in the financial year 2025-26 stood at $27.47 billion. During this period, India imported copper and its products, electrical machinery and equipment, inorganic chemicals and iron and steel worth $21.43 billion from Japan. India’s exports to Japan were only $6.04 billion, which included nuclear reactor related equipment, copper and its products, electrical machinery and equipment and steel. India is now making efforts to reduce this trade imbalance by increasing its exports.
