Prime Minister Narendra Modi's recent visit to Japan carries significant weight, especially considering the current geopolitical landscape. It serves as a message of strategic balancing to the United States, demonstrating India's commitment to its foreign policy of "strategic autonomy". This visit, along with Modi's upcoming engagements in China and Russia, highlights India's skillful navigation of a complex world, particularly in light of strained relations with the U.S. due to trade tariffs and disagreements over energy imports.
Modi's trip to Japan, where he met with Prime Minister Shigeru Ishiba, underscores the deepening cooperation between the two nations on trade and security. This partnership is particularly vital within the Quad grouping, which includes India, Japan, Australia, and the U.S., and is seen as a counterweight to China's growing influence in the Indo-Pacific region. Modi himself stated that this visit would "give new wings to our collaboration, expand scope and ambition of our economic and investment ties, and advance cooperation in new and emerging technologies, including AI and Semiconductors".
The economic implications of the visit are substantial. Japanese firms are reportedly set to invest 10 trillion yen ($68 billion) in India over the next decade. Suzuki Motor alone has pledged around $8 billion in fresh investments. This injection of capital and technology will be crucial for India as it seeks to diversify its export markets in the face of increased tariffs imposed by the U.S. The U.S. remains India's largest export market, with merchandise exports touching $86 billion in the last financial year (2024-2025), making diversification efforts all the more critical. Areas of collaboration include high-value manufacturing and critical minerals, where Japan can offer both capital and technological expertise. The two leaders are expected to discuss tie-ups on critical minerals and Japanese investments in high-value manufacturing in India. India is believed to hold substantial deposits of rare earths – used in everything from smartphones to solar panels – but lacks the technology to mine and process them extensively.
Beyond Japan, Modi's itinerary includes attending the Shanghai Cooperation Organisation (SCO) summit in China and meeting with Russian President Vladimir Putin. These meetings are strategically important, especially in the context of India's relationship with the U.S.. As one retired Indian diplomat noted, Modi standing alongside Xi and Putin "will send a pointed message to Washington". While Indian officials emphasize the desire to continue ties with the U.S., they also stress the need to diversify partnerships.
India's approach can be seen as a careful balancing act. While strengthening ties with Japan and engaging with China and Russia, India is also sending a message to the U.S. that it has options and will pursue its national interests. This is particularly important given the recent imposition of 50% tariffs by the U.S. on Indian exports. Modi's visit to Japan, therefore, is not just about bilateral relations; it's a strategic signal of India's ability to navigate a multipolar world while protecting its economic and security interests.
