Japan and India Ink $61 Billion Defense-Tech Pact as US Retreats from Asia

Japan and India Ink $61 Billion Defense-Tech Pact as US Retreats from Asia

A series of diplomatic meetings reveal Japan and India are rapidly deepening military and economic ties, targeting $61 billion in new investment and joint defense projects, as the United States scales back its regional presence.

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Indian Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi met in New Delhi for the 16th annual India-Japan summit, where they agreed to expand cooperation in defense, maritime security, and critical technologies [187009]. The two countries adopted a joint road map on economic security and pledged to work together on naval radio antenna systems, artificial intelligence, shipbuilding, and semiconductors [187009].

Japan has committed to more than doubling its investment in India to over $61 billion over the next decade [187009]. Two-way trade already reached $27.5 billion in India’s 2025-26 fiscal year, with Japanese investment totaling $3.2 billion between April and December 2025 [187009]. Approximately 1,400 Japanese companies currently operate in India, nearly half in manufacturing [187009].

The push for closer ties comes amid growing uncertainty over American leadership in the region. Former Australian Prime Minister Kevin Rudd warned that Japan and other middle powers must step up to “fill the vacuum” left by a retreating United States [188639]. “The United States is pulling back,” Rudd said at a security forum. “If no one fills that space, instability will grow” [188639].

China has intensified military activity east of Taiwan, testing the response capabilities of Japan and the Philippines [188660]. Chinese naval and air units are now operating in waters between Taiwan and Japan’s southern Ryukyu islands, an area known as the “first island chain” that serves as a key defensive line for U.S. allies [188660]. Japan has scrambled fighter jets to monitor Chinese aircraft entering its air defense identification zone [188660].

Japan’s Prime Minister Takaichi arrived in India on a three-day visit aimed at boosting economic links and security cooperation, as both nations face rising tensions with China [186750]. Modi described the meeting as the start of a “new chapter” in bilateral ties [186985]. Takaichi stated that both countries share a commitment to a “free and open Indo-Pacific” based on freedom of navigation and respect for international law [187009].

China’s Foreign Ministry criticized the deepening Japan-India partnership. Spokesperson Guo Jiakun said some countries promote “freedom and openness” while pursuing “confrontation and division,” adding that “the Asia-Pacific needs stability, not turmoil; focus on cooperation, not division” [187009].

Sources

Japan and India Deepen Defense Ties, Target $61 Billion Investment #187009India, Japan PMs Meet for 16th Annual Summit #186985Japan PM Takaichi Lands in India to Strengthen Ties Amid China Friction #186750US retreat creates ‘vacuum’ for Japan, other powers: Rudd #188639China’s military push east of Taiwan tests Japan and Philippines #188660

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