Japan PM Sanae Takaichi Arrives in India; Yen-Rupee Trade, Investment Talks on Agenda

Japanese Prime Minister Sanae Takaichi will begin her three-day visit to India on Tuesday.

With trade, investment, energy cooperation and a proposed direct yen-rupee settlement mechanism expected to dominate talks during the 16th India-Japan Annual Summit. The visit marks Takaichi’s first trip to India since taking office and comes at the invitation of Prime Minister Narendra Modi.

According to the Ministry of External Affairs (MEA), the summit will provide an opportunity for both leaders to review the entire spectrum of bilateral ties while exchanging views on regional and global developments. Prime Minister Modi and Takaichi are expected to discuss ways to deepen cooperation under the Japan-India Joint Vision for the Next Decade, unveiled during Modi’s visit to Tokyo in August 2025.

Focus on Trade, Investment and Energy

The agenda includes expanding collaboration in key sectors such as energy, investment, infrastructure, advanced technologies and economic growth. Under the joint vision, Japan has committed to invest 10 trillion yen in India over the next decade, reinforcing its long-term economic partnership with New Delhi.

Takaichi will also outline Japan’s updated Free and Open Indo-Pacific (FOIP) strategy, which focuses on maritime security, resilient supply chains and countering economic coercion amid evolving geopolitical challenges.

A delegation of around 50 Japanese business leaders is accompanying the Prime Minister, highlighting the strong commercial focus of the visit. Several agreements covering artificial intelligence, battery technology and critical minerals are also expected to be signed.

Direct Yen-Rupee Trade on the Table

One of the major outcomes expected from the summit is progress towards a direct yen-rupee settlement framework for bilateral trade. The proposed mechanism would allow businesses in both countries to settle transactions in local currencies instead of routing payments through the US dollar, potentially reducing transaction costs and currency risks.

The proposal is expected to be reflected in the joint statement following the summit talks.

India-Japan Strategic Partnership

India and Japan share a Special Strategic and Global Partnership, with cooperation spanning trade, investment, infrastructure, defence, clean energy and emerging technologies.

Official data shows that Japanese foreign direct investment in India reached USD 3.2 billion between April and December 2025, while bilateral trade touched USD 27.5 billion in FY2025-26. Japan remains one of India’s largest foreign investors, with Japanese companies continuing to expand their presence across multiple sectors in the Indian economy.