India and Japan have agreed to elevate their bilateral relationship into a strategic axis, with a focus on enhancing economic cooperation and regional security. The decision was announced following high-level talks between Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi.
CEPA Review to Boost Trade
To further boost bilateral trade, both leaders agreed to review the 15-year-old Comprehensive Economic Partnership Agreement (CEPA). The pact, signed in 2011, has been instrumental in facilitating trade but both sides acknowledged the need to update it to reflect current economic realities. According to a joint statement, the review aims to address tariff barriers, expand market access, and promote investment flows.
Strategic Cooperation Deepens
Beyond trade, the two nations committed to strengthening cooperation in defense, technology, and infrastructure. Modi emphasized India's role as a key partner in Japan's Free and Open Indo-Pacific strategy. Takaichi, in turn, highlighted Japan's support for India's Act East Policy and its commitment to regional stability. The leaders also discussed collaborative projects in semiconductor supply chains, renewable energy, and digital public infrastructure.
Regional Security Alignment
Both sides expressed concern over unilateral attempts to change the status quo in the Indo-Pacific region. They reaffirmed their commitment to a rules-based order and freedom of navigation. The joint statement called for peaceful resolution of disputes in accordance with international law. Additionally, they agreed to enhance maritime security cooperation and conduct joint military exercises.
Economic and Investment Goals
India and Japan set a target to double bilateral trade to $100 billion by 2030. To achieve this, they will launch a new business promotion forum and streamline visa procedures for business travelers. Japanese companies have already invested over $38 billion in India, and the new measures are expected to attract further Japanese investment in manufacturing and infrastructure. The review of CEPA is anticipated to be completed within two years.
