Japan’s Takaichi Begins India Visit With Yen-Rupee Trade, Energy Cooperation in Focus

Japanese Prime Minister Sanae Takaichi is set to arrive in New Delhi on Tuesday for a three-day official visit.

Where she will hold talks with Prime Minister Narendra Modi on strengthening economic, strategic and technology ties, with a proposed direct yen-rupee trade mechanism among the key items on the agenda. The visit marks Takaichi’s first trip to India since taking office and coincides with the 16th India-Japan Annual Summit.

According to the Ministry of External Affairs (MEA), the summit will allow both countries to review the full spectrum of bilateral relations while exchanging views on regional and global developments. The two leaders are expected to explore new avenues of cooperation under the Japan-India Joint Vision for the Next Decade, announced during PM Modi’s visit to Japan in August 2025.

Trade, Investment and Strategic Cooperation in Focus

The summit is expected to focus on expanding cooperation across sectors including energy, investment, infrastructure, advanced manufacturing, clean technologies and economic growth. Japan has pledged to invest 10 trillion yen in India over the next decade under the joint vision, reaffirming its long-term commitment to the Indian economy.

Takaichi is also expected to present Japan’s updated Free and Open Indo-Pacific (FOIP) strategy, which emphasizes maritime security, resilient supply chains and greater regional cooperation amid rising geopolitical challenges.

Around 50 Japanese business executives are accompanying the Prime Minister, underlining the commercial significance of the visit. The two sides are also expected to sign agreements covering artificial intelligence, battery technology and critical minerals, further broadening the strategic partnership.

Direct Yen-Rupee Settlement Likely to Be Discussed

A key economic proposal expected to feature during the summit is the creation of a direct yen-rupee settlement framework for bilateral trade. The mechanism would allow businesses in both countries to settle payments in their domestic currencies instead of relying on the US dollar, a move aimed at lowering transaction costs and reducing exchange-rate risks.

The proposal is expected to be included in the joint statement following the leaders’ meeting.

Strong and Growing Bilateral Ties

India and Japan enjoy a Special Strategic and Global Partnership, with collaboration spanning trade, defence, infrastructure, clean energy, digital technologies and supply-chain resilience.

According to official data, Japanese investment in India stood at USD 3.2 billion between April and December 2025, while bilateral trade reached USD 27.5 billion in FY2025-26. Japan continues to rank among India’s leading foreign investors, with Japanese companies steadily expanding their footprint across key sectors of the Indian economy.