‘Weaponised economies’: India, Japan move to fortify supply chains

Japan sees significant opportunities to deepen cooperation with India on resilient supply chains and the Indo-Pacific, while recognising New Delhi's growing economic clout, Toshihiro Kitamura, Press Secretary and Official Spokesperson accompanying Japanese Prime Minister Sanae Takaichi, said in Delhi on Thursday.

Speaking ahead of the bilateral engagements, Kitamura said both countries have faced challenges arising from the "weaponisation of economies", making supply chain diversification an area of shared interest.

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"Both countries are suffering from weaponisation of the economies. We have a difficulty to import dual use items from our neighbouring countries. In that context we think that there will be areas of cooperation between the two countries," he said.

He added that India and Japan have identified five priority areas to develop projects aimed at making supply chains more resilient, although he did not elaborate on the specific sectors. "Five key priority areas to identify projects to make the supply chain more resilient," he said.

Moreover, Kitamura said maritime cooperation would remain a key pillar of the India-Japan partnership, with both sides looking to strengthen collaboration under the Free and Open Indo-Pacific (FOIP) vision and India's MAHASAGAR initiative.

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Describing the two frameworks as complementary, he said Japan also wants to broaden the conversation beyond government channels.

"Multilayer cooperation is an important pillar for Japan. MAHASAGAR and FOIP seek to promote a free and open Indo-Pacific. The Philippines is also a maritime country in this context. We would like to discuss FOIP not just through government-to-government dialogue, but also by involving academics," he said.

Highlighting India's rapid economic growth, Kitamura said Japan views India as an emerging economic powerhouse.

"India is a future economic power and will surpass Japanese economic power this year or next year," he said.

Modi, Takaichi unveil $10-billion roadmap

The comments came as Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi unveiled an ambitious roadmap to deepen the India-Japan Special Strategic and Global Partnership during the former's visit two-day New Delhi trip.

The two leaders announced that more than $10 billion in fresh Japanese investments would flow into India through around 120 new business agreements concluded over the past year.

They also reaffirmed their goal of attracting ¥10 trillion in Japanese investment over the next decade while doubling the number of Japanese companies operating in India.

The summit produced agreements on artificial intelligence, energy security, next-generation mobility and financial cooperation, alongside India's first defence co-development pact with Japan for the Naval Radio Antenna "Unicorn".

Both countries also agreed to deepen collaboration in semiconductors, critical minerals, quantum technologies and resilient supply chains, while launching the India-Japan Bio-gas Initiative to establish 1,000 biogas and organic fertiliser plants across India.