Unleashing the Potential of the India-Japan Partnership

India–Japan Strategic Partnership in the Indo-Pacific

India and Japan are natural partners in shaping the evolving Indo-Pacific order. While India brings youth, dynamism, and strategic geography, Japan contributes capital, technology, and institutional experience. Their demographic contrast—India’s expanding young workforce and Japan’s ageing population—creates a powerful complementarity that can drive innovation, production, and stability across Asia. To unlock this potential, both nations must deepen their defence, digital, and economic cooperation, translating shared interests into lasting regional influence.

1. Strategic Underpinnings

The foundation of India–Japan cooperation lies in shared democratic values, respect for international law, and a common concern over China’s growing assertiveness.

Complementary Strengths: India’s military reach and demographic vitality complement Japan’s technological leadership and financial capacity.

Shared Vision: Both advocate for a free, open, and inclusive Indo-Pacific, where maritime routes remain secure and regional powers collaborate through consensus.

Strategic Necessity: The Indo-Pacific’s balance of power is being reshaped by China’s rise and the shifting American focus, making India–Japan coordination indispensable.

2. Strategic Convergences

(a) Security and Defence Cooperation

Maritime Exercises: Collaboration through QUAD, Malabar, and MILAN exercises enhances naval coordination and maritime situational awareness.

Technology Sharing: The Reciprocal Provision of Supplies and Services Agreement (2020) and ongoing defence technology dialogues demonstrate growing potential for joint research and development.

Resilience and Deterrence: Japan’s 2022 National Security Strategy and India’s Act East Policy both aim to deter unilateral actions that threaten regional peace and stability.

(b) Economic and Technological Linkages

Infrastructure and Investment: Japan’s $68 billion investment plan, including the Delhi–Mumbai Industrial Corridor (DMIC) and the high-speed rail project, deepens economic and infrastructural ties.

Digital and Green Cooperation: Collaborations in semiconductors, hydrogen, AI, and renewable energy align with India’s digital and climate ambitions.

Supply Chain Resilience: The Supply Chain Resilience Initiative (SCRI), with Australia, supports diversified and China-independent value chains across the Indo-Pacific.

(c) Demographic Complementarity

India’s Youth Dividend: With a median age under 30, India provides a large, skilled, and innovative workforce.

Japan’s Ageing Challenge: Nearly 30% of Japan’s population is above 65, leading to labour shortages and higher social costs.

Mutual Opportunity: Japanese capital and technology can find long-term production bases in India’s youthful workforce, while India gains from Japan’s efficiency and management expertise. This demographic synergy, if strategically leveraged, could become the backbone of future economic and technological collaboration in Asia.

(d) Regional and Multilateral Diplomacy

India and Japan’s joint presence in ASEAN forums, the G20, and the East Asia Summit amplifies their voice in regional governance. Their cooperation with the US, Australia, and European partners ensures that their Indo-Pacific vision remains inclusive, rules-based, and stability-oriented.

3. Underlying Challenges

Policy Pace: India’s bureaucratic hurdles and Japan’s cautious policymaking can slow implementation of joint initiatives.

Divergent China Approaches: India’s border tensions contrast with Japan’s economic dependence on China, complicating strategic alignment.

Trade Imbalance: Indian exports remain limited compared to imports from Japan, necessitating greater diversification and market access.

4. Future Directions

(a) Defence and Technology Integration

Convert joint declarations into practical collaborations in cybersecurity, artificial intelligence, and unmanned systems to enhance interoperability and innovation.

(b) Harnessing Demographic Synergy

Promote labour mobility, skill transfer, and industrial relocation to merge Japan’s ageing workforce with India’s human resource potential.

(c) Expanding Economic Corridors

Fast-track the India–Japan Industrial Competitiveness Partnership and strengthen regional infrastructure cooperation under the Free and Open Indo-Pacific (FOIP) framework.

(d) Shared Leadership in the Indo-Pacific

Lead new minilateral frameworks—such as an “Asian Quad” with Australia and Indonesia—to safeguard sea lanes, supply routes, and critical technologies.

Quote for Future Civil Servants

“Partnerships thrive when one side’s experience meets the other’s energy—India and Japan together can turn demographic contrast into shared destiny.”