India-Japan partnership enters new phase with AI focus

This article is authored by Varuna Shankar, Associate Fellow at India’s World Magazine and Non-Resident Vasey Fellow at the Pacific Forum. In January 2026, India-Japan held the 18th India-Japan Foreign Ministers’ Strategic Dialogue in New Delhi. During the meeting, both countries announced a renewed push to strengthen cooperation in Artificial Intelligence (AI). This move marks a key step in advancing the India-Japan Special Strategic and Global Partnership.

India’s External Affairs Minister S. Jaishankar and Japan’s Foreign Minister Toshimitsu Motegi launched a new AI dialogue. They aim to boost collaboration through joint research, university-industry partnerships, and the development of Large Language Models (LLMs). The initiative also focuses on building a reliable and secure AI ecosystem.

Moreover, both countries established this effort under the Japan–India AI Cooperation Initiative (JAI). Motegi announced that Japan will invite around 500 skilled AI professionals from India by 2030. This step will strengthen research and innovation between the two nations. At the same time, India’s AI Impact Summit highlights the growing role of emerging technologies in a changing global landscape. Together, these developments show how AI is shaping stronger India-Japan relations.

India-Japan AI Ties Strengthen

AI now plays a central role in deepening India-Japan ties. This partnership goes beyond technology and includes strategic and economic cooperation. Both countries are working together through research programs, academic exchanges, and industry collaborations. Their goal is to compete strongly in the global AI space.

In addition, both nations focus on building trustworthy and ethical AI systems. They want to ensure data security, transparency, and responsible use of technology. As a result, this partnership will help create a secure and future-ready digital ecosystem. It will also support long-term innovation and stability.

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India’s Rapidly Expanding AI Ecosystem

India’s AI ecosystem is growing rapidly. Strong government support and a large talent pool drive this growth. Industry reports estimate that India’s AI market will reach $17 billion by 2027, with over 25% annual growth. The country already has more than 420,000 AI professionals, making it one of the fastest-growing talent hubs.

Furthermore, nearly 79% of Indian businesses plan to increase AI investments in the next two years. Around 70% of startups already use AI in their products and services. AI could contribute nearly $500 billion to India’s GDP by 2025. Importantly, growth comes not only from large companies but also from grassroots innovation. This trend is transforming sectors like agriculture, healthcare, finance, and governance, creating strong economic and social impact.

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