Modi and Takaichi agree to boost supply chain resilience in strategic sectors as both nations seek to reduce reliance on China
NEW DELHI: India and Japan will work more closely on critical minerals to boost “resilience” in their supply chains, Prime Minister Narendra Modi said Thursday, as the two huge Asian economies look to cut dependence on top exporter China.
Both India and Japan depend on imports for many such minerals, used in everything from electric vehicles, solar panels and smartphones to jet engines and guided missiles.
They have been seeking new suppliers, including the United States and other countries, as China’s dominance may leave them vulnerable to changes in their ties with Beijing.
“We have agreed to strengthen supply chain resilience in strategic sectors such as semiconductors, quantum technologies, and critical minerals,” India’s Modi said after talks with his Japanese counterpart Sanae Takaichi in New Delhi.
Japan and India are members of the Quad security alliance along with the United States and Australia, a group seen as a counterweight to China’s expanding presence in the Indian Ocean and wider Asia-Pacific region.
Takaichi said both Japan and India were facing challenges such as “weaponisation of the economy and non-market policies and practices”.
“We need to urgently build resilience in our critical minerals supply chains,” she said in her speech.
In a sign of camaraderie between the two leaders, Modi referred to Takaichi as his “little sister” and the Japanese premier responded by calling him “elder brother”.
Japanese and Indian businesses concluded investment deals worth $12.3 billion, the two sides said.
They form part of a Japanese pledge to pour $68 billion into India over 10 years.
Modi said the countries had also agreed to co-develop a naval radio antenna project aimed at boosting maritime surveillance.
Earlier, Takaichi received a red-carpet welcome at the presidential palace in Delhi, where troops marched past in an honour guard parade.
She will address a business forum as part of efforts to strengthen economic ties between Asia’s second- and third-largest economies.
Trade between them in 2025-26 topped $27 billion, according to official figures from India.
