Indian Prime Minister Narendra Modi’s recent visit to Tokyo has given fresh momentum to the India-Japan partnership, as he and his Japanese counterpart, Prime Minister Shigeru Ishiba, outlined a forward-looking vision for cooperation in multiple fields. The highlight of their meeting at the Tokyo business forum was a candid discussion on how India’s young, skilled workforce could help Japan tackle its deepening labour crisis caused by an aging population and shrinking birth rates.
The talks also reinforced the shared commitment of both nations to strengthen ties across security, economy, technology, and regional frameworks such as the Quad, which also includes the United States and Australia.
Japan’s Workforce Challenge and India’s Role
Japan is currently facing a demographic crisis that threatens its long-term economic stability. Government data shows that the country’s population has been shrinking for 16 consecutive years, falling to 120.65 million in 2024, down from a peak of 126.6 million in 2009. Alarming figures released this year revealed a record-low 686,061 births, while deaths reached nearly 1.59 million, leading to a net decline of over 900,000 people in a single year.
Nearly one-third of Japan’s population is now aged 65 or older, leaving only six in ten people within the working-age bracket of 15 to 64. This imbalance poses a major challenge to Japan’s economic growth and social welfare systems.
India, with its large pool of young and highly skilled workers, emerges as a natural partner to bridge these workforce gaps. During his address, Prime Minister Modi announced a plan to facilitate the exchange of 500,000 human resources between India and Japan over the next five years, a move designed to support industries struggling with labour shortages while offering Indian professionals global opportunities.
A Vision for the Next Decade
Both leaders agreed to release a “joint vision” for cooperation over the next ten years, covering critical areas such as security, economy, energy, and human resources. They emphasized the importance of aligning this partnership with broader regional initiatives, particularly the Quad framework, which plays a crucial role in maintaining a free and open Indo-Pacific.
Mr. Ishiba highlighted that India and Japan share common values such as democracy, the rule of law, and respect for international norms, making them natural allies in an era of global uncertainty. He described the relationship as a synergy of “Japan’s advanced technology and India’s outstanding talent,” predicting a dramatic expansion of economic ties.
Strengthening Economic and Investment Ties
Economic cooperation stood out as a central theme during the discussions. The leaders are expected to announce a target of 10 trillion yen (£50 billion) in Japanese private sector investment in India over the next decade, a significant boost that could reshape India’s infrastructure, manufacturing, and technology landscapes.
Prime Minister Modi urged Japanese companies to expand their footprint in India, pointing out that recent reforms have created a transparent, predictable, and business-friendly environment. “In India’s development journey, Japan has always been an important partner,” he said while addressing Japan’s powerful business federation, Keidanren.
Japanese investments in India already span diverse sectors, from automobiles and high-speed rail to electronics and startups. With the new investment targets, this collaboration is expected to deepen, creating jobs, boosting innovation, and strengthening supply chains.
Technology, Innovation, and Future Industries
Another major focus of the meeting was cooperation in advanced technology. Prime Minister Modi and Prime Minister Ishiba agreed that sectors such as semiconductors, high-speed rail, next-generation mobility, and rare earth minerals would dominate their agenda moving forward.
“Cooperation in the high technology sector is a priority for both of us,” Modi emphasized. He underlined that semiconductors and rare earth minerals, which are essential for the digital economy, renewable energy, and defense, would remain key focus areas.
The leaders also discussed accelerating projects in aviation, shipbuilding, and port development, ensuring both countries benefit from the growing demand for global connectivity and sustainable infrastructure.
The Symbol of Trust: From Metro to Manufacturing
Reflecting on the strong foundation of bilateral ties, Prime Minister Modi described the India-Japan partnership as a “symbol of mutual trust”. He noted that the collaboration spans every sector—from metro rail projects and manufacturing plants to startups and renewable energy.
This trust has been built over decades of cooperation, with Japan playing a vital role in financing and supporting India’s infrastructure growth. The Mumbai-Ahmedabad bullet train project, for instance, is one of the most visible outcomes of this partnership and demonstrates Japan’s commitment to India’s modernization drive.
Regional and Global Implications
Beyond economic ties, the Modi-Ishiba dialogue carries significant geopolitical weight. Both nations reaffirmed their cooperation within the Quad, a strategic grouping with the United States and Australia aimed at maintaining stability in the Indo-Pacific.
Prime Minister Modi’s broader diplomatic tour, which includes a visit to China for the Shanghai Cooperation Organisation (SCO) summit, reflects India’s balancing act between partnerships. His scheduled talks with Chinese President Xi Jinping also indicate a thaw in India-China ties, especially amid shifting global dynamics caused by US trade policies.
By strengthening ties with Japan, India positions itself at the heart of a regional framework that emphasizes economic resilience, supply chain security, and collective defense of democratic values.
Frequently Asked Questions:
What was the main focus of the meeting between Prime Minister Narendra Modi and Prime Minister Shigeru Ishiba?
The key focus was on addressing Japan’s ageing and shrinking workforce by facilitating the entry of skilled Indian workers, along with expanding cooperation in technology, investment, and regional security.
Why does Japan need Indian workers?
Japan faces a demographic crisis with declining birth rates, rising deaths, and a rapidly ageing population. Indian workers bring youthful energy, skills, and expertise that can help fill critical labour shortages in Japanese industries.
How many Indian workers are expected to move to Japan under this plan?
Both leaders announced an exchange of 500,000 professionals over the next five years to support Japan’s economy and provide global opportunities for Indian talent.
What other areas of cooperation were discussed?
Beyond workforce collaboration, the leaders focused on semiconductors, rare earth minerals, high-speed rail, aviation, ports, shipbuilding, and clean energy.
How much investment is Japan planning to make in India?
The two leaders set a target of 10 trillion yen (£50 billion) in Japanese private sector investment in India over the next decade, strengthening economic ties.
What role does technology play in this partnership?
Technology is central to the alliance, with Japan contributing advanced know-how and India offering skilled talent. Key sectors include semiconductors, mobility, and digital infrastructure.
How does this cooperation fit into the Quad framework?
India and Japan reaffirmed their collaboration within the Quad alliance (with the US and Australia) to promote a free, open, and secure Indo-Pacific region.
Conclusion
The meeting between Prime Minister Narendra Modi and Prime Minister Shigeru Ishiba marks a turning point in the India-Japan partnership. By combining India’s youthful workforce with Japan’s advanced technology and investment, both nations are not only addressing immediate challenges like labour shortages but also shaping a resilient and future-ready alliance. The commitment to exchange half a million skilled professionals, boost Japanese investments, and collaborate on high-tech sectors demonstrates a vision that goes beyond economics—it reflects shared values, mutual trust, and a joint resolve to secure prosperity in the Indo-Pacific region.
