New Delhi, Jul 2: India and Japan on Thursday signed their first defence co-development agreement, marking a major milestone in bilateral strategic cooperation, as Prime Minister Narendra Modi and his Japanese counterpart, Sanae Takaichi, agreed to deepen collaboration in defence, artificial intelligence, semiconductors, clean energy and supply chain resilience.

Addressing a joint press conference after the India-Japan Annual Summit at Hyderabad House, Modi said Takaichi's visit marked the beginning of a new chapter in the India-Japan Special Strategic and Global Partnership.

First Defence Co-Development Project
Announcing the agreement, Modi said the two countries had signed their first co-development project in the defence sector.

"The convergence of Japan's precision technology and India's software capabilities will give fresh momentum and strength to the global development of AI. In the field of defence, today we signed an agreement on the first co-development project between India and Japan," Modi said.

PM Modi Welcomes Takaichi
Welcoming the Japanese prime minister on her first visit to India, Modi described her as his "younger sister" and highlighted the civilisational ties between the two countries.

"Your Excellency and my younger sister, Prime Minister Takaichi Ji, I am delighted to welcome PM Takaichi on her first visit to India for the India-Japan Annual Summit. Prime Minister Takaichi is Japan's first female Prime Minister and a visionary as well as popular leader. She comes from Japan's Nara Prefecture, which is a major centre of the shared Buddhist heritage of India and Japan," he said.

Referring to his remarks at the recent G7 Summit, Modi said mutual trust remained the greatest strategic asset in an increasingly uncertain world.

Also Read: Japanese PM Sanae Takaichi Receives Ceremonial Welcome at Rashtrapati Bhavan

Focus on Indo-Pacific and Economic Security
The two leaders reaffirmed their commitment to a free, open and rules-based Indo-Pacific and announced several initiatives aimed at strengthening regional stability and prosperity.

"Today, both India and Japan are among the world's largest economies. A free, prosperous and rules-based Indo-Pacific is our shared priority. As the region's largest democracies and market economies, we have launched several important initiatives today," Modi said.

He said the two countries had also prepared a joint roadmap on economic security to strengthen resilient supply chains in strategic sectors, including semiconductors, quantum technology and advanced materials.

Biogas Initiative and Rural Development
Modi said India and Japan had taken key decisions to enhance energy security, including launching the India-Japan Biogas Initiative.

Under the initiative, about 1,000 biogas and organic fertiliser plants will be established across India, strengthening the Centre's GobarDhan programme while promoting sustainability, rural livelihoods and organic farming.

Japan's Role in India's Growth
Modi acknowledged Japan's longstanding contribution to India's economic development, particularly in the automobile and electronics sectors.

"Over the past several decades, from automotives to electronics, Japan has played a significant role in India's growth story and has built an invaluable foundation of friendship and trust. Today, with Prime Minister Takaichi's visit, we are beginning a new chapter in our Special Strategic and Global Partnership," he said.