India chief economic adviser speaks at virtual press meet

India chief economic adviser speaks at virtual press meet

Tokyo, Aug 29 (Reuters) - Japan's Prime Minister Shigeru Ishiba and his Indian counterpart Narendra Modi agreed to deepen economic and security ties during a joint press conference in Tokyo on Friday. The agreement comes amid rising U.S. tariffs on Indian goods and an increased regional influence by China.

The two leaders pledged to enhance defense cooperation in the Indo-Pacific over the next decade, strengthen supply chains and investment, and expand collaboration in AI, space, high-speed rail, and other technologies. They also agreed to increase skilled worker exchanges. Japan aims to invest 10 trillion yen ($67.9 billion) in India.

Modi's visit to Japan is part of a broader push to strengthen India's diplomatic ties and win support for his "Make in India" initiative. The U.S. recently raised import levies on Indian goods to as much as 50%, with a punitive 25% tariff slapped on India for purchasing Russian oil. After Japan, Modi is set to travel to China for a two-day summit of the Shanghai Cooperation Organization.

Japan and India have drawn closer as China's regional influence has grown. Both are members of the Quad grouping along with the United States and Australia. "India and Japan are fully committed to a free, open and rules-based Indo-Pacific," Modi said. "We have similar concerns about terrorism and cyber security. We have common interests in defense and maritime security."

Meanwhile, India and the U.S. held virtual talks focusing on strengthening their relationship. Discussions covered trade, investment, critical minerals, energy security, and civil nuclear cooperation. Both countries aim to increase defense cooperation and plan to sign a new 10-year framework for defense partnership.

India is exploring the use of gas-fired power plants to meet peak summer demand due to higher costs. The share of gas in India's power generation has fallen to about 1.5% from 3% in 2020. The government has drawn up a 100-day plan to ensure gas-based plants can be used if needed to meet demand.

References:
1. [1] https://www.reuters.com/world/india/japan-india-deepen-security-economic-ties-amid-us-tariffs-2025-08-29/
2. [2] https://economictimes.indiatimes.com/news/economy/foreign-trade/india-us-hold-22-intersessional-dialogue-amid-tariff-tensions/articleshow/123531711.cms
3. [3] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UI0PP:0-india-explores-using-costly-gas-fired-power-to-meet-peak-demand/