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Japan’s decision to relax its long-standing restrictions on defence exports has injected fresh momentum into India–Japan defence industrial ties. India’s premier defence industry body, Society of Indian Defence Manufacturers (SIDM), has now invited industry input on collaboration opportunities ranging from drones and AI-enabled platforms to software-defined radios and autonomous systems.
The move is significant. But it also raises a familiar question – can the two countries convert strategic alignment into commercially viable and technologically meaningful outcomes?
Tokyo’s revised “Three Principles on Transfer of Defence Equipment and Technology”, approved on April 21, 2026, marks a notable departure from the caution that shaped Japan’s post-war defence posture. For India, the opening is attractive. Japan offers strengths in precision manufacturing, advanced materials, semiconductors, robotics, miniaturisation and reliability engineering – capabilities that Indian defence manufacturers increasingly need if they want to compete globally.
SIDM’s note identifies unmanned systems, counter-UAS technologies, autonomous defence platforms, AI-enabled systems and software-defined radios as immediate areas of interest. The list could eventually expand to electronic warfare, secure communications, radar, electro-optics, advanced composites, gallium nitride-based RF systems, mission computers and defence software.
What makes the current moment different is that the conversation is no longer limited to buyer-seller transactions. It is increasingly about co-development, co-production, supply-chain integration and technology transfer.
Dr Satoru Nagao, Fellow at the Hudson Institute in Tokyo, argues that Japan’s shift is driven less by economics than by strategy.
“Japan’s current arms exports are not mainly for economic benefit. Japan focuses on strategic and military benefits in this case,” he said in an interview with BharatShakti.
According to him, China is the central factor behind the policy change.
“Japan wants to force China to face multiple fronts. If countries around China have strong military capabilities, it is easier for Japan to maintain the military balance with China,” he said. He linked India-Japan defence collaboration to this wider strategy.
That strategic logic is increasingly visible in recent developments. Defence Secretary Rajesh Kumar Singh visited Tokyo on July 15 for talks covering defence industry cooperation, maritime security, cyber, space and advanced technologies. The visit coincided with Japan’s renewed push for the Mogami-class stealth frigate proposal under a technology-transfer and local-production arrangement.
Also Read: Defence Secretary Visits Japan, Reviews Strategic Ties as Mogami Frigate Proposal Gains Momentum
Japanese Prime Minister Sanae Takaichi’s visit to New Delhi earlier this month added another layer. The two sides signed their first defence co-development pact, including the joint development of the UNICORN (Unified Complex Radio Antenna) system for Indian Navy warships.
“To promote military collaboration, a secret communication system is vital. The UNICORN is the solution,” he said.
Dr Nagao sees the project as more than a technical collaboration.
“Japan wants India to be on Japan’s side when China is the threat against Japan. That is why Japan seeks a tool of a secret communication system with India,” he said.
He also pointed to the ongoing cooperation between Japan’s ATLA and India’s DRDO on unmanned ground vehicles, suggesting the technology could be relevant for operations along the India–China border.
The broader strategic framework is already in place. India and Japan have concluded agreements such as the Acquisition and Cross-Servicing Agreement (ACSA), the General Security of Military Information Agreement (G-SOMIA) and the defence technology cooperation arrangement.
Nagao argued that future cooperation must go beyond sharing technology. Modern war requires quality as well as quantity, he said. Production lines, repair facilities, spare parts and ammunition support would also matter.
India and Japan already have agreements on the security of classified military information, acquisition and cross-servicing, and defence technology cooperation. The next stage, Nagao suggested, could be wider logistics and industrial cooperation.
The potential is large, but the barriers are real. Japan’s technologies have been developed around its own infrastructure and working culture. Transferring them is not always easy.
Yet the enthusiasm needs tempering with experience.
India–Japan defence industrial cooperation has a history of promising starts and limited follow-through. The US-2 amphibious aircraft negotiations, once projected as a flagship project, stalled over cost, technology transfer and production arrangements. Japan’s limited response to India’s submarine programme queries exposed gaps in alignment on complex high-end platforms.
“Even with an institutional framework in place, including the Joint Working Group on Defence Equipment and Technology Cooperation and the India-Japan Defence Industry Forum, results have been modest,” a Defence Ministry insider said.
The unmanned ground vehicle research project is still at a developmental stage, while the UNICORN programme is only beginning to show concrete movement.
The constraints are not merely bureaucratic. They are structural.
Also Read: Tokyo Relaxes Arms Rules, India Eyes Gains but Structural Hurdles Persist
India’s emphasis on indigenisation, local manufacturing and technology absorption under ‘Make in India’ often clashes with Japan’s cautious approach to intellectual property protection and export controls. Japanese companies, long accustomed to a protected domestic market, remain wary of large overseas commitments involving deep technology sharing.
Cost is another hurdle. Japanese defence systems are generally built for high performance and reliability, not for price-sensitive export markets. Without large export volumes, they often struggle to meet the cost expectations of India’s procurement ecosystem.
Dr Nagao himself acknowledges the difficulty.
“Japan’s technology has been developed based on Japan’s infrastructure and working culture. It is not easy to share. The bullet train project is a typical example,” he said.
Still, he argues that successful collaboration can create momentum.
“But once such cooperation has materialised like Maruti-Suzuki, it will lead to huge potential,” he said.
The UNICORN project could eventually open the way for cooperation on the Mogami-class frigate, he added. If India and Japan agree to build naval ships based on that design, Japanese support could extend to shipbuilding facilities in India.
“Not only the Indian Navy, but also Japanese naval ships will be maintained in the facility. This means that shipbuilding cooperation expands defence collaboration itself,” Nagao said.
“Big things have small beginnings,” he remarked.
The Mogami proposal has gained attention in recent weeks as Japan is seeking an Indian order for its Mogami-class stealth frigates under a technology-transfer and local-production arrangement. Defence Ministry sources said Tokyo has offered to transfer the design, production rights and critical technologies. Indian systems, including the BrahMos missile, could be integrated if the project moves ahead. Construction could be undertaken by Mazagon Dock Shipbuilders Ltd or Garden Reach Shipbuilders & Engineers.
The proposal has not yet reached political decision-making. Still, it reflects Japan’s greater willingness to consider high-end defence industrial partnerships.
The opportunity is real. Japan remains one of the world’s leading investors in research and development. According to OECD data cited by Dr Nagao, it is the world’s third-largest spender on R&D. That gives it a substantial technological base in areas that will shape future warfare – AI, autonomous systems, advanced sensors, semiconductors and space technologies.
For India, the attraction is obvious. Access to trusted high-end technology from a Quad partners fit well with the country’s effort to reduce dependence on traditional suppliers while strengthening domestic manufacturing.
But the test will not be political declarations. It will be whether the two sides can resolve the hard questions – who owns the intellectual property, where production happens, how costs are shared, what level of technology is transferred and whether export restrictions can be managed over the life cycle of a platform.
The partnership is clearly moving beyond exercises and strategic dialogue. The first co-development project has been launched. A major naval proposal is under discussion. Industry has been asked to identify concrete opportunities.
The opportunity is clear. India needs advanced manufacturing, secure communications, sensors, autonomous systems and electronics. Japan has strong capabilities in these fields. Both countries also share concerns over China and want more resilient supply chains.
The test will be execution. Industry inputs, working groups and summit announcements can create momentum. They cannot by themselves resolve questions of cost, technology sharing, export controls, intellectual property and production responsibility.
For India, the Japan opening is both an opportunity and a measure of intent. If projects such as UNICORN and the Mogami proposal move from discussion to production, the partnership could become a serious pillar of India’s defence industrial strategy. If not, it may remain strategically aligned but industrially under-realised.
Ravi Shankar
Dr Ravi Shankar has over two decades of experience in communications, print journalism, electronic media, documentary film making and new media.
He makes regular appearances on national television news channels as a commentator and analyst on current and political affairs. Apart from being an acknowledged Journalist, he has been a passionate newsroom manager bringing a wide range of journalistic experience from past associations with India’s leading media conglomerates (Times of India group and India Today group) and had led global news-gathering operations at world’s biggest multimedia news agency- ANI-Reuters. He has covered Parliament extensively over the past several years. Widely traveled, he has covered several summits as part of media delegation accompanying the Indian President, Vice President, Prime Minister, External Affairs Minister and Finance Minister across Asia, Africa and Europe.
