Indo–Japanese Collaboration on Artificial Intelligence

India’s artificial intelligence (AI) ecosystem is experiencing rapid growth, driven by both an expanding talent pool and a strong governmental push for digital innovation. According to a NASSCOM report, the AI market in India is projected to reach US$ 17 billion by 2027, growing at a CAGR of over 25%. Recognising AI’s transformative potential across sectors, the Government of India has taken active steps to position the country as a global hub for responsible and inclusive AI (Boston Consulting Group, 2024).

Policy initiatives such as the National Strategy for Artificial Intelligence by NITI Aayog, the IndiaAI Mission, and public investments in AI research centres underscore this ambition. In parallel, the Indian government has actively pursued global partnerships to scale innovation and build resilient AI infrastructure. A key example of this is the deepening AI cooperation between India and the US. This includes bilateral government frameworks. India and the US have initiated the Transforming Relationship Utilizing Strategic Technology (TRUST) initiative, which emphasises joint development and deployment of AI and other strategic technologies (White House, 2025). On the private sector front, companies like Microsoft and Google have significantly expanded their AI research and development operations in India. Microsoft, for instance, has launched AI skilling initiatives across Indian states, while Google has opened new AI labs in Bengaluru focusing on India-centric AI solutions.

While the US remains a key partner, India’s foreign policy has consistently emphasised strategic autonomy and multilateralism. The ongoing and escalating tariff war has reinforced this belief in New Delhi. In this context, partnerships with technologically advanced and like-minded nations such as Japan are both natural and necessary. Japan’s leadership in areas such as robotics, semiconductor fabrication, and computing infrastructure positions it as a valuable partner for India’s AI ambitions. Moreover, Japan’s long-standing interest in Indo-Pacific collaboration and India’s growing digital economy provide fertile ground for expanded bilateral cooperation in AI. The 15th Annual India–Japan Summit was a nod to this. During the two-day visit, Prime Minister Modi emphasised the importance of advanced cooperation in new and emerging technologies, including AI and semiconductors. At the same time, Japan pledged investments worth US$ 68 billion (Hindustan Times, 2025).

This paper aims to explore pathways for deepening Indo–Japan collaboration in AI. It begins by surveying the current state of India’s AI ecosystem, including government policy frameworks, institutional support, and sectoral focus areas. Based on this analysis, the paper proposes two broad areas for collaboration. First, in the area of supportive AI infrastructure. Japan has demonstrated global leadership in high-performance computing, GPU technologies, and advanced electronics. Second, collaborating to enhance applications of AI in the healthcare sector. Building on NITI Aayog’s identification of healthcare as a priority sector and Japanese expertise in this field, fruitful collaborations seem likely.