India and Japan have agreed to deepen cooperation across defence, technology and AI.
At the same time, both countries have upgraded their ties to a comprehensive partnership status.
Additionally, leaders supported faster implementation of India-EU FTA and AI grounded in human dignity.
Japan also backed India’s economy and permanent membership in the Security Council framework discussions.
Meanwhile, Japan’s advanced materials giant Proterial announced a major ₹2,250 crore investment in Andhra Pradesh.
The company will establish a rare earth permanent magnet manufacturing facility in the state.
Furthermore, officials confirmed the plant will come up in Achyutapuram, Anakapalli district.
The state investment committee already approved the project in a recent meeting.
Rare Earth Manufacturing Push Targets China Dependency
The facility will produce 1.2 kilo tonnes per annum of sintered neodymium-iron-boron magnets.
These magnets play a critical role in EVs, wind turbines, industrial motors and electronics.
Additionally, aerospace and defence systems depend heavily on these advanced components.
Experts involved in the proposal said the project builds India’s local rare earth value chain.
Consequently, it reduces dependency on Chinese supply networks in critical technologies.
Moreover, India aims to replicate its semiconductor self-reliance strategy in this sector.
This approach also supports the broader ‘China Plus One’ global supply shift.
Proterial, earlier known as Hitachi Metals, holds global leadership in NdFeB magnet technology.
The company reported consolidated revenue of ₹45,000 crore last year.
Furthermore, it operates across North America, Europe, China and Asia markets.
AI, Defence and Technology Cooperation Expands Strategic Depth
Prime Minister Narendra Modi highlighted stronger cooperation in AI and defence industries.
He emphasized that AI must serve humanity through trust, responsibility and dignity.
Additionally, he announced an AI India Chair at a Slovak university.
Both sides agreed to strengthen joint development and joint production in defence sectors.
Consequently, this would deepen industrial collaboration between defence ecosystems of both nations.
In 2017, India had already launched Slovakia’s first satellite.
Now, India’s rapidly expanding space sector is opening new partnership opportunities.
Global Supply Chain and Strategic Impact
The project arrives during India’s push to cut reliance on imported rare earth magnets.
The government recently approved incentives for domestic rare earth magnet production.
This highlights the sector’s strategic importance for national security and industry growth.
Additionally, cultural and people-to-people ties further strengthen bilateral relations.
Ancient Indian Upanishads translated into Slovak language reflect deep cultural exchange.
Meanwhile, Indian-origin professionals continue contributing significantly to Slovakia’s economy.
Slovak Prime Minister Robert Fico praised India’s technological and economic achievements.
He also noted India’s rapid digitalisation and AI advancements across sectors.
Furthermore, he supported India’s aspiration for a permanent UN Security Council seat.
Forward Outlook: China Challenge and New Industrial Shift
The Andhra Pradesh rare earth project signals a major geopolitical and industrial shift.
It strengthens India’s position in global supply chains dominated earlier by China.
Additionally, it opens opportunities for EVs, defence and clean energy industries.
As AI, defence and materials technologies converge, India-Japan cooperation is expected to expand further.
Consequently, this alliance could reshape Asia’s technological balance in the coming decade.
