India and Japan on Monday agreed to expand cooperation in several strategic industrial sectors aimed at strengthening supply chain resilience and economic security amid growing global geopolitical and economic uncertainties.

The understanding was reached during the second round of the India-Japan Economic Security Dialogue held in New Delhi. The meeting was co-chaired by India’s Foreign Secretary Vikram Misri and Japan’s Vice Minister for Foreign Affairs Takehiro Funakoshi, along with senior officials from both countries.

According to the Ministry of External Affairs (MEA), the discussions focused on enhancing bilateral cooperation in key sectors considered vital for long-term economic stability and strategic resilience.

“Both sides agreed to deepen collaboration in strategic industrial sectors for enhancing supply chain resilience,” MEA spokesperson Randhir Jaiswal said in a post on X.

Officials from both countries exchanged views on emerging economic security challenges, including economic coercion, non-market trade practices, industrial overcapacity, and vulnerabilities in global supply chains.

The dialogue also incorporated recommendations from the recently launched Japan-India Private Sector Economic Security Dialogue, which includes participation from major industry organizations such as the Japan Business Federation, Japan External Trade Organization, and the Confederation of Indian Industry (CII).

The two nations identified five major priority sectors for future collaboration: semiconductors, critical minerals, information and communication technology, clean energy, and pharmaceuticals.

Both sides agreed to accelerate practical cooperation in these sectors while taking into account the needs and recommendations of industry stakeholders.

Japan’s Ministry of Foreign Affairs said the discussions were guided by the “Japan-India Joint Vision for the Next Decade,” announced during Prime Minister Narendra Modi’s visit to Japan in August last year.

Apart from economic security, the two sides also held the Japan-India Foreign Vice-Ministers’ Dialogue, where they discussed regional and global geopolitical developments, including the Indo-Pacific region and the ongoing tensions in the Middle East, particularly the situation involving Iran.

The officials agreed on the importance of ensuring stable energy and resource supplies while strengthening resilient supply chains for critical goods in light of recent disruptions and geopolitical instability.

Japanese officials also briefed the Indian side on Tokyo’s updated “Free and Open Indo-Pacific” (FOIP) strategy recently announced by Prime Minister Sanae Takaichi.

Both nations reaffirmed their commitment to working closely within the Quad framework, alongside the United States and Australia, to support regional stability, economic growth, and secure supply chains.

The meeting highlighted the growing strategic convergence between India and Japan as both countries seek to reduce dependency on vulnerable global supply networks and strengthen cooperation in critical technologies and emerging industries.