Asian Bloc: India and Japan Sign AI Pacts to Protect Supply Chains

The geopolitical realignment in Asia is gaining momentum. On July 2, 2026, the governments of India and Japan signed a package of strategic agreements covering artificial intelligence, metallurgy, and the energy sector.

This alliance is a pragmatic macroeconomic maneuver. After China began strictly limiting the export of critical raw materials (indium and gallium) necessary for optical AI chips, countries in the region realized their vulnerability. Japan possesses advanced technologies in microelectronics and robotics but faces talent and raw material shortages. India, conversely, is aggressively positioning itself as a new global AI hub with boundless labor resources. By combining their technology stack and raw material bases, Tokyo and New Delhi are forming an alternative, protected ecosystem capable of countering both China's dominance and the dictates of American hyperscalers.

Source: Governments of India and Japan / DD India / Reuters