India and Japan are set to sign an agreement on liquefied natural gas supplies as Japan’s prime minister arrives in New Delhi on Wednesday for her annual meeting with India’s prime minister, according to a report. The arrangement follows disruptions in global crude oil and LNG supply chains caused by conflict in West Asia. The two governments intend to create a joint task force focused on LNG stockpiling, with the pact expected to be completed during the summit. Officials say the step will strengthen future supply resilience and energy security for both nations while improving information exchange. Details of the task force are likely to appear in the summit’s concluding joint statement. India depends heavily on West Asia for LNG imports, whereas Japan sources only about 10 percent from the region. The visit marks the Japanese leader’s first trip to India since taking office. Additional topics include cooperation on critical mineral supply chains, semiconductors, artificial intelligence, and other emerging technologies. Proposals for a major green ammonia project in Odisha and regional resilience efforts through POWERR Asia are also on the agenda. The visit seeks to promote economic growth via investment and innovation, with emphasis on secure supply chains in key sectors. The countries elevated their relationship to a Special Strategic and Global Partnership in 2014. The Japanese leader’s visit follows the Indian prime minister’s trip to Japan last August, which outlined priorities for the coming decade including security, economy, and people-to-people ties. Both sides aim to advance a rules-based international order and the updated Free and Open Indo-Pacific vision. The nations are also exploring a local-currency settlement system to enable direct rupee-yen transactions in bilateral trade and reduce dependence on the US dollar. If adopted, the framework would mark the first inclusion of currency cooperation in a joint statement between the two leaders. Under the plan, Japanese non-residents could open accounts at Indian banks to facilitate direct cross-border payments in the two currencies.
