NEW DELHI: The 16th India-Japan Annual Summit on Thursday will focus on deepening collaboration in five economic security sectors that have emerged as a key pillar of the strategic partnership.The two countries have identified semiconductors, critical minerals, pharmaceuticals, clean energy, and information and communication technology as priority areas for strategic collaboration. The summit is expected to advance cooperation as New Delhi and Tokyo seek to diversify supply chains, according to people familiar with the matter.Ahead of the summit, the second India-Japan Economic Security Dialogue was held in May, led by foreign secretary Vikram Misri on the Indian side and vice ministers from Japan's ministry of foreign affairs and ministry of economy, trade and industry. The first private sector dialogue on economic security between Keidanren and the Confederation of Indian Industry was held on March 26. India and Japan signed a memorandum of cooperation on mineral resources in August 2025, with the first joint working group under the agreement meeting virtually in April 2026. The two countries also signed a memorandum of cooperation on semiconductor supply chains in July 2023.Bilateral trade crossed $27 billion in 2025-26India remains one of the top destinations for Japanese investment. Japan is India's fifth-largest investor, with cumulative investment of $48.17 billion between April 2000 and March 2026. About 1,500 Japanese companies are registered in India. In the Japan External Trade Organization's FY25 survey, 81.5% of Japanese-affiliated companies in India said they planned to expand operations over the next one to two years.In a Japan Bank for International Cooperation survey, India was ranked Japan Inc's leading long-term overseas business destination for the 15th consecutive year. Eleven Japan industrial townships across eight Indian states support Japanese businesses setting up operations in India. At the 15th Annual Summit, the two countries set a target of ¥10 trillion in private investment from Japan to India, with progress continuing.The Mumbai-Ahmedabad High Speed Rail project, India's first high-speed rail corridor, is being implemented with Japanese technical and financial support. It is part of a broader infrastructure partnership that also includes the Delhi Metro, metro projects in Ahmedabad, Bengaluru, Chennai, Kolkata and Mumbai, and the Western Dedicated Freight Corridor.