The decision to firm-up defence ties came after Prime Minister Narendra Modi held summit-level talks with his Japanese counterpart Shinzo Abe here.
"The two Prime Ministers reaffirmed the importance of defence relations between India and Japan in their strategic partnership and decided to upgrade and strengthen them," a joint statement issued after the talks said.
The two sides signed a Memorandum of Cooperation and Exchanges in the Field of Defence during Prime Minister Modi's five-day visit.
The two sides stressed on the importance of the regularisation of bilateral maritime exercises as well as on Japan's continued participation in India-US Malabar series of exercises.
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Prime Minister Modi welcomed the recent developments in Japan's policy on transfer of defence equipment and technology.
India and Japan directed their officials to launch working-level consultations between the two countries with a view to promoting defence equipment and technology cooperation.
The two sides also decided to accelerate their discussions in the Joint Working Group on cooperation in US-2 amphibian aircraft and its technology.