Japan’s Defense Tech Push: Major defence firms, including Mitsubishi Heavy, are accelerating drone development as Japan moves to make unmanned systems and AI central to its next strategy, with rapid prototyping and small-batch production plans raising both capability and civilian-safety concerns. Fiscal Shock Watch: Japan’s FY2027 budget requests are set to top 130 trillion yen for the first time, driven by a new growth-investment category and rising bond interest costs—while observers warn the final number could swell further. AI Rules for Business: Japan is drafting tighter guidance on AI use in legal work and on voice imitation, signaling tougher compliance expectations for companies deploying AI-generated content. Japan-India Industrial Ties: UP and Yamanashi signed multiple MoUs, including a 600-crore yen fund for MSMEs and a dedicated Yamanashi Desk at Invest UP, while Panasonic reiterated long-term investment plans in India. Critical Minerals Security: METI proposes expanding JOGMEC’s ability to invest in overseas rare-earth and other strategic-minerals projects without always needing a Japanese partner, aiming to reduce China-linked supply risk. Tourism/City Competition: Japan’s “backup capital” race is heating up as lawmakers push for an alternate government base to keep operations running during disasters. Human Interest: A 7-year-old boy was left alone on Mount Fuji after his father continued the hike; he was later found safe by a mountain hut worker.