Takaichi's First Economic Policy Blueprint Puts Defense-Industry and Drone Revival in Focus

The ruling LDP signed off on July 13, 2026 on the first Basic Policies for Economic and Fiscal Management and Reform under the Takaichi administration, emphasizing a build-out of Japan's domestic defense industrial base and mass drone production to sustain prolonged conflict operations. The blueprint targets transforming Japan's defense posture within five years toward highly autonomous, resilient operations, including interceptor drones against drone swarms, directed-energy air defenses, and at least one year of sustained warfighting supply stockpiles. The Defense Ministry has allocated ¥100.1 billion to build a coastal 'SHIELD' unmanned-vehicle defense system by FY2027. The Cabinet is expected to formally approve the document later in the month.