The move came after Prime Minister Shinzo Abe and Indian Premier Narendra Modi on Saturday agreed to promote people-to-people exchanges, the Japan Times reported.
Under the new visa system, the maximum period of stay will be extended to 30 days from the current 15, with visas valid for five years, up from three years.
The ministry also revealed a plan to extend at an early stage the validity of multiple-entry visas for Indians visiting Japan for commercial purposes to 10 years instead of the current five.
The government began issuing multiple-entry visas to Indians in July 2014, allowing them to enter and leave Japan as many times as desired.
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