New Horizons in India-Japan Relations
Dr Arvind Kumar*
*President, India water Foundation, New Delhi.
Relations between India and Japan have undergone a significant and qualitative shift in recent years, propelled by the successful regular summit level exchanges, growing political, strategic, economic and socio-cultural interactions. Indo-Japanese relations are rooted in the ancient history because Buddhism spread to Japan from India. Besides, Japan hosted many Indian freedom fighters like Ras Behari Bose, Subhash Chandra Bose and the Indian National Army during India’s national freedom struggle against the British colonialism which helped in generating tremendous goodwill towards in India.
The Justice Radhabinod Pal, who was among the eleven-judge panel appointed to hear the cases of those charged with Class-A war crimes was an Indian. When the proceedings came to a conclusion and the court returned guilty verdicts, Justice Pal was the only judge of the eleven to write a dissenting opinion that acquitted all 25 Japanese defendants.1
Though Justice Pal’s memory is fading in India, he is still revered by many in Japan. In 2007 during a visit to India, Prime Minister Shinzo Abe praised Justice Pal’s actions in an address to the Indian Parliament noting Pal is “highly respected even today by many Japanese for the noble spirit of courage he exhibited during the International Military Tribunal for the Far East.”2 Justice Pal also has a monument in the Yasukuni Shrine where visits by Japanese Prime Ministers have been a lightening rod for criticism.
Throughout the Cold War era, Indo-Japanese ties were cordial but minimal. In 1952, India and Japan established formal diplomatic relations, one of the first of these agreements for Japan after the Second World War. However, the subsequent years produced little contact between Tokyo and New Delhi as India became a leader of the non-aligned movement and came closer to the Soviet Union while Japan was a staunch U.S. ally.
Thus, according to Ambassador Lalit Mansingh, “If India was guilty of dismissing Japan as a camp follower of the US, the Japanese in turn, perceived India as a chaotic, dysfunctional, desperately poor country, and not as a potential partner.”3 Japan had disapproved of India’s peaceful nuclear explosion in 1974.
However, in the post-Cold War when cataclysmic changes like demise of the Cold War, unraveling of the former Soviet Union, dismantling of the apartheid regime in South Africa etc., took place and India embarked on liberalizing its economy to be integrated with the global economy, new vistas of relations were envisaged between India and Japan. There was increased economic interaction between the two countries.
However, relations hit a low point in 1998 when India conducted its nuclear tests. Japan roundly condemned the explosions and worked to impose economic sanctions to punish India for its actions.
Starting with the 2000 visit to India by Prime Minister Yoshiro Mori, relations began to improve. During this visit, Prime Ministers Mori and Atal Bihari Vajpayee agreed to a “Japan-India Global Partnership in the 21st Century” that addressed common political, economic, and security issues.4 The then-Prime Minister of India Vajpayee followed with a visit to Japan in December 2001.
Prime Minister Koizumi travelled to India in April 2005 followed by Indian Prime Minister Manmohan Singh’s visit in December 2006 where he and Prime Minister Abe agreed to a strategic partnership between the two countries. Abe returned the favour in 2007 and Indian Prime Minister led a delegation of business people to Japan in January 2008.
In addition to these high level visits, there have been multiple visits by cabinet members and high level defense officials who have sought to establish a regular security dialogue along with military to military consultations.5 The two countries have also begun to participate in several combined military and coast guard exercises.
Recent High-Level Visits
During his visit to Japan from 22-23 October, 2008 Prime Minister, Dr. Manmohan Singh held talks with Japanese PM Aso. He also met the Emperor, Japanese Foreign Minister, Minister of Economy, Trade and Industry and leaders of new Komeito party and the Democratic Party of Japan. PM addressed a business lunch by Keidanren, the apex chamber in Japan, at which leading CEOs from major Japanese corporations were present. The Second India-Japan Business Leaders’ Forum was held and presented recommendations on strengthening the India-Japan economic relationship, to the two Prime Ministers. A Joint Statement on the Advancement of the Strategic and Global Partnership between India and Japan and a Joint Declaration on Security Cooperation between India and Japan were signed by the two Prime Ministers during this visit.6
Japanese Foreign Minister, Masahiko Koumura also visited India from 4-5 August, 2008 for second round of strategic dialogue. From the Indian side, Minister for Science and Technology, Shri Kapil Sibal, Minister for Commerce and Industry, Shri Kamal Nath and Deputy Chairman
Planning Commission Dr. Montek Singh Ahluwalia visited Japan. Defense and Security has emerged as an important area of bilateral relations with the Chief of Naval Staff of India visiting Japan from 19-24 August, 2008. President of the Japanese Upper House of the Parliament (House of Councillors) Mr. Satsuki Eda visited India from 1-3 July, 2008.7
From the Indian side, Minister for Science and Technology, Shri Kapil Sibal visited Japan from 5-7 October, 2008. Deputy Chairman Planning Commission, Dr. Montek Singh Ahluwalia, visited Japan for the third round of the Ministerial-level Energy Dialogue with the Japanese Minister of Economy, Trade and Industry on 17 September, 2008, and Commerce & Industry Minister, Shri Kamal Nath visited Japan on 21 October, 2008 for the Second Japan-India Policy Dialogue. Minister for Railways Shri Lalu Prasad visited Japan from 12-16 January, 2009. Defence Minister Shri A. K. Antony visited Japan in late February 2009.
The India-Japan Energy Dialogue, co-chaired by Deputy Chairman, Planning Commission of India and the Minister of Economy, Trade and Industry of Japan, met for the third round on 17 September, 2008 in Tokyo. The objective of the Dialogue is to promote cooperation in the energy sector in a comprehensive manner. A Joint Statement was issued by the two Ministers on outlining areas for future cooperation in electricity generation, energy efficiency, coal, petroleum and natural gas and renewable energy.
The second meeting of the Japan-India Policy Dialogue was held in Tokyo on 21 October, 2008 with the objective of establishing broader and deeper economic relationship between the two countries. The two sides led by Shri Kamal Nath, Minister of Commerce & Industry and Mr. Nikai Toshihiro, Japanese Minister of Economy, Trade and Industry respectively reviewed the progress in talks relating to the proposed bilateral Comprehensive Economic Partnership Agreement (CEPA), cooperation at the global trade talks, promotion of the Delhi-Mumbai Industrial Corridor, support for Indian SMEs, as well as cooperation in the ASEAN and East Asian regions.
Foreign Secretary, Shri Shivshankar Menon visited Japan on 6 October, 2008 for the annual Foreign Office Consultations. During the visit, he also called on the Japanese Foreign Minister, Masahiko Koumura.
Economic Relations
Indo-Japanese economic ties are growing but remain limited. Indian exports to Japan grew from $1.5 billion to $2.5 billion in 2005. Japanese exports to India made similar gains rising from $2.2 billion in 2001 to $4.1 billion in 2005.8 Despite close to doubling in four years, these totals remain relatively small. Japanese foreign direct investment has also increased from ¥18.4 billion (Japanese yen) in 2001 to ¥59.8 billion (Japanese yen) in 2006, a 69 percent increase. Approximately 350 Japanese companies have operations in India, up from 50 percent since 2004.58 In December 2006, New Delhi and Tokyo began negotiations on an Economic Partnership Agreement, a precursor to a possible free trade agreement.
A High-Level Strategic Economic Dialogue has been established in order to develop an overarching dialogue mechanism on all economic issues. The second meeting, co-chaired by Finance Secretary and Deputy Foreign Minister of Japan, was held in Tokyo on 24 July, 2008.
Trade between India and Japan in recent years is shown in the following Table.
Table: Indo-Japan Trade 2003-2008
S.No. \Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
1. EXPORT 1,709.29 2,127.91 2,481.26 2,860.47 3,855.67
2. %Growth 24.49 16.61 15.28 34.79
3. India's Total Export 63,842.55 83,535.95 103,090.54 126,262.67 162,983.90
4. %Growth 30.85 23.41 22.48 29.08
5. %Share 2.68 2.55 2.41 2.27 2.37
6. IMPORT 2,667.68 3,235.13 4,061.10 4,592.01 6,326.33
7. %Growth 21.27 25.53 13.07 37.77
8. India's Total Import 78,149.11 111,517.44 149,165.73 185,604.10 251,562.26
9. %Growth 42.70 33.76 24.43 35.54
10. %Share 3.41 2.90 2.72 2.47 2.51
11. TOTAL TRADE 4,376.96 5,363.04 6,542.36 7,452.48 10,182.00
12. %Growth 22.53 21.99 13.91 36.63
13. India's Total Trade 141,991.66 195,053.38 252,256.27 311,866.78 414,546.15
14. %Growth 37.37 29.33 23.63 32.92
15. %Share 3.08 2.75 2.59 2.39 2.46
16. TRADE BALANCE
17. India's Trade Balance -14,306.56 -27,981.49 -46,075.20 -59,341.43 -88,578.36
Exchange rate: (1US$ = Rs.) 45.9516 44.9315 44.2735 45.2849 40.2410
Source: Government of India, Department of Commerce, Export-Import Data Bank, Japan, available at http://www.dgft.gov.in .
During Prime Minister Abe’s visit, it was agreed to work towards a trade target of US $ 20 billion by the year 2010. After a period of stagnation, recent trade figures indicate healthy growth in bilateral trade. Two-way trade in 2007-08, according to our Ministry of Commerce and Industry statistics, was US$ 9.89 billion (exports at US $ 3.5 and imports at US $ 6.3 billion), an increase of 37% over previous year.
Japan presently ranks sixth largest in cumulative foreign direct investment flows into India. Japanese companies have made actual investment of US$ 3 billion between 1991 and March 2008, excluding FDI inflows received for acquisition of existing shares, Reserve Bank of India’s
NRI Schemes, stock swapped and advance pending issue of shares. Most direct Japanese investment in India is in Automobile Industry (39%), Electrical Equipments (17%), Trading (6%), Services Sectors (financial & non-financial) (5%) and Telecommunications (3%). The year also witnessed two high-profile acquisitions by Japanese companies: Daiichi Sankyo’s purchase of 34.8% stake in Ranbaxy Laboratories worth Rs. 215.6 billion or US$ 4.6 billion, and NTT DoCoMo’s acquisition of 26% stake in Tata Teleservices valued at Rs. 13,070 crore or US$ 2.7
billion.
For the last five years, India has been the largest recipient of Japanese Official Development Assistance (ODA) (Cumulative commitment of Japanese ODA loan to India has reached Yen 2662.56 billion (Rs.101497 crore approx. at the current exchange rate) on commitment basis till
March 2008. During Prime Minister’s visit, Notes were exchanged to formalize the first batch of ODA of approximately US$ 1 billion for the current financial year.
The two sides have also initiated negotiations for a Comprehensive Economic Partnership Agreement (CEPA) beginning January/February 2007. This dialogue is led by the Commerce Secretary from the Indian side and Deputy Foreign Minister from the Japanese side. Ten rounds of talks have been held so far. Both sides have agreed to complete negotiations in a two-year time frame.
The proposal for the development of Delhi-Mumbai Industrial Corridor (DMIC) was agreed during the visit of Prime Minister to Japan in December 2006. The alignment of the 1483 km DMIC is via Ahmedabad, Palampura, Phulera, Rewari and Dadri. A Joint Task Force (JTF), co-chaired by the Secretary, Department of Industrial Policy and Promotion (DIPP) and Japanese Vice Minister, Ministry of Economy, Trade and Industry (METI) has been established to work out the details. During Prime Minister’s visit, the two sides confirmed that they would work together closely for the establishment of the Project Development Fund for DMIC. During Prime Minister’s visit a MoU between India Infrastructure Finance Company Limited and Japan Bank for International Cooperation and Delhi Mumbai Industrial Corridor Development Corporation Limited was signed.9
Japan joined the consensus at the IAEA and in the NSG on giving a waiver to India from NSG guidelines in the context of the India-US civil nuclear energy agreement. Defence and security has emerged as an important area of bilateral relations. A calendar of events for 2008 was finalized for promoting exchanges and cooperation in an institutionalized framework. The annual Defence Policy Dialogue at Secretary-level was held in April 2007 and the second round in New Delhi in November, 2008. A Squadron of three Japanese Maritime Self-Defence Force ships visited Mumbai on a Goodwill mission in August 2008. Comprehensive Security Dialogue (CSD) and Military to Military talks were held in Tokyo on 14 February, 2008. The Chief of Naval Staff of India visited Japan from 19-24 August, 2008.10
Conclusion
There is great potential in Indo-Japanese relationship for increased economic and security collaboration. New Delhi and Tokyo have complementary economies that have much to gain from greater cooperation. In addition, they share similar interests in maintaining a stable security environment and both are established democracies.
Despite these positive signs, the relationship is at an early stage of development both economically and politically. However, if the overall strategic context in Asia should change with a more aggressive China, the growth of this relationship could accelerate. There has been a change of government in Japan, but analysts feel that it is not going to affect the cordial pattern of friendly relations between New Delhi and Tokyo.
Notes
1. Norimitsu Onishi, “Decades After War Trials, Japan Still Honors a Dissenting Judge,” New York Times, 31 August 2007.
2. Ibid.
3. Lalit Mansingh, “India-Japan Relations,” IPCS Issue Brief, no. 43, January 2007.
4. Ministry of Foreign Affairs of Japan, “Japan-India Summit Meeting,” 23 August 2000, available at http://www.mofa.go.jp/region/asia-paci/pmv0008/india_s.html.
5. P.S. Suryanarayana, “India, Japan to pursue cooperation in defence,” The Hindu, 26 May 2006.
6. India, Ministry of External Affairs, Annual Report 2008-09, New Delhi: 2009, p. 30.
7. Ibid.
8. Ministry of Foreign Affairs of Japan, “Japan-India Relations,” December 2007, available at http://www.mofa.go.jp/region/asia-paci/india/index.html .
9. India, MEA, Annual Report 2008-09, n.6, p. 31.
10. Ibid.
*President, India water Foundation, New Delhi.
Relations between India and Japan have undergone a significant and qualitative shift in recent years, propelled by the successful regular summit level exchanges, growing political, strategic, economic and socio-cultural interactions. Indo-Japanese relations are rooted in the ancient history because Buddhism spread to Japan from India. Besides, Japan hosted many Indian freedom fighters like Ras Behari Bose, Subhash Chandra Bose and the Indian National Army during India’s national freedom struggle against the British colonialism which helped in generating tremendous goodwill towards in India.
The Justice Radhabinod Pal, who was among the eleven-judge panel appointed to hear the cases of those charged with Class-A war crimes was an Indian. When the proceedings came to a conclusion and the court returned guilty verdicts, Justice Pal was the only judge of the eleven to write a dissenting opinion that acquitted all 25 Japanese defendants.1
Though Justice Pal’s memory is fading in India, he is still revered by many in Japan. In 2007 during a visit to India, Prime Minister Shinzo Abe praised Justice Pal’s actions in an address to the Indian Parliament noting Pal is “highly respected even today by many Japanese for the noble spirit of courage he exhibited during the International Military Tribunal for the Far East.”2 Justice Pal also has a monument in the Yasukuni Shrine where visits by Japanese Prime Ministers have been a lightening rod for criticism.
Throughout the Cold War era, Indo-Japanese ties were cordial but minimal. In 1952, India and Japan established formal diplomatic relations, one of the first of these agreements for Japan after the Second World War. However, the subsequent years produced little contact between Tokyo and New Delhi as India became a leader of the non-aligned movement and came closer to the Soviet Union while Japan was a staunch U.S. ally.
Thus, according to Ambassador Lalit Mansingh, “If India was guilty of dismissing Japan as a camp follower of the US, the Japanese in turn, perceived India as a chaotic, dysfunctional, desperately poor country, and not as a potential partner.”3 Japan had disapproved of India’s peaceful nuclear explosion in 1974.
However, in the post-Cold War when cataclysmic changes like demise of the Cold War, unraveling of the former Soviet Union, dismantling of the apartheid regime in South Africa etc., took place and India embarked on liberalizing its economy to be integrated with the global economy, new vistas of relations were envisaged between India and Japan. There was increased economic interaction between the two countries.
However, relations hit a low point in 1998 when India conducted its nuclear tests. Japan roundly condemned the explosions and worked to impose economic sanctions to punish India for its actions.
Starting with the 2000 visit to India by Prime Minister Yoshiro Mori, relations began to improve. During this visit, Prime Ministers Mori and Atal Bihari Vajpayee agreed to a “Japan-India Global Partnership in the 21st Century” that addressed common political, economic, and security issues.4 The then-Prime Minister of India Vajpayee followed with a visit to Japan in December 2001.
Prime Minister Koizumi travelled to India in April 2005 followed by Indian Prime Minister Manmohan Singh’s visit in December 2006 where he and Prime Minister Abe agreed to a strategic partnership between the two countries. Abe returned the favour in 2007 and Indian Prime Minister led a delegation of business people to Japan in January 2008.
In addition to these high level visits, there have been multiple visits by cabinet members and high level defense officials who have sought to establish a regular security dialogue along with military to military consultations.5 The two countries have also begun to participate in several combined military and coast guard exercises.
Recent High-Level Visits
During his visit to Japan from 22-23 October, 2008 Prime Minister, Dr. Manmohan Singh held talks with Japanese PM Aso. He also met the Emperor, Japanese Foreign Minister, Minister of Economy, Trade and Industry and leaders of new Komeito party and the Democratic Party of Japan. PM addressed a business lunch by Keidanren, the apex chamber in Japan, at which leading CEOs from major Japanese corporations were present. The Second India-Japan Business Leaders’ Forum was held and presented recommendations on strengthening the India-Japan economic relationship, to the two Prime Ministers. A Joint Statement on the Advancement of the Strategic and Global Partnership between India and Japan and a Joint Declaration on Security Cooperation between India and Japan were signed by the two Prime Ministers during this visit.6
Japanese Foreign Minister, Masahiko Koumura also visited India from 4-5 August, 2008 for second round of strategic dialogue. From the Indian side, Minister for Science and Technology, Shri Kapil Sibal, Minister for Commerce and Industry, Shri Kamal Nath and Deputy Chairman
Planning Commission Dr. Montek Singh Ahluwalia visited Japan. Defense and Security has emerged as an important area of bilateral relations with the Chief of Naval Staff of India visiting Japan from 19-24 August, 2008. President of the Japanese Upper House of the Parliament (House of Councillors) Mr. Satsuki Eda visited India from 1-3 July, 2008.7
From the Indian side, Minister for Science and Technology, Shri Kapil Sibal visited Japan from 5-7 October, 2008. Deputy Chairman Planning Commission, Dr. Montek Singh Ahluwalia, visited Japan for the third round of the Ministerial-level Energy Dialogue with the Japanese Minister of Economy, Trade and Industry on 17 September, 2008, and Commerce & Industry Minister, Shri Kamal Nath visited Japan on 21 October, 2008 for the Second Japan-India Policy Dialogue. Minister for Railways Shri Lalu Prasad visited Japan from 12-16 January, 2009. Defence Minister Shri A. K. Antony visited Japan in late February 2009.
The India-Japan Energy Dialogue, co-chaired by Deputy Chairman, Planning Commission of India and the Minister of Economy, Trade and Industry of Japan, met for the third round on 17 September, 2008 in Tokyo. The objective of the Dialogue is to promote cooperation in the energy sector in a comprehensive manner. A Joint Statement was issued by the two Ministers on outlining areas for future cooperation in electricity generation, energy efficiency, coal, petroleum and natural gas and renewable energy.
The second meeting of the Japan-India Policy Dialogue was held in Tokyo on 21 October, 2008 with the objective of establishing broader and deeper economic relationship between the two countries. The two sides led by Shri Kamal Nath, Minister of Commerce & Industry and Mr. Nikai Toshihiro, Japanese Minister of Economy, Trade and Industry respectively reviewed the progress in talks relating to the proposed bilateral Comprehensive Economic Partnership Agreement (CEPA), cooperation at the global trade talks, promotion of the Delhi-Mumbai Industrial Corridor, support for Indian SMEs, as well as cooperation in the ASEAN and East Asian regions.
Foreign Secretary, Shri Shivshankar Menon visited Japan on 6 October, 2008 for the annual Foreign Office Consultations. During the visit, he also called on the Japanese Foreign Minister, Masahiko Koumura.
Economic Relations
Indo-Japanese economic ties are growing but remain limited. Indian exports to Japan grew from $1.5 billion to $2.5 billion in 2005. Japanese exports to India made similar gains rising from $2.2 billion in 2001 to $4.1 billion in 2005.8 Despite close to doubling in four years, these totals remain relatively small. Japanese foreign direct investment has also increased from ¥18.4 billion (Japanese yen) in 2001 to ¥59.8 billion (Japanese yen) in 2006, a 69 percent increase. Approximately 350 Japanese companies have operations in India, up from 50 percent since 2004.58 In December 2006, New Delhi and Tokyo began negotiations on an Economic Partnership Agreement, a precursor to a possible free trade agreement.
A High-Level Strategic Economic Dialogue has been established in order to develop an overarching dialogue mechanism on all economic issues. The second meeting, co-chaired by Finance Secretary and Deputy Foreign Minister of Japan, was held in Tokyo on 24 July, 2008.
Trade between India and Japan in recent years is shown in the following Table.
Table: Indo-Japan Trade 2003-2008
S.No. \Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
1. EXPORT 1,709.29 2,127.91 2,481.26 2,860.47 3,855.67
2. %Growth 24.49 16.61 15.28 34.79
3. India's Total Export 63,842.55 83,535.95 103,090.54 126,262.67 162,983.90
4. %Growth 30.85 23.41 22.48 29.08
5. %Share 2.68 2.55 2.41 2.27 2.37
6. IMPORT 2,667.68 3,235.13 4,061.10 4,592.01 6,326.33
7. %Growth 21.27 25.53 13.07 37.77
8. India's Total Import 78,149.11 111,517.44 149,165.73 185,604.10 251,562.26
9. %Growth 42.70 33.76 24.43 35.54
10. %Share 3.41 2.90 2.72 2.47 2.51
11. TOTAL TRADE 4,376.96 5,363.04 6,542.36 7,452.48 10,182.00
12. %Growth 22.53 21.99 13.91 36.63
13. India's Total Trade 141,991.66 195,053.38 252,256.27 311,866.78 414,546.15
14. %Growth 37.37 29.33 23.63 32.92
15. %Share 3.08 2.75 2.59 2.39 2.46
16. TRADE BALANCE
17. India's Trade Balance -14,306.56 -27,981.49 -46,075.20 -59,341.43 -88,578.36
Exchange rate: (1US$ = Rs.) 45.9516 44.9315 44.2735 45.2849 40.2410
Source: Government of India, Department of Commerce, Export-Import Data Bank, Japan, available at http://www.dgft.gov.in .
During Prime Minister Abe’s visit, it was agreed to work towards a trade target of US $ 20 billion by the year 2010. After a period of stagnation, recent trade figures indicate healthy growth in bilateral trade. Two-way trade in 2007-08, according to our Ministry of Commerce and Industry statistics, was US$ 9.89 billion (exports at US $ 3.5 and imports at US $ 6.3 billion), an increase of 37% over previous year.
Japan presently ranks sixth largest in cumulative foreign direct investment flows into India. Japanese companies have made actual investment of US$ 3 billion between 1991 and March 2008, excluding FDI inflows received for acquisition of existing shares, Reserve Bank of India’s
NRI Schemes, stock swapped and advance pending issue of shares. Most direct Japanese investment in India is in Automobile Industry (39%), Electrical Equipments (17%), Trading (6%), Services Sectors (financial & non-financial) (5%) and Telecommunications (3%). The year also witnessed two high-profile acquisitions by Japanese companies: Daiichi Sankyo’s purchase of 34.8% stake in Ranbaxy Laboratories worth Rs. 215.6 billion or US$ 4.6 billion, and NTT DoCoMo’s acquisition of 26% stake in Tata Teleservices valued at Rs. 13,070 crore or US$ 2.7
billion.
For the last five years, India has been the largest recipient of Japanese Official Development Assistance (ODA) (Cumulative commitment of Japanese ODA loan to India has reached Yen 2662.56 billion (Rs.101497 crore approx. at the current exchange rate) on commitment basis till
March 2008. During Prime Minister’s visit, Notes were exchanged to formalize the first batch of ODA of approximately US$ 1 billion for the current financial year.
The two sides have also initiated negotiations for a Comprehensive Economic Partnership Agreement (CEPA) beginning January/February 2007. This dialogue is led by the Commerce Secretary from the Indian side and Deputy Foreign Minister from the Japanese side. Ten rounds of talks have been held so far. Both sides have agreed to complete negotiations in a two-year time frame.
The proposal for the development of Delhi-Mumbai Industrial Corridor (DMIC) was agreed during the visit of Prime Minister to Japan in December 2006. The alignment of the 1483 km DMIC is via Ahmedabad, Palampura, Phulera, Rewari and Dadri. A Joint Task Force (JTF), co-chaired by the Secretary, Department of Industrial Policy and Promotion (DIPP) and Japanese Vice Minister, Ministry of Economy, Trade and Industry (METI) has been established to work out the details. During Prime Minister’s visit, the two sides confirmed that they would work together closely for the establishment of the Project Development Fund for DMIC. During Prime Minister’s visit a MoU between India Infrastructure Finance Company Limited and Japan Bank for International Cooperation and Delhi Mumbai Industrial Corridor Development Corporation Limited was signed.9
Japan joined the consensus at the IAEA and in the NSG on giving a waiver to India from NSG guidelines in the context of the India-US civil nuclear energy agreement. Defence and security has emerged as an important area of bilateral relations. A calendar of events for 2008 was finalized for promoting exchanges and cooperation in an institutionalized framework. The annual Defence Policy Dialogue at Secretary-level was held in April 2007 and the second round in New Delhi in November, 2008. A Squadron of three Japanese Maritime Self-Defence Force ships visited Mumbai on a Goodwill mission in August 2008. Comprehensive Security Dialogue (CSD) and Military to Military talks were held in Tokyo on 14 February, 2008. The Chief of Naval Staff of India visited Japan from 19-24 August, 2008.10
Conclusion
There is great potential in Indo-Japanese relationship for increased economic and security collaboration. New Delhi and Tokyo have complementary economies that have much to gain from greater cooperation. In addition, they share similar interests in maintaining a stable security environment and both are established democracies.
Despite these positive signs, the relationship is at an early stage of development both economically and politically. However, if the overall strategic context in Asia should change with a more aggressive China, the growth of this relationship could accelerate. There has been a change of government in Japan, but analysts feel that it is not going to affect the cordial pattern of friendly relations between New Delhi and Tokyo.
Notes
1. Norimitsu Onishi, “Decades After War Trials, Japan Still Honors a Dissenting Judge,” New York Times, 31 August 2007.
2. Ibid.
3. Lalit Mansingh, “India-Japan Relations,” IPCS Issue Brief, no. 43, January 2007.
4. Ministry of Foreign Affairs of Japan, “Japan-India Summit Meeting,” 23 August 2000, available at http://www.mofa.go.jp/region/asia-paci/pmv0008/india_s.html.
5. P.S. Suryanarayana, “India, Japan to pursue cooperation in defence,” The Hindu, 26 May 2006.
6. India, Ministry of External Affairs, Annual Report 2008-09, New Delhi: 2009, p. 30.
7. Ibid.
8. Ministry of Foreign Affairs of Japan, “Japan-India Relations,” December 2007, available at http://www.mofa.go.jp/region/asia-paci/india/index.html .
9. India, MEA, Annual Report 2008-09, n.6, p. 31.
10. Ibid.
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