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INDIA JAPAN RELATIONS

28th September, 2024

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Picture Courtesy: https://edition.cnn.com/2024/09/26/asia/japan-ruling-party-election-intl-hnk/index.html

Context:

Shigeru Ishiba, the leader of the Liberal Democratic Party (LDP) has been elected as the new Prime Minister of Japan. 

About Japan

a. Japan is an island country located in East Asia, surrounded by the Pacific Ocean. 

b. It is bordered by the Sea of Japan in the West, the Sea of Okhotsk in the North, and the East China Sea in the South

c. It consists of four main islands: Hokkaido, Honshu, Shikoku, and Kyushu.

d. Its capital and largest city is Tokyo.

e. About three-quarters of its area is covered by mountains and forests. 

f. It is part of the Pacific Ring of Fire, which makes it prone to earthquakes and tsunamis.  

About India-Japan Relation

India signed a Peace Treaty with Japan in 1952, which marked the official beginning of diplomatic relations between the two nations. Since then, they have developed their partnership across various fields, including politics, defence, economics, science, and culture.

Political Relations

India and Japan elevated their relationship to a “Global Partnership” in 2000, a “Strategic and Global Partnership” in 2006, and finally to a “Special Strategic and Global Partnership” in 2014.

Both countries are working together on strategic initiatives, connecting India’s Act-East Policy and Indo-Pacific vision with Japan’s Free and Open Indo-Pacific vision. Japan has also joined India-led initiatives such as the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI) and Leadership Group for Industry Transition (LeadIT).

The India-Japan Act East Forum was established in 2017 to promote collaboration between India and Japan. It aims to identify and support projects to modernize the North-East region of India, these projects focus on Connectivity, Developmental Infrastructure, Industrial Linkages, and People-to-People Contacts.

India and Japan signed an agreement on civil nuclear cooperation in 2016 to work together with the objectives of making progress in nuclear energy technology to benefit both nations while ensuring safety and peace. It came into effect in 2017 after both countries completed their internal procedures.

India and Japan cooperated under the Quad framework, which includes Australia and the United States, and the India-Japan-Australia Supply Chain Resilience Initiative.

Defence Relations

The Joint Declaration on Security Cooperation (JDSC) was signed in 2008 and laid the foundation for defence cooperation between the two nations.

A Memorandum of Defense Cooperation and Exchanges was signed in 2014  to enhance military exchanges and cooperation.

The Agreement on Reciprocal Provision of Supplies and Services was signed in 2020, it allows the Japanese Self-Defense Forces and the Indian Armed Forces to support each other during operations.

India and Japan participated in several defence exercises including the Malabar Exercise, Exercise "Veer Guardian", Exercise Dharma Guardian, Shinnyu Maitri Exercise, and JIMEX 23 to strengthen defence cooperation.

Economic Relation

Since 1958, Japan has been providing Official Development Assistance (ODA) to India, supporting various sectors, including power, transportation, and environmental projects. In the financial year 2021-22, Japan’s ODA disbursement to India was around USD 3.28 billion.

The India-Japan Comprehensive Economic Partnership Agreement (CEPA) came into effect in 2011. It includes trade in goods, services, investment, and even issues like customs procedures and intellectual property rights. This makes it one of the most comprehensive agreements India has with any country.

During the fiscal year 2022-2023, the total trade between India and Japan reached $21.96 billion. 

  1. Exports from Japan to India: $16.49 billion
  2. Imports from India to Japan: $5.46 billion
  3. India exports to Japan, including Petroleum products, Organic chemicals, Seafood like fish and crustaceans, Machinery and mechanical appliances, Vehicles and their parts.
  4. India imports from Japan: Machinery and electrical equipment, Iron and steel products, Plastics, Non-ferrous metals, and Parts of motor vehicles.

The Mumbai-Ahmedabad High-Speed Rail (MAHSR) project is the first high-speed rail corridor in India, this project is being built with technical and financial help from the Government of Japan.

In 2022, both Prime Ministers agreed to strengthen economic cooperation, targeting around 5 trillion yen (about $42 billion) in investments from Japan to India over five years. They also launched the Japan-India Clean Energy Partnership and approved significant loans for various infrastructure projects in India.

In 2023, they renewed cooperation in Japanese language education and signed agreements related to the Mumbai-Ahmedabad High-Speed Railway Project. They declared 2023 as the "India-Japan Year of Tourism Exchange".

Significance of India-Japan Relations  

Japan is investing in infrastructure in India, including the Mumbai-Ahmedabad High-Speed Rail (bullet train) project, which helps in modernising transport, boosting employment and improving connectivity.

Both countries have common concerns regarding regional security, especially about increasing Chinese influence, they have engaged in joint military exercises, enhancing their defence cooperation to ensure peace and stability in the Indo-Pacific region.

Japan's experience in disaster management is valuable to India, both nations can collaborate on strategies to mitigate the impact of disasters.

Japan is known for its advanced technology. Collaborations in areas like robotics, artificial intelligence, and clean energy can help India to boost its technological capabilities.

Challenges to India-Japan Relations

Despite the signing of the Comprehensive Economic Partnership Agreement (CEPA) the trade between India and Japan remains relatively low, with a significant imbalance favoring Japan. Strict quality standards and other non-tariff barriers in Japan make it difficult for Indian products to enter the Japanese market.

Both countries have different approaches to China, while Japan is part of the U.S. alliance and has joined sanctions against China, India maintains a more neutral stand. Japan has imposed sanctions on Russia, whereas India has refrained from doing so, reflecting differing geopolitical strategies.

The commitment of India towards strategic autonomy limits deeper military and strategic cooperation with Japan, which is closely aligned with the U.S. 

There are challenges related to visa rules and the mobility of professionals, which hamper the full potential of economic and cultural exchanges.

Way Forward

Both countries should continue to improve their relations in trade and investment, collaboration in sectors like infrastructure, technology, and manufacturing can be beneficial in creating new opportunities.

Both nations can work together to diversify supply chains, reducing dependency on any single country.

Joint research and development projects in emerging technologies such as Artificial Intelligence (AI), robotics, and green technologies can push innovation and economic growth. Collaborating on digital payments, cybersecurity, and digital infrastructure can enhance economic ties and provide new growth avenues.

Boosting defence ties through joint military exercises, defence technology sharing, and strategic dialogues can enhance security in the Indo-Pacific region. Both countries should continue to collaborate on maritime security to ensure a free, open, and rules-based Indo-Pacific.

Strengthening Collaboration on the Indo-Pacific strategy to ensure regional stability and counterbalance the influence of other major powers. Working together in multilateral forums like the United Nations, G20, and ASEAN can maintain their influence on global issues.

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Source: 

Edition

Wikipedia

Ministry of External Affairs

PRACTICE QUESTION

Q.Critically analyze the strategic significance of the India-Japan Partnership in the context of the Indo-Pacific region. How do both countries’ policies align to counterbalance China’s influence? (250 words)