India Japan Relations

India Japan relations have undergone a significant and qualitative shift in recent years, propelled by the successful regular summit level exchanges. From Japan, the then Prime Ministers Koizumi, Abe and Hatoyama visited India in April 2005, August 2007 and December 2009 respectively. From India, Indian Prime Minister Dr. Manmohan Singh visited Japan in December 2006, October 2008 and again in October 2010.

India Japan Cordial Relations

The establishment of the Strategic and Global Partnership between India & Japan in December 2006 elevated relations to a new level. This Partnership is based on five pillars of cooperation viz., India Japan Political Relations , India Japan Defence and Security Cooperation ; Comprehensive Economic Partnership; Science and Technology Initiative; People-to-People exchanges and cooperation in Regional/Multilateral fora. During the visit of PM Abe to India in August 2007, a Roadmap for New Dimensions to the Strategic and Global Partnership was unveiled. A Joint Statement on the Advancement of the Strategic and Global Partnership and a Joint Declaration on Security Cooperation were issued during PM’s visit to Japan from 22-23 October 2008. During Prime Minister Hatoyama’s visit, the two sides released a Joint Statement on the New Stage of India Japan Strategic and Global Partnership and an Action Plan to advance India Japan Security Cooperation. A Joint Statement on Vision for India Japan Strategic and Global Partnership in the Next Decade was signed during the Annual Summit of October 2010 in Japan. These political documents provide the basis for all-round development of India Japan partnership.

Leaders of India and Japan meet frequently on the sidelines of international events. Soon after taking over as Prime Minister of Japan from Dr. Hatoyama, Japan’s Prime Minister Naoto Kan met with Prime Minister Singh on the margins of the G-20 Summit in Toronto on 27th June 2010. There are a number of official dialogue mechanisms between India and Japan, covering a range of subjects, including Ministerial-level dialogue mechanisms like Strategic Dialogue between External Affairs Minister and Japan’s Foreign Minister, Policy Dialogue between Commerce and Industries Minister and Japan’s Minister of Economy, Trade and Industry and Energy Dialogue between Deputy Chairman of the Planning Commission and the Japanese Minister of Economy, Trade and industry. All Ministerial Dialogues were held in New Delhi in the calendar year 2010. In addition, during Ralska Mantri’s visit to Japan in November 2009, the two sides agreed to have annual exchange of visits at the level of Defence Ministers, under which, Japan’s Defence Minister Mr. Toshimi Kitazawa visited India in 2010. During the Annual Summit of 2010, it has been decided to establish a Ministerial-level Economic Dialogue to give strategic and long-term orientation to the bilateral economic engagement and to coordinate economic issues of cross-cutting nature. The sharp jump in high-level exchanges has been accompanied by more broad-based interaction between parliamentary delegations and provincial and local governments of both countries.

There are several dialogues between India and Japan at senior official level covering specific issues of foreign policy , defence and security policy , India Japan economic cooperation , urban development, ICT cooperation, energy cooperation, high technology trade etc. A 2+2 dialogue led by Foreign and Defence Secretaries of India and their Japanese counterparts was announced during the Annual Summit of 2009 and held its first meeting in New Delhi in July 2010.

As part of India Japan Strategic and Global Partnership, the two sides have launched a Special Economic Partnership Initiative (SEPI), which has several high-visibility flagship projects like Western Corridor of the Dedicated Freight Corridor (DFC) to be partially funded by Japanese soft ODA loan and the Delhi-Mumbai Industrial Corridor (DMIC), whose project development is to be partially funded by Japan. DMIC is projected to attract foreign investment worth about US$92 billion and will be built around DFC. A consortium of Japanese private sector companies is collaborating with the DMIC

Development Corporation as well as the Governments of the concerned states, in developing eco- friendly townships in the DMIC zone using Japan’s best practices. Bilateral economic and commercial relations have vast potential for growth. During the Annual Summit of 2010, the conclusion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with Japan was announced. As per official Japanese statistics, bilateral trade during fiscal 2008-09 reached US$ 12.18 bn. However, in 2009-10 FY it declined 14.3% to US$11.3 billion. In the first 11 months of the Calendar Year 2010, trade reached US$13.3 billion, according to Japanese Govt. statistics. Japan’s exports to India during this period increased 44% over the corresponding period last year to US$8.08 billion, while Japan’s imports from India rose 57% to US$5.22 billion. The major items of India's export to Japan are petroleum crude and products, gems and jewellery, marine products, iron ore etc. India’s import basket consists of machinery other than electric, electronic goods, electronic goods, Iron & steel, transport equipment and machine tools.

Japan currently ranks sixth largest in cumulative foreign direct investment flows into India. Japanese companies have made actual investments of US$ 4.63 billion (4% of total FDI inflows into India in US$) between April 2000 and November 2010. According to latest available statistics, a total of 1049 Japanese companies have representative offices in India and 627 have business operations in India. The sectors attracting Japanese investment are automobile industry, electrical equipment, trading, service sector (financial & non-financial), and telecommunications.

Since FY 2003-04, India has been the largest recipient of Japanese Official Development Assistance. Cumulative commitment of Japanese ODA to India upto July 2010 is Yen 3.3 trillion. For FY 2009-10, total ODA was Yen 218.2 billion (approx. US$ 2.42 billion) which was a reduction of 7.6% over the previous year. However, actual disbursement has been increasing in the past 3 years.

The two sides have launched an Energy Dialogue to promote cooperation in the energy sector in a comprehensive manner. The areas of cooperation include oil and natural gas, coal, electric power, renewable energy sources, energy efficiency and other relevant sectors. The two sides have also decided to exchange views of respective nuclear energy policy under the Energy Dialogue. In June 2010, the two sides commenced negotiations on an Inter-Governmental Agreement for Cooperation in the Peaceful Uses of Nuclear Energy.

Both sides are collaborating for the development of a greenfield IIT at Hyderabad. The Indian Cultural Centre in Tokyo was formally inaugurated in September 2009. The ICCR has set up two Chairs on Indian studies at the University of Tokyo and Ryokoku University, Kyoto. The two sides have agreed to celebrate the 60th anniversary of the establishment of diplomatic relations between India and Japan in 2012 in a befitting manner. Government of India introduced a visa on arrival scheme for tourists from Japan on an experimental basis from 1st January 2010. A Memorandum on Visa Simplification was signed during the Summit of October 2010 to facilitate visits by nationals of each other.

India and Japan share similar positions on major regional and international issues, like the reform of the UN Security Council and the regional architecture in East Asia including East Asia Summit. The two sides also conduct consultations on emerging issues like disaster management, climate change, maritime security and nonproliferation and disarmament.

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