Unit 4- India & Japan

The friendship between India and Japan has a long history rooted in spiritual affinity
and strong cultural and civilizational ties. Indian culture, filtered
through Buddhism, has had a great impact on Japanese culture, and this is the
source of the Japanese people's sense of closeness to India.

Bilateral ties have been singularly free of any kind of dispute – ideological or
territorial. India -Japan peace treaty was one of the first peace treaties Japan
signed after World War II.

Even though India and Japan have exchanged defense ideas for almost two decades
and declared a shared interest in keeping the Indo-Pacific open and free, as
partners in the Quadrilateral Security Dialogue along with the US and Australia,
their bilateral cooperation is still lacking. US-China interference in the Indo-
Pacific prevented both sides from implementing their desired strategic objectives.

What is the State of India's Relations with Japan?

 Defense Ties: India-Japan Defence and Security partnership has
evolved over the years from bilateral and multilateral exercises
including Dharma Guardian and Malabar respectively. And welcoming
the participation of Japan for the first time in exercise MILAN.
o Tri-Service Exchanges between Japan and India have been
institutionalized completing the triad. Coast Guards have had regular
annual exchanges since 2006. Including, Japan and India Vision
2025 Special Strategic and Global Partnership - working together
for peace and prosperity of the indo-pacific region and the world.
 Economic Ties: A test of the reliability of Japan as a friend was witnessed
in 1991 when Japan was among the few countries that bailed India out of
the balance of payment crisis.
o In recent years, the economic relationship between Japan and India
has steadily expanded and deepened. The volume of trade between
the two countries has increased. Japan was the 12th largest trading
partner for India in 2020.
o Also, direct investment from Japan to India has increased, and Japan
was the 4th largest investor in India in FY2020.
 The year 2012 marked the 60th anniversary of the establishment of diplomatic relations
between India and Japan and witnessed steady progress in bilateral relations.
 The 1st India-Japan Ministerial-level Economic Dialogue was held at New Delhi on 30
April 2012. Economic interaction is the fundamental driver of the India- Japan relationship.
 India continues to be the largest recipient of Japanese Official Development Assistance
(ODA). Disbursement of ODA in FY 2011-12 reached a record high of Yen 139.22 billion
(approx. Rs 8497 crores). This is being utilized in several important projects across India,
largely in infrastructure projects such as Metro rail projects in different metropolitan cities.
 Japan also announced ODA loans totalling Yen 184.81 billion (approx. Rs 11,000 crores)
to two projects, namely the Dedicated Freight Corridor Western Project Phase II and the
Chennai Metro Rail Project.
 The Special Economic Partnership Initiative (SEPI) was one of the important outcomes of
the visit of the Prime Minister to Japan in December 2006. The main elements of SEPI
include Dedicated Freight Corridor-West (DFC-W) project, Delhi- Mumbai Industrial
Corridor (DMIC) project, setting up of multi-product special economic zones/cluster, free
trade and warehousing zones at select locations, and encouraging investment by
Japanese companies in India, including through assistance in development of
infrastructure relating to SEZs and industrial estates, etc.
 The flagship India-Japan infrastructure projects made steady progress in 2012. The
Dedicated Freight Corridor (West) between Mumbai and Delhi is on track for completion
in 2017, during the current Plan Period. The Delhi Mumbai Industrial Corridor (DMIC)
Project has moved ahead with the Cabinet approving a 26% equity stake in the Special
Purpose Vehicle DMIC Development Corporation (DMICDC) by the Japan Bank for
International Cooperation (JBIC) on 23 August 2012.
 The relaxation of capital regulations and controls that the Japanese side had requested in
2011 regarding the DMIC Project have been largely accepted and implemented.

 Health-Care: In view of the similarities and synergies between the goals

and objectives of India's AYUSHMAN Bharat Programme and Japan’s
AHWIN, both sides had been consulting with each other to identify projects
to build the narrative of AHWIN for AYUSHMAN Bharat.
 Investment and ODA: India has been the largest recipient of the
Japanese Official Development Assistance(ODA) Loan for the past
decades. Delhi Metro is one of the most successful examples of Japanese
cooperation through the utilization of ODA.
o India’s Western Dedicated Freight Corridor (DFC) project is funded
by a soft loan provided by Japan International Cooperation Agency
under Special terms for economic partnership (STEP).
o Besides, Japan and India had committed to build a High-Speed
Railways in India by introducing Japan’s Shinkansen System.
o India Japan Nuclear Deal 2016 will help India build the six nuclear
reactors in southern India, increasing nuclear energy capacity ten-fold
by 2032.
What are the Roadblock to Strengthen India-Japan Ties?
 Rising China’s Dominance: China does not shy away from making efforts
to block the rise of India and Japan, including by stepping up military
pressure on them and opposing their UN Security Council’s permanent
membership.
 Influence of China-America Rivalry: The intensification of Chinese-
American rivalry contributes to disturbance of regional security in the
Indo-Pacific.
o The region is militarised and an arms race is taking place, military
exercises and manoeuvres are systematically occurring in disputed
waters that ultimately affects peace and prosperity for the
region, especially for countries like India and Japan.
 Domestic Issues in Japan: Japan is in the midst of a massive domestic
debate over the revision of its national security and defence
strategies, which has resulted in the assimilation of Japan's former Prime
Minister Shinzo Abe.
What is Vostok 2022?
 About: The Vostok 2022 is a multilateral strategic and command
exercise scheduled to take place at seven firing ranges in the Russian Far
East and the Sea of Japan, with over 50,000 troops and more than 5,000
weapons units taking part.
o It will involve troops from several ex-Soviet nations, China, India,
Laos, Mongolia, Nicaragua and Syria.
 Japan’s Objection: Japan has objected to Russia’s plan to hold the
maritime component of Vostok-2022 close to Northern
Territories- Southern Kuril Islands, claimed by both Japan and Russia.
 Stand of India: India abstained from sending its warships as part of the
exercise, as it decided to stay away from the maritime component of
Vostok-2022 in order to avoid hurting the sensitivity of Japan.
o However, India kept a balanced stand as the Indian Army’s
contingent of the Gorkha Regiment is participating in the military
drills.
What Should be the Way Forward?
 Curbing the Hegemony in India-Pacific: India and Japan are required to
transform their military strategy and build on the common interest
 in preventing the rise of a securing hegemony in the Indo-Pacific (US
and China).
 Putting Hands Together for Digital Empowerment: With a view to
enhancing digital infrastructure through promotion of joint projects for
digital transformation, India and Japan can shake hands for digital
infrastructure cooperation in various fields like 5G, Open RAN, Telecom
Network Security, submarine cable systems, and Quantum
Communications.
 Strengthening India’s Act East Policy: India has always placed the
‘Indo-Pacific’ at the heart of its engagement with the countries of
Southeast and East Asia. For deriving effective solutions to contemporary
challenges, India's Act East Policy must be strengthened.
o Japan also endeavours to cooperate in supporting strategic
connectivity linking South Asia to Southeast Asia through the
synergy between ''Act East'' policy and ''Partnership for Quality
Infrastructure.''
 Knowledge Exchange for Disaster Risk Reduction: India can benefit
from Japan's disaster management experience in developing disaster
risk reduction policies and measures in disaster-prone areas.
 Towards Multipolar Asia: By reshaping their Asian strategic landscape,
India and Japan has the potential to catalyse their emergence as world
powers, and march towards a open and secure Indo-Pacific.