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India Japan Relations

A strong bilateral relationship between India and Japan shares a common interest in promoting peace, prosperity, and stability across Asia. India Japan Relations dates back to the 6th century with the penetration of Buddhism in Japan through India. The foundation of the India Japan economic relations was laid in 2000 with the establishment of “Global Partnerships in the 21st Century” by Mr Yoshiro Mori and Shri Atal Bihari Vajpayee. It was marked by then Prime Minister of Japan Mr Mori’s visit to India. Japan ranks 6th in terms of FDI (Foreign Direct Investment) in India, and Japan is a key supporter of the Make in India initiative.  

India Japan relations history

India-Japan Relations have had a strong connection since the 6th century. An Indian monk Bodhisen visited Japan in 752 AD and spread Buddhism in Japan. 

  1. Ancient records from Nalanda University indicate scholars and pupils from Japan who studied at Nalanda University, with special reference to Tenjiku Tokubei. 
  2. The relationship between Japan and India was normalized in April 1952, following the conclusion of the Second World War. It was one of Japan’s first peace treaties as the country began to rebuild.
  3. Following the collapse of the USSR, India’s relationship with the United States improved significantly. This change had a widespread effect on India’s relationships with countries such as Japan and Israel, which are both pro-US.
  4. Trade relations between both countries are a decade old, with India replacing China as one of the main markets in 1915. Cotton was the most exported commodity from India to Japan. 

India Japan Economic Relations 

  1. The India Japan Comprehensive Economic Partnership Agreement (CEPA) is the most comprehensive agreement signed in August 2011. CEPA agreements cover trade in goods, services, investments, intellectual property rights, custom procedures and many trade issues. 
  2. Japan has pledged to invest Rs 33,800 crore in various government and private sectors in India. Between April 2000 and June 2018, Japan has invested almost $28.16 billion in FDI in India.
  3. A crucial co-operation between Japan and India is the development of the Mumbai-Ahmedabad High Speed Railway (MAHSR). A dedicated freight corridor is in discussion with a project estimated to be Rs 50,000 crore and Japan investing Rs 38,000 crores. 
  4. The India-Japan economic relations strengthened with the 1st India-Japan Ministerial Level Economic Dialogue on 30th April 2012. India is the largest recipient of ODA (Official Development Assistance) by Japan. 
  5. The disbursement of ODA by Japan in India is towards developing large-scale projects across India like Metro rail projects and infrastructure development. Delhi Metro is one example of Japanese cooperation. 
  6. SEPI (Special economic partnership initiative) was signed during the visit of the Prime Minister of Japan to India in December 2006. The main elements of SEPI include the Dedicated Freight Corridor-West project, Delhi-Mumbai Industrial Corridor, setting of free trade, specific economic zones, and SEZs and industrial estate development.
  7. 3-year bilateral swap agreement (BSA) signed between RBI and Bank of Japan for USD 50 billion to support bilateral trade, resolve short term issues of liquidity, and help with market stability. 
  8. Japan-India Investment Promotion Partnership includes 3.5 trillion yen public and private financing to India in 5 years. 

Defense Relations: India Japan Relations UPSC

  1. A security pact was concluded between Japan and India on 22nd October 2008 for joint military exercise and defense technology cooperation. 
  2. In 2014, India upgraded India Japan Relations to be a “Special Strategic and Global Partnership.”
  3. As part of the institutional framework between the two countries, the two plus two dialogue is a regular and systematic mechanism where the Defense and Foreign Ministers from both countries come together to discuss issues from both important sides.
  4. China has been making aggressive diplomatic moves with countries like Japan and India. This includes fighting over territory in the East China Sea and new construction in the South China Sea.
  5. India and Japan partner with the US, including the Malabar CEPA and the Quad.
  6. Japan India Maritime Exercise (JIMEX) was conducted in January 2012 off the Japanese coast. 

Technology and Innovative Collaboration for India Japan Relations

  1. Agreement of cooperation between India and Japan was signed in 2015 for peaceful use of Nuclear Energy.
  2. Agreement of supply of rare earth Chloride between India Rare Earths Limited (IREL) and Toyotsu Rare Earths India (TREI). 
  3. India Japan digital partnership between both the countries for frontier technology collaboration for a range of technologies like AI, 5G, IoT, and space research. It was launched in October 2018 during PM Modi’s visit to Japan.
  4. Investors – Development Bank of Japan, Mizuho Bank, Nippon Life and Suzuki, have signed letters to fund 200 Indian companies focused on emerging technology. 
  5. Japan-India Space Dialogue was announced in October 2018 by the Prime Minister of both countries. 
  6. Japan continues to extend economic cooperation with continued investment to better connect Northeast India and Andaman & Nicobar Islands.  

A Way Forward in the Future

  1. Japan wants to promote its investments in a stable and growing nation. With an economic growth rate comparable to those of other countries for the past ten years, India is the ideal nation to invest in for this reason.
  2. Continuation of balancing security policy is necessary for India Japan Relations. Both countries have concluded military pacts like Acquisition and Cross-Servicing Agreement (ACSA) logistics agreement. 
  3. India and Japan’sJapan’s support Free and Open Indo-Pacific and continue working with Quad, which is central to the security strategies of both countries. 
  4. Create a stronger India Japan digital partnership by resolving data localization issues. There should be attempts to resolve disagreement on data localization insisted by India. The issues should be resolved to balance the global security agreements.  

Conclusion

India Japan Relations dates back in  history and strengthened with robust economic investment, defense partnership, and technological collaboration. Official Development Assistance (ODA) by Japan to India aims at infrastructural development and strategic completion of large scale projects. One of the significant relationships between India and Japan is through India Japan digital partnership, which involves Japan investment in Indian companies involved in developing emerging technologies. Japan is India’s 6th largest foreign direct investor aiming at infrastructural and sectoral progress and development.