India and Japan share civilisational ties rooted in Buddhism, reinforced by post-WWII cooperation. Over the years, their relationship has evolved from a Global Partnership (2000) to a Special Strategic and Global Partnership (2014).
Today, amid a shifting geopolitical order marked by China’s assertiveness and U.S. unpredictability, India-Japan ties are critical for both economic growth and Indo-Pacific security.
Significance of Japan for India:
- Economic Partner: Japan is the 5th largest FDI source for India; bilateral trade reached $21.96 bn in FY 2022–23. Japan pledged ¥5 trillion (≈$42 bn) investment (2022–27) and another ¥10 trillion (≈$68 bn) in 2025.
- Infrastructure Development: Mumbai–Ahmedabad High-Speed Rail, metro projects, and industrial corridors.
- Technology Transfer & Skill Development: JIM institutes, Technical Intern Training Programme.
- Strategic & Security Role: Indo-Pacific cooperation through Quad, ACSA, defence exercises (JIMEX, Dharma Guardian, Veer Guardian).
- Clean Energy & Climate: India–Japan Clean Energy Partnership (2022); joint carbon crediting mechanism.
- Diplomatic Support: Both are part of G4 pushing for UNSC reforms.
Areas of Convergence:
- Indo-Pacific Strategy: India’s Indo-Pacific Oceans Initiative (IPOI) aligns with Japan’s Free and Open Indo-Pacific (FOIP).
- Connectivity Projects: Act East + Partnership for Quality Infrastructure, Asia-Africa Growth Corridor.
- Defence Cooperation: Regular joint exercises; Acquisition & Cross-Servicing Agreement under negotiation.
- Reformed Multilateralism: Common platforms like Quad, G20, UNSC reform agenda.
- Supply Chain Resilience Initiative: Diversifying from Chinese dominance.
Areas of Divergence:
- Trade Imbalance: India–Japan CEPA (2011) underperforming; trade volume low compared to India–China.
- Strategic Divergence:
- India restrained on South China Sea & Taiwan, while Japan is vocal.
- On Russia–Ukraine war, Japan aligned with U.S. sanctions; India maintained neutrality.
- Implementation Delays: Bullet train project, Asia-Africa Growth Corridor.
- Digital Trade (Osaka Track, 2019): India opposed Japan’s push for free cross-border data flow.
Challenges:
- Chinese assertiveness: It requires coordinated yet cautious response.
- Japan’s inward economic focus due to demographic decline.
- India’s balancing act between Quad and BRICS/SCO.
- FDI gap: Japan’s investments in India remain modest compared to its global scale.
Way Forward:
- Trade Reforms: Revise CEPA, reduce non-tariff barriers, expand in digital trade, semiconductors.
- Defence Industrial Partnership: Joint R&D in robotics, drones, unmanned vehicles.
- Regional Connectivity: Fast-track Asia–Africa Growth Corridor & Northeast projects.
- Green Technology Cooperation: Japanese expertise in pollution control and renewables.
- People-to-People Ties: Expand academic exchanges, Japanese language learning, skilled worker mobility.
Conclusion:
India-Japan ties transcend transactional diplomacy as they represent a natural partnership based on shared democratic values, economic complementarities, and common security concerns in the Indo-Pacific. By addressing bottlenecks in trade and project implementation, the two nations can truly build an “Arc of Advantage and Prosperity” in Asia and beyond.
+1 Value addition:
- Defence Exercises:
- JIMEX (naval)
- Dharma Guardian (army)
- Veer Guardian 2023 (first-ever air exercise in Japan).
- 2+2 Dialogue: Institutionalised in 2019 only with select partners like US, Australia.
- India–Japan Clean Energy Partnership (2022): Focus on hydrogen, EVs, renewables.
- India–Japan Skill Development Initiative: Training Indian youth in Japanese companies
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