India-Japan Relations Explained: UPSC Current Affairs

Description

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Picture Courtesy: THE HINDU

Context

India and Japan are strengthening their special strategic partnership with new priorities, including high-tech infrastructure, revised security agreements, and an Economic Security Initiative to diversify supply chains.

Evolution of India-Japan Relations

Early ties: Civilization ties go back to the visit of the Indian monk Bodhisena in 752 AD. Modern Diplomatic relation started in 1952 with a peace treaty.

1950s–1990s: Japan provided yen loans to India starting in 1958 to aid development.

Visits by Japanese leaders (e.g. Prime Minister Kishi Nobusuke in 1957) deepened economic ties.
Through the Cold War, relations remained cordial but limited.
In 1998, India’s nuclear tests briefly cooled the partnership, but Japan soon resumed cooperation after India’s commitment to non-proliferation.

Relations In 21st century

2000: Japanese Prime Minister Yoshiro Mori visited India; the two leaders established a “Global Partnership”.

2005–2006: Annual summit meetings began. In 2005 PM Koizumi Junichiro visited India; in 2006 PM Manmohan Singh visited Japan. Singh’s visit upgraded ties to a “Japan-India Global and Strategic Partnership”.

2014–2015: PM Narendra Modi and PM Shinzo Abe elevated relations to a “Special Strategic and Global Partnership”. In 2015 they issued the “Japan-India Vision 2025” roadmap.

India and Japan hold regular Foreign/Defence “2+2” ministerial talks (first in 2018, most recently August 2024).

Why Japan is Important to India?

Major economic partner: Japan is a top source of investment and advanced technology.

In Fiscal Year (FY) 2023-24, Japan was the 5th largest source of foreign direct investment (FDI) for India, with inflows of $3.17 billion.
Bilateral trade totaled about $22.85 billion in FY2023-24.
Japanese investment and expertise support “Make in India” manufacturing, especially in automobiles (e.g. Suzuki-Maruti) and electronics.

Infrastructure & technology: Japan provides project financing and know-how. It has funded projects like the Delhi Metro and is building India’s first bullet train line (Mumbai–Ahmedabad).

Under the Vision 2025 plan, Japan aims for 5 trillion yen in investment by 2027.
Japan also assists India in clean energy (LNG terminals, nuclear reactors, and a 2024 green hydrogen/ammonia export pact).

Strategic ally in Indo-Pacific: Japan shares India’s vision of a free, open Indo-Pacific. Both face common security concerns (especially China’s assertiveness).

They coordinate closely on regional issues via the Quad, joint naval exercises (Malabar, JIMEX) and intelligence sharing.
Tokyo’s security strategy promotes deeper India ties. Japan’s support India diversify its defense supplies and build naval capabilities (e.g. agreement on the “Unicorn Masts” technology)

Development in Northeast region: Japan's investment and development assistance in India's Northeast, particularly in areas of connectivity and infrastructure, aligning with India's Act East Policy.

Technology & innovation: During 2024 talks, India and Japan pledged to strengthen the semiconductor supply chain and make India a chip-manufacturing hub. They collaborate on space (ISRO-JAXA joint missions) and digital infrastructure.

Official Development Assistance (ODA) and soft power: Japan is India’s largest source of official development aid. It finances education, health and connectivity projects, promoting goodwill.

Cultural and academic ties (e.g. scholarships, technical training) are strong, backed by institutions like the Japan Foundation.
Thousands of Indian students and professionals go to Japan, and over 50,000 Indians reside there.

Diplomatic support: Japan supported India’s bid for a permanent UNSC seat.

India’s Policy Towards Japan

High-priority strategic partner: Japan ranks as one of India’s closest friends and key foreign policy ties.

Comprehensive economic tie: India treats Japan as a favored investor. It ratified the India-Japan Comprehensive Economic Partnership Agreement (CEPA)(2011) to liberalize trade and investments.

New industry sub-committees are proposed (e.g. on goods under CEPA) to boost trade. India’s “Make in India” and “Production-Linked Incentive (PLI)” schemes invite Japanese firms to set up factories.

Act East and Indo-Pacific synergy: Japan is a pillar of India’s Indo-Pacific strategy. India’s “Act East” policy (aimed at East and Southeast Asia) naturally complements Japan’s Free and Open Indo-Pacific vision.

India co-founded the Quad alongside Japan, U.S., and Australia, and aligns on ASEAN centrality.
India supports Japan’s role in regional security through joint maritime exercises (e.g. Malabar) and ministerial “2+2” dialogues.

Regional development initiatives: Under India’s policy, Japan is a key partner in projects like the Asia-Africa Growth Corridor (announced 2017) for infrastructure investment.

India also worked with Japanese prefectures (e.g. sister-province deals) to boost regional development.

Quad and multilateral cooperation: Indian policy stresses trilateral (with US) and quadrilateral ties. India backs joint India-Japan proposals on climate, connectivity, and clean energy at international forums.

Why India is Important to Japan?

Strategic balancing: Japan considers India essential in its Indo-Pacific strategy.

India’s status as a largest democracy (with a fast-growing economy) makes it a natural ally for Japan to counterbalance China’s influence.
Both share concerns about regional security, so aligning with India strengthens Japan’s strategic depth.

Economic opportunity: India’s massive market and workforce offer growth opportunities for Japanese industry. Japan exported $17.7B of goods to India in FY24, including machinery and technology.

India’s requirement for infrastructure (e.g. high-speed rail, power systems) creates business for Japanese firms.

Resource and energy partnership: Japan lacks domestic energy resources and seeks stable partners. India’s commitments to clean energy (e.g. green hydrogen) align with Japan’s needs.

In 2024 India signed a deal to export green ammonia to Japan, indicating India’s role as a future energy supplier for Japan.

High-tech and innovation synergy: Japanese companies tap Indian IT services, R&D and engineering.

Co-development of defense tech (e.g. naval antenna mast) shows Japan trusts India as a partner in high-tech projects.
Japan also gains from India’s digital and space ambitions via joint projects.

Cultural affinity and soft power: Japan sees cultural connection (Buddhist heritage, yoga, etc.) as a bridge. It promotes Japanese language and culture in India, and Indian culture (like festivals) in Japan.

Diplomatic support: India and Japan back each other on global issues. Japan welcomed India’s G20 presidency. Japan invited India as a special guest at its G7 summit (2023).

Challenges for India-Japan Relations

Trade Imbalance and Market Access: India have a trade deficit with Japan (Japan exported $17.7B to India vs $5.1B imported in FY24).

Indian exporters face strict Japanese standards (in food, pharma, industrial goods), limiting their market share.
Regulatory barriers and tariffs in some sectors make it hard for Indian products to enter Japan. Both sides need to address these imbalances.

Project Delays and Bureaucracy: For example, the Delhi–Mumbai Industrial Corridor and the bullet train faced delays due to land acquisition, environmental clearances and coordination issues.

Complex Indian procurement rules and multi-tier approvals slow Japanese investment projects. Streamlining such processes remains a challenge.

Strategic Divergences: Both share broad goals, however, their approaches to regional issues differ. For example, India has historically taken a non-aligned stance and is cautious about joining any military alliance, whereas Japan has a security alliance with the U.S.

Both worry about China’s assertiveness, but India’s “Neighbourhood First” focus and Border engagements differs from Japan’s more direct containment approach.
Such divergence can complicate fully synchronized strategy in the Indo-Pacific.

Geopolitical Pressures: If India’s policy moves (like strong QUAD posturing) provoke Beijing, that can create strain. Similarly, Japan’s security build-up (e.g. constitutional changes) may make India uneasy. Both must balance relations with China while deepening their own ties.

Cultural and Language Gap: Despite growing exchange, differences in language, business culture and work styles remain.

Misunderstandings arise in negotiations or day-to-day collaboration due to communication gaps and differing corporate culture.
Deepening people-to-people links (through education and cultural programs) is needed to build trust.

Competitive Priorities: Japan also has strong ties with other Asian powers (Australia, ASEAN). India must ensure it remains a top priority amidst Japan’s multiple commitments.

India balances relations with Russia, the U.S., and others; any shift in these relations could indirectly affect Japan policy.

Way Forward for Strengthening India-Japan Relations

Deepen Economic Integration: Both countries should expand CEPA talks to remove remaining trade barriers. Accelerating approvals for investments, and reducing tariffs on priority sectors.

For example, harmonizing standards or recognizing each other’s certifications would ease Indian exports to Japan.
Joint business councils and industry forums (like the India-Japan CEOs’ Forum) can identify new cooperation areas (e.g. green chemicals, medical devices).

Infrastructure and Technology Partnerships: Complete ongoing projects of time. Launch more India–Japan startups incubators and R&D centers.

Both sides should expedite joint ventures in emerging sectors: e-mobility (lithium batteries R&D), semiconductors (chip fabs), and space technology.

Enhance Defense Collaboration: The 2024 agreement on UNICORN mast shows promise; next steps could include joint production of aircraft parts, naval vessels or missile systems.

Japan and India can consider joint exercises focused on counter-terrorism and maritime security. Easing export controls on dual-use tech would also help.

Strengthen defense and security ties: Revise the 2008 Joint Declaration on Security Cooperation and expand defense collaboration through more joint military exercises, defense technology sharing, and intelligence mechanisms.

Collaborate on a free and open Indo-Pacific: Increase cooperation under the Quadrilateral Security Dialogue (Quad) and the India-Japan-Australia Supply Chain Resilience Initiative (SCRI) to maintain a rules-based order and freedom of navigation in the region.

Quad and Multilateral Synergy: Co-chair Quad initiatives (like Critical Minerals, QUAD-Climate) to diversify supply chains and address global challenges.

Supporting each other in group settings – for example working together on reforming multilateral banks – will amplify their voices.
Institutionalizing their Indo-Pacific collaboration (such as a joint working group on Japan-India Ocean Region) can align strategies.

Enhance digital and technology partnerships: Build upon the India-Japan Digital Partnership by increasing collaboration in emerging technologies such as Artificial Intelligence (AI), robotics, and quantum communications.

Digital and Green Cooperation: Set up joint centers of excellence (e.g. India–Japan Cybersecurity Hub) and shared databases for emerging threats.

The 2024 green ammonia deal is a model; expand similar energy partnerships in hydrogen fuel, battery storage, and smart grids.

Deepen people-to-people and skill development exchanges: Expand exchanges for Indian professionals, including IT and healthcare workers, to move to Japan through programs like the Technical Intern Training Programme (TITP).

Promote cultural and academic exchanges, including scholarships and language training programs.

Enhance dialogue and institutional partnerships: Promote dialogue between government, parliament, industry, academia, and think tanks through platforms like the India-Japan Forum.

Strengthen cooperation between states and prefectures to facilitate investment and collaboration.

Conclusion

India and Japan's decades-long Special Strategic and Global Partnership, based on shared values and trust, has evolved into a dynamic alliance spanning trade, technology, and security, with a shared vision for a peaceful and prosperous Indo-Pacific.

Source: THE HINDU

PRACTICE QUESTION

Q. From a purely economic relationship, the India-Japan partnership has evolved into a comprehensive security and strategic alliance. Elaborate. 250 words