Recently, India and Japan decided to boost their bilateral security and defence cooperation. This includes advancements in defense manufacturing, an area that both nations view as pivotal for their strategic interests.
Key Outcomes from the Recent Meeting
India and Japan agreed to work together on their plan to facilitate 5 trillion yen in public and private investments from Japan to India over the next five years. During the discussion, India emphasized steps taken to enhance ease of doing business and logistics, using the ‘Gati Shakti’ initiative as an example. It also encouraged Japan to support greater investments by Japanese companies in India.
The investments will fuel the creation of resilient supply chains, benefiting both countries. India expressed its appreciation for the increasing investments made by Japanese companies in India. The two countries noticed the progress in the Mumbai-Ahmedabad High Speed Rail project. And they also agreed to encourage stronger collaboration between private sectors of both countries in developing next-generation communication technologies.
Focus on Clean Energy and Skilled Worker Programme
Both countries aim to deepen their cooperation in the area of clean energy. A special focus has been given to green hydrogen. They took note of the progress in the implementation of the Specified Skilled Workers (SSW) programme and agreed to scale up the programme, thereby boosting people-to-people links.
Recent Developments and Initiatives
In March 2022, the Japanese Prime Minister was on an official visit to India for the 14th India-Japan Annual Summit between the two countries. The Indian Prime Minister inaugurated a Japanese ‘Zen Garden – Kaizen Academy’ at the Ahmedabad Management Association (AMA) in Gujarat. India, Japan, and Australia have formally launched the Supply Chain Resilience Initiative (SCRI), countering China’s dominance of the supply chain in the Indo-Pacific region.
Significant Bilateral Agreements and Partnerships
India and Japan have taken significant strides to solidify their partnership. In 2020, they signed a logistics agreement known as the Acquisition and Cross-Servicing Agreement (ACSA) to enhance armed forces coordination. The nations upgraded their relationship to ‘Special Strategic and Global Partnership’ in 2014. The Comprehensive Economic Partnership Agreement (CEPA) covers trade in goods, services, natural persons, investments, intellectual property rights, custom procedures, and other trade-related issues.
Trade and Defence Exercises
Despite being India’s 12th largest trading partner, trade volumes between the two countries stand at just one-fifth of the value of India-China bilateral trade. Both countries regularly engage in various defense exercises such as JIMEX (naval), SHINYUU Maitri (Air Force), Dharma Guardian (Army), and also participate in the multilateral Malabar exercise. Both are members of Quad, G20 and G-4.
Future Collaboration and Cooperation
Further collaboration can benefit both nations. For instance, India can take advantage of sophisticated technology from Japan. Joint ventures could be created by merging Japanese digital technology with Indian raw materials and labour. Close cooperation is the best measure to combat China’s growing role in Asia and Indo-Pacific, both physically and digitally.