Recently, Japan has finalized loans and grants amounting to approximately 233 billion yen for several critical infrastructure projects in India. This includes the funding for a major project in the Andaman and Nicobar islands.
Grant for Andaman and Nicobar Islands (ANI)
The grant earmarked for Andaman and Nicobar Islands is 4.01 billion yen. This infusion of funds is targeted towards improving the power supply on these strategically located islands. The grant will be spent on obtaining 15MWh batteries and power system stabilizers, aiming to enhance the use of the solar power generated in South Andaman.
This grant is particularly noteworthy as it marks the first time that Japan’s Official Development Assistance (ODA) has been extended to an initiative on the ANI.
Making Sense of the Official Development Assistance (ODA)
The ODA is a form of government aid specifically formulated to support the economic development and welfare of developing nations. Military credits or loans are not a part of this assistance. India, thus far, has been the primary beneficiary of the financial aid meted out by the Japanese government under the ODA.
Other Projects Supported by Japan’s Aid
Japan’s funding assistance is not limited to the ANI project. It extends to Delhi Metro’s fourth phase, Metro lines under Namma Metro’s second phase in Bengaluru, crop diversification in Himachal Pradesh, and mitigating fluorosis in Rajasthan’s Jhunjhunu and Barmer districts.
Recent Developments in India-Japan Relations
The relationship between India and Japan is continually evolving. This was evident at the inaugural summit of the QUAD (Quadrilateral Framework) where leaders from India, Australia, USA and Japan convened virtually.
Last year, India and Japan signed the Acquisition and Cross-Servicing Agreement (ACSA). The accord facilitates closer coordination between the armed forces of both countries in supplies and services.
In 2019, the first-ever ministerial-level 2+2 dialogue took place. This was a significant event as it involved the Defence and Foreign Ministers from both sides, symbolizing the special strategic partnership shared by India and Japan.
The India-Japan Digital Partnership (I-JDP)
A major stride in bilateral cooperation came in the form of the “India-Japan Digital Partnership (I-JDP)”. Launched during the visit of the Indian Prime Minister to Japan in October 2018, this partnership essentially covers areas of cooperation in S&T/ICT, with an emphasis on “Digital ICT Technologies”.
The Evolution of India-Japan Relations
Since the India-Japan Comprehensive Economic Partnership Agreement (CEPA) came into force in August 2011, the relationship between the two nations has grown stronger. In 2014, this relationship received an upgrade to ‘Special Strategic and Global Partnership’.
Defence Cooperation and Significance of Andaman and Nicobar Islands
The defence forces of India and Japan regularly organize a series of bilateral exercises like JIMEX (naval), SHINYUU Maitri (Air Force), and Dharma Guardian (Army). Additionally, they participate in the Malabar exercise (Naval Exercise) with the USA.
The Andaman and Nicobar Islands hold immense strategic significance owing to their location at the junction of the Bay of Bengal and the Andaman Sea. ANI, which constitutes just 0.2% of India’s landmass but provides nearly 30% of its Exclusive Economic Zone, plays a vital role in Indo-Pacific.
Due to the geographical advantage of ANI in the Bay of Bengal, India is in a strong position to play a key role in Indo-Pacific. Recently, ANI has been declared as a “maritime and startup hub”.
Fluorosis: A Health Challenge
Among many issues that Japan’s financial aid addresses is the problem of fluorosis in Rajasthan’s Jhunjhunu and Barmer districts. Fluorosis primarily affects the teeth and is caused by overexposure to fluoride during the formative years of life.
The Way Forward with Japan-India Cooperation
As India seeks advanced technology from Japan, increased collaboration can be mutually beneficial. The prospect for ‘Make in India’ is enormous. Joint ventures could effectively merge Japanese digital technology with Indian raw materials and labour. This close cooperation is an effective strategy to counter China’s growing influence in Asia and the Indo-Pacific, in both physical and digital realms.
