Visit of Prime Minister of Japan to India

What’s in today’s article?

• Why in news?
• What are the imperatives for better ties between Indian and Japan?
• Background of India – Japan Bilateral Relations
• Economic Relation between India and Japan
• Official Development Assistance (ODA) form Japan to India
• Defence & Security cooperation between India and Japan
• Clean energy partnership between India and Japan
• Civil Nuclear Agreement between India and Japan

 

Why in news?

• Prime Minister of Japan, Mr. Kishida Fumio, arrived India on an Official Visit. During this visit, he will be holding bilateral talks with Prime Minister Narendra Modi.
• This meeting is being held at a significant time when India and Japan are holding the presidencies of the G20 and G7, respectively.

 

What are the imperatives for better ties between Indian and Japan?

• Strategic
  • China remains an unspoken factor in India – Japan relation. Japan has a boundary dispute with China over Senkaku island in East China Sea. 
  • India has been at the receiving end of China’s attitude since Independence particularly in Ladakh and Arunachal Pradesh.
  • Both country’s insistence on increased engagement between India’s ‘Act East Policy’ and Japan’s ‘Open Indo-Pacific Strategy’ further makes them a natural partner.
• Security
  • India and Japan have large Exclusive Economic Zones and share maritime interests.
  • This includes safe passage or Japanese oil tankers plying from the Persian Gulf to Strait of Malacca through Arabian Sea, Indian Ocean and Bay of Bengal under protection from Indian Navy and the Coast Guard.
• Economic
  • Japan is trying to jump-start a Japanese economy which badly needs new sources of exports and revenue for ailing Japan Inc. 
  • India, with its 1.2 billion increasingly wealthy consumers and bottomless investment opportunities, can provide just what Japan requires.
  • India has significant reserve of rare earth metal which is badly needed for the Japanese economy which uses these minerals to manufacture different products.
  • Japanese workforce is ageing. In this case, it is looking towards India for the supply of young workforce to revive its economy.
• Multilateral imperatives
  • Both countries need their mutual support on crucial global issues including the issue of climate change, countering terrorism, reform of the United Nations Security Council (UNSC). 

 

Background of India – Japan Bilateral Relations

• India and Japan share ‘Special Strategic and Global Partnership’. 
• Friendship between the two countries has a long history rooted in spiritual affinity and strong cultural and civilizational ties.

Economic Relation between India and Japan

• Comprehensive Economic Partnership (CEPA)
  • India-Japan CEPA came into effect from 1 August 2011.
• Bilateral trade
  • India was the 18th largest trading partner for Japan, and Japan was the 12th largest trading partner for India in 2020.
  • Bilateral trade totalled US$ 20.57 billion during FY 2021-22. Exports from Japan to India during this period were US$ 14.39 billion and imports were US$ 6.18 billion. 
  • Japan’s exports to India were 2.35% of India’s total imports and India’s exports to Japan were 1.46% of India’s total exports.
• Investment
  • Cumulatively, from 2000 until March 2022, the Japanese investments to India have been around US$ 36.94 billion ranking Japan fifth among source country for FDI.
• Currency swap
  • In October 2018, India and Japan signed a deal for a USD 75-billion bilateral swap arrangement.
• Supply Chain Resilience Initiative (SCRI) 
  • The Trade Ministers of India, Japan and Australia formally launched the SCRI in April 2021.

Official Development Assistance (ODA) form Japan to India

• Japanese ODA supports India’s efforts for accelerated economic development, particularly in priority areas like power, transportation, environment and social sector. 
• The Mumbai-Ahmedabad High Speed Rail, Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor (DMIC) with twelve industrial townships, Chennai-Bengaluru Industrial Corridor (CBIC) are some mega projects with Japanese cooperation on the anvil. 
• Japan’s ODA disbursement to India in 2020-21 stood at about JPY 264 billion (approx USD 2.3 billion).

Defence & Security cooperation between India and Japan

• In 2008, India and Japan issued "the Joint Declaration on Security Cooperation between Japan and India". 
• There are also various frameworks of security and defense dialogue between Japan and India including Foreign and Defense Ministerial Meeting (“2+2” meeting), annual Defense Ministerial Dialogue and Coast Guard-to-Coast Guard dialogue. 
• In November 2019, the first ”2+2” meeting was held in New Delhi.
• In September 2020, the Agreement between the Japan and India Concerning Reciprocal Provision of Supplies and Services between the Self-Defense Forces of Japan and the Indian Armed Forces (so-called “Acquisition and Cross-Servicing Agreement” or ACSA) was signed.
  • This agreement establishes a framework such as the settlement procedures for the reciprocal provision of supplies and services between forces of the two nations.
  • India is only the second country after Australia with which Japan has such an agreement.
• Japan became a permanent member of the Malabar exercise in 2015. India and Japan also conduct joint military exercise named “Dharma Guardian” since 2018.
• Air forces of both the countries conducted first fighter jet exercise ‘Veer Guardian’ in Japan in January 2023.

Clean energy partnership between India and Japan

• It was launched during the annual summit last year.
• This partnership aims to promote energy cooperation through diverse and realistic energy transitions utilising all energy sources and technologies to ensure energy security, carbon neutrality and economic growth.

Civil Nuclear Agreement between India and Japan

• In November 2016, India and Japan signed a deal on nuclear energy. This was the first time that Japan signed such deal with a non-signatory of Non-Proliferation Treaty.
• The deal gives Japan the right to supply nuclear reactors, fuel and technology, to India.

 

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Q1) What is the geographical location of Japan?

Japan is an island country located in East Asia. It is situated in the Pacific Ocean and comprises a chain of islands, the largest of which are Honshu, Hokkaido, Kyushu, and Shikoku. Japan is located to the east of the Asian continent, and it is bordered by the Sea of Japan to the west and the Pacific Ocean to the east. It is located approximately 36 degrees north latitude and 138 degrees east longitude.

 

Q2) What is Delhi-Mumbai Industrial Corridor (DMIC)? 

The Delhi-Mumbai Industrial Corridor (DMIC) is a mega-infrastructure project in India aimed at developing an industrial zone spanning across six states in the country, which includes Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat, and Maharashtra. The project aims to create a high-tech industrial zone, with modern infrastructure and world-class facilities, along the 1,483-kilometer-long corridor between Delhi and Mumbai.

 

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Source: Japanese PM Fumio Kishida arrives today for bilateral talks | Indian Embassy in Tokyo | MEA | The Hindu