Japan, India Edge Closer By Victoria Tuke the deplomat May 2, 2012
As Japanese workers depart en masse from the cities for Golden Week, and diplomatic attention focuses on Prime Minister Yoshihiko Noda’ s visit to Washington D.C., significant progress has been made in Japan’s relations with India.
Relations between Japan and India are often criticized for lacking initiative. However, as commentators and strategists alike increasingly speak of the “Indo-Pacific” rather than the narrower “Asia-Pacific,” Japan and India are putting this broader concept into practice.
Still, trade remains at disappointing levels of $18 billion, just 1 percent of Japan’s total trade, even after the signing of a Comprehensive Economic Partnership Agreement (CEPA) in 2011. Foreign Direct Investment (FDI) in India, however, while declining overall, has quadrupled from Japanese sources. Japanese companies see enormous potential in India’s young, aspirational and vast population - of India’s approximately 1.2 billion people, 60 percent are under the age of 30.
Today, over 800 companies are operating in India, focusing on automobiles, white goods and pharmaceuticals. The flagship project - the Delhi-Mumbai Industrial Corridor (DMIC), a 1,400 kilometer long link between the hubs of Mumbai and Delhi - is currently being implemented following Tokyo’s further commitment in late 2011 of more than $4.5 billion over the next five years.
Japan and India have previously participated in the U.S.-India-led Malabar Exercises in 2007 and as a result of the sixth Strategic Dialogue between Foreign Minister Koichiro Gemba and his Indian counterpart, S.M. Krishna, joint exercises between the Indian Navy and Japan’s Maritime Self-Defense Force will take place later this year. ”
In December, during Noda’s trip to India, Japan relaxed its four-decade long arms export ban. Whether India will take advantage of this remains to be seen. Thus far, the U.K. has been the major beneficiary, which some see as consolation for London losing out on the Eurofighter bid to replace Japan’s next-generation fighter jet.
India hasn’t explicitly called for joint development, but military experts in India have voiced interest in Japan’s advanced technology. In 2011, India was the world’s biggest importer of arms, reflecting a shift towards the modernization of its military hardware. India’s ports in particular require attention, while according to some reports, the Indian Navy is currently evaluating the Shinmaywa US-2 amphibious aircraft, which has a range of 4,700 kilometers.
India remains hesitant over suggestions that ties with Japan come at the expense of others in the region. India’s location means it’s surrounded by often antagonistic neighbors, as well as Russia and China. In April, Krishna traveled to Moscow to meet his Chinese and Russian counterparts as part of the Russia-India-China trilateral partnership that has become increasing less relevant since the establishment of the BRICS meetings.
Gradually, however, India and Japan are recognizing the benefit of such “mini-laterals” On April 24, for instance, Japan hosted a Japan-India-U.S. trilateral dialogue in Tokyo, the second such session since the forum was inaugurated in Washington, D.C. in December 2011. The discussions received relatively little attention, but considering China’s opposition to previous attempts to group like-minded nations - such as the failed Quad initiative (with the addition of Australia) in 2007 - Beijing’s muted response was a positive development.
Even on the most politically sensitive subject of nuclear energy, Japan and India are pushing forward with negotiations on Japanese nuclear exports, since they began in June 2010.
Nevertheless, in both capitals, Japan-India relations enjoy cross-party support as well as encouragement from the United States. Although U.S. overtures towards India in recent years have no doubt accelerated Japan’s own efforts, Tokyo and New Delhi are taking the lead in developing one of the most important relationships for both their futures.