Japan

  • share civilizational ties, democratic value,s common vision for peace, prosperity, stability in indo pacific
  • cultural roots to strategic convergence, this relationship has matured into Special Strategic & Global Partnership

Background

  • 1952: diplomatic ties began w/ Peace Treaty
  • 2011: CEPA
  • 2016: Japan announced Country Assistance Policy, logistics pact, visa on arrival
  • 2021: launched SCRI with Australia

Areas of cooperation

  • Indo pacific & strategic ties
    • common vision: free open rule based indo pacific
    • active partners in QUAD & SCRI
    • Japan’s FOIP aligns w/ india’s regional stance
  • Development & infra
    • joint projects: Asia Africa Growth Corridor, Blue Dot Network
    • Largest ODA partner: Funds metro, water, energy, rural projects
    • ISRO - JAXA cooperation: LUPEX
  • Multilateral
    • coordination in G4 (UN Reforms), G20, G7
    • climate change, circular economy, gobal governance
    • defence logistics, intelligence via QUAD
  • economic & trade
    • bilateral: $22.85B 2024-25
    • CEPA: trade, services, investment, IPR
    • Japan: top 5 FDI sources, $75B bilateral swap arrangement
  • Defence & security
    • 2008 security cooperation declaration
    • logistics agreement; access to bases
    • Joint drills: Dharma Guardian, Sahyog Kaijn

Siginficance

For india

  • infra eg. Mumbai - Ahmedabad bullet train
  • investment target: 5T Yen 2022-27
  • Industrial & skill development: TITP, SSW schemes
  • consistent ODA support

For japan

  • addresses the ageing population via indian workforce
  • market & investment access in auto, electronics, food
  • raw material security eg. iron ore
  • expanding export market in india

Challenges

ChallengeIndiaJapan
Trade volumelimited exportsquality norms restrict import
NTB from japan
FDI flowlow share from japan despite potentialHigh gglobal FDI, less to India
China policyassertive at LACAligns more w/ US on China
Cautious on Taiwan / SCS
Russia conflictNeutralsupports sanctions
digital tradeopposed to osaka trackpro cross border data rules
Project delaysBullet train, AAGC slowSeeking faster delivery
Defence dealsdelay in US-2 aircraftgrowing competition in exports

Way forward

  • revise CEPA, ease NTB, clarify origin rules
  • operationalize key platforms, tech collab
  • indo pacific: policy coordination via QUAD for maritime order
  • emerging tech: joint R&D in biotech, ICT, robotics, nanoscience
  • P2P: expand skill training, business exchanges