The India-Japan bilateral relationship has evolved significantly in recent decades, driven by shared interests in economic development, strategic collaboration, and global governance. Despite their historical and cultural differences, both nations are united by common strategic objectives, particularly concerning regional security, economic growth, and technological innovation. This comprehensive partnership is becoming increasingly important not only for India and Japan but for the broader Indo-Pacific region and the global community.

Convergence of Strategic Interests

A key factor in strengthening India-Japan ties is the convergence of their strategic interests. Both countries have expressed concerns about China's growing influence in the Indo-Pacific region. India’s Indo-Pacific Oceans Initiative (IPOI) and Japan’s ‘Free and Open Indo-Pacific’ (FOIP) strategy share common goals, including:

• Promoting a rules-based order
• Ensuring freedom of navigation
• Safeguarding maritime security in the South China Sea

Additionally, both nations engage in the Supply Chain Resilience Initiative (SCRI), which seeks to reduce dependence on China and counter its dominance in global supply chains. This initiative is vital for ensuring a secure and diversified supply chain, particularly in sectors critical to both countries’ economic growth.

Strategic Connectivity

India and Japan have collaborated on multiple initiatives aimed at enhancing regional connectivity. Notable projects include:

·         India’s ‘Act East’ policy and Japan’s ‘Partnership for Quality Infrastructure’ initiative, which focus on linking South Asia with Southeast Asia. This collaboration promotes sustainable and high-quality infrastructure development, facilitating greater economic integration within the region.

·         The Asia-Africa Growth Corridor (AAGC), which aims to strengthen ties between East Asia, Southeast Asia, South Asia, and Africa. This initiative focuses on infrastructure, trade, and investment, boosting economic development in these regions.

India’s Vision 2025 involves the development of its Northeast region, serving as a crucial convergence point for India’s Act East Policy and Japan’s FOIP strategy.

Defence Relationship

The defense relationship between India and Japan has grown substantially, with a focus on strategic cooperation and mutual security. Key developments include:

• Cross-Servicing Agreement (ACSA): Facilitates cooperation between the armed forces of the two countries.
• Joint military exercises: Such as Dharma Guardian, Shinyuu Maitri, and JIMEX, which enhance regional security and cooperation in areas like counterterrorism, humanitarian aid, and peacekeeping.

These defense initiatives help to foster greater interoperability between the Indian and Japanese forces and address shared security challenges in the Indo-Pacific region.

Economic Ties

India and Japan share robust economic relations, marked by a significant trade partnership. Key aspects include:

• Bilateral trade reached US$21.96 billion in FY 2022-2023.
• Comprehensive Economic Partnership Agreement (CEPA): Signed in 2011, this agreement has helped facilitate trade and investment but challenges remain, such as restrictive trade practices and limited Japanese foreign direct investment (FDI) in India.

Japan has also played a crucial role in India’s infrastructure development, with notable projects like the Mumbai-Ahmedabad High-Speed Rail. Japan’s target of 5 trillion yen investment in India between 2022 and 2027 underscores Japan’s commitment to contributing to India’s economic growth and industrial transformation.

Energy Cooperation

Energy cooperation is another pillar of the India-Japan relationship. Key developments include:

·         India-Japan Clean Energy Partnership (CEP): Launched in 2022, this partnership addresses climate change while promoting economic growth through the development of renewable energy sources, energy efficiency, and carbon emission reduction.

·         Nuclear energy collaboration: The 2017 India-Japan Agreement for Cooperation in the Peaceful Uses of Nuclear Energy enhances collaboration in the nuclear energy sector.

Japan’s support for India’s energy transition, offering technology and expertise for clean energy projects, strengthens this crucial partnership.

Reformed Multilateralism

India and Japan share a commitment to reforming multilateral institutions, particularly the United Nations Security Council (UNSC), where both countries seek permanent membership. Their cooperation extends to global forums such as the Quad, G20, and G4. Both countries collaborate on issues like non-proliferation, disarmament, and the promotion of a rules-based international order. Their joint efforts in these forums play a significant role in shaping global governance and ensuring a stable international system.

Cooperation in Science and Technology

India and Japan are enhancing their cooperation in science and technology through joint missions and research initiatives. Notable examples include:

• Lunar Polar Exploration Mission (LUPEX): A collaboration between India’s space agency ISRO and Japan’s JAXA to explore the moon’s south pole, believed to hold valuable resources such as water ice that could support future human exploration.

This partnership advances scientific knowledge and strengthens technological ties between the two countries, opening doors for further collaboration in emerging technologies.

Significance for India

·         Infrastructure Development: Japan’s contributions, such as the Mumbai-Ahmedabad High-Speed Rail project, are transforming India’s infrastructure landscape.

·         Economic Growth: Japan is a crucial source of foreign investment, particularly in sectors like automobiles, electronics, and textiles. The 5 trillion yen investment from Japan between 2022 and 2027 underscores its importance to India’s industrial transformation.

·         Skill Development: Initiatives like the Technical Intern Training Programme (TITP) and Specified Skilled Worker (SSW) initiative provide Indian workers with valuable skills, enhancing India’s human capital.

·         Official Development Assistance (ODA): Japan is India’s largest bilateral donor, supporting infrastructure, education, and social development projects.

Significance for Japan

·         Demographic Advantage: India’s large, youthful population provides Japan with much-needed human resources to address its aging population and workforce shortages.

·         Market Opportunities: India’s growing market offers significant opportunities for Japanese companies, particularly in sectors like automobiles and consumer electronics.

·         Natural Resources: India’s rich natural resources, particularly iron ore, remain an important asset for Japan, which has historically relied on them for industrial growth.

Challenges in the Relationship

·         Bilateral Trade: Trade remains relatively low, with India facing barriers such as restrictive trade practices, stringent quality standards, and non-tariff barriers that increase export costs.

·         Japanese FDI in India: Japanese foreign direct investment in India remains modest compared to Japan’s total outward FDI, limiting deeper economic collaboration.

·         Strategic Divergences: While both countries are united in their approach to regional security, their approaches to China differ. India has been more restrained in directly criticizing China’s actions in the South China Sea and Taiwan Straits, whereas Japan has aligned itself with the United States in many areas, including sanctions against Russia.

Steps Forward

1.    Accelerating Trade and Investment: Reviewing and addressing issues in the CEPA agreement and reducing trade barriers will help increase economic collaboration.

2.    Defense Collaboration: Fostering greater defense cooperation to address shared security concerns, particularly in the Indo-Pacific region.

3.    Cooperation in Emerging Areas: Deepening collaboration in sectors such as modern biology, biotechnology, healthcare, agriculture, and robotics.

4.    People-to-People Exchanges: Enhancing dialogue and exchanges at the business and cultural levels will strengthen bilateral ties and foster mutual growth.

Conclusion

The India-Japan bilateral relationship holds immense potential for both nations, extending beyond economic and technological cooperation to strategic collaboration on regional security and global governance. By addressing existing challenges and accelerating efforts in key areas, India and Japan can further strengthen their partnership, contributing to a stable, prosperous, and integrated Indo-Pacific region. Recognizing the strategic importance of this relationship, both countries should work towards creating an ‘Arc of Advantage and Prosperity’ that fosters mutual growth, stability, and closer integration in Asia.