Context: Recently, the Prime Minister of India visited Japan for the 15th India-Japan Annual Summit. The visit is expected to further consolidate the Special Strategic and Global Partnership between the two nations.
Relevance of the Topic: Mains: India-Japan bilateral relations.
Key Highlights of India PM’s Visit to Japan
India and Japan inked 21 pacts during the recent visit. The key agreements, MOUs and announcements include:
- India-Japan joint vision for the next decade: The roadmap covers vital areas such as economic growth, security, technology, innovation, health, sustainability, mobility and people-to-people exchanges.
- Revision of the 2008 Joint Declaration on Security Cooperation.
- Bilateral energy partnership on clean Hydrogen and Ammonia.
- Memorandum of cooperation on joint crediting mechanism.
- Private investment target of ¥10 trillion (about $68 billion) in India over the next decade.
- Economic Security Initiative launched to promote supply chain resilience in strategic sectors.
- MoU on India-Japan digital partnership 2.0
- Launch of the India - Japan AI Initiative to strengthen collaboration on large language models, data centres, and AI governance.
- Launch of the Next Generation Mobility Partnership
- Launch of the India - Japan Small and Medium Enterprises Forum
- Launch of the Sustainable Fuel Initiative
- Implementing arrangement between the Indian Space Research Organisation (ISRO) and Japan aerospace exploration agency (JAXA) concerning joint lunar polar exploration mission.
- Transfer of Japan's next-generation E10 series Shinkansen technology for the Mumbai-Ahmedabad bullet train project.
- Japan Human Resource Exchange: an action plan to promote two-way exchange of 5 lakh people between India and Japan, particularly 50,000 skilled and semi-skilled personnel from India to Japan in the next five years.
Overview of India-Japan Bilateral Relationship:
India and Japan are two of Asia’s leading democracies and among the world’s top five economies. The partnership is rooted in civilisational ties reinforced by convergence in their regional and global outlooks. The countries share values, trust, and strategic outlook.
Strategic Partnership:
- India-Japan bilateral relations were elevated to Global Partnership in 2000, Strategic and Global Partnership in 2006, and Special Strategic and Global Partnership in 2014.
- India’s Act East Policy and Indo-Pacific Oceans Initiative (IPOI) align closely with Japan’s Free and Open Indo-Pacific (FOIP) policy.
Multilateral and Regional Cooperation:
- Cooperation between the countries extends to plurilateral platforms such as the:
- Quad (India and Japan coordinate closely with the US and Australia to ensure a free, open, and inclusive Indo-Pacific)
- International Solar Alliance (ISA)
- Coalition for Disaster Resilient Infrastructure (CDRI)
- Supply Chain Resilience Initiative (India and Japan are looking to diversify and secure supply chains through the SCRI which also involves Australia).
- Japan leads the Indo-Pacific Oceans Initiative (IPOI’s) connectivity pillar.
Trade Ties:
- Bilateral trade reached $22.8 billion in FY 2024.
- Imports from Japan continue to outweigh exports.
- India’s main exports: chemicals, vehicles, aluminium, and seafood
- India’s major imports: machinery, steel, copper, and reactors.
Investment:
- Japan is India’s fifth-largest source of FDI with $43.2 billion cumulative investment up to December 2024. Annual inflows have been strong: $3.1 billion in FY 2024.
- Around 1,400 Japanese companies with nearly 5,000 establishments operate in India; more than 100 Indian companies are present in Japan.
Emerging Focus Areas:
- Digital cooperation (involving AI, semiconductors, startups), clean energy, supply chain resilience, industrial competitiveness, public infrastructure and skill development.
- Economic security initiative focuses on semiconductors, critical minerals, AI, telecommunications and clean energy.
Infrastructure Cooperation:
- Japan has been India’s largest Overseas Development Assistance (ODA) donor since 1958, supporting critical infrastructure and human development projects. ODA disbursement stood at about JPY 580 billion ($4.5 billion) in FY 2024.
- The flagship Mumbai-Ahmedabad High Speed Rail is the flagship project symbolising advanced technology transfer and skill development. The latest tranche of JPY 300 billion ($2.2 billion) was signed in 2023.
- Japan is transferring its next-generation E10 series Shinkansen technology for the Mumbai-Ahmedabad bullet train project.
Defence and Security:
- Key agreements on defence and security include the Joint Declaration on Security Cooperation (2008), Defence Cooperation and Exchanges MoU (2014), Information Protection Agreement (2015), Reciprocal Provision of Supplies and Services Agreement (2020), and co-development of the UNICORN naval mast (2024).
Military Exercises:
- Malabar (with the US and Australia), Milan (multilateral naval), JIMEX (bilateral maritime), Dharma Guardian (Army), and Coast Guard cooperation are held regularly.
- Dialogue Mechanisms: Defence Ministers’ meetings, Chiefs’ visits, and Joint Service Staff Talks (2024) have consolidated trust.
People-to-People, Culture and Education:
- Tourism: 2023-24 was celebrated as the Year of Tourism Exchange with the theme “Connecting Himalayas with Mount Fuji”.
- Education: There are more than 665 academic partnerships between Indian and Japanese universities. Platforms like Edu-Connect and Universities Forum promote exchanges. The Skill Connect platform launched in 2023 links Indian talent with Japanese employers.
- Diaspora: About 54,000 Indians live in Japan, mainly IT professionals and engineers.
The visit consolidates India-Japan relations making Japan India’s most consistent partner in Asia.