It seems clear from Shinzo Abe’s recent visit that India and Japan have found convergence of interests in a number of areas
While Prime Minister Narendra Modi’s visit to Japan last September had injected renewed momentum in India-Japan bilateral ties, Japanese Prime Minister Shinzo Abe’s three-day visit to India on December 11-13 this year has further reaffirmed the desire to transform the strategic and global partnership into a deep, broad-based and action-oriented one.
It was in this context that both PMs had a detailed discussion on a wide range of issues of common interest, including economic, political, security, climate change, infrastructure, manufacture, UN reform and others.
At the same time, the two leaders also agreed to develop a comprehensive and concrete medium and long-term action plan to realise their shared objectives as part of India and Japan Vision 2025. The joint statement issued at the end of Abe’s visit mentions some major agreements which in turn would help accelerate bilateral ties between the two countries.
ECONOMIC COOPERATION
Economic and trade relations form a crucial part of India-Japan bilateral ties. Now, they have assumed added significance for many reasons. In case of India, ever since the BJP-led Government came to power at the Centre last year, Modi has seen Japan as an important player in realising India’s desire to achieve double-digit growth rate.
This one can understand from the fact that the Indian Government feels that its initiative of Make in India cannot succeed unless there is synergy between India’s Act East policy, and Japan’s partnership for quality infrastructure in the sense that without having world-class infrastructure, India would not emerge as an attractive market for foreign investors.
Secondly, China has over the past few years made huge investments in other South Asian countries. For instance, Chinese President Xi Jinping laid out bold plans to develop the $46 billion China-Pakistan economic corridor running across the Karakoram mountain range to the Arabian Sea. Thus, Japan’s increasing engagement in developmental projects in India would help New Delhi in balancing against Beijing in this region.
On the other hand, Japan sees good prospects in promoting economic ties with India in view of its huge domestic market and natural resources. This has been further boosted by the Modi Government’s efforts towards removing obstacles in doing business in India. In fact, during his visit, Abe commended Modi’s bold initiatives, such as Make in India, and Digital India.
It was in this context that the signing of the memorandum of cooperation on the introduction of Japan’s high speed railways technology to the Mumbai-Ahmedabad route has been described as encouraging for the bilateral ties as the project would be financed by a Japanese loan at just 0.5 per cent interest rate. At the same time, Japan will also provide technical assistance to build domestic capacity to manufacture coaches and tracks before making them operational. Above all, it underlines the commitment of the Abe Government to help India in building infrastructure by providing world-class technology and skills.
On the other hand, the agreement on building a high-speed railway system between Ahmedabad and Mumbai would help Japan in reviving its infrastructure exports. In fact, ever since Japan lost to China a high- speed railways project in Indonesia earlier this year, this project in India was viewed as crucial by Japan to challenge China’s growing rise as a leader in infrastructure building in Asia and other parts of the world.
Japan has also agreed to provide Official Development Assistance (ODA) loans for several developmental projects in India, such as for the improvement of road connectivity in N-E States of India. Both countries have created a core group chaired by Cabinet Secretary to coordinate and closely monitor the process to promote Japanese public and private investments in India.
DEFENCE COOPERATION
Another area which has emerged as a cornerstone of the relationship is defence ties. Modi and Abe reiterated their commitment to deepen cooperation in the field of defence, which would help them promote peace and security in the Indo-Pacific region.
While India and Japan have already formed a trilateral dialogue along with the US with this aim — which saw Japan participate in India-US Malabar Joint Navel exercise — during Abe’s recent visit, India and Japan also signed agreements such as the Transfer of the Defence Equipment and Technology, and the agreement concerning security measures for protection of classified military information, which further strengthens the foundation of exploring potential projects on defence equipment and technology cooperation, such as US-2 amphibian aircraft.
A more significant aspect of Abe’s visit was the mentioning of South China Sea in an India-Japan joint statement for the first time. It states, “In view of the critical importance of the sea lanes of communications in the South China Sea for regional energy security and trade and commerce, which underpins continued peace and prosperity of the Indo-Pacific, the two PMs noting the developments in the South China Sea called upon all states to avoid unilateral actions that could lead to tension in the region.”
Certainly, the affirmation by India and Japan that they have shared interests in the disputed South China Sea region is aimed at countering Chin’s claim that South China Sea belongs exclusively to it. In this connection, it is interesting to note that in January 2015, Modi and US President Barack Obama had also expressed a similar view on the South China Sea. In turn, India, Japan and the US appear to forge closer ties to effectively deal with any adverse situation emerging from China’s assertive posturing.
Importantly, the two PMs, expressing concerns over the growing terrorist activities across the globe, also condemned terrorism in all its forms with “zero tolerance”. In particular, Abe joined Modi in seeking that perpetrators of terrorist attacks, including the one in Mumbai in 2008, be brought to justice. Their statement clearly indicated that Japan shares India’s concerns with regard to Pakistan’s role in abetting cross-border terrorism from its soil against India. This could help India put its views across to the US on Pakistan’s role in anti-India activities.
TOWARDS N-AGREEMENT
Although a section of experts in both countries had ruled out the prospects of a new agreement, during Abe’s visit, India and Japan did reach one for cooperation in the peaceful use of nuclear energy, which was hanging fire since 2013.
This nuclear agreement is a significant development in the bilateral ties in view of the fact that Japan has in the past been very critical of India’s nuclear programme and had, in fact, imposed economic sanctions following the 1998 Pokhran tests.
Thus, the agreement is a clear indicator of the fact that Japan has now come to recognise India as a responsible nuclear power and acknowledges its compulsions for developing nuclear arsenals. This can further be gauged from the fact that India has become the first country with which Japan would have nuclear cooperation without the former being the signatory of the Non-Proliferation Treaty (NPT).
Apart from boosting strategic ties between New Delhi and Tokyo, the agreement would be viewed as the facilitator for sale of US nuclear reactors to India in the sense that two Japanese-owned/controlled companies, GE-Hitachi and Westinghouse, which are major nuclear manufacturers in the US, can speed up the process of investment in the civil-nuclear field in India, as Japan would now not oppose the removal of the tracking clause from India-US nuclear agreement. In addition, India can be in a position get access to advanced nuclear technology at cheap prices because the agreement would reduce India’s dependability on France and Russia.
Abe also agreed to help India become a full member in the four international export control regimes: Nuclear Suppliers Group, Missile Technology Control Regime, Wassenaar Arrangement and Australia Group, with the aim of strengthening international non-proliferation efforts.
THE WAY AHEAD
It is true that Japan has only in principle agreed to cooperate with India in the civil-nuclear field, and dedicated efforts by India and Japan are required to realise actual cooperation.
However, what seems clear from Abe’s visit is the fact that India and Japan have found convergence of interests in a number of areas. Thus, while containment of China in the Indo-Pacific region is one shared interest, promotion of multi-polarity in this region is another common interest for New Delhi and Tokyo.
Economic interests would also prove to be a crucial factor in shaping the future course of India-Japan ties. Above all, since Modi and Abe view Japan and India as linchpins of achieving their domestic and external interests, it can be hoped that in the coming years, the two countries would further be able to expand and deepen their bilateral ties.
The writer is an ICSSR Doctoral Fellow, UGC Centre for Southern Asia Studies, Pondicherry University