Geopolitics

Infrastructure, energy, defence key sectors for India-Japan cooperation
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Issue Net Edition | Date : 24 Jun , 2014

Pushing for greater multi-sector cooperation between New Delhi and Tokyo, senior political representatives identified infrastructure, energy and defence as key areas for partnership between the two countries at an Ananta Aspen Centre.

The session was attended by Baijayant Panda, Member of Parliament, India; Suresh Prabhu, Former Union Indian Minister of Industry, Environment and Forests and Power; Ambassador Aftab Seth, Former Ambassador of India to Japan. Tomohiko Taniguchi, Special Advisor to the Cabinet of Japanese Prime Minister Shinzo Abe joined the conversation through a special video link from Tokyo. Tarun Das, Founding Trustee, Ananta Aspen Centre chaired the discussion.

Ambassador Aftab Seth: “Energy is a definite focus area. India can benefit from Japanese machines that both save and produce energy. There is also potential in defence and military cooperation between the two countries…”

Hailing the existing ties, Taniguchi underscored the role of India in Japanese Foreign Policy. “Japan and India can strengthen their relationship in the realms of foreign policy, economy and national security. The two countries should collaborate on development cooperation in African nations. Strengthening the defence architecture and nuclear energy is another area of convergence,” Taniguchi said. “This is also Japan’s India moment. India holds a special place in Prime Minister Abe’s mind, and sky is the limit for the Delhi-Tokyo relationship. India has to be a part of Japan’s new narrative in the run-up to the 2020 Tokyo Olympics.”

Reflecting on the bilateral relationship, Das opined, “Indian Prime Minister should visit Japan after the budget. This will give clarity on the economic policy being framed by the new government. India and Japan should be looking at a $100 billion dollar trade over the next few years.”

Over the years, bilateral economic ties have substantially expanded with increased trade, joint ventures and technical collaborations. The two countries are also engaged in wider issues such as nuclear disarmament, maritime security, UN reforms and other areas of regional and global importance. In order to take the relationship to newer heights, it is imperative to develop new ideas and identify greater prospects for economic, nuclear, defence and security cooperation.

“This is not only a great moment, but also a tectonic shift in India-Japan ties. The clear focus for the two governments is fixing and strengthening the economies. For this, their priority areas are boosting cross border investments and capitalising on free trade and markets. India should reach out more actively to Japanese corporates,” asserted Panda. “Currently, Japan is involved in nearly 70 infrastructure projects in India, and has invested 4.5 billion dollars in the Delhi Mumbai Industrial Corridor. Japan has the technology and India needs to build on this opportunity.”

Tomohiko Taniguchi: “Japan and India can strengthen their relationship in the realms of foreign policy, economy and national security. Strengthening the defence architecture and nuclear energy is another area of convergence.”

As the Chief Minister of Gujarat, Indian Prime Minister Narendra Modi has actively worked with Japanese government and corporates in areas of business, energy and infrastructure. On several occasions, Modi has indicated his keen interest in strengthening existing connections with the Japanese business community and attracting greater investment in Indian infrastructure. The planned visit to Japan will be Modi’s first visit outside South Asia since coming to power.

“India needs to put one trillion dollars in infrastructure, out of which a large part would come from the private sector. We require foreign investments to develop, and should prepare to absorb it. To supplement India’s investment needs, the new government should explore creating Special Economic Zones for Japanese companies and transforming them into hubs of infrastructure and manufacturing. Another area of cooperation is energy, especially in renewables and solar,” Prabhu said. “There is a huge convergence between Japan and India. We have a common neighbour, which is also bringing the two nations closer. There are no bilateral contentious issues, and this is a relatively tension-free relationship.”

Bilateral trade between the two countries has nearly tripled in recent years, from $6.5 billion in 2005-06 to $18.43 billion in 2011-12. Japanese FDI into India between 2000 and 2012 was $12.66 billion. At present, Japan is India’s largest aid donor and India is the largest recipient of Japanese Official Development Assistance (ODA).

“Energy is a definite focus area. India can benefit from Japanese machines that both save and produce energy. There is also potential in defence and military cooperation between the two countries. Opening up India’s Northeast for Japanese investments will help New Delhi connect with Myanmar, ASEAN and beyond. The number of Japanese companies in India has been growing steadily over the past many years. Encouraging partnerships in the higher education and health sectors–especially in diagnostic equipments—will also prove to be mutually beneficial,” said Seth.

Diplomatic relations between India and Japan were established in 1952, and since then, the two nations have come closer. New opportunities to forge closer ties further emerged in the 1990s, with the opening up of the Indian economy, the end of the Cold War and the beginning of India’s “Look East” policy

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4 thoughts on “Infrastructure, energy, defence key sectors for India-Japan cooperation

  1. In continuation of my comment on IDR report on Indo-Japanese technological cooperation, June 24, 2014 – the third concluding part.

    India could be of genuine help to Sharif, only, if China brings to bear its pressure on the Pak military simultaneously, if the Chinese are perspicacious enough to separate the chaff from wheat in China’s long-term vision of Eurasian security as founder of SCO (Shanghai Cooperation Organisation founded by China to promote anew the old commercial Silk Road through the length & breadth of the Eurasian continent.).

    Having promoted advanced microelectronics projects before for a German-American group, this writer will be willing to send a special story on certain technology priorities for India vis-à-vis Japan, if there is expressed interest. (concluded)

    George Chakko, Former U.N. correspondent in Vienna, Austria, now retiree.
    Vienna, June 26, 2014 21.05 hrs

  2. In continuation, .. that China stops giving Pak offensive nukes and weapons and pressure Pakistan to withdraw its nuclear “first-use” and stop all terror misadventures into India.

    Currently, China is frantically seeking ways to sabotage one such strategic Indo-Japan tie-up, and will continue to persevere. These new inter-dependencies are bound to change the political and strategic landscape of Asia.

    An Indo-Japan high-tech cooperation could enforce a radical change in China’s positional strategy, convince it to say ‘Adieu’ to its power-might belligerence in Asia and embark on a Pan-Asian peace and cooperation. This is in China’s own national interest. China is understandably scared of a neighbouring India armed to its teeth with the latest Japanese and American high-tech for its war machine that would stop its predominance by harming its calling shots.

    The true question China needs face is, why arm a fanatically terror-gripped Islamic State on its Western border portending internal danger to China as well once things get out of control through a radical Jihadic-Islamic Taliban compared to the great Peace Bounty in Asia that could be won through a 100 times more preferable and powerful Asian Economic Union, surpassing even the West? America has learned its lesson in arming Pakistan heavily in the past, succumbing to Pak Military’s lies (ISI-fabricated), despite India’s warnings. Whether Nawaz Sharif could pull Pakistan out of its military yoke looks like something bordering the impossible, because the military’s clandestine wing ISI promotes virulent Jihadic groups in both Afghanistan and Pakistan, perpetuating a perennial anti-India front in Pakistan for the military to hold on to power and influence. ISI is world’s best unsurpassed double-face. Someday this is going to ball back heavily on Pakistan’s national sovereignty, if the destruction this policy implicated has not set in already. (to be continued)

    George Chakko, Vienna, June 26, 2014, 20.50 hrs

  3. Comment on your IDR report on Indo-Japanese Cooperation
    We should not place significant attention on Chinese apprehensions& fear of Indo-Japanese closer technological cooperation or “military collusion”, as our former Fmr. FS Kanwal Sibal noted a year ago, “.. the Chinese have tried to interfere with the developing momentum of Indo-Japanese partnership”. Short of a military alliance it is imperative on India to actively pursue closer defence or other high-tech R&D with Japan. We would stand justified for 3 solid reasons:

    A) We are devoid of those historical misdemeanours of an arrogant imperial Japan on China, even though Japan too rubbed us a bit on Indo-Burmese border towards WWII end when they reached India’s borders. (But Japan could argue it was during the British rule of India during WWII. when Japan was part of an axis.)

    B) China couldn’t care less for India’s genuine security vulnerability and deep concerns of their nuclear weapon collaboration and proliferation to Pakistan (vide A.Q. Khan’s several visits to China and the presence of several Chinese military experts on Pakistan soil in the past and present), notwithstanding all treacherous “white-wash” proclamations of Chinese PM in India in his last visit, China would do nothing to hurt India’s interests, only to declare Pakistan an iron friend the moment he touched Pakistan soil on leaving India and later fulfilling all Nawaz Sharif’s wish list of offensive weapons in Sharif’s Beijing visit baggage.

    C) A Japanese high-tech cooperation and alliance in production is absolutely necessary for India (and for Japan too), to send an unequivocal message to China that Indian weapons and weapon systems will have the best available high quality chips of the world (Japan provides almost 70 per cent of U.S. military chips) and China dare not try any future prank adventure on India, that India is not a “paper-tiger”, but a “real tiger-with-teeth”, (to be continued)

    George Chakko, Vienna, June 26, 2014

    • Hey Mr.Chacko all of a sudden so concerned about India — what are yo doing in Vienna come back to India and do something constructive then just writing Comments — every little effort will go a long way in building the nation

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