India stays out of ‘Trade Pillar’ of IPEF
India stayed out of the joint declaration on the trade pillar of the US-led Indo-Pacific Economic Framework (IPEF) ministerial meet in Los Angeles, with Union Commerce Minister citing concerns over possible discrimination against developing economies.
Why did India opt out of the trade pillar?
- One of the reasons for staying out of the trade pillar was that the contours of the framework had not emerged yet.
- This is particularly about the kind of commitment each country would have to make on “environment, labour, digital trade and public procurement”.
- India’s decision also mirrors the decision to walk out after seven years of negotiations from the Regional Comprehensive Economic Partnership (RCEP).
What is IPEF?
- It is a US-led framework for participating countries to solidify their relationships and engage in crucial economic and trade matters that concern the region, such as building resilient supply chains battered by the pandemic.
- It is not a free trade agreement. No market access or tariff reductions have been outlined, although experts say it can pave the way to trade deals.
Members of IPEF
- The member nations include Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
- It includes seven out of 10 members of the Association of South East Asian Nations (ASEAN), all four Quad countries, and New Zealand.
- Together, these countries account for 40 per cent of the global GDP.
Four pillars of IPEF
- Trade that will include digital economy and emerging technology, labor commitments, the environment, trade facilitation, transparency and good regulatory practices, and corporate accountability, standards on cross-border data flow and data localisations;
- Supply chain resilience to develop “a first-of-its-kind supply chain agreement” that would anticipate and prevent disruptions;
- Clean energy and decarbonization that will include agreements on “high-ambition commitments” such as renewable energy targets, carbon removal purchasing commitments, energy efficiency standards, and new measures to combat methane emissions; and
- Tax and anti-corruption, with commitments to enact and enforce “effective tax, anti-money laundering, anti-bribery schemes in line with [American] values”.
How do members participate?
- Countries are free to join (or not join) initiatives under any of the stipulated pillars but are expected to adhere to all commitments once they enrol.
- Negotiations are meant to determine and list the provisions under each pillar and open the floor for countries to choose their ‘commitments’.
- The framework would be open to other countries willing to join in the future provided they are willing to adhere to the stipulated goals and other necessary obligations.
Reasons for the creation of IPEF
- US regaining lost credibility: IPEF is also seen as a means by which the US is trying to regain credibility in the region after Trump pulled out of the Trans Pacific Partnership TPP).
- Rising Chinese influence: Since then, there has been concern over the absence of a credible US economic and trade strategy to counter China’s economic influence in the region.
- Competing RCEP: It is also in the 14-member Regional Comprehensive Economic Partnership, of which the US is not a member (India withdrew from RCEP).
- “Pivot to Asia” strategy: US has intensified its engagement with the wider Asia-Pacific region to advance its economic and geopolitical interests.
India’s perception of IPEF
- PM Modi described the grouping as born from a collective desire to make the Indo-Pacific region an engine of global economic growth.
- India has called for common and creative solutions to tackle economic challenges in the Indo-Pacific region.
What does it have to do with China?
- The US strategists believe the US lacks an economic and trade strategy to counter China’s increasing economic influence in the region since 2017.
- US companies are looking to move away from manufacturing in China.
- IPEF would therefore offer an advantage to participating countries, allowing them to bring those businesses into their territory.
- However, it officially excluded Taiwan despite its willingness and economic merit to join.
- This exhibits Washington’s geopolitical caution.
Reactions from the opponents
- Chinese Foreign Minister Wang Yi criticized the initiative as an attempt to further economic decoupling from China.
- He argued that the initiative, and the US Indo-Pacific strategy as a whole, created divisions and incited confrontation. It is destined to be ultimately be a failure.
- Taiwan was excluded in order to appease key “fence-sitter” countries such as Indonesia whose governments feared angering China.
Issues with IPEF framework
- IPEF would neither constitute a ‘free trade agreement,’ nor a forum to discuss tariff reductions or increasing market access.
- Unlike a traditional trade agreement, the US administration will not need congressional approval to act under the IPEF. Hence its legal status is questionable.
- This also raises doubts among potential participants about their reluctance to offer significant concessions under the agreement.
- The volatility of US domestic politics has raised concerns about IPEF’s durability.
- Unlike traditional FTAs, the IPEF does not subscribe to the single undertaking principle, where all items on the agenda are negotiated simultaneously.
Given the divisive nature of American politics, it is unclear whether the IPEF will survive past the Biden administration.
Way forward
- The IPEF’s launch in Tokyo was symbolic in nature; bringing the IPEF to fruition will involve significant domestic and international challenges.
- Without ratification by Congress, the IPEF’s fortunes will remain in limbo.
- Going forward, the US and the founding partners need to develop the process and criteria by which other countries from the region will be invited to join the negotiations on the IPEF.
Kyrgyzstan-Tajikistan Conflict
Why in News?
Recently, nearly 100 people have been killed and scores injured in violent border clashes between Kyrgyzstan and Tajikistan.
What Led to the Clash between the Two Countries?
Historical Legacy
- The current clashes are replaying old pre- and post-Soviet era legacies.
- The borders of the two republics were demarcated under Joseph Stalin's leadership.
- Common Rights over Natural Resources: Historically, the Kyrgyz and Tajik populations enjoyed common rights over natural resources.
- The creation of the Soviet Union saw the large-scale redistribution of livestock to collective and state farms, which upset the existing status quo.
Present Tussle
- Recent incidents saw groups from either side planting trees in disputed areas and engaging in a physical confrontation using agricultural equipment as weapons.
- Currently, Ferghana Valley continues to be a site of struggle and frequent violent outbursts, with the location consisting primarily of Tajiks, Kyrgyz, and Uzbeks, who have historically shared common sociological specificities, economic activities, and religious practices.
- Both countries share multiple water channels with undulating trajectories and flow, which upset equitable access to water on both sides. As a result, small-scale conflicts occur practically every year during the crucial irrigation period.
- Kyrgyzstan and Tajikistan share 971 kilometers of border territory of which about 471 kilometers remain disputable.
- Leaders of both countries have contributed to the continuation of the conflict through the imagination of a particular type of development project which resulted in the large-scale displacement of nomadic communities, hoping to stabilise the internal dynamics of their respective countries and legitimise their power.
How are India-Tajikistan Relations?
Cooperation in International Forums
- In 2020, Tajikistan extended support for India’s candidature for a non-permanent seat in United Nation Security Council for the term 2021-22.
- Tajikistan strongly supported Shanghai Cooperation Organisation (SCO) Member status for India.
- India also supported Tajikistan’s candidature to United Nations’ Economic and Social Council (ECOSOC) and accession to WTO in March 2013.
Development & Aid Partnership
- Development Assistance: With a grant of USD 0.6 million, an Information and Technology Centre (Bedil Centre) was commissioned in 2006.
- The project ran for a full hardware cycle of 6 years and trained almost all first-generation IT experts in the government sector in Tajikistan.
- A project for setting up computer labs in 37 schools in Tajikistan was completed and delivered in August 2016.
Humanitarian Assistance
- In June 2009, USD 200,000 cash assistance was given by India to overcome damage caused by floods in Tajikistan.
- After the outbreak of Polio in southwest Tajikistan, India provided 2 million doses of oral polio vaccine through UNICEF in November 2010.
Human Capacity Building
- Since the establishment of the Indian embassy in Dushanbe in 1994, Tajikistan has been a beneficiary of the Indian Technical & Economic Cooperation Programme (ITEC).
- In 2019, under India-Central Asia Dialogue Process, some Tajik diplomats were trained at Foreign Service Institute, Delhi.
Trade & Economic Relation
- Indian exports to Tajikistan mainly consist of pharmaceuticals, medical preparations, cane or beet sugar, tea, handicraft and machinery.
- Indian pharmaceutical products occupy approximately 25% of Tajik market.
Cultural & People-to-People Relation
- Deep rooted historical and cultural linkages have helped expand and widen the relationship to a new level.
- Cooperation between the two countries encompasses all aspects of human endeavour with special focus on military and defence ties.
- Swami Vivekananda Cultural Centre in Dushanbe offers courses in Kathak & Tabla through teachers deployed by Indian Council for Cultural Relations from India. The centre also offers Sanskrit and Hindi language classes.
- In 2020 ‘My Life My Yoga’ video blogging competition saw participation from Tajikistan yoga enthusiasts.
Strategic
- India has an airbase at a place called Ayni, about thirty kilometres from Dushanbe. Over the years, it developed into an Indian Air Force (IAF) base known as Gissar Military Aerodrome (GMA).
Way Forward
- The path to resolution of the conflict will require warring groups to agree upon a common map.
- There is a need for the international community to make efforts to solve the dispute by involving elders in the communities, as historically, elders have been used to resolve conflicts.
Why in News?
On the sidelines of the 76th session of the UN General Assembly, the G-4 countries highlight ‘urgent need’ for reform in U.N. Security Council (UNSC).
Who are the Group of Four(G-4) Countries?
- The G4 is a grouping of Brazil, Germany, India and Japan which are aspiring to become permanent members of the UNSC.
- The G4 countries are supporting each other’s bids for permanent membership of the UNSC.
- The G4 nations traditionally meet on the sidelines of the annual high-level UN General Assembly session.
What are the Key Highlights of the G-4 Meeting?
- They felt that the UN decision-making bodies needed to be urgently reformed as global issues were increasingly complex and interconnected.
- Further, they reiterated their joint commitment to work toward text-based negotiations that lead to Reformed Multilateralism.
- They highlighted that General Assembly did not make “meaningful progress” in the Inter-Governmental Negotiations (IGN) and lacked transparency.
- They reiterated their support for African countries being represented in a permanent and non-permanent capacity.
- The Ministers agreed on the need for enhanced role and presence of developing countries and of major contributors to the United Nations to enhance the capacity of the Council to respond effectively to the complex and evolving challenges on questions of international peace and security.
Why is there a Need for UNSC Reforms?
- UN represents a larger world and the irony is that it has only 5 permanent members in its important body.
- The current composition of the Security Council represents the post-World War II realities and thus is not in pace with the changing balance of power in the world.
- At the time of the formation of the UNSC, big powers were given privileges to make them part of the council. This was necessary for its proper functioning as well as to avoid failure like that of the organization ‘League of Nations.
- The regions like far East Asia, South America, and Africa have no representation in the permanent membership of the council.
Why is India Demanding the Permanent Membership of the UNSC?
Overview
- For the first 40 years of the UN Security Council's formation, India never asked for permanent membership.
- Even in 1993 when India submitted its written proposal to the UN in response to the General Assembly resolution related to reforms, it did not specifically state that it wants permanent membership for itself.
- It is only from the last few years that India has started asking for permanent membership in the council.
- India deserves a permanent place in the council considering the size of its economy, population and the fact that it is the largest democracy in the world.
- India has become a major player not only in Asia but also in the world.
- The Security Council would be a more representative body if India would be there in it as a permanent member.
Need
- By having veto power, one can enjoy enormous powers.
- Since 2009, India was trying to designate Masood Azhar as a global terrorist. One veto power of China kept delaying it.
- India will be able to work better for its interests.
- There was a time when the USSR actually started boycotting the UNSC and that was the time when US managed to get the resolution passed for the Korean War. From that time onwards USSR realized that it doesn’t make sense to boycott the UN. It needs to keep veto if at all resolution is against them.
- India’s presence as a permanent member will be an acknowledgement of its rise as a global power, ready to play a key role in the council’s objectives of international peace and security.
- India will be able to enjoy the 'prestige’ associated with the permanent membership of the council.
What is the United Nations Security Council (UNSC)?
- Established by the United Nations charter in 1945, the Security Council has primary responsibility of maintaining international peace and security.
- The Security Council has 15 members.
- There are five permanent members: the United States, the Russian Federation, France, China and the United Kingdom.
- The non-permanent members of the Security Council are elected for a term of two years.
- Each member of the Security Council has one vote. Decisions of the Security Council on matters are made by an affirmative vote of nine members including the concurring votes of the permanent members. A "No" vote from one of the five permanent members blocks the passage of the resolution.
- Any member of the United Nations which is not a member of the Security Council may participate, without vote, in the discussion of any question brought before the Security Council whenever the latter considers that the interests of that member are specially affected.
What is Intergovernmental Negotiations (IGN)?
- IGN is a group of nation-states working within the United Nations to further reform of the United Nations Security Council (UNSC)
- The IGN is composed of several different international organizations, namely:
- African Union
- G4 nations
- Uniting for Consensus Group (UfC)
- L.69 Group of Developing Countries
- Arab League
- Caribbean Community (CARICOM).
Way Forward
- Global power hierarchies are changing and the P5 needs to realize that this is high time to initiate UNSC reforms. The declining powers should either give away their membership or should expand the size of the UNSC, opening the doors for new emerging powers.
- Other reforms might succeed earlier than the expansion of P5. None of the so-called powerful nations wants to expand the table and share their pie with another nation.
- India needs to focus on strengthening itself economically, militarily & diplomatically in order to participate in major conversations and groupings. Steadily, the UNSC will itself deem India fit to become a part of the UNSC.
India Saudi Arabia Relations
Why in News?
Recently, the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles visited Saudi Arabia to attend the Ministerial meeting of the India-Saudi Arabia Strategic Partnership Council.
What are the Key Outcomes of the Meeting?
- Streamlining efforts to carry out the declaration of investments of USD $100 billion in India made by Saudi Arabia in February 2019.
- Endorsement of the 41 areas of cooperation identified by the technical teams under the 4 broad domains of:
- Agriculture & Food Security
- Energy
- Technology & Information Technology
- Industry & Infrastructure
- A commitment to carrying out important projects in a timely way. The following are some of the priority areas for cooperation:
- Digital fintech sector cooperation through the operationalization of Unified Payments Interface (UPI) and Rupay Card in the Kingdom of Saudi Arabia.
- Reiteration of commitment to ongoing collaboration on joint projects, such as the construction of a refinery on the West Coast, an investment in Liquefied Natural Gas (LNG) infrastructure, and the creation of strategic petroleum storage facilities in India.
- Discussions were also held on
- Institutional tie-up of the EXIM banks of the two countries,
- Mutual recognition of standards,
- Establishment of startup and innovation bridge,
- Strengthening collaboration in infrastructure development, particularly in the domains of construction, Railways etc.
What is the India-Saudi Arabia Strategic Partnership Council?
- The Strategic Partnership Council was instituted in October, 2019 during the visit of the Prime Minister of India to the Kingdom of Saudi Arabia.
- It has two main pillars
- Political, Security, Social and Cultural Committee
- Committee on Economy and Investments
- India is the fourth country with which Saudi Arabia has formed such a strategic partnership, after the UK, France and China.
How has India’s Relations with Saudi Arabia been?
Oil & Gas
- Saudi Arabia is currently India’s second-largest supplier of crude oil (Iraq has been India's top supplier).
- India imports around 18% of its crude oil requirement and around 22% of its Liquified Petroleum Gas (LPG) requirement from Saudi Arabia.
- Saudi Arabia will assist in setting up the world's largest greenfield refinery at Raigarh in Maharashtra by Saudi Aramco, Adnoc of the United Arab Emirates and Indian public sector oil companies.
Bilateral Trade
- Saudi Arabia is India’s fourth largest trade partner (after the USA, China and UAE).
- In FY 2021-22, bilateral trade was valued at USD 42.8 billion.
- India’s imports from Saudi Arabia reached USD 34.01 billion and exports to Saudi Arabia were worth USD 8.76 billion. An increase of 49.5% over 2021.
- Total trade with Saudi Arabia accounted for 4.14% of India’s total trade in FY 2021-22.
Indian Diaspora
- The 2.6 million-strong Indian community in Saudi Arabia is the largest expatriate community in the Kingdom and is the ‘most preferred community’ due to their expertise, sense of discipline, law-abiding and peace-loving nature.
Cultural Linkages:
- Haj pilgrimage is another important component of bilateral relations between India and Saudi Arabia.
Naval Exercise
- In 2021, India and Saudi Arabia started their first-ever Naval joint exercise called the Al-Mohed Al-Hindi Exercise.
Way Forward
- India can utilize the friendly relations with Saudi Arabia by convincing the kingdom to exercise its influence over Pakistan in controlling the Taliban in Afghanistan.
- A joint collaborative effort of both economies will transform the Southwest Asia sub-region.
- Currently, India has a trade deficit of USD 25.25 billion with Saudi Arabia. India should focus more upon promoting exports in various sectors. It would enable us to maintain the trade balance with the kingdom while building healthy trade relations.
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ASEAN-India Economic Ministers’ Meeting
In News
- The Union Minister of State for Commerce and Industry along with the Minister of Commerce, Kingdom of Cambodia co-chaired the 19th ASEAN-India Economic Ministers’ meeting held on 16th September 2022 in Siem Reap City, Cambodia.
- The Economic Ministers or their representatives from all the 10 ASEAN countries attended the meeting.
Key Highlights of the Meeting
- During the meeting, the Ministers highlighted that trade and economic relations between ASEAN and India are recovering from the impact of the COVID-19 pandemic.
- Trade between ASEAN and India reached USD 91.5 billion in 2021 increasing by 39.2% as compared to 2020.
- ASEAN India Business Council (AIBC) recommended enhancing the ASEAN India economic partnership.
- AIBC is an organization established by the Governments of ASEAN and India in 2005 to facilitate closer business linkages and deepening of economic linkages between ASEAN and India.
- The Ministers made commitments to take collective actions to mitigate the economic impact of the pandemic and work toward a sustainable post-COVID-19 recovery.
- The Ministers appreciated the launching of the ASEAN-India Trade in Goods Agreement (AITIGA) Upgrade Negotiations, mutual recognition of COVID-19 vaccination, vaccines production, public health surveillance, and medical technologies in moving forward with the post-pandemic recovery responses and facing future health crises.
- Indian representative briefed about the progress made by India in overcoming the COVID-19 pandemic with its current focus on vaccinating all eligible citizens and the major milestone of administration of 2 billion vaccine doses including booster doses achieved in July 2022.
- The Indian Minister has also shared information on the steps taken by India in liberalizing and simplifying its FDI policy.
- The Minister invited ASEAN countries to invest in India and become partners in its success.
- The ASEAN Ministers welcomed the successful outcomes of the 12th World Trade Organization (WTO) Ministerial Conference held in June 2022 in Geneva, Switzerland and ensure their support for a rules-based, non-discriminatory, open, fair, inclusive, equitable, and transparent multilateral trading system, as embodied in the WTO.
- The Ministers advocated the Review of the ASEAN-India Trade in Goods Agreement (AITIGA) to make it more user-friendly, simple, and trade facilitative for businesses, as well as responsive to the current global and regional challenges including supply chain disruptions.
- Indian representative has reiterated India’s commitment to supporting a strong, unified and prosperous ASEAN and also promoting sustainable trade which balances the aspirations of both the partners.
Association of Southeast Asian Nations (ASEAN)
- In 1967, the leaders of 5 countries: Indonesia, Malaysia, Philippines, Singapore and Thailand signed a document in Bangkok, Thailand to establish the Association of Southeast Asian Nations (ASEAN).
- At Present ASEAN comprises 10 Countries: Indonesia, Singapore, Philippines, Malaysia, Brunei, Thailand, Cambodia, Lao PDR, Myanmar and Vietnam
- ASEAN is a political and economic union of 10 member states in Southeast Asia, which promotes inter-governmental cooperation and facilitates economic, political, security, military, educational, and socio-cultural integration between its members and countries in the Asia-Pacific.
- The aims and purpose of the ASEAN are to ensure cooperation in the economic, social, cultural, technical, educational and other fields, and promote regional peace and stability through abiding respect for justice and the rule of law and upholding the principles of the United Nations Charter.
- The motto of ASEAN is “One Vision, One Identity, One Community”.
- ASEAN is 3rd the largest market in the world, larger than the EU and North American markets.
- It is the 6th largest economy in the world and 3rd in Asia.
- ASEAN Secretariat is in Jakarta, Indonesia.
- Chairmanship of ASEAN rotates annually, based on the alphabetical order of the English names of Member States.
- In 2006, ASEAN was given observer status at the United Nations General Assembly.
Achievements of ASEAN
- Southeast Asia presents a diverse and complex region where every major culture and civilization of the world lives together peacefully.
- ASEAN acts as a platform to resolve disputes among member nations.
- Several Regional multilateral platforms were created such as the Annual Ministerial Meeting (AMM), and Asia-Pacific Economic Partnership (APEC) to engage ASEAN with its dialogue partners. These initiatives helped ASEAN to maintain stable relations with the great powers in Asia.
- ASEAN played an important role in promoting regional peace, stability and prosperity in Southeast Asia and the Asia-Pacific region.
India-ASEAN Relations
- India began formal engagement with ASEAN in 1992 as a “Sectoral Dialogue Partner” (and subsequently as a “Dialogue Partner” in 1996.
- At the 20th Commemorative Summit Meeting in New Delhi (December 2012) India’s Dialogue Partnership was further elevated to a Strategic Partnership.
- During the 25th Commemorative Summit in New Delhi (January 2018), India and ASEAN further agreed that our Strategic Partnership will be focused on building cooperation in the maritime domain.
- The year 2022 marks 30 years of ASEAN-India relations and it has been designated as ASEAN-India Friendship Year by the leaders in October 2021.
- Engagement with ASEAN is a multi-level interaction process. At the apex is the annual summits (“ASEAN-India Summit”) supported by meetings at the Foreign Minister level (“ASEAN-India Foreign Ministers Meeting”-AIFMM.
- To support cooperation activities between ASEAN and India, Govt of India has created three funds:
- ASEAN-India Cooperation Fund (AIF),
- ASEAN-India Green Fund (AIGF) and
- ASEAN-India Science and Technology Development Fund (AISTDF).
- The ‘Delhi Dialogue’ (DD) mechanism hosted by India annually allows the participation of think tanks, academics and prominent civil society persons from both India and the ASEAN region, in addition to government representatives, to contribute ideas and perspectives to furthering the India-ASEAN strategic partnership.
- The eсоnоmiс аnd investment relаtiоnshiр between Indiа аnd АSEАN hаs been рrоgressively improving, with АSEАN nоw being Indiа’s fоurth-lаrgest trading раrtner.
- АSEАN-Indiа соnneсtivity is а рriоrity fоr India аs аlsо the АSEАN соuntries. In 2013, Indiа beсаme the third diаlоgue раrtner оf АSEАN tо initiаte аn АSEАN Соnneсtivity Сооrdinаting Соmmittee-Indiа
- Indiа hаs mаde соnsiderаble рrоgress in imрlementing the Indiа-Myаnmаr-Thаilаnd Trilаterаl Highwаy аnd the Kаlаdаn Multimоdаl Рrоjeсt, issues relаted tо inсreаsing the mаritime аnd аir соnneсtivity between АSEАN аnd Indiа аnd trаnsfоrming the соrridоrs оf соnneсtivity intо eсоnоmiс соrridоrs аre under disсussiоn.
- Indiа and АSEАN are working together on several рrоjeсts in the аreаs оf аgriсulture, sсienсe аnd teсhnоlоgy, sрасe, envirоnment аnd сlimаte сhаnge, humаn resоurсe develорment, сарасity building, new аnd renewаble energy, tourism, рeорle-tо-рeорle соnneсtiоns аnd соnneсtivity, аnd sо оn.
Shinzo Abe’s Vision
Context
The passing of Former Japanese Prime minister Shinzo Abe calls us to reminisce about his contribution to making Japan geopolitically relevant, establishing principles of social justice and rebuilding Indo-Japan ties.
Key Highlights
Rise of Shinzo Abe as a career politician
- He won elections 6 times in his long career.
- He served as a prime minister 3 times
- First time he was elected in 2006 but he resigned in 2007.
- Then he got elected in 20012 and 2014 and served as PM from 2012 till 2020.
Contributions to Japan
Economic Front
- He popularised ‘Abenomics’.
- This involves a mix of bold quantitative easing, fiscal spending, and structural reforms.
- This rekindled the growth in initial terms of getting elected.
- He addressed the issues of a shrinking labour force by revising migration and gender policies.
- He started ‘Womenics’.
- This involved government’s preferential treatment to the companies as a reward for hiring women.
- Creation of government-funded daycare centres.
- These moves helped the Japanese companies to question their deeply entrenched biases.
Security Front
- He increased defence spending and was unapologetic about the need for Japan to enhance its power projection capabilities.
- Under his regime, the Japanese constitution was reinterpreted to allow Japanese soldiers to fight on foreign soil to protect friendly countries.
- He nudged Japanese politicians to embrace Proactive Pacifism
- His actions were not synonymous with reviving Japanese Militarism but to restore ‘Japanese Self-Esteem’.
Geopolitical Front
- He was the 1st one to have a vision of the Indo-Pacific before the importance of this region became clear on the geostrategic front.
- He increased Japanese significance geopolitically by increasingly forming alliances with like-minded countries.
- It has reached a level where Japan’s membership in the 5-Eyes alliance is being discussed.
- He balanced ties with the protectionist and transactional US (under Trump Administration).
Contribution to Indo-Japan ties
- Gave a new momentum to Indo-Japan ties
- He became the 1st Japanese PM to visit India thrice in a single term.
- Recognition of India as a responsible nuclear power by signing a civil nuclear pact in 2016
- This represented a shift. As Japan heavily criticised India after the Pokhran II tests in 1998 and maintained US-led sanctions by stopping various developmental loans.
- Joint efforts of Indo-Japan Ties
- AAGC - Asia Africa Growth Corridor with which India and Japan are taking efforts in building developmental infrastructure in African nations and in South Asian Countries.
- QUAD was revived in 2017.
- Developmental Loans to India
- Delhi Mumbai Industrial Corridor.
- Mumbai-Ahmedabad Bullet Train.
- Vision for India’s position in Indo-Pacific Strategy
- He regarded India as an important and equal partner in making Indo-Pacific an “Arc of Freedom and Prosperity”.
- 2 democratic nations with similar world outlooks could work together to evolve Indo-Pacific into an immense network spanning the entirety of the Pacific Ocean, incorporating the US and Australia, where openness and transparency will be inherent in a network to allow people, goods, capital and knowledge to flow freely.
- He was the chief guest on Republic Day of 2014, the 1st Japanese PM to do so.
- This was significant as Japan practices pacifism and maintains distance from the display of arms and military power.
Indo-Japan Ties
Evolution
- India was not a signatory to San Francisco Peace Treaty (1951) which was signed between the allies and the defeated countries from the Axis power
- Rather, India signed its separate peace and bilateral treaty with Japan.
- This built a bonhomie between India and Japan.
- Radhabinod Pal’s dissenting judgement in Tokyo War Crimes Tribunals is still seen in a positive light amongst Japanese vis-a-vis India.
- India was 1st country overseas to accept bilateral aid from Japan.
- Various innovation and skill training were provided by Japan to Indians
- The first Doordarshan Engineers were trained in Japan.
- The first people’s car was developed due to a partnership between Maruti and Suzuki.
Areas of Cooperation
Economic and Commercial Relations
- Both the countries have signed CEPA (Comprehensive Economic Partnership Agreement).
- Japan is one of the largest FDI donors in India and provides loans through the Japanese ODA (Official Developmental Assistance).
- SCRI - Supply Chain Resilience Initiative is a joint initiative between India, Japan and Australia which aims to enhance resilience in supply chains against shocks.
Defence and Security Cooperation
- G4 - India and Japan along with Germany and Brazil are campaigning for the expansion of the UNSC and being inducted as permanent members.
- 2+2 ministerial dialogue for enhancing defence and foreign relations.
- QUAD for free, open and inclusive Indo-Pacific.
- Military exercises such as Shinyu Maitri, Dharma-Guardian, etc
Skill Development
- A Labour deficient Japan has opened up 12 JIIM (Japan-India Institute of Management) to train 30K youth in Japanese manufacturing.
Cooperation in Frontier and Emerging tech
- LUPEX mission
- Digital partnership
- India-Japan Emerging Technology and Innovation Fund for Startups in AI and IoT
Cultural
- Buddhist Diplomacy
- Partner City/Sister City Affiliation Agreement - Varanasi and Kyoto
Challenges
- CEPA hasn’t significantly increased India’s exports.
- Balance of Trade is negative for India.
- Frequent non-tariff barriers put up by Japan.
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