Sansad TV: Japan’s Prime Minister’s visit | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• Japan has been a significant contributor to investment flows into India. In 2011, the two countries signed the Comprehensive Economic Partnership Agreement (CEPA) aimed at promoting bilateral trade, which has been recognized as India's most extensive such agreement. Japan has been a leading financial donor in the form of Official Development Assistance (ODA) to India. It has shown keen interest in supporting India's large-scale infrastructure projects, such as the Delhi-Mumbai Freight Corridor, Delhi-Mumbai Industrial Corridor, Chennai-Bangalore Industrial Corridor, and the Ahmedabad-Mumbai High-Speed Rail.
• The two countries have also jointly announced the Asia-Africa Growth Corridor (AAGR) initiative in 2017, and they are cooperating on joint projects in third countries such as Bangladesh, Myanmar, Sri Lanka, and Africa. In terms of defense, India, Japan, the United States, and Australia have established the Quadrilateral Security Dialogue, a strategic discussion platform. The three countries have conducted the Malabar exercise regularly. There is also a 2+2 dialogue at the defense and foreign minister level.

Major Initiatives announced

• To counter China’s growing dominance in the Indo-Pacific region, the Free and Open Indo-Pacific (FOIP) strategy has been introduced. The strategy includes measures such as respecting sovereignty and territorial integrity, opposing unilateral changes made by China through the use of force, and collaborating to address global challenges. 
• Japan's focus is on Southeast Asia, South Asia (with a particular emphasis on Northeast India), and the Pacific Islands. One of Japan's initiatives is to promote the Bay of Bengal-Northeast India industrial value chain concept. Additionally, Japan aims to help countries develop their maritime law enforcement capabilities to minimize geopolitical risks in the oceans. Japan's FOIP strategy complements India's Indo-Pacific Oceans Initiative (IPOI). This year, India will take over the presidency of the G20, and Japan will hold the presidency of the G7.

Possible areas of cooperation between India and Japan

• India and Japan are striving to establish a strong digital partnership and exploring potential areas of development in several fields, such as artificial intelligence (AI), internet of things (IoT), and big data.
• They also aim to collaborate on security issues, including cyber, outer space, and economic security, to foster a rules-based, free, and open international order. Additionally, they seek to strengthen their economic partnership, which could further boost the Indo-Pacific and global economy.

Challenges to overcome

• Despite signing the Comprehensive Economic Partnership Agreement (CEPA), the bilateral trade between India and Japan has been below expectations. In recent years, the total volume of bilateral trade has decreased, and negotiations to purchase US-2 amphibian aircraft have been stalled.
• Furthermore, India is facing difficulties in penetrating the Japanese market due to language barriers and high standards for quality and service. To advance their mutual interests, India and Japan need to overcome these challenges and develop a specific China policy while enhancing their naval power in the Indian and Pacific Oceans.

Way Forward

• Experts say that a strong India is in Japan’s best interest and for that, Japan must provide even more support.
• India must leverage Japan’s strengths in areas such as medical equipment and hospitals.
• India and Japan must endeavour to work together for a rules-based and inclusive world order.
• Enhancing communication and connectivity for unimpeded trade and flow of people, technology and ideas for shared prosperity.
• Further cooperate for peace, stability and prosperity of Indo-Pacific.