India-Japan Relations Introduction 

• Prime Minister Narendra Modi recently visited Japan to mark the 15th India-Japan Annual Summit, underscoring the continued evolution of the Special Strategic & Global Partnership between the two nations. 
• This visit comes at a time when global uncertainties make strong international alliances increasingly critical.

Tracing the Evolution of India-Japan Relations

• Historical and Cultural Foundations: 

• • • The relationship between India and Japan dates back to ancient times, with the introduction of Buddhism to Japan in the 6th century serving as the earliest point of contact. Japan’s Shichifukujin (or Seven Lucky Gods) have their origins in Hindu deities. In 752 AD, the Indian monk Bodhisena traveled to Japan to perform the eye-opening ceremony for the Great Buddha at the magnificent Todaiji Temple in Nara. Nara was an ancient capital of Japan from 710 to 784. 
    • Cultural Influence: Indian philosophy, art, and spiritual practices significantly shaped Japanese culture, from temple architecture to meditation traditions.
    • Non-Adversarial Ties: Throughout history, India and Japan maintained peaceful and cooperative interactions, avoiding any major conflicts or hostilities.

• Post-World War II Diplomatic Engagement: Following World War II, the two countries formalized their modern diplomatic relationship:

• • • Peace Treaty of 1952: India was among the first nations to sign a post-war peace treaty with Japan, establishing official diplomatic relations.
    • Support During Economic Crises: Japan played a key role in supporting India during challenging economic periods, including the balance of payments crisis, reflecting early trust and cooperation.

• Strategic and Economic Deepening: The relationship gained new momentum in the late 20th century and beyond:

• • • Look East Policy (1990s): India’s “Look East” initiative strengthened economic, trade, and technological collaboration with Japan.
    • Global and Strategic Partnership (2006): Bilateral ties were elevated to Global and Strategic Partnership, signaling a shift from purely economic cooperation to security and strategic collaboration.
    • Special Strategic and Global Partnership (2014): Visits by Japanese dignitaries, including Emperor Akihito and PM Shinzo Abe, further reinforced ties, marking the elevation to Special Strategic and Global Partnership.

• Modern Geopolitical Alignment: In the contemporary context, India and Japan are working closely to shape the Asia-Pacific security and economic landscape:

• • Trilateral Cooperation: Both countries coordinate with the United States to ensure regional stability, addressing concerns about China’s growing influence.
  • Balanced Approach: While enhancing trilateral engagement, none of the countries aim to threaten China. Instead, the partnership focuses on policy and security coordination, benefiting the broader Indo-Pacific region. 

Current Status of India-Japan Relations

• Strategic and Defense Cooperation: India and Japan have developed a deep defense and security partnership under multiple agreements and dialogues:

• Joint Declaration on Security Cooperation (2008): Established the framework for close collaboration in defense and maritime security. 

• The 2015 pact governs the protection of classified information and the transfer of defence equipment.
• Naval cooperation was further strengthened with the 2018 Implementing Arrangement.
• In September 2020, both nations signed the Reciprocal Provision of Supplies and Services (RPSS) agreement, enhancing logistical support and interoperability.
• A significant step in co-production came in November 2024, when India and Japan announced the joint production of the advanced UNICORN mast for Indian naval vessels.

• High-Level Dialogues: Regular meetings include the ‘2+2’ Foreign and Defense Ministerial Meeting (first held in November 2019), Annual Defense Ministerial Dialogue, and Coast Guard-to-Coast Guard interactions.
• Reciprocal Logistics Support (ACSA, 2020): The Acquisition and Cross-Servicing Agreement enables mutual provision of supplies, services, accommodation, and food during joint exercises, placing India among only five countries with such an agreement with Japan.
• Joint Military Exercises: Regular exercises include Shinyuu Maitri (Air Force), Dharma Guardian (Army), JIMEX (Navy), Sahyog-Kaijin (Coast Guard), and Malabar (multilateral naval exercise).
• Alliance for Indo- Pacific: India’s Act East Policy and its SAGAR (Security and Growth for All in the Region) doctrine align seamlessly with Japan’s idea of a Free and Open Indo-Pacific (FOIP). The Quad grouping — comprising India, Japan, the United States, and Australia — is central to translating the idea of a free and open Indo-Pacific into action. Similarly, the India–Japan–Australia Supply Chain Resilience Initiative (SCRI) has been established to enhance economic security and supply chain diversification across the region. It would be pertinent to mention here that in 2007, during his visit to India, the late Prime Minister Shinzo Abe delivered a seminal “Confluence of Two Seas” address to the Indian Parliament, outlining the blueprint for a free, open, and inclusive Indo-Pacific.
• Strategic Endorsements: Japan supports India’s bid for a permanent seat in the UN Security Council and facilitated India’s inclusion in the Missile Technology Control Regime (2016).

• Economic and Trade Partnership: India-Japan economic ties are strong and steadily growing:

• • Comprehensive Economic Partnership Agreement (2011): Laid the foundation for rapid trade expansion post-2014.
  • Bilateral Trade: India-Japan trade reached US$22.8 billion in 2023-24, and US$21 billion in April–January 2024-25, reflecting stable and resilient trade relations. Key Exports and Imports:

• India to Japan: Petroleum products, chemicals, non-metallic mineral ware, fish, metalliferous ores, iron & steel, machinery, and clothing.
• Japan to India: Machinery, electrical equipment, motor vehicle parts, plastics, non-ferrous metals, organic chemicals, and metal manufactures.

• Investments and Infrastructure Development: Japan is a major investor and development partner for India:

• • FDI and Sectoral Investments: Japan ranks as India’s 5th largest source of FDI, contributing around US$32 billion (2000–2019) in automobiles, electronics, telecommunications, chemicals, financial services, and pharmaceuticals.
  • ODA Support: Japan provides overseas development assistance for power, transportation, environmental projects, and basic human needs.
  • Flagship Projects: Key infrastructure projects include:

• Mumbai-Ahmedabad High-Speed Rail
• Western Dedicated Freight Corridor
• Delhi-Mumbai Industrial Corridor (DMIC)
• Chennai-Bengaluru Industrial Corridor (CBIC)

• Digital Partnerships and Startup Ecosystem: India-Japan collaboration extends to technology, innovation, and entrepreneurship:

• • • India-Japan Digital Partnership (I-JDP, 2018): Promotes digital innovation and knowledge exchange.
    • Startup Collaboration: Joint initiatives, including the Japan-India Startup Hub in Bangalore, have helped Indian startups raise over US$10 billion, with SoftBank as the largest investor.

• Science and Technology Cooperation: India and Japan have a long-standing S&T partnership:

• • • Bilateral S&T Agreement (1985): Supports collaboration in life sciences, material science, ICT, biotechnology, healthcare, robotics, energy, space, and earth sciences.
    • India-Japan Science Council (IJSC, 1993): Over 250 joint projects have been supported.
    • Nuclear Cooperation (2017): Agreement for peaceful use of nuclear energy strengthens energy collaboration.
    • Quad Technology Cooperation: Focuses on critical technologies, 5G, telecom security, smart-city projects, and technology standards.

• Skill Development and Human Resource Cooperation: Human capital development is another pillar of the partnership:

• • Technical Training Programs: MoUs signed to train 30,000 shop-floor leaders.
  • Japan-India Institutes: 12 Japan-India Institutes of Manufacturing (JIMs) and 4 Japanese Endowed Courses (JECs) in Indian engineering colleges.
  • Technical Intern Training Programme (TITP): Strengthens skill development and knowledge transfer between the countries.

Challenges Limiting the India-Japan Relationship

• Divergent Approaches on Russia: A major point of tension stems from India and Japan’s differing relations with Russia:

• • • India’s Strategic Autonomy: India continues its policy of multi-alignment, maintaining strong ties with Russia to support key military capabilities, including procurement and joint exercises.
    • Japan’s Western Alignment: Japan, by contrast, favors a united front against Russia to uphold the rules-based international order, especially after Russia’s invasion of Ukraine.
    • Contrasting Responses: Japan opposed Russia’s Vostok-2022 maritime exercises near the Kuril Islands, while India participated in the same exercises, reflecting a clear divergence in strategic priorities.

• Limited Bilateral Trade: Despite robust economic dialogue, trade between India and Japan remains below its potential:

• • • Trade Volume Gap: India-Japan trade is less than one-fifth of India-China trade, and Japan is not among India’s top 15 trading partners.
    • Missed Economic Opportunities: Bilateral commerce is concentrated in traditional sectors like automobiles, machinery, and chemicals, with limited diversification into high-growth areas such as digital technologies, renewable energy, and startups.

• Divergence on Global Policy Issues: India and Japan often have contrasting positions on global issues, especially in forums such as the WTO:

• • • Developed vs. Developing Nations Gap: Japan, as a developed economy, often supports liberalized trade rules, while India prioritizes protective tariffs and policies to safeguard domestic industries.
    • Opposing Stances: Disagreements on tariff structures and market access sometimes place the two countries on opposite sides in multilateral negotiations.

• Limited Progress in Asia-Africa Growth Corridor (AAGC): The ambitious Asia-Africa Growth Corridor, a joint initiative between India and Japan, has fallen short of expectations:

• • Infrastructure Outcomes: While the initiative was designed to enhance connectivity and investment in Africa, the actual implementation of projects has been limited.
  • Operational Challenges in India: Japanese companies face logistical, regulatory, and bureaucratic hurdles in executing large-scale infrastructure projects in India.

Way Forward

• Boosting Bilateral Trade and Economic Engagement: Trade is a key pillar of India-Japan ties, yet bilateral trade accounts for only around 5% of Japan-China trade, showing significant untapped potential.

• • • Remove trade bottlenecks: Simplify regulatory procedures, reduce non-tariff barriers, and streamline customs processes to facilitate smoother trade.
    • Enhance industrial competitiveness: Promote joint initiatives in manufacturing and industrial sectors to strengthen supply chains.
    • Support India’s semiconductor ambitions: Encourage Japan’s participation in developing India as a global semiconductor hub, advancing high-tech manufacturing.

• Strengthening Strategic Cooperation and Regional Stability: Despite differing views on global issues like the Ukraine conflict, India and Japan must work together to promote peace and stability in the Indo-Pacific region.

• • • Continuous diplomatic dialogue: Maintain high-level consultations and exchanges to align regional strategies and build trust.
    • Clear communication channels: Ensure proactive and transparent discussions to prevent misunderstandings.
    • Political commitment: Sustain mutual political will to reinforce confidence in the partnership.

• Expanding Skill and Human Resource Collaboration: Human capital is a growing driver of bilateral cooperation.

• • • Facilitating skilled migration: Japan can increase opportunities for Indian IT and skilled professionals to support its digitalization efforts.
    • Skill development partnerships: Launch joint programs in IT, robotics, and industrial training to strengthen workforce capabilities.
    • Such initiatives will accelerate technological and digital integration while building a skilled talent base for both nations.

• Enhancing Science, Technology, and Innovation Cooperation: India and Japan have strong potential for joint technological growth and innovation.

• • • 5G and digital infrastructure: Develop secure and reliable networks.
    • Advanced technology collaboration: Cooperate in AI/ML, blockchain, renewable energy, green hydrogen, and space technology.
    • Innovation ecosystem: Promote joint R&D, startup investments, and innovation hubs.

• Strengthening Infrastructure and Regional Connectivity: Infrastructure cooperation can extend India-Japan collaboration into regional development.

• • Northeast India development: Support connectivity and industrial projects in India’s Northeast.
  • Indo-Pacific interconnectivity: Collaborate on ports, logistics, and maritime networks linking India, Japan, and Southeast Asian nations.
  • Multilateral infrastructure initiatives: Promote joint investments in regional infrastructure for enhanced trade and mobility.
  • Enhanced infrastructure and connectivity will improve regional integration and strategic influence across the Indo-Pacific.