INDIA-JAPAN RELATIONS India-Japan relations have undergone a significant and qualitative shift in recent years, propelled by the successful

regular summit level exchanges. From Japan, the then Prime Ministers Koizumi, Abe and Hatoyama visited India in April 2005, August 2007 and December 2009 respectively. From India, Prime Minister Dr. Manmohan Singh visited Japan in December 2006, October 2008 and again in October 2010. The establishment of the Strategic and Global Partnership between India and Japan in December 2006 elevated relations to a new level. This Partnership is based on five pillars of cooperation viz., Political, Defence and Security Cooperation; Comprehensive Economic Partnership; Science & Technology Initiative; People-to-People exchanges and cooperation in Regional/Multilateral fora. During the visit of PM Abe to India in August 2007, a Roadmap for New Dimensions to the Strategic and Global Partnership was unveiled. A Joint Statement on the Advancement of the Strategic and Global Partnership and a Joint Declaration on Security Cooperation were issued during PMs visit to Japan from 22-23 October 2008. During Prime Minister Hatoyamas visit, the two sides released a Joint Statement on the New Stage of India-Japan Strategic and Global Partnership and an Action Plan to advance India-Japan Security Cooperation. A Joint Statement on Vision for India Japan Strategic and Global Partnership in the Next Decade was signed during the Annual Summit of October 2010 in Japan. These political documents provide the basis for all-round development of India-Japan partnership. Leaders of India and Japan meet frequently on the sidelines of international events. Soon after taking over as Prime Minister of Japan from Dr. Hatoyama, Japans Prime Minister Naoto Kan met with Prime Minister Singh on the margins of the G-20 Summit in Toronto on 27th June 2010. There are a number of official dialogue mechanisms between India and Japan, covering a range of subjects, including Ministerial-level dialogue mechanisms like Strategic Dialogue between External Affairs Minister and Japans Foreign Minister, Policy Dialogue between Commerce and Industries Minister and Japans Minister of Economy, Trade and Industry and Energy Dialogue between Deputy Chairman of the Planning Commission and the Japanese Minister of Economy, Trade and industry. All Ministerial Dialogues were held in New Delhi in the calendar year 2010. In addition, during Indian Defence Ministers visit to Japan in November 2009, the two sides agreed to have annual exchange of visits at the level of Defence Ministers, under which, Japans Defence Minister Mr. Toshimi Kitazawa visited India in 2010. During the Annual Summit of 2010, it has been decided to establish a Ministerial-level Economic Dialogue to give strategic and long-term orientation to the bilateral economic engagement and to coordinate economic issues of cross-cutting nature. The sharp jump in high-level exchanges has been accompanied by more broad-based interaction between parliamentary delegations and provincial and local governments of both countries. There are several dialogues between India and Japan at senior official level covering specific issues of foreign policy, defence and security policy, economic cooperation, urban development, ICT cooperation, energy cooperation, high technology trade etc. A 2+2 dialogue led by Foreign and Defence Secretaries of India and their Japanese counterparts was announced during the Annual Summit of 2009 and held its first meeting in New Delhi in July 2010.

As part of India-Japan Strategic and Global Partnership, the two sides have launched a Special Economic Partnership Initiative (SEPI), which has several high-visibility flagship projects like Western Corridor of the Dedicated Freight Corridor (DFC) to be partially funded by Japanese soft ODA loan and the Delhi-Mumbai Industrial Corridor (DMIC), whose project development is to be partially funded by Japan. DMIC is projected to attract foreign investment worth about US$92 billion and will be built around DFC. A consortium of Japanese private sector companies is collaborating with the DMIC Development Corporation as well as the Governments of the concerned states, in developing eco-friendly townships in the DMIC zone using Japans best practices. Bilateral economic and commercial relations have vast potential for growth. The Comprehensive Economic Partnership Agreement (CEPA) was signed by Indian Commerce Minister Mr. Anand Sharma and the then Japanese Foreign Minister Mr. Seiji Maehara on 16 February 2011 in Tokyo. The CEPA is one of the most comprehensive of all such agreements concluded by India in so far as it covers more than 90% of the trade, a vast gamut of services, rules of origin, investment, intellectual property rights, customs and other trade related issues. According to Japanese statistics, bilateral trade with India reached $5.82 billion during Jan-April 2011, representing an increase of 26.25% over the corresponding period of previous year. Exports of $3.51 billion to India and imports worth $2.31 billion during the period from India represented increases of 28.3% and 23.9% respectively. Japans exports to India mainly included electrical machinery, iron and steel products, chemicals, power generating machine, transport equipment, parts of motor vehicles and other flat-rolled products. Japanese import commodities included petroleum products, food and live animals, metalliferrous ores & scrap, feeding stuff for animals, iron ore, oil-seeds cake and meal, clothing, iron & steel products and non-metallic mineral ware. Bilateral trade during CY2010 was $14.68 billion increasing 45.8% over the CY2009. Japan currently ranks sixth largest in cumulative foreign direct investment flows into India. Japanese companies have made actual investments of US$ 4.63 billion (4% of total FDI inflows into India in US$) between April 2000 and November 2010. According to latest available statistics, a total of 1049 Japanese companies have representative offices in India and 627 have business operations in India. The sectors attracting Japanese investment are automobile industry, electrical equipment, trading, service sector (financial & non-financial), and telecommunications. According to JETRO, during Jan-March 2011, India received $289 million worth of Japanese FDI which is a decline of 36.3% over the same period. During CY 2010, Japans FDI was a total of $2.86 billion. Since FY 2003-04, India has been the largest recipient of Japanese Official Development Assistance. Cumulative commitment of Japanese ODA to India upto July 2010 is Yen 3.3 trillion. As of March 2011, the total cumulative commitments of Japanese ODA to India reached Yen 3320.3 billion. During FY 2010-11, disbursement of ODA totaling to 123.8 billion Yen was largest amongst all countries. It accounted for 18.3% of Japans all ODA disbursement during 2010-11. The two sides have launched an Energy Dialogue to promote cooperation in the energy sector in a comprehensive manner. The areas of cooperation include oil and natural

gas, coal, electric power, renewable energy sources, energy efficiency and other relevant sectors. The two sides have also decided to exchange views of respective nuclear energy policy under the Energy Dialogue. In June 2010, the two sides commenced negotiations on an Inter-Governmental Agreement for Cooperation in the Peaceful Uses of Nuclear Energy. Both sides are collaborating for the development of a greenfield IIT at Hyderabad. The India Cultural Centre in Tokyo was formally inaugurated in September 2009. The ICCR has set up two Chairs on Indian studies at the University of Tokyo and Ryokoku University, Kyoto. The two sides have agreed to celebrate the 60th anniversary of the establishment of diplomatic relations between India and Japan in 2012 in a befitting manner. Government of India introduced a visa on arrival scheme for tourists from Japan from 1 January 2010. A Memorandum on Visa Simplification was signed during the Summit of October 2010 to facilitate visits by nationals of each other. India and Japan share similar positions on major regional and international issues, like the reform of the UN Security Council and the regional architecture in East Asia including East Asia Summit. The two sides also conduct consultations on emerging issues like disaster management, climate change, maritime security and nonproliferation and disarmament. In the wake of the devastation caused by the magnitude 9.0 earthquake and the subsequent tsunami on 11 March 2011 in north-eastern and eastern Japan, letters of condolence and sympathy were sent by the Prime Minister and External Affairs Minister to their counterparts in Japan. PM made a statement in Parliament on 14 March expressing Indias full solidarity with the people of Japan. Relief material consisting of 25,000 blankets, 10,000 bottles of mineral water and 10 tons of high-energy biscuits were sent to Japan. A 46-member Indian Relief and Rehabilitation Team from the National Disaster Management Authority was dispatched to Japan. The highly specialized team carried out relief operations in the coastal town of Onagawa, which came under the direct impact of tsunami waves. Their work has been much appreciated by the Japanese authorities, local people and the Japanese media. **** July 2011