Japan India friendship and cooperation

PM Shinzo Abe will undertake, in a carefully managed state visit to India in 2015? Modi will formally invite PM Abe?

After march 2015 at the end of the Indian financial year, we can check how much trade has grown between the two great countries, and how the various one-off projects are evolving.

Whilst the one off projects are important for Modi politically, the most important LONG LASTING aspects of Japan/India development are:

1. The establishment of strategic diplomatic cooperation in the field of economic cooperation, and the joint evolution of ideas of both countries in a whole array of OTHER issues......both governments thus can speak as one in the future on a variety of subjects with one voice.

2. The establishment of legal modalities/instruments in both countries which facilitate greater economic cooperation.

3. Greater Japanese investment in India...and as a significant priority for both Japan and India governments. Agreeing on Japanese business specific requirements and requests for investment in targeted EPZ's......and Industrial Parks in specially chosen parts of India through agreement and consultation with Japan.

4. The trade volume to increase via targets from $18.5 billion to $300 billion by 2020.(The most important indicator of development between two nations, beyond fine words and gestures) India must accept in the short to medium term a trade imbalance in Japan's favor. A lot of Japanese industrial investment may involve re-exports to other parts of the world using the abundantly cheap, hardworking skilled labor force of India.

5. India, either through mistake or perception misjudgement should not be seen as a non-Asian nation, disconnected to the rest of East Asia....but a very important cultural and historical nation linked to Asia through Buddhism and Indian philosophy going back 5000 years. This effort has to come from INDIA especially, and the promotion of Indian culture in Japan. India should open 30 elite International schools, and colleges which emphasize Indian culture, in the big cities of Japan. These schools will propagate future business, civil and political leaders in the country with a better understanding of India....rather than as a passing fad and strange curiosity which dissolves over a few years in Japan. What will be the modalities for setting up such schools and colleges? Vice versa with Japanese International schools in India. This is Very important for the long term development of a solid relationship between both nations.

6. India must not just take, take, take from Japan. On the return state visit by PM Abe, India must offer Japan some tangible unique benefits for Japan....which pleases the Japanese political and business class. India thus must do its homework before the return visit in the future.


Japan promises Narendra Modi $35 billion inflows, but holds out on nuclear deal

 Prime Minister Narendra Modi on Monday said Japan would play a big role in India's transformation and development. Wrapping up his first bilateral summit with Shinzo Abe in Tokyo, the two sides glossed over the failure of the civil nuclear deal, instead focusing on the plethora of deliverables.

Japan promised $35 billion in investment and financing for Indian infrastructure for the next five years. In return, Modi promised to introduce a special mechanism like a "Japan Fast Track Channel for Japanese investors in India" to woo investment into the country.

Prime Minister Narendra Modi (second right) and Japanese Prime Minister Shinzo Abe (left) talk during their meeting at the Akasaka State Guesthouse in Tokyo, on September 1, 2014. (AP photo)

A "two-plus-two" arrangement between the two governments at the official level will be upgraded to a ministerial level, much like Japan's arrangement with the US.

Japan to remove curbs on space, defence entities

Japan has also removed six Indian space and defence entities from the "foreign end users list", which will help defence technology cooperation. A much awaited agreement on India buying the US-2 amphibian aircraft was completed. A joint statement said both sides would work on building the US-2 in India "including transfer of the aircraft and its technology" to India.

Sources said this would help both Japan and India to work together to even export the aircraft to third countries. For India, this would be the beginning of a defence aircraft industry here.

"Japan's decision to remove several Indian entities from the 'foreign end users list', our MoU on defence exchanges and our intention to work out an agreement for collaboration on defence technologies reflect the new level of mutual trust and commitment to deepen our strategic partnership in all dimensions," Modi said.

Addressing Japanese businessmen, the PM took a swipe at China, albeit without naming the country. "There are 18th-century-style ways and thinking that involve expanding (geographically) by taking away the land of another nation and going into seas," he said. "If Asia is to become the leader in the 21st century, Japan and India should lead and promote a path of peaceful development," he said.

Prime Minister Narendra Modi addressing a business luncheon hosted by Japan Business Federation in Tokyo on September 1, 2014. (PTI photo)

Addressing a joint press briefing with Abe, Modi said, "In recent months, we have made significant progress in our negotiations on civil nuclear cooperation. Today, we have discussed this issue at length. We have reached better understanding of each other's positions through this discussion. We have agreed to instruct our negotiators to work expeditiously to conclude the negotiations at an early date so that we can further strengthen our strategic partnership."

Abe commended India's efforts in the field of non-proliferation including the affirmation that goods and technologies transferred from Japan would not be used for delivery systems for WMD (weapons of mass destruction).

"We intend to give a new thrust and direction to our defence cooperation, including collaboration in defence technology and equipment, given our shared interest in peace and stability and maritime security. We have also decided to expand our cooperation in advanced technology, science and technology, people-to-people exchanges, educational exchanges, etc," Modi said at the joint press briefing with Abe.