India-Japan 15th Annual Summit

The 15th India-Japan Annual Summit marked a significant step in the strengthening strategic partnership between the two countries, reflecting their shared goals in the face of global geopolitical uncertainties. The recent summit resulted in various high-level agreements and initiatives that broadened the bilateral cooperation across multiple sectors.

Key Outcomes of the India-Japan 15th Annual Summit:

1. Joint Vision for the Next Decade

• A comprehensive vision was adopted, focusing on eight pillars:

  • Economy

  • Technology

  • Mobility

  • Health

  • Environment

  • People-to-people ties

  • Defence and Security

  • Digital Innovation

2. Defence & Security Ties

• A new Joint Declaration on Defence and Security Cooperation was established.

• Major military exercises like Veer Guardian, MILAN, and Tarang Shakti were highlighted, marking growing military cooperation between the two nations.

3. Economic Security Initiative

• The Economic Security Initiative was launched to strengthen critical supply chains, including cooperation in critical minerals, semiconductors, clean energy, and telecommunications.

4. Investment Target Doubled

• A new target of 10 trillion Yen was set for private investment in India, focusing on Japan Industrial Townships and MSMEs (Micro, Small, and Medium Enterprises).

5. Digital Partnership 2.0 & AI Initiative

• The Digital Partnership 2.0 was unveiled, covering:

  • Large language models (LLMs)

  • Data centres

  • Startups

  • Research collaboration in AI and digital technologies.

6. Clean Energy Partnership

• The Clean Energy Partnership was expanded with Memorandums of Understanding (MoUs) focused on:

  • Hydrogen

  • Ammonia

  • Joint Crediting Mechanism

  • These initiatives aim to advance net-zero pathways for both countries.

7. Human Resource Exchange Plan

• A major initiative was launched with a target of 500,000 exchanges over the next five years, including the sending of 50,000 skilled Indian professionals to Japan.

Significance of India-Japan Relations:

Historical & Cultural Ties:

• India and Japan share a deep-rooted cultural connection, dating back to Bodhisena’s consecration of the Great Buddha statue at Todaiji Temple in 752 AD. This symbolizes their historical and spiritual bonds.

• Notable figures like Swami Vivekananda, Rabindranath Tagore, and Netaji Subhash Chandra Bose have played key roles in fostering goodwill between the two nations.

Geopolitical & Geostrategic Dimensions:

• India’s Act East Policy, SAGAR (Security and Growth for All in the Region), and Indo-Pacific Oceans Initiative align with Japan’s Free and Open Indo-Pacific (FOIP), enhancing their shared regional role in maintaining a rules-based international order.

• Both countries are key players in the Quad (Quadrilateral Security Dialogue) and the Supply Chain Resilience Initiative (SCRI), which work towards promoting regional security and economic stability.

Geo-Economic Ties:

1. Comprehensive Economic Partnership Agreement (CEPA)

• Since its establishment in 2011, the CEPA has been a cornerstone of bilateral trade, with tariffs on 94% of traded items removed, leading to trade worth $21.96 billion in 2022–23.

• However, there remains a trade imbalance, with India’s exports standing at $5.46 billion, while imports were much higher at $16.49 billion.

2. Official Development Assistance (ODA) & FDI:

• Japan remains India’s largest ODA donor since 1958, with a contribution of JPY 580 billion (approx. USD 4.5 billion) for 2023–24.

• With a cumulative FDI of $40 billion till 2023, Japan is also India’s 5th-largest FDI source, with major infrastructure projects like the Mumbai–Ahmedabad High-Speed Rail symbolizing growing cooperation.

Defence & Security Cooperation:

• The Joint Declaration on Security Cooperation (2008) and subsequent agreements on equipment transfer, intelligence sharing, and logistics (2020) form the backbone of defence relations.

• Regular military exercises such as Malabar (naval), Veer Guardian (air force), Dharma Guardian (army), and JIMEX (naval) showcase operational synergy.

• Institutions like the 2+2 Ministerial Dialogue ensure sustained dialogue on regional security concerns.

Technological & Sectoral Cooperation:

• The India-Japan Digital Partnership (2018) led to the creation of start-up hubs in Bengaluru, while exploring initiatives like the UPI deployment in Japan.

• Skill-building initiatives have set up numerous Japan-India Institutes of Manufacturing, contributing to talent development aligned with Japanese standards.

• Space cooperation between ISRO and JAXA spans areas like lunar exploration, satellite navigation, and space situational awareness.

People-to-People Exchanges:

• Over 665 academic and research partnerships and student exchanges have been instrumental in strengthening educational cooperation.

• The Samvad Conference (since 2015) has served as a key platform for promoting shared civilizational values like democracy and non-violence.

• The Indian diaspora in Japan (over 40,000 people), especially IT professionals and academics, continues to act as a bridge between the two nations.

Challenges in India-Japan Relations:

1. China Factor in Indo-Pacific:

• Both countries face challenges from China’s assertiveness in the East and South China Seas. While India has been openly critical post-Galwan, Japan’s approach is more restrained due to its economic dependence on China.

2. Supply Chain Vulnerabilities:

• Both countries remain heavily dependent on China for semiconductors and rare earths, making diversification a critical goal.

3. Strategic Balancing:

• Tensions in Quad coordination due to tariff policies and India’s engagement in organizations like BRICS and AIIB present challenges in aligning with Japan’s strong US alliance.

4. Economic Constraints:

• Bilateral trade remains significantly lower compared to India-China trade, which stood at USD 136 billion in 2022, and there are barriers such as language issues and stringent Japanese quality standards that hinder the trade flow.

Way Forward:

1. Diversify Trade & Reduce Imbalance:

   • Strengthen CEPA and diversify India’s exports, particularly in pharmaceuticals, textiles, and agro-processing sectors.

   • Align standards to access Japan’s high-value markets, supporting initiatives like Make in India and Atmanirbhar Bharat Abhiyan.

2. Strengthen Supply Chain Resilience:

   • Focus on deepening cooperation in semiconductors, critical minerals, and clean energy technologies to reduce dependence on China.

   • Encourage joint investments in critical minerals for enhanced strategic autonomy.

3. Accelerate Infrastructure & Defence Projects:

   • Fast-track projects like the Mumbai-Ahmedabad High-Speed Rail and enhance connectivity in Northeast India.

   • Promote joint production and tackle bureaucratic bottlenecks in defence technology transfer.

4. Expand Skill & Mobility Frameworks:

   • Integrate Indian workers into Japan’s Specified Skilled Worker (SSW) scheme to address Japan’s ageing society and India’s demographic dividend.

   • Strengthen migration frameworks and social security coordination.

5. Enhance People-to-People Connect:

   • Promote tourism, language training, and academic exchanges.

   • Deepen cultural diplomacy to complement the synergies between the Free and Open Indo-Pacific (FOIP) and Indo-Pacific Oceans Initiative (IPOI).

Conclusion:

The India-Japan 15th Annual Summit reflects an era of deepened bilateral ties, with a shared commitment to security, economic resilience, and sustainable development. Both nations are poised to enhance cooperation across diverse sectors, from defence to digital innovation, laying a robust foundation for future collaboration in an increasingly uncertain geopolitical landscape