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Japan-India Relationship

Discussion in 'International Relations' started by BlueOval, Oct 25, 2010.

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  1. BlueOval

    BlueOval Captain SENIOR MEMBER

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    Please post all news, editorials and opinion pieces related to Japan-India relationship.

    I would recommend a Japan sub-forum as India's relationship with Japan in terms of Defense are almost similar to the ones Japan has with US and Australia.

    If Moderators feel that is not ok...then we can make this thread a sticky thread and continue to post here.
     
  2. BlueOval

    BlueOval Captain SENIOR MEMBER

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    Why Japan tilted towards India

    Why Japan tilted towards India

    The Manmohan Singh government gives pride of place in its foreign policy to countries with the ways and means to transform India. The leader of the pack today, in a typically understated fashion, is Japan. The story goes back to the late 1990s. Japan had invested hundreds of billions of dollars in China and had contributed hugely to the rise of the Middle Kingdom. But it wasn’t earning much gratitude for it.

    The Chinese Communist Party, whose legitimacy partly arises from fighting the Japanese invasion before the second world war, became more nationalistic as China became stronger.

    Japan, facing an ageing workforce and in need of a new overseas manufacturing hub, considered Vietnam (too small), Indonesia (too seismic) and India. India’s problem was its shoddy infrastructure and seeming inability to do anything about it.

    As a Japanese diplomat said then, “We decided to shift our aid programme to infrastructure rather than poverty alleviation.â€

    One consequence was the Delhi Metro.

    Post-Cold War uncertainty helped feed a new conservative Japanese politics that manifested itself in the election of prime ministers like Junichiro Koizumi, Shinzo Abe and Taro Aso.

    Each of them saw India as a potential player in a Pacific Great Game in which hedging against China was pretty much the only rule.

    Three things changed the game.

    One, Chinese bellicosity and Japanese economic decline helped seal a political consensus in Tokyo that for reasons either strategic or economic, India was an essential part of Japan’s foreign partnering.

    Thus, when the present Democratic Party of Japan came to power, virtually their first action was to kick off the industrial corridor.

    They were soft on China, but their economic growth strategy had a huge India component. This helped reassure New Delhi as well. Indian officials often fretted about Japan’s short-lived governments.

    Two, closer relations between India and the US helped Japan get the confidence to raise the stakes. Thus was born the Delhi-Mumbai Industrial Corridor, a $90 billion whopper that, when completed, will give India a state-of-the-art manufacturing and exporting base.

    When Indian officials talk about Indo-Japan relations being transformational, they are talking about this sort of thing.

    Three, India Inc knocked the kimonos off Japan Inc by winning Alfred Deming Prizes. Demings are given for quality manufacturing.

    Over the past decade, unknown Indian auto-component firms began beating competitors, including Japan. In the past 10 years, India has won more Demings than any other country other than Japan itself. Corporate Japan was convinced: India had proven it wasn’t just another grimy face.

    After muddling around at about Rs 2,000 crore a year, Japan firms invested a hefty Rs 9,000 crore in 2007. Recent polls show that 70 per cent of Japanese firms say India is their preferred investment destination. Today, an average of 100 Japanese firms are moving here every year.

    As the comfort level rose, mergers and acquisitions such as Daiichi-Sankyo’s $4.6 billion purchase of Ranbaxy, India’s largest pharma company, too place. The economic relationship is now a fixture. The soon-to-be-completed free-trade agreement will put in place the last missing piece: the drawing of India into the global supply chains of Japanese manufacturers.

    Today, the circle is complete. Japan’s initial strategic interest manifested itself in the creation of an economic bond. That bond is now so large that it is giving birth to an independent strategic policy.

    Last year, India and Japan signed a bilateral defence framework. A former Japanese official noted, “Japan has only two other comparable agreements, with the US and Australia. And the Australian one is hazier than the one we have with you.â€

    The final culmination of this will be an Indo-Japanese nuclear deal.

    Both sides know this will be a tough baby to deliver, but both capitals have a political consensus that this is a marriage made in the hard realities of earth.

    Why Japan tilted towards India - Hindustan Times
     
  3. BlueOval

    BlueOval Captain SENIOR MEMBER

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    PM invites Japanese firms to invest in infrastructure projects

    PM invites Japanese firms to invest in infrastructure projects


    Observing that infrastructure deficit was posing a major constraint to India's growth, Prime Minister Manmohan Singh today said an outlay of over USD one trillion was envisaged for infrastructure projects during the next 5-year plan beginning 2012 and invited Japanese firms to play a greater role in this endeavour.

    Singh said his government was determined to continue the economic reforms to create a favourable investment environment and facilitate higher capital inflows and push the reform of both direct and indirect taxes with the aim of unifying indirect taxes into a single Goods and Services Tax in due course.

    Addressing a business luncheon attended by top business leaders from India and Japan, he noted that India's growth, which fell to 6.5 per cent in 2008-09 because of the global economic recession, recovered to 7.4 per cent in 2009-10 and is projected to be 8.5 per cent in 2010-11.

    He hoped that India will return to 9 per cent growth in 2011-12. "I am confident that strong fundamentals of the Indian economy will enable us to achieve our objective of double-digit growth in the coming decades," Singh said.

    Underlining that he was not underestimating "many challenges" that are faced in achieving such high level of growth, he said "we need to close the infrastructure deficit, especially in the power, transport and communication sectors.

    "This is a major constraint on our development and we will give high priority to infrastructure development in the years ahead." Singh said that India's investment needs will be at least USD one trillion, part of which will come from within but "we expect Japanese companies to also provide their support."

    He said during India's next five-year plan from 2012 to 2017 "we envisage financial outlays of over one trillion US dollars on infrastructure projects." Private investment will play a large role in achieving this target, Singh said, while asking Japanese companies to play a much greater role in development of India's economy.

    From India, Mukesh Ambani, Reliance Industries Chairman and Managing Director; Sunil Bharti Mittal, Bharti CMD; Fortis Chairman Malvinder Singh; and HDFC Chairman Deepak Parekh were among those present at the luncheon.

    PM invites Japanese firms to invest in infrastructure projects - Hindustan Times
     
  4. BlueOval

    BlueOval Captain SENIOR MEMBER

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    India, Japan PMs to confirm trade pact

    India, Japan PMs to confirm trade pact

    India's prime minister on Monday kicked off talks in Japan where the population giant and the high-tech nation planned to confirm a trade pact and push efforts for civilian nuclear cooperation.

    Manmohan Singh, who arrived on Sunday, and his counterpart Naoto Kan were also expected to stress the warm ties between Asia's biggest democracies at a time of high diplomatic tensions between Japan and communist-ruled China.

    The two premiers were due to declare the completion of talks on an economic partnership agreement (EPA), with a formal signing expected early next year, under which most tariffs would be phased out within a decade.

    Another key agreement long sought by New Delhi, on civilian nuclear cooperation, is however a little further off, and not expected to be signed during Singh's three-day visit or the next few months.

    Japan and India launched talks in June on a pact that would allow Tokyo to export its cutting-edge nuclear power technology to the energy-hungry South Asian nation, a hotly contested market for atomic plants.

    But Japan -- the only country to have suffered atomic bombings and a key voice in global denuclearisation efforts -- is worried by the fact that nuclear-armed India has not signed the Nuclear Non-Proliferation Treaty.

    The start of talks on civilian nuclear cooperation brought cries of protest in Japan from survivors of the US atomic bombings of the cities of Hiroshima and Nagasaki in the final days of World War II.

    However, Japan's energy industry is keen to help build nuclear plants for India, a huge market where it is competing with US and French suppliers.

    Singh, on the eve of his trip told Japanese media that Japan has "one of the highest and most advanced nuclear technologies" and stressed that India was not planning any more nuclear weapons tests.

    Japan -- which was eclipsed this year by China as Asia's biggest economy and has a shrinking population because of its low birth rate -- is searching for new markets to maintain economic growth, including especially China and India.

    Ties between Tokyo and Beijing have however sharply deteriorated in recent weeks, following Japan's September 8 arrest of a Chinese fishing boat captain near a disputed island chain in the East China Sea.

    Beijing has reacted furiously, cancelling high-level talks and civilian exchanges as well as suspending exports of rare earth minerals, which are crucial for Japan's high-tech industries.

    Singh, speaking before his departure, told Japanese media that New Delhi and Tokyo could cooperate on the production of rare earths in India.

    Hideaki Kase, a historian and commentator on diplomatic issues, said the timing of the Indian leader's visit, amid the Japan-China spat, would allow him to stress the shared democratic values of their countries.

    "It is a very timely visit as it is during times of an anti-Japanese movement in China and as India's presence is becoming bigger in Japan," he said. "It's almost a divine gift."
    Singh started off his official talks in a meeting with Foreign Minister Seiji Maehara. He was also due to have an audience with Emperor Akihito, and later meet Japanese parliamentarians and business leaders.

    Singh was Tuesday due to travel to Malaysia and then Vietnam, where Southeast Asian leaders will meet other Asian powers, including the premiers of China and Japan, for a summit at the end of the week.

    AFP: India, Japan PMs to confirm trade pact
     
  5. BlueOval

    BlueOval Captain SENIOR MEMBER

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    ‘India confident of civil nuke deal with Japan’


    TOKYO: India is confident of signing a "win-win" civilian nuclear deal with Japan and is looking forward to a comprehensive economic partnership agreement to boost bilateral trade, Prime Minister Manmohan Singh has said.

    "I am confident that we will be able to conclude an agreement (on nuclear deal), which will be a win-win proposition for both of us. We have not laid down any deadline for concluding these negotiations," Singh said shortly ahead of his two-day visit here beginning today.

    Asserting that India has an "impeccable" record on non-proliferation, he told the Japanese media that his country is committed to maintaining a "unilateral and voluntary" moratorium on explosive nuclear testing and has "no intention" of revising that commitment.

    ?India confident of civil nuke deal with Japan? | Manmohan Singh | nuclear deal | Indian Express
     
  6. BlueOval

    BlueOval Captain SENIOR MEMBER

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    India in no mood for Chinese honeymoon

    India in no mood for Chinese honeymoon

    With India eyeing Japan as a strategic partner for building defence relationship, China has attempted to rebuild bridges with India. China had requested for resumption of dialogue between the countries.

    “They asked for the meeting,†sources revealed, adding that China would like a resumption of dialogue between the countries’ special area representatives, who have so far held nine rounds of talks on territory claimed by China but failed to reach any definitive conclusion.

    India, sources said, had no intention of bringing ties back up to the same level as existed prior to the denial of a visa to Jammu and Kashmir-based Lt. Gen. B.S. Jaiswal, GOC-in-C, Northern Command, and the buildup of Chinese forces in Gilgit and Baltistan in PoK, where some reports indicate Pakistan has given the green light to the building of missile silos along the Indo-Pakistan border.

    In the face of a growing presence of Chinese forces under the guise of rebuilding the Karakoram highway, sources said India had raised the issue with Chinese officials only for it to be strenuously denied.

    “We have evidence of their presence in PoK and will bring it up when the two Prime Ministers meet in Hanoi,†the sources said.

    Former diplomats believe that the other prime mover behind China’s move to mend fences with its South Asian neighbour is the entry to the East Asian grouping of the US and Russia as Pacific nations with legitimate interests in the region.

    While sources continue to officially dismiss the theory that Japan and the smaller states in the region as well as the US and Russia — “with whom India already has an old and valued friendship†— want to build up India as a counterweight to China, the entry of two heavyweights like Washington and Moscow point to moves to stop China from being the sole driver in the region.

    Sources said that India, despite the recent territorial claims by China over disputed islands in the Sea of Japan, had little interest in casting China as the big bad wolf and would much rather work with Beijing to minimise points of difference.

    India in no mood for Chinese honeymoon | Deccan Chronicle | 2010-10-25
     
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  7. BlueOval

    BlueOval Captain SENIOR MEMBER

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    PM gets covered in Japanese press

    Prime Minister Manmohan Singh's interview to the Japanese media ahead of his three-day visit to the country was extensively covered in the newspapers here Monday, meriting an anchor in The Daily Yomiuri and a front page mention in the International Herald Tribue/Asahi Shimbun edition.

    The Japan Times carried a small report on page 2 on the arrival of the prime minister in the Japanese capital Sunday evening. The story headlined 'Indian leader Singh arrives for trade, nuke talks' said he was in Tokyo for an 'official working visit' to ink a free-trade agreement and discuss with Japanese Prime Minister Naoto Kan a bilateral civil nuclear cooperation pact.

    While the International Herald Tribune/Asahi Shimbun mentioned the interview on the front page and carried the report on the back page, The Daily Yomiuri anchor used a New Delhi datelined story as its anchor with a photograph of the prime minister.

    The daily also had a full inside page titled 'Indian Prime Minister's Visit' with several ads from Indian establishments here - the State Bank of India, the Samrat chain of restaurants, the Indian Chamber of Commerce and Industry Japan (ICCJ) and the HMI Hotel group.

    A column by Samrat restaurant owner and another stating that the ICCJ and the Indian Merchants Association of Yokohama accompanied the ads, as did photographs of Commonwealth Games mascot Shera, the new Terminal 3 of the Indira Gandhi International Airport in New Delhi and the Delhi Metro.

    Japanese prime minister Kan's statement that the country was facing growing security challenges amid the rise in China's naval activity and North Korea's missile development programme was clearly a major worry. It was the lead in both The Daily Yomiuri and The Japan Times.

    That China was a concern both in India and Japan was reflected by the fact that of the five stories on the front page in The Daily Yomiuri, three were on China.

    The Japan Times front page devoted two stories to China while also highlighting the results of the Hokkaido by-election and the disclosures by WikiLeaks.

    PM gets covered in Japanese press
     
  8. BlueOval

    BlueOval Captain SENIOR MEMBER

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    India and Japan

    India and Japan


    According to a survey conducted by the Japan Bank for International Cooperation (JBIC) released in December 2009, covering 620 Japanese manufacturing companies, India remains the second favourite investment destination for Japanese companies after China. 278, or 58 per cent of the companies surveyed wanted to do business with India in the medium term. The survey reflects Japanese companies' mounting interests in Indian businesses, especially in sectors such as automobiles, IT, infrastructure, steel, power and pharmaceuticals.

    Japan ranked seventh in terms of cumulative foreign direct investment (FDI) in India, accounting for US$ 3,714 million in the period from April 2000 to March 2010, of which US$ 1,183 million came in the period April 2009-March 2010, according to the latest data released by the Department of Policy and Promotion (DIPP).

    According to the Japanese External Trade Organisation, (JETRO), Japanese firms are increasingly preferring India as an investment destination over China. The number of Japanese companies in India has grown three fold over the last three years from approximately 100 companies in 2006-07 to 300 in 2009-10. "More Japanese companies would enter the Indian market in the coming years," said Naoyoshi Noguchi, retired director-general of JETRO.

    According to investment bankers, India may witness US$ 20 billion worth of Japanese investment by 2012.

    India's exports to Japan in the period 2008-09 stood at US$ 3025.70 million while imports totalled US$ 7886.27 million for the period. During April to December 2009, India exported goods worth US$ 2,479.38 million to Japan. India imported merchandise worth US$ 4823.66 million from Japan during April-December 2009-10.

    Major Japanese funds have been coming into India by way of offshore funds, with many Indian houses such as SBI Capital, UTI and DSP Blackrock raising money from the Japanese markets to invest in India.

    India and Japan have decided to jointly develop one city in India as a 'solar city'. The project aims to reduce its projected demand of conventional energy at the end of five years, through energy efficiency measures and generation from renewable energy installations.

    The two sides also agreed to strengthen cooperation in research and development for promoting renewable energy. As part of the exchange programme, a ten-member delegation from India participated in the Japan-India New and Renewable Energy Seminar in Tokyo in January 2010.

    Further, in May 2010, India and Japan agreed to set up a working group on civilian nuclear energy. The working group is being seen as a first step towards potential civilian nuclear cooperation between the two countries.

    Government Initiatives

    During Japanese Prime Minister Yukio Hatoyama's visit to India in the last week of December 2009, the prime ministers of India and Japan discussed cooperation in infrastructure projects, climate change and security and renewable energy. The two countries also agreed to work out funding and logistical issues relating to the Dedicated Rail Freight Corridor.

    In the course of the visit, the governments of India and Japan also agreed to relax visa rules in a year's time in order to facilitate improved trade and widen cooperation between the two nations.

    In the last week of December 2009, India and Japan signed two important agreements for implementing the ambitious US$ 77.16 billion Delhi-Mumbai Industrial Corridor (DMIC) project which seeks to create integrated investment regions and industrial areas across six states.

    The agreements included collaborating in the development of eco cities that are environmentally and ecologically sustainable along the corridor and setting up of a project development fund to undertake activities like master planning & feasibility studies, preparing project reports and obtaining approvals and bid process management for projects.

    Top Japanese consultants, including Mitsubishi, Nikken Sekkei and IBM Japan, have joined hands with three state governments and the Delhi-Mumbai Industrial Corridor Development Corporation (DMIDC) to develop eco-friendly infrastructure for new cities planned along the DMIC.

    The first phase of the project which was launched in 2006 will be completed by 2018, according to Minister of Commerce and Industry Mr Anand Sharma.

    The corridor will run through six states —Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra—and is being developed as a global manufacturing and trading hub.

    The Japanese consultants will launch feasibility studies to set up the first set of eco-friendly cities in Manesar-Bawal region of Haryana, Dahej, Changodar in Gujarat and Shendra industrial region in Maharashtra, as per the agreements entered into by them, the three state governments and the DMIDC.

    In the first phase, seven cities, each entailing an investment of around US$ 9-10 billion, will be developed.

    Moreover, according to the Japanese ambassador to India, Hideaki Domichi, the Government of Japan is keen to extend financial assistance to the proposed Chennai-Bangalore corridor project. “This project is another strategic area from our point of view. Big Japanese companies like Toyota are already here, and the Chennai area is also attracting a lot of Japanese investments. We will soon work out the exact amount of financial assistance the Japan government will provide for this project,†he said at the 33rd annual general meeting of the Bangalore Chamber of Industry and Commerce in June 2010.

    Once the free trade agreement or the Comprehensive Economic Partnership Agreement (CEPA) is signed and operationalised, 9,000 products—ranging from steel and apparel to drugs and machinery—are expected to be traded either without duty or at substantially reduced tariffs. The CEPA is expected to be signed by the end of the year.

    Further, in order to attract Japanese investments, the Karnataka Government is planning to set up a 1,000-acre 'Japanese village' which will house Japanese industrial and business establishments. The proposed village would be set up near Tumkur.

    Investments & deals

    • The initiatives of the Ministry of Trade and Economy, Japan and the Japan External Trade Organisation (JETRO) have helped rope in Japanese companies into investing in India's first exclusive industrial parks for Japanese firms in Rajasthan. The companies include majors such as Daikin Industries Ltd, Nissin Kyogo Ltd and Mitsui Chemicals.
    • Tata Steel, India's largest steel producer, has entered into a joint venture (JV) with Japan's Nippon Steel for production and sale of automotive cold-rolled flat products at Jamshedpur. The JV is expected to invest US$ 400 million towards setting up of an automobile venture in India.
    • Hitachi Transport System, an offshoot of Japan's Hitachi, has acquired Flyjac Logistics for nearly US$ 54.61 million, giving it a firm footing in India's logistics and warehousing sector. The deal propels Hitachi to the top 10 Indian logistics companies.
    • Japan's JR Kyushu Group and Patni Computer Systems, have announced a 51:49 venture to provide information technology (IT) and product engineering services to the Japanese enterprise market. The venture is being formed with a capital of US$ 1.09 million.

    The Road Ahead

    Japan looks at India as a frontier in the future with its strength in technology.

    Besides automakers, Japanese investments have diversified to include areas such as power plant, pharmaceuticals, home electronics, life and non-life insurance and telecommunication, according to the Ambassador of Japan, Mr Hideaki Domichi. He added, "Our strength is in manufacturing, and more and more Japanese companies are expecting opportunities in the area of environment-related business in which they have competitive edge, or consumer goods and distribution, infrastructure and civil nuclear."

    India and Japan
     
  9. BlueOval

    BlueOval Captain SENIOR MEMBER

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    Strengthening India-Japan ties


    There has been much hype about the India-Japan Comprehensive Economic Partnership Agreement (CEPA) to be signed during the visit of the Prime Minister, Dr Manmohan Singh, to Japan from October 24-26. The deal is expected to slash tariffs on more than 8,000 products including drugs, apparel, agricultural products and machinery, thereby increasing the bilateral trade between both countries from around $13 billion at present to $20 billion by 2012-13.

    According to the Japanese Ambassador to India, Mr Hideaki Domichi, the CEPA will cover about 94 per cent of bilateral trade in goods, reducing the tariff to zero in 10 years. He visualises tremendous push being given to trade in services, intellectual property and investment also, enabling them to take off in a big way.

    It's about time too, since Japan ranks 10th among India's export destinations, and India stands 26th among Japan's export destinations. India will also have to diversify its exports to Japan which comprise mostly of raw materials, minerals, marine products, iron ore, handicrafts, cotton, carpets and leather garments.

    For all the goodies promised, the CEPA needs to be seen in perspective. It is just one among the series of such CEPAs India has already signed, or is in the process of signing, with a number of countries.

    Roadblocks

    Only in March 2008, the Prime Ministers of India and Japan launched an eight-fold initiative for strengthening their global partnership, covering what by now has become familiar terrain in such diplomatic exchanges between India and other countries: Enhanced dialogue and exchanges; comprehensive economic engagement; enhanced security dialogue and cooperation; access to science and technology; cultural and academic cooperation; and strengthening of people-to-people contacts; cooperation in ushering a new Asian era; cooperation in the UN and other international organisations responding to international challenges.

    Actually, the two countries have a long history of inking similar agreements whenever new Prime Ministers take office in either country. There's no want of sincerity and good intentions on both sides. But the problem is that taking these various laudable agreements forward hits two roadblocks.

    First, the feeble follow-up and failure to ensure that the objectives and goals enumerated in earlier documents are fulfilled before signing yet another agreement on the same lines. A follow-up group is no doubt set up, but their labours are most often lost in the ‘dreary desert sands of dead (secretariat) habits'.

    This is what explains the slow progress in the Delhi-Mumbai Industrial Corridor and the Dedicated Freight Corridor, making it unlikely for the Corridors to be operational before 2016.

    Second, for Japan, partnership with India is just one of the many arrangements it has been entering into as a participant in a bewildering number of groupings of Asian countries with which it has greater cultural and linguistic affinities than with India.

    For instance, India's share of Japan's IT services market of $108 billion (which is the second largest in the world) is only $1 to 1.5 billion. There is nothing much to feel happy about in offshoring too in which India's 8-10 per cent share of Japan's total market compares poorly with China's over 50 per cent.

    Promise of CEPA

    In the view of NASSCOM, much of the promise of the CEPA is contingent on Indian IT companies becoming high-end service providers, with differentiated service offerings compared to Chinese counterparts and maintaining their cost advantage and global competitiveness.

    Thus, the hardest part of making the CEPA deliver lies ahead. A duty is cast on the leaders of business and industry in India, especially in the manufacturing and IT-enabled services sectors, to bend their full energies to make the CEPA a success; otherwise, it will also be one of those documents floating about with little to show for it except resounding phraseology.

    The Hindu Business Line : Strengthening India-Japan ties
     
  10. BlueOval

    BlueOval Captain SENIOR MEMBER

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    India, Japan discuss nuclear deal

    India and Japan’s premiers on Monday said they had broadly agreed on a pact to step up trade between the population giant and the high-tech nation but needed time for a deal on civilian nuclear cooperation.

    India’s Prime Minister Manmohan Singh and his counterpart Naoto Kan also stressed the warm ties linking two of Asia’s biggest democracies at a time of high diplomatic tensions between Japan and communist-ruled China.

    Kan said after talks with Singh, who was on a three-day Tokyo visit, that “through this meeting, we were able to confirm and be confident about progress in the strategic global partnership between Japan and India”.

    The two leaders declared the completion of talks on a free trade and investment pact, with a formal signing expected in coming months, under which tariffs on 94 per cent of trade would be phased out within a decade.

    The deal will help Japanese auto giants such as Suzuki who have opened plants in India by lifting tariffs on parts, while also easing access to the market in fast-greying Japan for Indian generic drugs.

    “We signed a joint statement confirming the conclusion of negotiations on a Comprehensive Economic Partnership Agreement between Japan and India,” said Kan after a meeting with Singh.

    Singh called the conclusion of talks launched in 2007 “a historic achievement” which would “open up new business opportunities”.

    They also agreed to cooperate in fields as diverse as stabilising Afghanistan, combating climate change, safeguarding biodiversity, and pushing UN reforms and free trade efforts, a joint statement said.

    On another key agreement sought by New Delhi — civilian nuclear cooperation — the leaders however only said they welcomed the start of talks.

    Japan and India launched negotiations in June on a pact that would allow Tokyo to export its cutting-edge nuclear technology to the energy-hungry South Asian nation, a hotly contested market for atomic plants.

    But Japan is worried by the fact that nuclear-armed India has not signed the Nuclear Non-Proliferation Treaty.

    The start of talks on civilian nuclear cooperation brought cries of protest in Japan from survivors of the US atomic bombings of the cities of Hiroshima and Nagasaki in the final days of World War II.

    Kan said that “we agreed to speed up negotiations for civil nuclear energy cooperation, while seeking India’s understanding of our country’s sentiment as a nuclear-bombed nation”.

    Singh told the joint press conference: “Civil nuclear energy can be another mutually beneficial area of our cooperation.” Singh said earlier in Tokyo that “nuclear power can provide our growing economy with a clean and efficient source of power” but that he understood Japanese “sensitivity” about the issue.

    Singh, speaking before his departure from India, told Japanese media that New Delhi and Tokyo could cooperate on the production of rare earths in India. Singh, who on Monday also had an audience with Emperor Akihito, was on Tuesday due to meet Japanese parliamentarians.

    Singh was then due to travel on to Malaysia and Vietnam, where Southeast Asian leaders will meet other Asian powers, including the premiers of China and Japan, for a summit at the end of the week.

    DAWN.COM | International | India, Japan discuss nuclear deal
     
  11. BlueOval

    BlueOval Captain SENIOR MEMBER

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    India, Japan Boost Defence Ties

    India, Japan Boost Defence Ties

    China’s growing assertiveness in the region is prompting increasingly wary Japan and India to boost defence cooperation.

    The most visible example of this is the first ever Indo-Japan army-to-army staff-level talks that concluded recently. The Indian Army currently holds such talks with nine countries, including Australia and Malaysia (there had in fact been a defence co-operation process between Delhi and Beijing, but this appears to have been placed on hold by an indignant India following Beijing’s recent refusal to grant a visa to an Indian general).

    The fact that Indo-Japan defence cooperation is being bolstered despite Tokyo’s reservations over India’s persistent refusal to sign the Nuclear Non-Proliferation Treaty (NPT) and Comprehensive Test Ban Treaty (CTBT) speaks volumes about the two sides’ determination to improve all-round bilateral ties and their desire to add a truly strategic dimension to their relations. It can only be hoped that Indian Prime Minister Manmohan Singh’s ongoing visit to Japan will be a further step toward further deepening of Indo-Japan engagement.

    An early example of co-operation between the two is the fact that Japan has already built the Indian Navy’s only Floating Dock Navy- 1 (FDN1). The FDN1 was designed by the Indian Institute of Technology and has a lifting capacity of 11,500 tonnes. Now, the Indian Navy is planning to acquire another floating dock, to be stationed in the strategic Andaman and Nicobar islands.

    But it’s not all going to be plain sailing in the defence relationship—the Indian Navy has already looked for expressions of interest for the FDN2, but this time it’s not clear Japan is in the running, and would anyway be facing stiff competition from Russia and Germany.

    India, Japan Boost Defence Ties | Indian Decade
     
  12. BlueOval

    BlueOval Captain SENIOR MEMBER

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    Tokyo turns to Delhi?

    As Tokyo and Beijing continue to trade barbs over their recent maritime altercation, Japan seems to be casting its trading net away from its biggest partner into what it hopes will be more pacific waters.

    On Monday, Japanese Prime Minister Naoto Kan and Indian Prime Minister Manmohan Singh concluded an economic partnership agreement to cut tariffs on the flow of goods in both directions and promote bilateral investment.

    India only accounts for about 1 percent of Japan’s global trade, whereas more than 20 percent of Japanese imports head to China.

    The deal, which took four years of negotiations to come to fruition, will slash tariffs on 94 percent of two-way trade in the 10 years after implementation. The Indian imports under the deal will include industrial products and some agricultural products such as curry, shrimp and lumber. Japan will be able to reach further into the Indian market with goods such as video cameras, fruit and bonsai trees.


    The deal, which still requires the Japanese Diet’s stamp of approval, is likely to be welcomed. Protectionism rarely brings long-term economic benefits, and the pact will help Japan to diversify its exports and reduce reliance on China, with which its relationship is notoriously difficult.

    But the Nikkei, an authoritative business broadsheet, warned Tuesday that the ‘devil lies in the detail of the agreement. One problem is the slow schedule for tariff reductions. According to a similar deal between India and South Korea that took effect in January, many products will become tariff-free in as little as eight years.’

    The two leaders also agreed to expedite talks over a deal that would permit Japanese companies to export civilian nuclear technology to India.

    Yet Japan is also wary of a country that has refused to sign the Nuclear Non-Proliferation Treaty. Former Foreign Minister Katsuya Okada earlier this year warned New Delhi that any more nuclear weapon testing would jeopardise the implementation of such a deal.

    While both sides would benefit from Japan’s nuclear expertise, Tokyo should stick to its principles and seek concrete guarantees that New Delhi won't conduct further N-tests. It would be a shame for Tokyo to miss out on the financial and diplomatic gains of cooperation. But as the only country ever to be on the receiving end of a nuclear attack, Japan should keep its conscience clean on this issue.

    A report Monday also suggested that the European Union is warming to the idea of signing a free trade agreement with Japan. South Korea has already signed FTAs with the EU and the United States, and as Paul said here earlier this month, Japan can learn much from its neighbour.

    As always, the biggest obstacle is Japan’s influential (stubborn?) agricultural sector. If Tokyo is to hook new trade deals, it’s going to have to take a leaf out of Seoul’s book and win farmers over. Let’s hope that this becomes reality sooner rather than later.

    Tokyo turns to Delhi? | Tokyo Notes
     
  13. BlueOval

    BlueOval Captain SENIOR MEMBER

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    A big deal, finally: India-Japan Trade Pact

    The India- Japan Comprehensive Economic Partnership Agreement (CEPA), negotiations for which have concluded — with the ‘legal scrubbing’ now underway — promises to be game-changer in range and scope. Provided stakeholders on both sides do walk the talk, and follow through policy implementation with speed. Japan, of course, has had moribund economic growth for two whole decades. For some time now, it has been a situation where its prime ministers seem to last barely a year in office , and its once world-beating corporates are losing ground to others in the region and beyond. Renewed engagement with India should pay rich dividends. The agreement is wideranging and quite comprehensive, includes as it does market access, tariffs, trade in services and investments. It could fast-forward major infrastructure development projects here, such as the dedicated freight corridor and Delhi-Mumbai industrial corridor. In parallel , once the free trade agreement (FTA) between India and Japan comes into force, as many as 9,000 products, ranging from steel, apparel and pharmaceuticals to capital goods are expected to be traded either without duty or at substantially reduced tariffs. There will be a negative list of items on which duties will not be reduced. India’s list would be bigger, with 8% of the tradable items excluded, while Japan would keep about 3% of its merchandise outside the pact. In the medium-term and beyond, the list should to be trimmed and rationalised to better actualise the gains from trade and investment. Japan can no longer afford to wait and watch while others, like South Korea, step up FDI and brand presence here.

    It is also notable that India and Malaysia have concluded negotiations for an FTA. When it becomes operational, we would have FTAs both with Thailand and Malaysia, and more extensive CEPA with Singapore and Korea. Trade purists would aver that bilateral trade pacts are suboptimal, constrained by ‘rules of origin’ issues and the like — and that the right way ahead is multilateral trade reform. However, the ground reality is that all major trading nations seek both bilateral and multilateral agreements. With the Doha Round negotiations in suspended animation , we clearly need to be proactive on bilateral pacts for a variety of trade gains.

    A big deal, finally: India-Japan Trade Pact - The Economic Times
     
  14. Katsuhiro

    Katsuhiro FULL MEMBER

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    I never knew we had a sub-section for us in Indian defense forum. This is good to see.
     
    3 people like this.
  15. Capt.Popeye

    Capt.Popeye Captain SENIOR MEMBER

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    And yes; we would like to hear your opinions on various matters.
     
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