India-Japan Relations Economic, Strategic and Security Cooperation

Edited by G. Jayachandra Reddy

seaps

UGC Centre for Southeast Asian & Pacific Studies Sri Venkateswara University, Tirupati India-Japan Relations Economic, Strategic and Security Cooperation

Edited by G. Jayachandra Reddy

seaps

UGC Centre for Southeast Asian & Pacific Studies Sri Venkateswara University, Tirupati About the Book Fifty years had elapsed for India and Japan to take their bilateral relations to qualitatively new level. Close on the heels of the termination of the Cold War in 1991, India embarked on a proactive strategy, Look East Policy (LEP), so as to deepen and broaden its relations with the countries of Southeast and East Asia. Yet, LEP did not yield desired results insofar as its engagement with Japan was concerned in the context of India's nuclear tests in Pokhran in 1998 to which Japan took serious exception. However, compelled by China's awesome economic and military growth which threatened to upset regional power equilibrium vis-à-vis the decline of the US in the Asia-Pacific, Japan had to reorient its policy towards India whose economic miracle and rising global profile were universally acknowledged India-Japan Relations: and appreciated. The visit to India of the Japanese Prime Minister Economic, Strategic and Security Cooperation Yoshiro Mori in August 2000 represented a complete volte-face in Japan's India policy. Despite the exchange of visits by the Prime ©Copy rights 2014 by the editor Ministers of both countries, it was only 2006 that the practice of holding annual India-Japan Summit was institutionalized which Published by UGC Centre for Southeast Asian & Pacific Studies signified the growing cordiality and mutual understanding Sri Venkateswara University between the two countries. Tirupati-517502 Andhra Pradesh, India The India-Japan Summits, held regularly, have facilitated right Email: [email protected] perceptions of each other and henceforth rapid diversification and strengthening of the bilateral relations. The India-Japan All rights reserved. No part of this book may be reproduced, store in a 'Strategic and Global Partnership' (2006) reflected the retrieval system, or transmitted in any form or by any means, convergence of strategic interests of the two countries, otherwise mechanical, photocopying, recording, or otherwise without the prior hailed as “two major pillars of new Asia”. The flourishing India- written permission of the publisher. Japan partnership received further impetus by the 'Vision for the First Edition: 2014 Strategic and Global Partnership in the Next Decade' (2010) which, according to the Prime Ministers of India and Japan, ISBN: 978-81-926904-6-9 would contribute to 'sustained peace and prosperity in changing and dynamic Asia and the World'. Layout & Printed at: D&Dee - Designing and Creative Production, Nallakunta, Hyderabad - 500 044. Ph No: +91 9440 726 907, 040 - 2764 3862.

ii iii About the Book Fifty years had elapsed for India and Japan to take their bilateral relations to qualitatively new level. Close on the heels of the termination of the Cold War in 1991, India embarked on a proactive strategy, Look East Policy (LEP), so as to deepen and broaden its relations with the countries of Southeast and East Asia. Yet, LEP did not yield desired results insofar as its engagement with Japan was concerned in the context of India's nuclear tests in Pokhran in 1998 to which Japan took serious exception. However, compelled by China's awesome economic and military growth which threatened to upset regional power equilibrium vis-à-vis the decline of the US in the Asia-Pacific, Japan had to reorient its policy towards India whose economic miracle and rising global profile were universally acknowledged India-Japan Relations: and appreciated. The visit to India of the Japanese Prime Minister Economic, Strategic and Security Cooperation Yoshiro Mori in August 2000 represented a complete volte-face in Japan's India policy. Despite the exchange of visits by the Prime ©Copy rights 2014 by the editor Ministers of both countries, it was only 2006 that the practice of holding annual India-Japan Summit was institutionalized which Published by UGC Centre for Southeast Asian & Pacific Studies signified the growing cordiality and mutual understanding Sri Venkateswara University between the two countries. Tirupati-517502 Andhra Pradesh, India The India-Japan Summits, held regularly, have facilitated right Email: [email protected] perceptions of each other and henceforth rapid diversification and strengthening of the bilateral relations. The India-Japan All rights reserved. No part of this book may be reproduced, store in a 'Strategic and Global Partnership' (2006) reflected the retrieval system, or transmitted in any form or by any means, convergence of strategic interests of the two countries, otherwise mechanical, photocopying, recording, or otherwise without the prior hailed as “two major pillars of new Asia”. The flourishing India- written permission of the publisher. Japan partnership received further impetus by the 'Vision for the First Edition: 2014 Strategic and Global Partnership in the Next Decade' (2010) which, according to the Prime Ministers of India and Japan, ISBN: 978-81-926904-6-9 would contribute to 'sustained peace and prosperity in changing and dynamic Asia and the World'. Layout & Printed at: D&Dee - Designing and Creative Production, Nallakunta, Hyderabad - 500 044. Ph No: +91 9440 726 907, 040 - 2764 3862.

ii iii That India and Japan are working in close tandem in the security exponentially” the trade and investment between the two sphere is evidenced in their 'Declaration on Security Cooperation countries. CEPA covering a wide range of areas of economic of 2008' and the 'Action Plan on Security Cooperation of 2009', cooperation will enable India to receive more Japanese FDI in exchange of visits and regular dialogue at the level of the Defence sectors like automobiles, electronics, financial and non-financial Ministers, security dialogue between the Foreign and Defence services and telecommunications. Both the countries have Ministries of both sides and the visits at the level of Chiefs of Staff decided to celebrate and commemorate the momentous occasion of the defence forces of both sides. Having given credence to the of 60th Anniversary of the establishment of India-Japan maritime security cooperation as “one of the pillars” of India- diplomatic relations in a fitting manner in 2012. Japan bilateral relationship, Japan has felt the need for the The fact and figures provided in different articles of this book are creation of a multilateral forum on maritime security in which a valuable source of information for the scholars involved in India would be expected to play a major role. The trilateral research on India-Japan relations with special reference to the dialogue among India, Japan and the US - with which Japan has cooperation in the areas of economy, strategy and security. In been had a long-sustained military alliance - has assumed brief, this volume is useful for all those concerned with the India importance. Bilateral and multilateral exercises epitomize their and Japan bilateral relations in terms of trade, FDI, commerce, naval cooperation, in the context of China's assertiveness and the maritime security and multilateral cooperation. developments in North Korea posing challenges to the regional and global peace and security. India-Japan consultation on maritime security, encompassing non-conventional security threats and disaster relief, is concerned with regional security architecture that subscribes to a multipolar East Asia, as opposed to the China's implicit desire for China-led unipolarity in Asia. Economic cooperation is a dominant feature of India-Japan bilateral relationship. India remains the largest recipient of Japanese ODA that has become a flagship for infrastructure development projects such as the Benguluru Metro, the Kolkata Metro, and the dedicated Freight Corridor West and Delhi- Mumbai Industrial corridor which will directly influence the economic development of India, thereby the quality of life of citizens in these urban areas. New Delhi expressed its deep sense of gratitude to Tokyo's gesture, despite its financial constraints in the wake of the earthquake and tsunami of March 2011. The Comprehensive Economic Partnership Agreement (CEPA), operationalized since August 2011 is expected to “increase

iv v That India and Japan are working in close tandem in the security exponentially” the trade and investment between the two sphere is evidenced in their 'Declaration on Security Cooperation countries. CEPA covering a wide range of areas of economic of 2008' and the 'Action Plan on Security Cooperation of 2009', cooperation will enable India to receive more Japanese FDI in exchange of visits and regular dialogue at the level of the Defence sectors like automobiles, electronics, financial and non-financial Ministers, security dialogue between the Foreign and Defence services and telecommunications. Both the countries have Ministries of both sides and the visits at the level of Chiefs of Staff decided to celebrate and commemorate the momentous occasion of the defence forces of both sides. Having given credence to the of 60th Anniversary of the establishment of India-Japan maritime security cooperation as “one of the pillars” of India- diplomatic relations in a fitting manner in 2012. Japan bilateral relationship, Japan has felt the need for the The fact and figures provided in different articles of this book are creation of a multilateral forum on maritime security in which a valuable source of information for the scholars involved in India would be expected to play a major role. The trilateral research on India-Japan relations with special reference to the dialogue among India, Japan and the US - with which Japan has cooperation in the areas of economy, strategy and security. In been had a long-sustained military alliance - has assumed brief, this volume is useful for all those concerned with the India importance. Bilateral and multilateral exercises epitomize their and Japan bilateral relations in terms of trade, FDI, commerce, naval cooperation, in the context of China's assertiveness and the maritime security and multilateral cooperation. developments in North Korea posing challenges to the regional and global peace and security. India-Japan consultation on maritime security, encompassing non-conventional security threats and disaster relief, is concerned with regional security architecture that subscribes to a multipolar East Asia, as opposed to the China's implicit desire for China-led unipolarity in Asia. Economic cooperation is a dominant feature of India-Japan bilateral relationship. India remains the largest recipient of Japanese ODA that has become a flagship for infrastructure development projects such as the Benguluru Metro, the Kolkata Metro, and the dedicated Freight Corridor West and Delhi- Mumbai Industrial corridor which will directly influence the economic development of India, thereby the quality of life of citizens in these urban areas. New Delhi expressed its deep sense of gratitude to Tokyo's gesture, despite its financial constraints in the wake of the earthquake and tsunami of March 2011. The Comprehensive Economic Partnership Agreement (CEPA), operationalized since August 2011 is expected to “increase

iv v Editorial Note India and Japan have their relations sustained on the positive legacy the strategic focus of the global partnership between Japan and of the old association which has been strengthened by shared India. values of belief in democracy, individual freedom and the rule of Japan-India bilateral trade reached $18.61 billion, in 2012-13, law, which formed the basis for building partnership based on both marginally higher than $18.43 billion in the previous year. Though principle and pragmatism. Today, India is the largest democracy in the share of the India-Japan bilateral trade was minuscule (1.0 per Asia and Japan the most prosperous. In the first decade after cent) in the Japan's total foreign trade, it was in the range of 2.2 to 2.5 diplomatic ties were established, relations between the two per cent of India's total trade in the last couple of years. But Japanese countries were upbeat, as evident from Japanese Prime Minister FDI into India grew exponentially from US$ 139 million in 2004 to Nobusuke Kishi's visit to India in 1957, Prime Minister Nehru's all time high of $5551 million in 2008 due to mega deals particularly return visit to Japan the same year (with a gift of two elephants) and acquisition of Ranbaxy by Daichi Sankyo. Following the decline President Rajendra Prasad's visit in 1958 as well as the visit of their falling in line with the decline in the overall FDI to India, Japan's FDI Highnesses, the then Japanese Crown Prince Akihito and Crown into India in 2012 increased by 19.8% over 2011 to reach $2786 Princess Michiko in 1960 that took the relations to a new level. million, although it accounted for only 2.3% of Japan's overall FDI The momentum of bilateral ties, however, fell short of the outflow in 2012. Japanese FDI into India has mainly been in expectations in the following decades. This is evidenced by automobile, electrical equipment, telecommunications, chemical conspicuously long gap in the high level visits. After Prime Minister and pharmaceutical sectors. Hayato Ikeda's visit to India in 1961, the next Prime Ministerial visit The External Affairs Minister (EAM), Pranab Mukherjee visit to of Yasuhiro Nakasone took place in 1984. Prime Minister Rajiv Japan in March 2007 for the first Annual Strategic Dialogue was Gandhi visit to Tokyo in 1988 was after a gap of 30 years since the reciprocated by the visit of Japanese Foreign Minister, Masahiko last high-level visit from India. At the beginning of the 21st century, Koumura to India in August 2008 for the second Annual Strategic Japan and India resolved to take their bilateral relationship to a Dialogue. Later in July 2009 the EAM S. M. Krishna visited Japan for qualitatively new level. Both realize that the current international the third Annual Strategic Dialogue, who had a fruitful exchange of situation, characterized by inter-dependence and the advent of views with Nakasone on bilateral issues as well as various regional globalization, offers fresh opportunities to both India and Japan for and international issues; of much importance was the negotiations enhanced partnership for mutual benefit. The foundation for this on a Civil Nuclear Cooperation for the peaceful use of nuclear was laid during the visit of Japan's Prime Minister, Yoshiro Mori in energy held in Tokyo in June 2010. The visits of Japanese Foreign August 2000 when Mori and his Indian counterpart Atal Behari Minister, Okada to India (to attend the 4th Annual Strategic Vajpayee, agreed to establish the "Global Partnership in the 21st Dialogue in August 2010) and the EAM S.M. Krishna, accompanied Century". The global partnership between India and Japan reflects a by an official delegation, to Japan in October 2011 (for the 5th broad convergence of their long-term political and economic Annual Strategic Dialogue) paved the way for fruitful discussions aspirations and objectives as well as strategic interests and on a wide range of issues including bilateral, regional and global concerns. Japan and India view each other as partners that have issues. The visit of Foreign Minister Gemba, accompanied by METI responsibility for, and are capable of, responding to global and Minister Edano, to India in April 2012 has an added dimension of regional challenges keeping pace with their global partnership. A bilateral relationship, when the Ministers participated in the 6th strong, prosperous and dynamic India is, therefore, in the interest of India-Japan Strategic Dialogue and the first India-Japan Japan and vice versa. Logical corollary was the decision to reinforce

vi vii Editorial Note India and Japan have their relations sustained on the positive legacy the strategic focus of the global partnership between Japan and of the old association which has been strengthened by shared India. values of belief in democracy, individual freedom and the rule of Japan-India bilateral trade reached $18.61 billion, in 2012-13, law, which formed the basis for building partnership based on both marginally higher than $18.43 billion in the previous year. Though principle and pragmatism. Today, India is the largest democracy in the share of the India-Japan bilateral trade was minuscule (1.0 per Asia and Japan the most prosperous. In the first decade after cent) in the Japan's total foreign trade, it was in the range of 2.2 to 2.5 diplomatic ties were established, relations between the two per cent of India's total trade in the last couple of years. But Japanese countries were upbeat, as evident from Japanese Prime Minister FDI into India grew exponentially from US$ 139 million in 2004 to Nobusuke Kishi's visit to India in 1957, Prime Minister Nehru's all time high of $5551 million in 2008 due to mega deals particularly return visit to Japan the same year (with a gift of two elephants) and acquisition of Ranbaxy by Daichi Sankyo. Following the decline President Rajendra Prasad's visit in 1958 as well as the visit of their falling in line with the decline in the overall FDI to India, Japan's FDI Highnesses, the then Japanese Crown Prince Akihito and Crown into India in 2012 increased by 19.8% over 2011 to reach $2786 Princess Michiko in 1960 that took the relations to a new level. million, although it accounted for only 2.3% of Japan's overall FDI The momentum of bilateral ties, however, fell short of the outflow in 2012. Japanese FDI into India has mainly been in expectations in the following decades. This is evidenced by automobile, electrical equipment, telecommunications, chemical conspicuously long gap in the high level visits. After Prime Minister and pharmaceutical sectors. Hayato Ikeda's visit to India in 1961, the next Prime Ministerial visit The External Affairs Minister (EAM), Pranab Mukherjee visit to of Yasuhiro Nakasone took place in 1984. Prime Minister Rajiv Japan in March 2007 for the first Annual Strategic Dialogue was Gandhi visit to Tokyo in 1988 was after a gap of 30 years since the reciprocated by the visit of Japanese Foreign Minister, Masahiko last high-level visit from India. At the beginning of the 21st century, Koumura to India in August 2008 for the second Annual Strategic Japan and India resolved to take their bilateral relationship to a Dialogue. Later in July 2009 the EAM S. M. Krishna visited Japan for qualitatively new level. Both realize that the current international the third Annual Strategic Dialogue, who had a fruitful exchange of situation, characterized by inter-dependence and the advent of views with Nakasone on bilateral issues as well as various regional globalization, offers fresh opportunities to both India and Japan for and international issues; of much importance was the negotiations enhanced partnership for mutual benefit. The foundation for this on a Civil Nuclear Cooperation for the peaceful use of nuclear was laid during the visit of Japan's Prime Minister, Yoshiro Mori in energy held in Tokyo in June 2010. The visits of Japanese Foreign August 2000 when Mori and his Indian counterpart Atal Behari Minister, Okada to India (to attend the 4th Annual Strategic Vajpayee, agreed to establish the "Global Partnership in the 21st Dialogue in August 2010) and the EAM S.M. Krishna, accompanied Century". The global partnership between India and Japan reflects a by an official delegation, to Japan in October 2011 (for the 5th broad convergence of their long-term political and economic Annual Strategic Dialogue) paved the way for fruitful discussions aspirations and objectives as well as strategic interests and on a wide range of issues including bilateral, regional and global concerns. Japan and India view each other as partners that have issues. The visit of Foreign Minister Gemba, accompanied by METI responsibility for, and are capable of, responding to global and Minister Edano, to India in April 2012 has an added dimension of regional challenges keeping pace with their global partnership. A bilateral relationship, when the Ministers participated in the 6th strong, prosperous and dynamic India is, therefore, in the interest of India-Japan Strategic Dialogue and the first India-Japan Japan and vice versa. Logical corollary was the decision to reinforce

vi vii List of Contributors Ministerial-level Economic dialogue and 2nd Japan-India Multilateral Business Government Dialogue. In addition, as agreed Amb. A.N. Ram : Former Ambassador, Ministry of External by the Prime Ministers of both India and Japan at the Annual Affairs, Govt. of India, New Delhi Summit in December 2009, the 1st India-Japan 2+2 Dialogue was B. Amarnath : Professor, Sri Venkateswara University, held in New Delhi in July 2010. The 2nd India-Japan 2+2 Dialogue Tirupati, Andhra Pradesh 517502, was held in October 2012 in Tokyo. These dialogues formed a strong INDIA. platform to negotiate specific strategic issues and challenges I. Babu Rao : Post Doctoral Fellow, Centre for between them and also with reference to third country. Southeast Asian and Pacific Studies, Sri The growing cooperation and warmth of these two major Asian Venkateswara University, Tirupati. democracies, found expression in commemoration of the Bhawna Pokharna : Senior Lecturer, Department of Political momentous occasion of 60th Anniversary of the establishment of Science, Govt PG College , Chittorhgarh India-Japan diplomatic relations in a fitting manner in 2012. Raj Befitting the burgeoning India-Japan relationship is this volume Gerrit De Vylder : Associate Professor of Economic History “India-Japan Relations: Economic, Strategic and Security & International Political Economy, Sub- Cooperation”, based on 16 articles presented at an International Faculty of Business Studies, Leuven University/Thomas More, Antwerp, Conference organized by the UGC Centre for Southeast Asian and Belgium Pacific Studies, Sri Venkateswara University, Tirupati in November 2012. The authors of these articles are eminent scholars in their K . Girish Kumar : Research Scholar, Sri Venkateswara respective field of specialization. University, Tirupati, Andhra Pradesh 517502, INDIA. The organization of the Conference and the publication of this work would not have been made possible but for the financial support of Naoki Ono : Tokyo Toshi University, Tokyo, Japan the UGC, timely response from the participants, cooperation of my Padmaja Marri : Assistant Professor, Centre for Southeast colleagues and the former Directors of the Centre. I am confident Asian and Pacific Studies, Sri that this compendium which is fairly replete with inspiring and Venkateswara University, Tirupati enlightening matter, would captivate the attention of all categories S. S. Pendse : Associate Professor, Tolani College of of readers, particularly academicians, researchers, policy-makers, Commerce, Andheri, Mumbai students of international relations and all those interested in India- Prabhakaran Paleri : Former Director General of Indian Coast Japan relations as well. Guard, Presently he is a visiting senior professor at the School of Management Studies, Chinmaya Institute of Tirupati Technology, Kannur, Kerala; and holds 11 June 2014 G. Jayachandra Reddy the Admiral R.D. Katari Chair of Excellence in research at the Centre for Strategic Studies.

viii ix List of Contributors Ministerial-level Economic dialogue and 2nd Japan-India Multilateral Business Government Dialogue. In addition, as agreed Amb. A.N. Ram : Former Ambassador, Ministry of External by the Prime Ministers of both India and Japan at the Annual Affairs, Govt. of India, New Delhi Summit in December 2009, the 1st India-Japan 2+2 Dialogue was B. Amarnath : Professor, Sri Venkateswara University, held in New Delhi in July 2010. The 2nd India-Japan 2+2 Dialogue Tirupati, Andhra Pradesh 517502, was held in October 2012 in Tokyo. These dialogues formed a strong INDIA. platform to negotiate specific strategic issues and challenges I. Babu Rao : Post Doctoral Fellow, Centre for between them and also with reference to third country. Southeast Asian and Pacific Studies, Sri The growing cooperation and warmth of these two major Asian Venkateswara University, Tirupati. democracies, found expression in commemoration of the Bhawna Pokharna : Senior Lecturer, Department of Political momentous occasion of 60th Anniversary of the establishment of Science, Govt PG College , Chittorhgarh India-Japan diplomatic relations in a fitting manner in 2012. Raj Befitting the burgeoning India-Japan relationship is this volume Gerrit De Vylder : Associate Professor of Economic History “India-Japan Relations: Economic, Strategic and Security & International Political Economy, Sub- Cooperation”, based on 16 articles presented at an International Faculty of Business Studies, Leuven University/Thomas More, Antwerp, Conference organized by the UGC Centre for Southeast Asian and Belgium Pacific Studies, Sri Venkateswara University, Tirupati in November 2012. The authors of these articles are eminent scholars in their K . Girish Kumar : Research Scholar, Sri Venkateswara respective field of specialization. University, Tirupati, Andhra Pradesh 517502, INDIA. The organization of the Conference and the publication of this work would not have been made possible but for the financial support of Naoki Ono : Tokyo Toshi University, Tokyo, Japan the UGC, timely response from the participants, cooperation of my Padmaja Marri : Assistant Professor, Centre for Southeast colleagues and the former Directors of the Centre. I am confident Asian and Pacific Studies, Sri that this compendium which is fairly replete with inspiring and Venkateswara University, Tirupati enlightening matter, would captivate the attention of all categories S. S. Pendse : Associate Professor, Tolani College of of readers, particularly academicians, researchers, policy-makers, Commerce, Andheri, Mumbai students of international relations and all those interested in India- Prabhakaran Paleri : Former Director General of Indian Coast Japan relations as well. Guard, Presently he is a visiting senior professor at the School of Management Studies, Chinmaya Institute of Tirupati Technology, Kannur, Kerala; and holds 11 June 2014 G. Jayachandra Reddy the Admiral R.D. Katari Chair of Excellence in research at the Centre for Strategic Studies.

viii ix Contents Praful Adagale : Ph.D. Research Fellow, Yashwantrao Chavan National Centre of International About the Book iii Security & Defence Analysis (YCNISDA), University of Pune. Pune. Maharashtra Editorial Note vi (India) List of Contributors ix Pranav Kumar : Assistant Professor-Senior Scale, Department of Geopolitics and Sixty Years of India-Japan Diplomatic Relations-Unrealized 1 International Relations, Manipal Potentials? University, Manipal, 576104 Amb. A. N. Ram Priti Atrey : Assistant Prof. in Economics, Mahila Mahavidyalaya Satikund, Kankhal, Indian versus Japanese Socio-Economic Identity-Japanese 8 Haridwar, Uttarakhand Exceptionalism, Myth or Reality? Gerrit De Vylder Shreyali Srivastava : Third Semester, B.A.LL.B (Hons), Chanakya National Law University Japan-India Relations and Direction of Further Cooperation; 37 ,Patna An Overview V. Srilatha : Assistant Professor, Centre for Indian Naoki Ono Ocean Studies, Osmania University, A Comparative Study of Status of Women in India and Japan Hyderabad, India. 58 Marri Padmaja P. Surya Kumar : Academic Consultant, Dept. of Econometrics, S.V.U. College of Arts, Foreign Direct Investment of Japan in India after Liberalisation 82 S.V.University, Tirupati. Priti Atrey

B. C. Upreti : Former Director, Centre for South Asia Indo-Japan Foreign Direct Investment 102 Studies, University of Rajasthan, Jaipur, India ShreyaliSrivastava B. Venkatesula Reddy : Academic Consultant, Dept. of Political Role of FDI in Economic Development of India: Top Five 116 Sciences and Public Administration, Sectoral Analyses S.V.U. College of Arts, S.V. University, Girish Kumar. K and B. Amarnath Tirupati. India-Japan Economic and Commercial Relations: A Study 128 B. Venkatesula Reddy and P. Surya Kumar

India - Japan strategic Partnership: The Way Ahead 139 Bhawna Pokharna

India-Japan Relations: Growing Engagement 150 I. Babu Rao

x xi Contents Praful Adagale : Ph.D. Research Fellow, Yashwantrao Chavan National Centre of International About the Book iii Security & Defence Analysis (YCNISDA), University of Pune. Pune. Maharashtra Editorial Note vi (India) List of Contributors ix Pranav Kumar : Assistant Professor-Senior Scale, Department of Geopolitics and Sixty Years of India-Japan Diplomatic Relations-Unrealized 1 International Relations, Manipal Potentials? University, Manipal, 576104 Amb. A. N. Ram Priti Atrey : Assistant Prof. in Economics, Mahila Mahavidyalaya Satikund, Kankhal, Indian versus Japanese Socio-Economic Identity-Japanese 8 Haridwar, Uttarakhand Exceptionalism, Myth or Reality? Gerrit De Vylder Shreyali Srivastava : Third Semester, B.A.LL.B (Hons), Chanakya National Law University Japan-India Relations and Direction of Further Cooperation; 37 ,Patna An Overview V. Srilatha : Assistant Professor, Centre for Indian Naoki Ono Ocean Studies, Osmania University, A Comparative Study of Status of Women in India and Japan Hyderabad, India. 58 Marri Padmaja P. Surya Kumar : Academic Consultant, Dept. of Econometrics, S.V.U. College of Arts, Foreign Direct Investment of Japan in India after Liberalisation 82 S.V.University, Tirupati. Priti Atrey

India - Japan strategic Partnership: The Way Ahead 139 Bhawna Pokharna

India-Japan Relations: Growing Engagement 150 I. Babu Rao

x xi Sixty Years of India-Japan Diplomatic India-Japan Relations in the Post 1990 Phase: Some Reflections 175 Relations-Unrealized Potentials? on the Security Sector Cooperation B.C. Upreti Amb. A. N. Ram

India-Japan Maritime Cooperation Extending Milestones 189 Prabhakaran Paleri

Regional Cooperation: A Solution for Maritime Security 202 I Concerns of India S. S. Pendse As we commemorate sixty years of diplomatic relations between the two great nations of Asia, India and Japan, it is noteworthy Mapping India and Japan Maritime Cooperation in the 21st 214 that this relationship derives its unique strength from the Century immutable bonds of history; culture, religion and a civilizational Praful Adagale connect that transcends time and space. In recent times, it has Securing Sea Lanes of Communication (SLOCs) in the 235 been nurtured and shaped by unsurpassed mutual goodwill; Asia-Pacific and India-Japan Cooperation after the end of the Second World War India's contribution to restoring Japan's post-War status was well appreciated, as was Pranav Kumar India's decision to waive reparation payments. In turn, Japan India-Japan Naval Cooperation in the Indo-Pacific Region 249 gifted to India land in the prime location of Tokyo, opposite the V. Srilatha Royal Palace in Chidarigafuchi, next to the Yasukuni Shrine and in front of Budokan, for the Chancery of the Indian Embassy. India thus became one of the first countries in the post-War era to establish a resident diplomatic Mission in Tokyo. Further gestures of goodwill followed and Japan soon became one of the largest sources of economic assistance to India and one of India's major trading, joint venture and technology partners in Asia. II However, the ensuing Cold War kept the two traditional friends substantially apart and the relationship, devoid of content and strategic convergence, remained somewhat tepid and proforma. Many in India felt that Japan had begun to view relations with India through the prism of her Cold War compulsions; India was seen by Japan as tied to the apron strings of the erstwhile Soviet Union and her inconvenient non-aligned policy was anathema; India's perceived hopeless poverty and troubled relations with her neighbours in the sub-continent inevitably placed her in the list of countries to which Gaimusho accorded low or no priority at

xii 1 Sixty Years of India-Japan Diplomatic India-Japan Relations in the Post 1990 Phase: Some Reflections 175 Relations-Unrealized Potentials? on the Security Sector Cooperation B.C. Upreti Amb. A. N. Ram

India-Japan Maritime Cooperation Extending Milestones 189 Prabhakaran Paleri

xii 1 India and Japan Relations Sixty Years of India-Japan Diplomatic Relations-Unrealized Potentials? all. India too, troubled with domestic preoccupations and Summit (EAS), Asia-Europe Dialogue (ASEM), ASEAN Regional economic woes, was unable to consolidate relations with Japan to Forum (ARF), summit level meetings (ASEAN+3+1) and full her advantage. Briefly, after a promising start to our diplomatic dialogue partnership with ASEAN; ASEAN Defense Minister's relations, the ensuing five decades can said to be years of hiatus Meeting (ADMM), Track II Council for Security Cooperation in and unrealized promise for which extra bi-lateral and global Asia-Pacific (CSCAP), Asian Cooperation for Development strategic factors may also have been largely responsible. (ACD) and several other ASEAN and non-ASEAN driven III regional and extra-regional fora, including tri-lateral strategic dialogue between India, the US and Japan, UNESCAP and the The end of the Cold War and the emerging configuration of power Asian Development Bank (ADB). Both are advocates of open and equations in the Asia-Pacific have created new opportunities and free trade, inclined to promoting a possible Asian Economic imperatives which now compel both countries to look at each Community and, in the not too distant future, even an Asian other in a new light. The dismantling of the Cold War strategic Economic Union. These are compelling contemporary architecture in Asia has caused Japan to search for new partners, convergences which in the last decade have catapulted our beyond her traditional friends; India, in the evolving fluid post- relationship to a strategic partnership and dialogue at the summit Cold War situation, also needed to respond by adopting a level since 2006. Added to this, is the challenge posed by the refashioned policy approach to her extended neighbourhood in emerging threats to peace and security caused by territorial the Asia-Pacific; pursuant to the opportunities and imperatives disputes and conflicts in strategically important regions of the inherent in her Look East policy, launched in the early 1990s, she South China Sea, Sea of Japan, off the coast of Vietnam and South could no longer afford to ignore Japan as a strategic partner. It is Korea, and disputes and tensions elsewhere perhaps mainly important to recall here that even at the height of the Cold War caused by China's increasingly aggressive postures and India and Japan never had any significant bi-lateral differences or insensitivity. India too has concerns about the lengthening disagreements; both are democracies and value peace, freedom, Chinese shadows in her immediate vicinity and the un-abating human rights, disarmament and development as planks of their uneasiness along the Sino-Indian border and in her foreign policy; both face similar strategic and political challenges neighbourhood. India and Japan, therefore, share common in the contemporary Asia-Pacific; both are major maritime concerns caused by an assertive China under a new leadership. powers and large energy consumers and importers with shared Our strategic dialogue can no longer be confined to trade, culture concerns over the freedom and safety of the sea lanes; both have and economic issues alone, important as these are, but now need common concerns on present day non-traditional security to cover larger issues of peace, security, stability, maritime threats like terrorism, spread of weapons of mass destruction, cooperation, trans-national crime, terrorism, democracy, human trans-national crime, piracy, cyber crime, climate change and rights, disarmament, development and their management in the natural disasters; and, above all, both have a vital stake in the Asia-Pacific. India and Japan in the emerging scenario are, peace, security and stability of Asia and beyond. Both countries indeed, two important pillars of new emerging security recognize the imperative of economic and commercial architecture in the Asia-Pacific along with China, ASEAN, South interdependence and see each other as major players in the Korea and Australia. Our strategic dialogue must reflect this evolving and complex Asia-Pacific landscape. Buttressed by their reality. The annual summit level dialogue and exchanges at the deepening bi-lateral engagement, India and Japan are expert and technical levels now cover a broad canvas ranging participants in several Pan-Asian organizations like the East Asia from strategic, security, political, economic, developmental,

2 3 India and Japan Relations Sixty Years of India-Japan Diplomatic Relations-Unrealized Potentials? all. India too, troubled with domestic preoccupations and Summit (EAS), Asia-Europe Dialogue (ASEM), ASEAN Regional economic woes, was unable to consolidate relations with Japan to Forum (ARF), summit level meetings (ASEAN+3+1) and full her advantage. Briefly, after a promising start to our diplomatic dialogue partnership with ASEAN; ASEAN Defense Minister's relations, the ensuing five decades can said to be years of hiatus Meeting (ADMM), Track II Council for Security Cooperation in and unrealized promise for which extra bi-lateral and global Asia-Pacific (CSCAP), Asian Cooperation for Development strategic factors may also have been largely responsible. (ACD) and several other ASEAN and non-ASEAN driven III regional and extra-regional fora, including tri-lateral strategic dialogue between India, the US and Japan, UNESCAP and the The end of the Cold War and the emerging configuration of power Asian Development Bank (ADB). Both are advocates of open and equations in the Asia-Pacific have created new opportunities and free trade, inclined to promoting a possible Asian Economic imperatives which now compel both countries to look at each Community and, in the not too distant future, even an Asian other in a new light. The dismantling of the Cold War strategic Economic Union. These are compelling contemporary architecture in Asia has caused Japan to search for new partners, convergences which in the last decade have catapulted our beyond her traditional friends; India, in the evolving fluid post- relationship to a strategic partnership and dialogue at the summit Cold War situation, also needed to respond by adopting a level since 2006. Added to this, is the challenge posed by the refashioned policy approach to her extended neighbourhood in emerging threats to peace and security caused by territorial the Asia-Pacific; pursuant to the opportunities and imperatives disputes and conflicts in strategically important regions of the inherent in her Look East policy, launched in the early 1990s, she South China Sea, Sea of Japan, off the coast of Vietnam and South could no longer afford to ignore Japan as a strategic partner. It is Korea, and disputes and tensions elsewhere perhaps mainly important to recall here that even at the height of the Cold War caused by China's increasingly aggressive postures and India and Japan never had any significant bi-lateral differences or insensitivity. India too has concerns about the lengthening disagreements; both are democracies and value peace, freedom, Chinese shadows in her immediate vicinity and the un-abating human rights, disarmament and development as planks of their uneasiness along the Sino-Indian border and in her foreign policy; both face similar strategic and political challenges neighbourhood. India and Japan, therefore, share common in the contemporary Asia-Pacific; both are major maritime concerns caused by an assertive China under a new leadership. powers and large energy consumers and importers with shared Our strategic dialogue can no longer be confined to trade, culture concerns over the freedom and safety of the sea lanes; both have and economic issues alone, important as these are, but now need common concerns on present day non-traditional security to cover larger issues of peace, security, stability, maritime threats like terrorism, spread of weapons of mass destruction, cooperation, trans-national crime, terrorism, democracy, human trans-national crime, piracy, cyber crime, climate change and rights, disarmament, development and their management in the natural disasters; and, above all, both have a vital stake in the Asia-Pacific. India and Japan in the emerging scenario are, peace, security and stability of Asia and beyond. Both countries indeed, two important pillars of new emerging security recognize the imperative of economic and commercial architecture in the Asia-Pacific along with China, ASEAN, South interdependence and see each other as major players in the Korea and Australia. Our strategic dialogue must reflect this evolving and complex Asia-Pacific landscape. Buttressed by their reality. The annual summit level dialogue and exchanges at the deepening bi-lateral engagement, India and Japan are expert and technical levels now cover a broad canvas ranging participants in several Pan-Asian organizations like the East Asia from strategic, security, political, economic, developmental,

2 3 India and Japan Relations Sixty Years of India-Japan Diplomatic Relations-Unrealized Potentials? cultural, educational, S & T and issues related to maritime, require our two countries to work together. Japan, some in India ecological, energy and cyber security. The annual summit level feel, could be more forthright in condemning state sponsored talks between the Prime Ministers of Japan and India and at other cross border terror and the nexus between terror and trans- levels and their far reaching outcome reflect this changing reality, national crime. Likewise, on common threats posed by climate making the two countries indispensible partners in the Asia- change, natural disasters, pandemics etc, our record of Pacific. This also finds reflection in Japan's considerable and cooperation has been less than noteworthy. On issues of global growing involvement in India's economic and technological economic recession, euro zone crisis, trade, technology, energy growth and in the agreements arrived at recently taking this security, investments and a new global order Japan may be partnership forward and giving it added content and a new inclined to be more forthcoming and India will need to engage direction. Japan and intensify dialogue. These are all subjects that were IV discussed at the recent EAS and ASEAN meetings in Cambodia. Both countries are aspirants to a permanent seat in the UN The above would suggest that in a rapidly changing Asia-Pacific Security Council and both fully deserve representation; but for India and Japan have a special common responsibility and a this to happen, we will need to redouble joint efforts and work for shared agenda. Many scholars believe that the Asia-Pacific is in the democratization of the UN system. India and Japan, among the process of strategic transformation, not only occasioned by others including China, are key to the revival of the global China's perceived aggressiveness but also because of the rise of economy during the ongoing recession, just as they have a central India and the growing cohesiveness of ASEAN, changing responsibility in shaping a new world order with a voice Japanese priorities and the altered strategies being pursued in the commensurate to their potential. region by major extra-regional powers. While India does not believe or participate in what some call “encirclement” of China, VI and seeks cooperative relations with China, she expects China to At the bi-lateral level, India and Japan have come a long way since show greater sensitivity to her concerns on bi-lateral, sub- the Cold War days. Japan is not only India's largest trading continental and regional Asia-Pacific issues. India does not partner in Asia but is also a rapidly growing partner in pursue a policy of confrontation; rather she believes that there is investments, technology tie-ups, joint ventures and tourism. We enough space for both to pursue their legitimate interests. The are poised to finalize and sign a potentially path breaking Free tensions in Northeast Asia, South China Sea, Sea of Japan, Taiwan Trade Agreement (FTA) which is expected to usher in a major Straits, along the coast of Indochina and nearer home in our surge in our economic and commercial relations; Japan is already immediate neighbourhood (Pakistan, Sri Lanka, and Myanmar) the largest ODA provider to India amounting to over 30% of are all symptomatic of China's recent aggressiveness and Japan's total ODA; the flagship Delhi-Mumbai freight/industrial consequent threat of destabilization of peace in the region. India corridor being built with Japanese assistance is expected to and Japan, as democracies, have a special responsibility to deal transform industrial and socio-economic development along the with these challenges through a cooperative approach. corridor. Japanese assistance has also played a vital role in the V infrastructure, agriculture and social sectors. The possibility of Japan cooperating in the nuclear energy sector holds great The threat posed by trans-national and cyber crime, terrorism, potential. At the political and strategic level, the annual summit extremism and the spread of weapons of mass destruction also dialogue in place since 2006 and the strategic partnership have

4 5 India and Japan Relations Sixty Years of India-Japan Diplomatic Relations-Unrealized Potentials? cultural, educational, S & T and issues related to maritime, require our two countries to work together. Japan, some in India ecological, energy and cyber security. The annual summit level feel, could be more forthright in condemning state sponsored talks between the Prime Ministers of Japan and India and at other cross border terror and the nexus between terror and trans- levels and their far reaching outcome reflect this changing reality, national crime. Likewise, on common threats posed by climate making the two countries indispensible partners in the Asia- change, natural disasters, pandemics etc, our record of Pacific. This also finds reflection in Japan's considerable and cooperation has been less than noteworthy. On issues of global growing involvement in India's economic and technological economic recession, euro zone crisis, trade, technology, energy growth and in the agreements arrived at recently taking this security, investments and a new global order Japan may be partnership forward and giving it added content and a new inclined to be more forthcoming and India will need to engage direction. Japan and intensify dialogue. These are all subjects that were IV discussed at the recent EAS and ASEAN meetings in Cambodia. Both countries are aspirants to a permanent seat in the UN The above would suggest that in a rapidly changing Asia-Pacific Security Council and both fully deserve representation; but for India and Japan have a special common responsibility and a this to happen, we will need to redouble joint efforts and work for shared agenda. Many scholars believe that the Asia-Pacific is in the democratization of the UN system. India and Japan, among the process of strategic transformation, not only occasioned by others including China, are key to the revival of the global China's perceived aggressiveness but also because of the rise of economy during the ongoing recession, just as they have a central India and the growing cohesiveness of ASEAN, changing responsibility in shaping a new world order with a voice Japanese priorities and the altered strategies being pursued in the commensurate to their potential. region by major extra-regional powers. While India does not believe or participate in what some call “encirclement” of China, VI and seeks cooperative relations with China, she expects China to At the bi-lateral level, India and Japan have come a long way since show greater sensitivity to her concerns on bi-lateral, sub- the Cold War days. Japan is not only India's largest trading continental and regional Asia-Pacific issues. India does not partner in Asia but is also a rapidly growing partner in pursue a policy of confrontation; rather she believes that there is investments, technology tie-ups, joint ventures and tourism. We enough space for both to pursue their legitimate interests. The are poised to finalize and sign a potentially path breaking Free tensions in Northeast Asia, South China Sea, Sea of Japan, Taiwan Trade Agreement (FTA) which is expected to usher in a major Straits, along the coast of Indochina and nearer home in our surge in our economic and commercial relations; Japan is already immediate neighbourhood (Pakistan, Sri Lanka, and Myanmar) the largest ODA provider to India amounting to over 30% of are all symptomatic of China's recent aggressiveness and Japan's total ODA; the flagship Delhi-Mumbai freight/industrial consequent threat of destabilization of peace in the region. India corridor being built with Japanese assistance is expected to and Japan, as democracies, have a special responsibility to deal transform industrial and socio-economic development along the with these challenges through a cooperative approach. corridor. Japanese assistance has also played a vital role in the V infrastructure, agriculture and social sectors. The possibility of Japan cooperating in the nuclear energy sector holds great The threat posed by trans-national and cyber crime, terrorism, potential. At the political and strategic level, the annual summit extremism and the spread of weapons of mass destruction also dialogue in place since 2006 and the strategic partnership have

4 5 India and Japan Relations Sixty Years of India-Japan Diplomatic Relations-Unrealized Potentials? opened new vistas of cooperation based on mutual interest and at the governmental level, it is equally necessary to broad base our convergence. The 2008 agreement on advancement of strategic relations and to make them less government-driven. At the and global partnership has taken our engagement to a new level people-to-people level, the mutually reinforcing web of our of partnership. Our leaders now invariably exchange annual interaction is still minimal and needs to be upgraded; for this to visits and meet on the sidelines of major international happen, links at the cultural, legislative, judicial, academic, conferences. business, media, S&T and institutional tie-ups between VII universities, local level governments and leaders will need to be strengthened. Democracies have their own impulses to create, While all this augurs well for the future, we cannot overlook the nurture and sustain such links. People have to become central to fact that our dialogue and partnership is still in a nascent stage of this deepening relationship at the governmental level. The Japan evolution. While there are compelling economic and strategic Foundation and several other organizations are playing a convergences, there are also differing nuances on issues like catalytic role. Japan has a tradition of scholars who have spent a nuclear energy, revival of the global economy following the lifetime in the study of Indology. Names like those of Hajime recent crisis, nuclear disarmament, environment and the future Nakamura, Tanaka, Karashima, Che Nakane, Togo and many eco-political global and regional architecture; there are question others come to mind. India too needs to encourage this tradition marks on free access to the Japanese market, capital and of study of the eastern cultures and languages in universities and technology; we continue to have differing approaches on the centres of excellence. Briefly, people-to-people links are vital for Doha Round of trade talks, Rio action plan, some social issues etc; consolidating and sustaining partnership and these links, to the Japan still appears equivocal on sub-continental equations and extent possible, should be placed on auto pilot. on India's growing role in the Asia-Pacific and beyond; her somewhat guarded position on Pakistan's sponsorship of cross VIII border terrorism, extremism and its nexus with trans-national There should be no doubt in anyone's mind that Japan and India, crime appears less than forthright to some. The quality and Asia's two largest democracies and major economic powers, content of India-Japan dialogue in the Asia-Pacific and other fora along with some others, hold the key to the unfolding Asian leaves much to be desired as, some argue, Japan, a part of the Century driven, among others, by these two great countries. If western military alliance, still largely sees herself as a Western Asia is to occupy centre stage in the coming decades, Japan and bloc nation seeking limited and selective convergences with India will need to work closely together. If that fails to happen, the India. Japan will have to look at India in a new light dictated by future of the Asia-Pacific is bound to be negatively affected. It, the geopolitical reality of the rapidly changing Asia-Pacific and therefore, is imperative that India-Japan partnership and global imperatives, rather than through the prism of the Cold War cooperation realize its inherent full potential for both have a vital mindset. India too will have to focus on Northeast Asia, East Asia stake in it and are natural allies in the contemporary Asia-Pacific. and on Japan's pivotal role as a leading Asian nation, keeping the changing scenario in mind. Briefly, both Japan and India need to fully rediscover each other in the new evolving scenario which requires closer cooperation between the two. The strategic dialogue is, perhaps, the beginning of this process but we still have a long way to go. As we consolidate our bi-lateral interaction

6 7 India and Japan Relations Sixty Years of India-Japan Diplomatic Relations-Unrealized Potentials? opened new vistas of cooperation based on mutual interest and at the governmental level, it is equally necessary to broad base our convergence. The 2008 agreement on advancement of strategic relations and to make them less government-driven. At the and global partnership has taken our engagement to a new level people-to-people level, the mutually reinforcing web of our of partnership. Our leaders now invariably exchange annual interaction is still minimal and needs to be upgraded; for this to visits and meet on the sidelines of major international happen, links at the cultural, legislative, judicial, academic, conferences. business, media, S&T and institutional tie-ups between VII universities, local level governments and leaders will need to be strengthened. Democracies have their own impulses to create, While all this augurs well for the future, we cannot overlook the nurture and sustain such links. People have to become central to fact that our dialogue and partnership is still in a nascent stage of this deepening relationship at the governmental level. The Japan evolution. While there are compelling economic and strategic Foundation and several other organizations are playing a convergences, there are also differing nuances on issues like catalytic role. Japan has a tradition of scholars who have spent a nuclear energy, revival of the global economy following the lifetime in the study of Indology. Names like those of Hajime recent crisis, nuclear disarmament, environment and the future Nakamura, Tanaka, Karashima, Che Nakane, Togo and many eco-political global and regional architecture; there are question others come to mind. India too needs to encourage this tradition marks on free access to the Japanese market, capital and of study of the eastern cultures and languages in universities and technology; we continue to have differing approaches on the centres of excellence. Briefly, people-to-people links are vital for Doha Round of trade talks, Rio action plan, some social issues etc; consolidating and sustaining partnership and these links, to the Japan still appears equivocal on sub-continental equations and extent possible, should be placed on auto pilot. on India's growing role in the Asia-Pacific and beyond; her somewhat guarded position on Pakistan's sponsorship of cross VIII border terrorism, extremism and its nexus with trans-national There should be no doubt in anyone's mind that Japan and India, crime appears less than forthright to some. The quality and Asia's two largest democracies and major economic powers, content of India-Japan dialogue in the Asia-Pacific and other fora along with some others, hold the key to the unfolding Asian leaves much to be desired as, some argue, Japan, a part of the Century driven, among others, by these two great countries. If western military alliance, still largely sees herself as a Western Asia is to occupy centre stage in the coming decades, Japan and bloc nation seeking limited and selective convergences with India will need to work closely together. If that fails to happen, the India. Japan will have to look at India in a new light dictated by future of the Asia-Pacific is bound to be negatively affected. It, the geopolitical reality of the rapidly changing Asia-Pacific and therefore, is imperative that India-Japan partnership and global imperatives, rather than through the prism of the Cold War cooperation realize its inherent full potential for both have a vital mindset. India too will have to focus on Northeast Asia, East Asia stake in it and are natural allies in the contemporary Asia-Pacific. and on Japan's pivotal role as a leading Asian nation, keeping the changing scenario in mind. Briefly, both Japan and India need to fully rediscover each other in the new evolving scenario which requires closer cooperation between the two. The strategic dialogue is, perhaps, the beginning of this process but we still have a long way to go. As we consolidate our bi-lateral interaction

6 7 Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? leadership. In each case the Christian counterparts of these Hindu-Buddhist principles were identified in relation to practical Gerrit De Vylder business wisdom. De Vylder (2010) then argued that the identification of common values encourages the implementation of common business ethics and leadership principles. He also argues that this in turn facilitates business negotiations. Abstract A second option, however, is to appreciate differences in order to This paper aims to demonstrate that Japan was not an “exception” compared to India and other Asian nations, as the Eurocentric historiography has been claiming since increase understanding. The comparative model of Prof. Ulrich the end of the 19th century. By using methodologies and concepts introduced by Libbrecht (2007) is in this regard very useful. It compares different Libbrecht (2007) and Sen (2005, 2006 and 2009) it is established that India and philosophical world and life views while taking as starting point Japan reflected similar ways of socio-economic thinking but their final collective the equal value of all cultures and riches of diversity. Libbrecht choices were however very different, resulting from their respective geo-political and argues that accepting the differences is a way to understand geo-economic realities, and not from cultural factors. It is concluded that a more balanced approach to world history in which the roles of Japan and India are put into others and to learn from them. He reduces the complex surface a broader perspective is needed in order to facilitate genuine cross-cultural structure of a culture into the basic premises of the deep structure. communication and respect. In doing so he is able to define the hard corn of philosophical Keywords: Japan, India, cross-cultural communication, comparative history, types. He subsequently identifies three general types of world history of economic thinking views which also have implications for the way business is conducted.

TABLE: The Deep Structure of the Three Fundamental World Views (Libbrecht, 2007, p. 152) Introduction This paper aims to identify methods to encourage successful cross-cultural business communication and takes Japan and South Asia as a case-study. We suggest that the religious and cultural traditions and concepts have implications for business leadership and ethics. A comparative approach of these concepts and traditions is therefore useful to identify the similarities and differences as far as business leadership and ethics are concerned. Identifying Similarities versus Appreciating Differences A first option is to explore similarities in order to increase understanding. De Vylder (2010), focussing on India and Western Europe, has already identified similarities between the Catholic In this model Japanese Shintoism (and Chinese Taoism) would be and the Hindu concepts and traditions in relation to the way on “Nature's side”, Advaita and mystic Buddhism would be on business is perceived. His methodology involved a selection of the Mystical Function's side, while Confucianism would be on the Hindu concepts having some relevance for business ethics and Rational Function's side. It is, however, to be noted that even in

8 9 Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? leadership. In each case the Christian counterparts of these Hindu-Buddhist principles were identified in relation to practical Gerrit De Vylder business wisdom. De Vylder (2010) then argued that the identification of common values encourages the implementation of common business ethics and leadership principles. He also argues that this in turn facilitates business negotiations. Abstract A second option, however, is to appreciate differences in order to This paper aims to demonstrate that Japan was not an “exception” compared to India and other Asian nations, as the Eurocentric historiography has been claiming since increase understanding. The comparative model of Prof. Ulrich the end of the 19th century. By using methodologies and concepts introduced by Libbrecht (2007) is in this regard very useful. It compares different Libbrecht (2007) and Sen (2005, 2006 and 2009) it is established that India and philosophical world and life views while taking as starting point Japan reflected similar ways of socio-economic thinking but their final collective the equal value of all cultures and riches of diversity. Libbrecht choices were however very different, resulting from their respective geo-political and argues that accepting the differences is a way to understand geo-economic realities, and not from cultural factors. It is concluded that a more balanced approach to world history in which the roles of Japan and India are put into others and to learn from them. He reduces the complex surface a broader perspective is needed in order to facilitate genuine cross-cultural structure of a culture into the basic premises of the deep structure. communication and respect. In doing so he is able to define the hard corn of philosophical Keywords: Japan, India, cross-cultural communication, comparative history, types. He subsequently identifies three general types of world history of economic thinking views which also have implications for the way business is conducted.

8 9 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? this model Japan and India as such cannot be categorized in an philosopher Ōnishi Hajime (18641900). He was one of the few absolute way. Japanese Christians to gain widespread respect as a philosopher in Japan, and he was critical of both the Confucian stance of Inoue Differences and Similarities between Indian and Tetsujirō and the Buddhist informed ideas of Inoue Enryō. Ônishi Japanese Socio-Economic Thinking: Factual or drew on Kant to argue that Inoue had failed to draw a distinction Perceptive? between ethics (rinri), which was the quest for universal code of In this contribution we want to identify how Indian and Japanese conduct, unknowable to man since they were located in Kant's economic thinkings are similar or not; thus facilitating or not the noumenal realm, and morality (tokkō), which was a specific cross-cultural communication. We also argue that differences formulation of rules governing conduct in particular societies. may not have to do with the actual content of traditions but with a Certainly Onishi's and Sen's terminologies have different mind set to interpret them either in a pragmatic or in a merely meanings from the philosophical point of view. However within theoretical way. The two different Sanskrit concepts of justice in their socio-economic and political contexts the abstract rinri can ancient Indian jurisprudence, niti and nyaya, may clarify this be compared to niti while tokko, having a more practical approach. Amartya Sen (2009, p. xvi & 20-21) introduces both translation, can be compared to nyaya. For Ōnishi, Confucianism concepts in his “The Idea of Justice”. Niti, on the one hand, relates and the Imperial Way were at best examples of tokko or morality in to organizational propriety as well as behavioural correctness. the narrow sense. Thanks to Ōnishi, Kant and Neo-Kantianism Nyaya, on the other hand, is concerned with what emerges and could influence the Kyoto School's political context (Goto-Jones, how, and in particular the lives that people can actually lead. The 2005). early Indian legal theorists talked about the need to avoid “matsyanyaya” or “justice in the world of fish”, where the big fish Case: Japanese Exceptionalism. A Eurocentric Invention can freely devour a small fish. A clear distinction was made or Reality? between judging the institutions and rules on the one hand and One way of arguing is to emphasize the differences between judging the societies themselves on the other. If applied to Japan Japan and the rest of Asia, including India. The 19th century and India it can be argued that both the cultures had religious and conventional eurocentric view was that cultures were not only cultural sources with similar socio-economic contents. However, essentially different but also unequal. In the case of Japan this was considering Japan's success in both economic growth and life expressed through “Japonisme” (from the French “Japon”), a quality and India's lack of it, during the 19th and 20th centuries, it movement similar to Orientalism and Indology, mixing exotism can be suggested that Japan had a nyaya-approach while India a and utopianism, and/or paternalism. Already in 17th century the niti-approach to its socio-economic issues. These different first Japanese works of art had reached Europe. In 1856 the Paris approaches may in turn be connected to the geo-political reality painter Félix Bracquemond and historians Jules & Edmond which is very different for both the countries. Like Sen we Goncourt rediscovered Japanese wood cuts. A typical figure in ultimately argue that the different socio-economic interpretations arts was the Czech painter Emil Orlik (Prague, 1870 Berlin, 1932) of the same or similar religious or philosophical traditions can be who travelled to Japan in 1900-1901 and again in 1905. His colour explained by in different geo-political situations, in the cases of wood cuts (depicting a theatre-teahouse in Tokyo, streets of Japan and India. Tokyo, and pilgrims on their way to Fujiyama, 1900-1901) reflect a picturesque and spiritual Japan, similar to the way Europeans Incidentally a similar distinction in socio-economic and political considered India (exhibition, Museum für Künst und Gewerbe, thinking and approach was already suggested by the Japanese

10 11 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? this model Japan and India as such cannot be categorized in an philosopher Ōnishi Hajime (18641900). He was one of the few absolute way. Japanese Christians to gain widespread respect as a philosopher in Japan, and he was critical of both the Confucian stance of Inoue Differences and Similarities between Indian and Tetsujirō and the Buddhist informed ideas of Inoue Enryō. Ônishi Japanese Socio-Economic Thinking: Factual or drew on Kant to argue that Inoue had failed to draw a distinction Perceptive? between ethics (rinri), which was the quest for universal code of In this contribution we want to identify how Indian and Japanese conduct, unknowable to man since they were located in Kant's economic thinkings are similar or not; thus facilitating or not the noumenal realm, and morality (tokkō), which was a specific cross-cultural communication. We also argue that differences formulation of rules governing conduct in particular societies. may not have to do with the actual content of traditions but with a Certainly Onishi's and Sen's terminologies have different mind set to interpret them either in a pragmatic or in a merely meanings from the philosophical point of view. However within theoretical way. The two different Sanskrit concepts of justice in their socio-economic and political contexts the abstract rinri can ancient Indian jurisprudence, niti and nyaya, may clarify this be compared to niti while tokko, having a more practical approach. Amartya Sen (2009, p. xvi & 20-21) introduces both translation, can be compared to nyaya. For Ōnishi, Confucianism concepts in his “The Idea of Justice”. Niti, on the one hand, relates and the Imperial Way were at best examples of tokko or morality in to organizational propriety as well as behavioural correctness. the narrow sense. Thanks to Ōnishi, Kant and Neo-Kantianism Nyaya, on the other hand, is concerned with what emerges and could influence the Kyoto School's political context (Goto-Jones, how, and in particular the lives that people can actually lead. The 2005). early Indian legal theorists talked about the need to avoid “matsyanyaya” or “justice in the world of fish”, where the big fish Case: Japanese Exceptionalism. A Eurocentric Invention can freely devour a small fish. A clear distinction was made or Reality? between judging the institutions and rules on the one hand and One way of arguing is to emphasize the differences between judging the societies themselves on the other. If applied to Japan Japan and the rest of Asia, including India. The 19th century and India it can be argued that both the cultures had religious and conventional eurocentric view was that cultures were not only cultural sources with similar socio-economic contents. However, essentially different but also unequal. In the case of Japan this was considering Japan's success in both economic growth and life expressed through “Japonisme” (from the French “Japon”), a quality and India's lack of it, during the 19th and 20th centuries, it movement similar to Orientalism and Indology, mixing exotism can be suggested that Japan had a nyaya-approach while India a and utopianism, and/or paternalism. Already in 17th century the niti-approach to its socio-economic issues. These different first Japanese works of art had reached Europe. In 1856 the Paris approaches may in turn be connected to the geo-political reality painter Félix Bracquemond and historians Jules & Edmond which is very different for both the countries. Like Sen we Goncourt rediscovered Japanese wood cuts. A typical figure in ultimately argue that the different socio-economic interpretations arts was the Czech painter Emil Orlik (Prague, 1870 Berlin, 1932) of the same or similar religious or philosophical traditions can be who travelled to Japan in 1900-1901 and again in 1905. His colour explained by in different geo-political situations, in the cases of wood cuts (depicting a theatre-teahouse in Tokyo, streets of Japan and India. Tokyo, and pilgrims on their way to Fujiyama, 1900-1901) reflect a picturesque and spiritual Japan, similar to the way Europeans Incidentally a similar distinction in socio-economic and political considered India (exhibition, Museum für Künst und Gewerbe, thinking and approach was already suggested by the Japanese

10 11 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? lithographies, Hamburg, 2012) . Likewise the famous exception”. However, it should be emphasized that until the impressionist Vincent van Gogh painted plum trees, a Plum beginning of the 19th century the notion of racial “superiority” Garden (after the Japanse artist Hirosighe), and a Geisha (“La did not exist as such in Western Europe. In fact, while still lacking Courtisane”), all inspired by Japanese wood cuts. Also the Art concrete information on the Eastern civilisations, many authors Nouveau, with its linear and flowering ornaments, was strongly consider Japan and India as equal or even superior to Europe. A influenced by Japanese art (exhibition Vincent Van Gogh, certain degree of West European xenophobia may have existed Hermitage Museum, Amsterdam, 2012/13). but “the East” was already for centuries represented as a “Utopia” The Battle of Tsushima (cfr. water painting on rice paper, or even a model. The famous French philosopher Voltaire (1694- Internationales Maritimes Museum Hamburg) on May 14th 1905, 1778), who referred to China as the first and major world being not only the first modern sea battle but also the first victory civilization in his “Essai sur l'histoire générale et sur les moeurs et of an Asian nation (Japan) against a European one (Russia) since l'esprit des nations” (1756), Irish-English novelist Jonathan Swift European imperialism forced Europeans to reconsider their discovered “Eastern” empires and considered them either as an views on Japan. The idea of “Japanese exceptionalism” was alternative to, or as a pretext to criticize the socio-economic and introduced when European scholars started to look for “excuses” political systems of Western Europe of his days. The difference to explain Japan's economic and technological successes. There ofcourse is that scholars like Voltaire considered the real countries still seems to be a widespread agreement among the European like China, Japan and India. Of all the remote regions of the globe historians that with the exception of Japan, feudalism, as was visited by the main character of Swift's classic satirical narrative experienced in medieval Europe, was absent in the rest of the “Gulliver's Travels” (1726), Japan and Fort St. George (possibly the world. This “Japanese exceptionalism” was typical of present-day Chennai, in South India) are the only real places Eurocentrism and contained a slightly negative bend towards the existing. Significantly the “heathen” Japanese were portrayed in a other Asian giants like China and India. Historians like Anderson better light than the Protestant Dutch. But in other sense it can be (quoted by Goody, 2006, p. 94) argue that Japan developed a said that swift basically invented countries for making a point. system similar to Europe in the 14th to 15th centuries, explaining Clearly Swift intentionally considered only a “fantasy-world”, Japan's early achievements in industrial capitalism, often seen as whereas Voltaire emphasized the true existence of these contrasting with China's and India's experience. Goody (2006, p. countries. But in fact Voltaire's China had little to do with the real 94) describes it as “a judgement that has turned out to be distinctively China. This suggests that the new Orientalist genre had more to premature”, considering the People's Republic's growth since the do with European yearnings than Asian reality (De Vylder, 2008, 1980s and India's growth since the 1990s. Goody demonstrates p. 93-108). that there are no supposedly unique characteristics of earlier Remarkably, this utopian interpretation of Japan would repeat Japan. itself after the Second World War. As it was felt that Europe was This concept of “Japanese exceptionalism”, creating a sharp self-destructive, “Eastern” ideas were considered as possible contrast with countries like India, had developed during the last alternatives. Despite Japan's involvement in the Second World quarter of the 19th century in Western Europe. The Europeans, War, from the 1960s onwards a specific interest was shown in suffering from a superiority complex, desperately looked for Japanese Zen Buddhism which stresses the importance of justification to continue their so called civilization mission in the applying meditation to work and art. The other aspects and rest of Asia. Consequently Japan had to be identified as “an movements connected to Mahayana (Greater Vehicle or Great

12 13 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? lithographies, Hamburg, 2012) . Likewise the famous exception”. However, it should be emphasized that until the impressionist Vincent van Gogh painted plum trees, a Plum beginning of the 19th century the notion of racial “superiority” Garden (after the Japanse artist Hirosighe), and a Geisha (“La did not exist as such in Western Europe. In fact, while still lacking Courtisane”), all inspired by Japanese wood cuts. Also the Art concrete information on the Eastern civilisations, many authors Nouveau, with its linear and flowering ornaments, was strongly consider Japan and India as equal or even superior to Europe. A influenced by Japanese art (exhibition Vincent Van Gogh, certain degree of West European xenophobia may have existed Hermitage Museum, Amsterdam, 2012/13). but “the East” was already for centuries represented as a “Utopia” The Battle of Tsushima (cfr. water painting on rice paper, or even a model. The famous French philosopher Voltaire (1694- Internationales Maritimes Museum Hamburg) on May 14th 1905, 1778), who referred to China as the first and major world being not only the first modern sea battle but also the first victory civilization in his “Essai sur l'histoire générale et sur les moeurs et of an Asian nation (Japan) against a European one (Russia) since l'esprit des nations” (1756), Irish-English novelist Jonathan Swift European imperialism forced Europeans to reconsider their discovered “Eastern” empires and considered them either as an views on Japan. The idea of “Japanese exceptionalism” was alternative to, or as a pretext to criticize the socio-economic and introduced when European scholars started to look for “excuses” political systems of Western Europe of his days. The difference to explain Japan's economic and technological successes. There ofcourse is that scholars like Voltaire considered the real countries still seems to be a widespread agreement among the European like China, Japan and India. Of all the remote regions of the globe historians that with the exception of Japan, feudalism, as was visited by the main character of Swift's classic satirical narrative experienced in medieval Europe, was absent in the rest of the “Gulliver's Travels” (1726), Japan and Fort St. George (possibly the world. This “Japanese exceptionalism” was typical of present-day Chennai, in South India) are the only real places Eurocentrism and contained a slightly negative bend towards the existing. Significantly the “heathen” Japanese were portrayed in a other Asian giants like China and India. Historians like Anderson better light than the Protestant Dutch. But in other sense it can be (quoted by Goody, 2006, p. 94) argue that Japan developed a said that swift basically invented countries for making a point. system similar to Europe in the 14th to 15th centuries, explaining Clearly Swift intentionally considered only a “fantasy-world”, Japan's early achievements in industrial capitalism, often seen as whereas Voltaire emphasized the true existence of these contrasting with China's and India's experience. Goody (2006, p. countries. But in fact Voltaire's China had little to do with the real 94) describes it as “a judgement that has turned out to be distinctively China. This suggests that the new Orientalist genre had more to premature”, considering the People's Republic's growth since the do with European yearnings than Asian reality (De Vylder, 2008, 1980s and India's growth since the 1990s. Goody demonstrates p. 93-108). that there are no supposedly unique characteristics of earlier Remarkably, this utopian interpretation of Japan would repeat Japan. itself after the Second World War. As it was felt that Europe was This concept of “Japanese exceptionalism”, creating a sharp self-destructive, “Eastern” ideas were considered as possible contrast with countries like India, had developed during the last alternatives. Despite Japan's involvement in the Second World quarter of the 19th century in Western Europe. The Europeans, War, from the 1960s onwards a specific interest was shown in suffering from a superiority complex, desperately looked for Japanese Zen Buddhism which stresses the importance of justification to continue their so called civilization mission in the applying meditation to work and art. The other aspects and rest of Asia. Consequently Japan had to be identified as “an movements connected to Mahayana (Greater Vehicle or Great

12 13 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality?

Way) Buddhism, emphasizing complete Buddhahood, the Socio-Economic Contradictions within Confucianism perfection of wisdom and compassion, was introduced by and Neo-Confucianism Japanese movements in the 1960s. From this perspective Certainly Confucianism was not typical of Japan, as it had never “Japanese exceptionalism” has been neutralized by a new been a tributary state of China. However, a system usually emphasis on its spiritual traditions, completely in line with identified as Japanese Neo-Confucianism, was introduced during Europe's fascination for Indian spiritual traditions. the Tokugawa or Edo period (16001868) in order to contain 1 Methodology: Religious Paradigms and Socio-Economic violence in society. But then many commentators still linked Thinking and Choices. certain post-Meiji Revolution characteristics of business culture and culture in general to Confucianism (e.g. Boardman and Kato, Arguing that religion is the undermining force, sometimes on a 2003). subconscious level, of the prevailing paradigms in a society, we want to analyse the role of religion in the contemporary socio- In general, Confucianism is usually the culprit explaining why economic history of Japan and India in order to assess the 14th century China started restricting foreign trade and all other similarities or differences between Japan's and India's socio- international contacts. Beattie (2009, p. 151) calls it “one of the most economic identity and also the concept of “Japanese remarkable pieces of self-inflicted damage in economic history”. Most exceptionalism”. In the Western European literature and European commentators refer to Confucius' writings which scholarship also the socio-economic interpretations of Eastern favour stability and the maintenance of existing relationships of religious traditions gradually came to gain prominence. The most hierarchy within the society. They also refer to the Mandarins, the common and traditional is the Weberian interpretation which Emperor's Confucian bureaucrats, who despised and feared was especially successful among 19th century Orientalists, and merchants and did their best to control them. But Confucianism also among some present-day postmodernists, which claims that had already dominated China's politics for more than a Buddhism, Hinduism and other traditions are counterproductive millennium. So why only from the 14th century? for economic growth and any other societal change. First, we In Japan too Edo Neo-Confucianism, known in Japanese as rigaku, consider here all the possible socio-economic interpretations is identified with a hierarchical social philosophy focusing on derived from the two dominating Japanese traditions, Neo- piety. This created a Confucian social stratification in Edo society Confucianism and Buddhism. This may confirm the argument which had not existed earlier dividing the Japanese society into that it is not so much the content but the interpretation within a four main classes: the Samurai, seen as the Japanese equivalent of geo-political context that determines the socio-economic the Chinese scholar-bureaucrats or mandarins, at the top of the thinking. Second, we identify the Indian counterparts since the social hierarchy, then the farmers, and the merchants. This system 19th century. This comparative perspective may again confirm was arguably similar to the caste-system in India. The philosophy that every tradition, in this case the Japanese and Indian, has was carried by samurai who established many Confucian similar potentials and that the geo-political context is decisive as academies. far as the socio-economic thinking and choices are concerned.

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Like the Korean and Chinese Confucianists, Edo Neo- It provided an alternative to ancestor worship, to local shrines, Confucianists believed that the universe could be understood and to Buddhism. Certainly neo-Confucianism allowed the through human reason, and that it was up to man to create a development of science and of alternative views. The absence of harmonious relationship between the universe and the such a relatively open environment in Western Europe may individual. This rationalism is in contrast to the mysticism of the explain the need for radical institutional revolutions, like the previously dominant Buddhism in Japan. Its materialism can Glorious, Cromwellian and especially the French Revolution. arguably be compared to the Indian Lokāyata or Cārvāka Confucian countries, however, had their own revolutions and philosophical schools. Unlike the Buddhists, the Neo-Confucians peasant revolts but the institutional outcome was not so radical. believed that 'Reality' existed, and could be understood by Peter Burke (quoted by Goody, 2006, p. 243) claims that “the mankind, even if the interpretations of reality were slightly parallels between China and Renaissance humanism are remarkable, different depending on the school of Neo-Confucianism. including the emphasis on ethics and literature, the recourse to the classics, the interest in editing texts, the belief that a “humane” It can be argued that the spirit of Neo-Confucian rationalism is education is better than a specialist training as an educator”. diametrically opposed to that of Buddhist mysticism. Whereas Buddhism insisted on the unreality of things, Neo-Confucianism Another view of Confucianism is that it stimulated economic stressed their reality. Buddhism asserted that existence came out growth as it created a “shame society” whereby the disapproval of, and returned to, non-existence; Neo-Confucianism regarded of the wider community enforced good business behaviour. reality as a gradual realization of the Great Ultimate... Buddhists, Beattie (2009) claims that by providing a monitoring mechanism and to some degree, Taoists as well, relied on mediation and within the “self”, guilt societies are better at giving their members insight to achieve supreme reason; the Neo-Confucianists chose the sense of drive and endeavour needed for a flourishing to follow Reason. capitalist society. This can however be compared to the development of “guilt” connected to the “original sin” in West- The argument here is that Confucianism contains a variety of European Christian civilization. We may conclude that neither socio-economic implications and interpretations and it depends hierarchies, shame or the non-existence of revolutionary on geo-political realities which would however come to the tendencies, are exclusively typical of Confucianism. surface. Apart from the socio-economic rigidity which already has been described Confucianism has also always been Japanese “Business Confucianism” and Its Indian characterized by a certain degree of openness. Confucianism Counterparts certainly contrasted with the European and Middle Eastern During the Tokugawa-period, Japan had established a strict class traditions, because even as a state religion. Confucianism, (or caste) system and those involved in business were relegated to allowed other traditions to co-exist with it, ignoring its own the lowest class. When the merchant class gradually became stability. From this perspective it may be compared to Hinduism. economically stronger this resulted in tensions which eventually However arguably Hinduism had not so much allowed co- led to the Meiji revolution. Traditionally the norms of Japanese existence but had rather easily got integrated the elements of business society were fairly well managed by both the emerging other religions. Basically China's, Korea's and Japan's religious merchant class and the Samurai (the ruling class). During the traditions had no dominant players. There is no doubt that greater Meiji Restoration (1868-1912) Japan successfully competed with plurality dominated. Confucianism, while emphasizing morality, foreign merchants who had different rules of trade. Kimura (2005) was secular in nature and rejected the supernatural explanations. attributes this to several distinguished business leaders such as

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Shibusawa Ei'ichi, who introduced Western banking concepts to monopoly.2 It was imperative for the Japanese business Japan, and Iwasaki Yataro, the founder of Mitsubishi Corporate community to maintain circumstances in which each corporation Group. competed fairly. Stronger the business stricter would be its 3 Kimura (2005) argues that Shibusawa Ei'ichi's Confucian ideal of ethics. the “professional manager” (term used by Drucker, 1986, p. 10) in These ethics were also extended to “global responsibility”. From the context of the history of modern Japanese business is the beginning of the twentieth century, Shibusawa argued that instructive for the present-day debate about business ethics. Japanese business leaders and companies should contribute to Shibusawa (1840-1931) played an exceptional role in the history of improve the relationships among the Western countries, and also capitalism, having established approximately five hundred help the development chances of the Asian countries. He also companies. According to his philosophy of “responsible cooperated with the establishment of Japanese news agencies,4 in capitalism”, each was to serve the national interest. Though he order to correct the misunderstandings confronting Japan in the was a risk-taking venture capitalist, he did not support laissez- foreign countries. faire capitalism, favouring a variety of constraints on capitalist In general his basic policy for public relations followed three forces. Business leaders should serve a broader public interest not rules: simplicity, speed, and sincerity. Kimura (2005) comments only for Japan, but also for the world development. Kimura (2005) that identifies the three principles on which his thinking is based. First, the people, businessmen in particular, can and should take “ironically, his policy is the opposite of that practiced by most initiatives in creating wealth for society by creating good Japanese corporations today which, in general, can be criticized as conditions for their economic activities in cooperation with the being “faceless,” unable to present clearly their thoughts and public sector. Second, the public should be informed about the vision and resistant to engaging the public in discussion about concepts and the mechanisms shaping private enterprise. Third, the issues of the day”. Japan should be considered a part of the international society and Yet, above all, business would bring economic growth and should take up its global responsibilities. In addition, he development. For the time being the problem intuitively advocates respect for one's fellow human beings as a precondition identified by Shibusawa was that Japanese society, like the former for successful business activities. ruling samurai class, underestimated the importance of business During his trip to Europe in 1867-1868 Shibusawa observed that activities. However, most merchants, despite their interest in the business leaders were the equals of monarchs and government trends of the political economy, are not committed to politics. officials. In order to change Japanese attitudes towards business His goal is thus to establish Jitsugyo-kai (the business world) community he argued that business activities were supported by whereby business men would aim to change and improve society Confucian principles, the same principles that served as a 2 foundation of samurai ethics during the Edo era. This meant that Shibusawa rejected Iwasaki Yataro's proposal to cooperate with his Mitsubishi (Three Diamonds) Group in order to monopolize merchant marine if wealth was not proper, it did not last long. This pursuit of fair transportation. business dealings not only became consistent with the teaching of 3 Based on this principle, he resigned from the finance ministry in 1873 and Confucianism but also with Adam Smith's An Inquiry to the Nature continued to work, as a private business leader, along with his sponsor, Inoue and Causes of the Wealth of Nations, which had been gradually Kaoru, until his death in 1931. introduced in Japan. He also advocated competition and opposed 4 Such as Kokusai Tsushinsha (International News Agency).

18 19 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality?

18 19 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? equivalent to roles played by politicians and the bureaucracy. To Here we argue that Shibusawa's and other's efforts to reconsider achieve this it is also critical that the public should understand the and revive Confucianism in relation to business behaviour can structure of so-called “Western” systems, like corporations, stock easily be compared to the so-called Bengali renaissance (and to markets, and financial institutions.5 Gradually a new ethical some extent also to Tamil renaissance), reconsidering and consciousness and system would emerge. reviving Hinduism, and to some of the forces behind India's first steps towards industrialization. Shibusawa's Indian counterpart, As wealth accumulated after World War I, many Japanese a “captain of industry”, was Jamshetji Nuserwanji Tata (1839- companies and business leaders were unable to maintain high 1904) who went to Japan to meet Shibusawa Ei'ichi for talks moral principles. Shibusawa's warnings to Japanese business concerning a joint venture for shipping. Tata certainly had a leaders and companies during the 1910s and 1920s were ignored. powerful voice in the debate, being one of the great industrial As soon as the depression hit, the political standards also dropped pioneers of India. His vision was to start academic institutions in down. As a result, a massive invasion of China and consequently order to compensate the India's lack of scientific know-how. The World War II against the United States took off. government of British India limited higher education to the By the end of the 20th century Ryuzaburo Kaku, president of training of civil servants for its huge bureaucratic administration. Canon from 1977 to 1999, gave new oxygen to Japanese business An efficient higher education would promote “technological ethics based on Confucianism. He identified the spirit of “kyosei” capacity” that would lead to sustainable economic growth. as a “spirit of cooperation” in which individuals and While J.N. Tata is close to Shibusawa's practical approach, from a organisations live and work together for the Common Good. This point of view Swami Vivekananda's approach to Hinduism can flows from the literal meaning of kyosei: symbiosis. Kyosei easily be compared to Shibusawa's approach to Confucianism. certainly draws from the Buddhist notion of interdependence or, Swami Vivekananda (1863-1902) knew Japan from a visit on his simply, a pure care. For Kaku, however, it involved a rediscovery way to the World Congress of Religions in Chicago in 1893. The of the Confucian principles of Shuchu kiyaku in which a similar Swami told the young students of India, “Look East”, go to Japan challenge is expressed as “However grave a risk a storm at sea might pose, it is to be feared less than the risk that human greed poses” and learn from them about the development strategy of the Meiji (Thompson, 2010, p.46). Each principle of Shuchu kiyaku links to Government and how they implemented their plans. He admired Confucian texts expressing the virtue of the ruler, the virtue of Japan's discipline, cleanliness, and emphasis on compulsory philanthropy, and the balance between self interest and altruism. universal education. These principles were again given special attention during the But the most remarkabe was the similarity between their socio- development of Tokugawa Confucianism, a brand of Japanese economic views. Just like Shibusawa's focus on Japan's potential, Neo-Confucianism, developed by Fujiwara Seika (1561-1617). He Swami Vivekananda belonged to those who assumed that all saw trade as a way to expand the prosperity of the nation and blessings came from India itself. While practising Vedanta he solidify the foundation of the ruling family. argued for “monks for industrial progress”. The material and spiritual concerns were both got united in the person of Swami Vivekananda. After meditating on a rock in Kanyakumari or Cape Comorin, the Southern most tip of the Indian subcontinent, 5 He established hundreds of companies and business associations in various in the modern state of Tamil Nadu, he became inspired by the other fields, and also became the first president of the present Tokyo Chamber of Commerce, the Tokyo Bank Association, and the Tokyo Stock Exchange. universal doctrine of Vedanta, as an alternative for the traditional

20 21 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? equivalent to roles played by politicians and the bureaucracy. To Here we argue that Shibusawa's and other's efforts to reconsider achieve this it is also critical that the public should understand the and revive Confucianism in relation to business behaviour can structure of so-called “Western” systems, like corporations, stock easily be compared to the so-called Bengali renaissance (and to markets, and financial institutions.5 Gradually a new ethical some extent also to Tamil renaissance), reconsidering and consciousness and system would emerge. reviving Hinduism, and to some of the forces behind India's first steps towards industrialization. Shibusawa's Indian counterpart, As wealth accumulated after World War I, many Japanese a “captain of industry”, was Jamshetji Nuserwanji Tata (1839- companies and business leaders were unable to maintain high 1904) who went to Japan to meet Shibusawa Ei'ichi for talks moral principles. Shibusawa's warnings to Japanese business concerning a joint venture for shipping. Tata certainly had a leaders and companies during the 1910s and 1920s were ignored. powerful voice in the debate, being one of the great industrial As soon as the depression hit, the political standards also dropped pioneers of India. His vision was to start academic institutions in down. As a result, a massive invasion of China and consequently order to compensate the India's lack of scientific know-how. The World War II against the United States took off. government of British India limited higher education to the By the end of the 20th century Ryuzaburo Kaku, president of training of civil servants for its huge bureaucratic administration. Canon from 1977 to 1999, gave new oxygen to Japanese business An efficient higher education would promote “technological ethics based on Confucianism. He identified the spirit of “kyosei” capacity” that would lead to sustainable economic growth. as a “spirit of cooperation” in which individuals and While J.N. Tata is close to Shibusawa's practical approach, from a organisations live and work together for the Common Good. This point of view Swami Vivekananda's approach to Hinduism can flows from the literal meaning of kyosei: symbiosis. Kyosei easily be compared to Shibusawa's approach to Confucianism. certainly draws from the Buddhist notion of interdependence or, Swami Vivekananda (1863-1902) knew Japan from a visit on his simply, a pure care. For Kaku, however, it involved a rediscovery way to the World Congress of Religions in Chicago in 1893. The of the Confucian principles of Shuchu kiyaku in which a similar Swami told the young students of India, “Look East”, go to Japan challenge is expressed as “However grave a risk a storm at sea might pose, it is to be feared less than the risk that human greed poses” and learn from them about the development strategy of the Meiji (Thompson, 2010, p.46). Each principle of Shuchu kiyaku links to Government and how they implemented their plans. He admired Confucian texts expressing the virtue of the ruler, the virtue of Japan's discipline, cleanliness, and emphasis on compulsory philanthropy, and the balance between self interest and altruism. universal education. These principles were again given special attention during the But the most remarkabe was the similarity between their socio- development of Tokugawa Confucianism, a brand of Japanese economic views. Just like Shibusawa's focus on Japan's potential, Neo-Confucianism, developed by Fujiwara Seika (1561-1617). He Swami Vivekananda belonged to those who assumed that all saw trade as a way to expand the prosperity of the nation and blessings came from India itself. While practising Vedanta he solidify the foundation of the ruling family. argued for “monks for industrial progress”. The material and spiritual concerns were both got united in the person of Swami Vivekananda. After meditating on a rock in Kanyakumari or Cape Comorin, the Southern most tip of the Indian subcontinent, 5 He established hundreds of companies and business associations in various in the modern state of Tamil Nadu, he became inspired by the other fields, and also became the first president of the present Tokyo Chamber of Commerce, the Tokyo Bank Association, and the Tokyo Stock Exchange. universal doctrine of Vedanta, as an alternative for the traditional

20 21 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? and conservative interpretations of Hinduism and other religions and also a reason of self-esteem for most Indian farmers. Losing in India. He also emphasized that it would be wrong to assume property rights of their small plots would mean a life of a “bonded that India, because of its spiritual orientation, was in no need of labourer”. Emigration to the cities should be stopped so that the material development and well-being. Swami Vivekananda skilled people, together with their know-how would contribute to wanted “monks for industrial progress”, who would provide a higher agricultural productivity without introducing large- “industrial education” to the people and would, in doing so, scale agro-business techniques. improve their living conditions. Trade and industry could not be Towards the end of his life, he inclined towards the so called stimulated without sufficient scientific know-how and this could “Vedanta socialism”. Swami Vivekananda's socialism did not only be obtained on the basis of free exchanges between India and result from reading Marx or other West-European political other countries. economists but originated from India's philosophical traditions Swami Vivekananda suggested that both the agricultural and themselves. Actually his socialism focused upon the creation of industrial sectors not only exist to produce for domestic equal chances and did not absolutely focus upon any kind of consumption but also for export which contributes to the welfare revolution. In this way he already came close to the principles of of a country. He seriously clashed with those Indians who prided Amartya Sen who would in 1998 receive the Nobel Price for themselves on their spiritual superiority: “These people cannot solve Economics. Swami Vivekananda kept assuming that the the problem of their livelihood, living like cats and dogs, and they talk big differences among people would remain essential in creating about religion! Do away with your so-called religion and engage economic incentives. A few years before his death, in 1897, Swami yourselves in business. People of foreign countries are turning out such Vivekananda founded the Ramakrishna Mission, called after his golden results from the raw materials produced in your country, and you spiritual guide or guru, Paramhansa Ramakrishna (1836-1886), in like asses of burden, are only carrying their load” (Basu, 2000, p. 42). order to promote his philosophy. At the beginning of the 21st On the one hand, analyzing the role of the caste system he century and further also this monastic but socially a very active concluded that cooperation only between members of the same movement is still contributing in many ways to the more global caste could negatively affect the competition position of India. On and spiritual awareness. the other hand, he stated that Indian industrialists should avoid partnerships with British businessmen. But he considered Socio-Economic Contradictions within Buddhism conditionally attracting American capital as an alternative. This Is the socio-economic interpretation of Buddhism also fitted into the spirit of the time: by the end of the 19th century the characterized by a similar vagueness? In Japan, due to the strong US became industrial but had not yet become an imperialist connections of Buddhism to the Shoguns, the new Meiji nation. It was to many countries, victimized by European government adopted a strong anti-Buddhist attitude and instead imperialism, a valid alternative for the West European imperialist promoted Shinto. Within the Buddhist establishment the Western states. world was seen as a threat and a challenge to stand up to. Buddhist institutions had a simple choice: adapt or perish. The However, gradually Swami Vivekananda realized the negative Rinzai and Soto schools of Zen Buddhism chose to adapt, trying to side-effects of a large-scale US capitalism. The use of enormous modernize Zen in accordance with the Western insights, while capital-intensive and labour-extensive machines for cultivating simultaneously maintaining a Japanese identity. Other schools huge plots of agricultural land would be disastrous when applied and Buddhism in general, simply kept seeing their influence to India. Small holdings were mostly the sole source of income waning.

22 23 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? and conservative interpretations of Hinduism and other religions and also a reason of self-esteem for most Indian farmers. Losing in India. He also emphasized that it would be wrong to assume property rights of their small plots would mean a life of a “bonded that India, because of its spiritual orientation, was in no need of labourer”. Emigration to the cities should be stopped so that the material development and well-being. Swami Vivekananda skilled people, together with their know-how would contribute to wanted “monks for industrial progress”, who would provide a higher agricultural productivity without introducing large- “industrial education” to the people and would, in doing so, scale agro-business techniques. improve their living conditions. Trade and industry could not be Towards the end of his life, he inclined towards the so called stimulated without sufficient scientific know-how and this could “Vedanta socialism”. Swami Vivekananda's socialism did not only be obtained on the basis of free exchanges between India and result from reading Marx or other West-European political other countries. economists but originated from India's philosophical traditions Swami Vivekananda suggested that both the agricultural and themselves. Actually his socialism focused upon the creation of industrial sectors not only exist to produce for domestic equal chances and did not absolutely focus upon any kind of consumption but also for export which contributes to the welfare revolution. In this way he already came close to the principles of of a country. He seriously clashed with those Indians who prided Amartya Sen who would in 1998 receive the Nobel Price for themselves on their spiritual superiority: “These people cannot solve Economics. Swami Vivekananda kept assuming that the the problem of their livelihood, living like cats and dogs, and they talk big differences among people would remain essential in creating about religion! Do away with your so-called religion and engage economic incentives. A few years before his death, in 1897, Swami yourselves in business. People of foreign countries are turning out such Vivekananda founded the Ramakrishna Mission, called after his golden results from the raw materials produced in your country, and you spiritual guide or guru, Paramhansa Ramakrishna (1836-1886), in like asses of burden, are only carrying their load” (Basu, 2000, p. 42). order to promote his philosophy. At the beginning of the 21st On the one hand, analyzing the role of the caste system he century and further also this monastic but socially a very active concluded that cooperation only between members of the same movement is still contributing in many ways to the more global caste could negatively affect the competition position of India. On and spiritual awareness. the other hand, he stated that Indian industrialists should avoid partnerships with British businessmen. But he considered Socio-Economic Contradictions within Buddhism conditionally attracting American capital as an alternative. This Is the socio-economic interpretation of Buddhism also fitted into the spirit of the time: by the end of the 19th century the characterized by a similar vagueness? In Japan, due to the strong US became industrial but had not yet become an imperialist connections of Buddhism to the Shoguns, the new Meiji nation. It was to many countries, victimized by European government adopted a strong anti-Buddhist attitude and instead imperialism, a valid alternative for the West European imperialist promoted Shinto. Within the Buddhist establishment the Western states. world was seen as a threat and a challenge to stand up to. Buddhist institutions had a simple choice: adapt or perish. The However, gradually Swami Vivekananda realized the negative Rinzai and Soto schools of Zen Buddhism chose to adapt, trying to side-effects of a large-scale US capitalism. The use of enormous modernize Zen in accordance with the Western insights, while capital-intensive and labour-extensive machines for cultivating simultaneously maintaining a Japanese identity. Other schools huge plots of agricultural land would be disastrous when applied and Buddhism in general, simply kept seeing their influence to India. Small holdings were mostly the sole source of income waning.

22 23 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality?

Out of this struggle grew a remarkable concept called Second there is the liberating interpretation of Buddhism. In the “Nihonjinron”, which stressed Japanese uniqueness. A broad 1950s one section of the traditionally oppressed groups in India range of subjects was taken as typical of Japanese culture. D.T. adopted Buddhism as a political and economic solution to the Suzuki contributed to the “Nihonjinron”-philosophy by taking problem of caste oppression. Buddhism had the advantage of Zen as the distinctive token of Asian spirituality, showing its being an Indian religion and it had the same liberating effect. unique character in the Japanese culture. As a result during the Likewise, in Chinese, Korean and Japanese history Buddhism World War II most Buddhist schools strongly supported Japan's was more intellectually and economically liberating the people remilitarization. During the Post World War II, there was a high than official Confucianism (and popular Taoism in China) as it demand for Buddhist priests who glorified fallen soldiers, and was a dominant religion among the merchants. What is the gave funerals and posthumous names, causing a strong revival. background of this liberating aspect of Buddhism? However, due to secularization and materialism, Buddhism and Buddhist literature refers to the socio-economic situation in the religion in general, continued to decline. fertile Gangaplains in the ancient India. The period between the Apart from this radical interpretation of “Nihonjinron”, several 6th and 4th centuries BC witnessed a crucial phase of state interpretations of the socio-economic dimension of Buddhism, formation. Two distinct forms of government had taken shape: including Mahayana, or Greater Vehicle”-version that had monarchical kingdoms and clan oligarchies. Within the reached China, Korea, and Japan, exist. Mahayana, may be less kingdoms the king had total control over his people and is often individual and stringent compared to other Buddhist traditions. depicted as using power in a wilful and capricious way rather It preached universal salvation and the transferability of “merit” than in a legitimate and controlled capacity. Even those rights, earned by good works. However, contrasting socio-economic considered legitimate by the people, such as private property and interpretations exist. First there is the Weberian interpretation the sanctity of the human person, were often subject to royal that Buddhism was an obstacle to economic growth. But certainly pleasure. This was the environment to which the Buddha reacted this approach received a very relevant attention in the European (Chakravarthi, 2004). post-War socio-ecological movement. Buddha called for One of the most influential doctrines of the 6th century BC was controlled consumption behaviour and that the objective of that of the Ajivikas. This doctrine represents a deep sense of activity can only be a self-sustainable economy. These frustration and human ineffectuality in controlling or shaping characteristics correspond to the utopian socialist “New Village”- one's destiny. Characterizing actions as moral or immoral seemed theory of the Japanese author and artist Saneatsu Mushanokoji meaningless in a society where oppression and the despotic (1885-1976) whose influence even reached China. In December control of human beings were rampant. Thus, what the Buddha 1918 the first “new village” was introduced on the beach of Nikko, was witnessing was the emergence of new relations of production in Kyushu, in accordance with the principles like “no governance, and new doctrines to support these. In sharp contrast the Buddha no exploitation, no oppression, no power from any institution, strongly believed in the power of human action and it is for this and equal appreciation of physical and intellectual labour”. reason that the Ajivikas appear to have been the greatest rivals of Weber emphasized that the resulting escape from materialistic Buddhist doctrines. The Buddha was an ardent advocate of the things creates an obstacle to growth. Connected to this is the doctrine of causality and of the power of human effort in shaping ecological approach, as advocated by E.F. Schumacher (1993 one's destiny. (1973)) in his “Small is Beautiful”.

24 25 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality?

An another development during the period was the emergence of important ideals of Dharma. Moreover, he did not insist on the Brahmins as a distinct priesthood caste. While the Brahmins converting to Buddhism and declared that all religions were repeatedly brought up their privileged status and their right to worthy of respect. He also regarded himself as a father and draw service from social groups which ranked below them, their servant of his people, being responsible for their welfare and position was challenged by the Buddhists who pointed out that happiness. Investments in road infrastructure and political the real employers of service were those who could afford to buy stability promoted economic growth, confirming Kishore's and such services with their wealth regardless of their supposed social Ganpati's (2007, p. 38-41) comparison between Buddhism and rank. The Buddha forbade his followers from living on an income Protestantism. It was that legacy which was brought by derived from slave-trade. The policy of moderation on the part of missionaries and merchants to China, and later on to Korea and the Masters would in turn be rewarded with loyal workers. Japan. But the only real possibility of escaping effectively from the A third interpretation of Buddhism is that it stimulated economic inegalitarian and hierarchical structure of the society was in the growth. There is a connection to the previous liberating institution of the sangha. The sangha was devised as a parallel interpretation. Brahmanism had attributed a low value to the society where one could construct, with immediate effect, a new economic domain. This accounts for the greater popularity of structure of relations. Chakravarthi (2004, p. 20) identifies the Buddhism with all categories of people involved with production sangha as “an institution of the asocial world, an institution outside the (Chakravarthi, 2004). Similarly, taking the doctrine perspective, frontiers of the existing society which was based on the vanishing pre- according to Dasgupta (1993, p. 13-27), the Buddha's principle of class societies of the past”. By breaking the bonds that bound them to “appamada”, which basically means taking care of, or being society, the members of the sangha were abstaining from responsible for, could also be interpreted to be in favour of production (economic activities) and reproduction (marriage promoting growth. This interpretation, of course, became rules) which were the basis of determining the social and relatively popular, when Japan and the Asian Tigers became economic status. Within the sangha there were to be no centres of economically successful after the Second World War and it power. The principle of seniority decided certain administrative received new attention with the economic success of the PRC. The offices and all matters were settled through discussions where a individual spiritual freedom which is so typical of Buddhism consensus was attempted. If consensus failed to emerge a vote comes close to the individual economic freedom. From this was taken to decide the issue. Sen (2009, p. 331), identifies the perspective profits become a reward for initiatives. Also, the role sangha or Buddhist Councils, beginning from the 6th century BC, of the state should be limited since taxation encourages as the cradle of democracy and challenges the “Athens”-theory. corruption. The Indian Mauryan emperor Ashoka (reigned 268-233 BC) The Buddha included shrewdness, capability and the power to actually tried to integrate Buddhism in his style of governance by inspire confidence among his customers as modes of right introducing the “rule of Dharma”. One of the most important conduct for shopkeepers. Also, a merchant should practice thrift, elements in Ashoka's philosophy was the Buddha's doctrine of to the tune of saving 25 per cent of the current income which “ahimsa” or “non-violence” towards all living things. Ashoka should be re-invested in his business. The Vimalakirtinirdesa Sutra recognised that war caused physical suffering and never spells out these rules in some detail. In it the life and teachings of provided a durable solution. His government laid emphasis on Vimalakirti (c. 400 AD), a legendary Buddhist householder are the value of toleration, which he regarded as one of the most explained as an example. Vimalakirti taught that neither

26 27 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality?

26 27 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? monkhood nor household life was an absolutely good. Each is to Christianity and Islam we observe the same contradictions. While be regarded as an instrumental good, a skilful means, for the Islamic law, the “sharia”, emphasizes on the egalitarian achieving progress on the long road to “nirvana”. This pro- principles resulting from uplifting and liberating the people of commerce attitude typical of Buddhism differs both from the Mecca during the 7th C, it also emphasizes the need for commerce Christian traditions and the Classical Ancient Greek traditions. as the prophet was a merchant himself. Buddhism is no different. Latin Christianity, including the Medieval Italian Scholastic Japanese Buddhism and Its Indian Counterparts theologian Thomas Aquinas, condemned the pursuit of personal material wealth as contrary to the will of God, and most Greek No doubt “Nihonjinron” was a source of thinking for the Bengali writers, including Aristotle, associated commerce with fraud, politician Subhas Chandra Bose (1897-1945). Bose's ideas avarice, luxury and moral corruption. completely contradicted both the Gandhi's local cottage industries principle and also Tagore's anti-nationalism (cfr. Is there a similarity to Protestantism as it reacted again to the supra). As chairman of the Congress Party, which was fighting for rigidities of Catholicism and introduced capitalism to Western an independent India, he emphasized in 1938 the need for Europe? One might also suggest a resemblance to the 19th industrial planning for an independent India: century American School of Individualism, which includes philosophers like Herbert Spencer, who were by definition all “There was a day when economic condition depended on arts and Protestants. At least some similarities are confirmed by the crafts. But today…without big factories for all things they economic parameters observed during the period when cannot stand in the world market. India must industrialize… Buddhism became successful in India. There is evidence that The Planning Commission of the Congress will give proper lead. internal and external commerce significantly increased, and the Soviet Russia was the first country which put this idea before the organisational strength and political influence of mercantile world until today when the powers, which call themselves groups also increased. Many members of those got groups Fascist and Nazi, also have adopted the same and India must converted to Buddhism which suited them more than the old follow suit… We can succeed even more, because Indians have Hindu order with its rigid varna hierarchy with elaborate great brains and intelligence” (Basu: 2000, p. 133). sacrificial rites and high tax rates. The richest merchants and their At the beginning of the Second World War Bose disappeared guilds also became the main patrons of the Buddhist monasteries from Calcutta, only to reappear in Berlin, where he met Hitler. He and art. The Ajanta temples, in the modern Indian state of founded an “Indian Legion”, “Freies Indien”, that would be active Maharashtra, for instance, appear to have been financed by in Belgium, the Netherlands and France. During a stay in Brussels traders. Dasgupta's (1993, p. 13-27) conclusion may be too he became acquainted with a German occupied territory like farfetched but illustrates the point: “the Buddhist monasteries were Belgium where the “New Nazi Order” was being implemented probably among India's earliest and most important capitalists”. The with military force. Disappointed with the German interest in him Japanese and Chinese experience with Buddhism was also which was clearly only out of self-interest, he left for Japanese- similar. The monastic wealth provided capital for many local occupied Singapore. Of course, by now, Bose had become an projects, like new bridges and grain mills, outside the centrally undesirable person in the eyes of other freedom fighters like the controlled government spending. Mahatma and also Jawaharlal Nehru (1889-1964) who had So, did Buddhism discourage or encourage economic growth? In successfully portrayed himself as a more moderate modernist all major religions, including Confucianism, Hinduism, and enjoyed the support of the Congress Party. How Bose lost his

28 29 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? monkhood nor household life was an absolutely good. Each is to Christianity and Islam we observe the same contradictions. While be regarded as an instrumental good, a skilful means, for the Islamic law, the “sharia”, emphasizes on the egalitarian achieving progress on the long road to “nirvana”. This pro- principles resulting from uplifting and liberating the people of commerce attitude typical of Buddhism differs both from the Mecca during the 7th C, it also emphasizes the need for commerce Christian traditions and the Classical Ancient Greek traditions. as the prophet was a merchant himself. Buddhism is no different. Latin Christianity, including the Medieval Italian Scholastic Japanese Buddhism and Its Indian Counterparts theologian Thomas Aquinas, condemned the pursuit of personal material wealth as contrary to the will of God, and most Greek No doubt “Nihonjinron” was a source of thinking for the Bengali writers, including Aristotle, associated commerce with fraud, politician Subhas Chandra Bose (1897-1945). Bose's ideas avarice, luxury and moral corruption. completely contradicted both the Gandhi's local cottage industries principle and also Tagore's anti-nationalism (cfr. Is there a similarity to Protestantism as it reacted again to the supra). As chairman of the Congress Party, which was fighting for rigidities of Catholicism and introduced capitalism to Western an independent India, he emphasized in 1938 the need for Europe? One might also suggest a resemblance to the 19th industrial planning for an independent India: century American School of Individualism, which includes philosophers like Herbert Spencer, who were by definition all “There was a day when economic condition depended on arts and Protestants. At least some similarities are confirmed by the crafts. But today…without big factories for all things they economic parameters observed during the period when cannot stand in the world market. India must industrialize… Buddhism became successful in India. There is evidence that The Planning Commission of the Congress will give proper lead. internal and external commerce significantly increased, and the Soviet Russia was the first country which put this idea before the organisational strength and political influence of mercantile world until today when the powers, which call themselves groups also increased. Many members of those got groups Fascist and Nazi, also have adopted the same and India must converted to Buddhism which suited them more than the old follow suit… We can succeed even more, because Indians have Hindu order with its rigid varna hierarchy with elaborate great brains and intelligence” (Basu: 2000, p. 133). sacrificial rites and high tax rates. The richest merchants and their At the beginning of the Second World War Bose disappeared guilds also became the main patrons of the Buddhist monasteries from Calcutta, only to reappear in Berlin, where he met Hitler. He and art. The Ajanta temples, in the modern Indian state of founded an “Indian Legion”, “Freies Indien”, that would be active Maharashtra, for instance, appear to have been financed by in Belgium, the Netherlands and France. During a stay in Brussels traders. Dasgupta's (1993, p. 13-27) conclusion may be too he became acquainted with a German occupied territory like farfetched but illustrates the point: “the Buddhist monasteries were Belgium where the “New Nazi Order” was being implemented probably among India's earliest and most important capitalists”. The with military force. Disappointed with the German interest in him Japanese and Chinese experience with Buddhism was also which was clearly only out of self-interest, he left for Japanese- similar. The monastic wealth provided capital for many local occupied Singapore. Of course, by now, Bose had become an projects, like new bridges and grain mills, outside the centrally undesirable person in the eyes of other freedom fighters like the controlled government spending. Mahatma and also Jawaharlal Nehru (1889-1964) who had So, did Buddhism discourage or encourage economic growth? In successfully portrayed himself as a more moderate modernist all major religions, including Confucianism, Hinduism, and enjoyed the support of the Congress Party. How Bose lost his

28 29 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? life in 1945 remains a mystery. According to the official version Mahatma (Mohandas Karamchand) Gandhi (1869-1948), on the the Japanese plane that carried him collapsed somewhere in other hand, represented a complete economic alternative based Taiwan… on Weber's interpretation of Buddhism. Reacting to the British It is remarkable that an another famous Bengali took up a very refusal to grant India dominion status, despite the important different impression about Japan and Japanese Buddhism. The Indian contribution to the War effort during the First World War, Nobel Prize Winner for Literature in 1913, Rabindranath Tagore Gandhi, after returning from South Africa where as a lawyer he (1861-1941) introduced a spiritual, literary and also a broad- had fought racial segregation, had introduced his non-violence or minded image of India to the world. He agreed with Swami ahimsa-principle as a means of protest. Soon he became known as Vivekananda (cfr. supra) that the “entire personality” of a human the “Mahatma”. He emphasized a “voluntary limitation of needs”, person has to be stimulated and not just the purely ascetic aspect leading to a better equilibrium between man and nature. He or the mechanical use of fingers on a spinning wheel, the ideal suggested to set up self-sufficient village communities in order to activity of Gandhi's philosophy (Basu, 2000). Tagore lacked any reach these goals. After studying both the Buddhist and Hindu economic training. He nevertheless contributed, especially in his sources, he concluded that a peaceful basic-needs approach speeches on nationalism, to Indian thinking on politics and should replace the modern demand-oriented economy. “True economics. Most of these speeches were delivered during trips to economics” coincided with “just economics”. Regardless of the Japan and the US in 1916 and 1917. Tagore argued that all positive objective utility of their production, the “Western” economies social relations which are not mechanical nor impersonal are only focused upon profit and return maximization. As long as contradictory to the notion of a “nation”. One of the major crimes industries alienate themselves from local and appropriate of the cults surrounding a nation was the surrendering by technologies, the economy will continue to lose touch with the individuals of their own free will, replacing it by an abstract objective needs of the people. Man is being made subordinate to strictly organized national will. Tagore explained: “I am not technological progress, economic policy and the game of power against one nation in particular, but against the general idea of all this implies. He is delivered to invisible and unpredictable nations. What is the nation?” (Tagore, 1994, p. 86). His concept of a economic laws which in one stroke can make thousands of people nation was a complete people as an organized power. When lose their jobs. A citizen living in an industrialized environment is executing this power energy and economic means are being no longer self-sufficient but is becoming increasingly vulnerable redrawn from the higher nature of man where he is creative and in to gread and is not satisfied with what he or she produces him or solidarity. Nationalism, in the eyes of Tagore, is immoral, herself. mechanical, self-destructive and counterproductive. Already in Gandhi decided to attack the British colonial system on its 1908 he had written: sensitive target. India produced raw cotton that was processed in “Patriotism cannot be our final spiritual shelter; my refuge is the UK. The resulting final textile products were again shipped to humanity. I will not buy glass for the price of diamonds, and I India where it already had destroyed the local industries in the will never allow patriotism to triumph over humanity as long as 19th century. The profits of this trade went straight into British I live” (quoted by Sen, 2005, p. 108) pockets. The Indians, living in 600,000 villages, suffered from extreme poverty and could no longer sell their local textile His words would linger on during the First World War and when products. Not surprisingly, Gandhi opted for the spinning wheel fascism took over in Italy, Nazism in Germany, and “Nihonjinron” as an effective but peaceful weapon. He himself started spinning in Japan...

30 31 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? life in 1945 remains a mystery. According to the official version Mahatma (Mohandas Karamchand) Gandhi (1869-1948), on the the Japanese plane that carried him collapsed somewhere in other hand, represented a complete economic alternative based Taiwan… on Weber's interpretation of Buddhism. Reacting to the British It is remarkable that an another famous Bengali took up a very refusal to grant India dominion status, despite the important different impression about Japan and Japanese Buddhism. The Indian contribution to the War effort during the First World War, Nobel Prize Winner for Literature in 1913, Rabindranath Tagore Gandhi, after returning from South Africa where as a lawyer he (1861-1941) introduced a spiritual, literary and also a broad- had fought racial segregation, had introduced his non-violence or minded image of India to the world. He agreed with Swami ahimsa-principle as a means of protest. Soon he became known as Vivekananda (cfr. supra) that the “entire personality” of a human the “Mahatma”. He emphasized a “voluntary limitation of needs”, person has to be stimulated and not just the purely ascetic aspect leading to a better equilibrium between man and nature. He or the mechanical use of fingers on a spinning wheel, the ideal suggested to set up self-sufficient village communities in order to activity of Gandhi's philosophy (Basu, 2000). Tagore lacked any reach these goals. After studying both the Buddhist and Hindu economic training. He nevertheless contributed, especially in his sources, he concluded that a peaceful basic-needs approach speeches on nationalism, to Indian thinking on politics and should replace the modern demand-oriented economy. “True economics. Most of these speeches were delivered during trips to economics” coincided with “just economics”. Regardless of the Japan and the US in 1916 and 1917. Tagore argued that all positive objective utility of their production, the “Western” economies social relations which are not mechanical nor impersonal are only focused upon profit and return maximization. As long as contradictory to the notion of a “nation”. One of the major crimes industries alienate themselves from local and appropriate of the cults surrounding a nation was the surrendering by technologies, the economy will continue to lose touch with the individuals of their own free will, replacing it by an abstract objective needs of the people. Man is being made subordinate to strictly organized national will. Tagore explained: “I am not technological progress, economic policy and the game of power against one nation in particular, but against the general idea of all this implies. He is delivered to invisible and unpredictable nations. What is the nation?” (Tagore, 1994, p. 86). His concept of a economic laws which in one stroke can make thousands of people nation was a complete people as an organized power. When lose their jobs. A citizen living in an industrialized environment is executing this power energy and economic means are being no longer self-sufficient but is becoming increasingly vulnerable redrawn from the higher nature of man where he is creative and in to gread and is not satisfied with what he or she produces him or solidarity. Nationalism, in the eyes of Tagore, is immoral, herself. mechanical, self-destructive and counterproductive. Already in Gandhi decided to attack the British colonial system on its 1908 he had written: sensitive target. India produced raw cotton that was processed in “Patriotism cannot be our final spiritual shelter; my refuge is the UK. The resulting final textile products were again shipped to humanity. I will not buy glass for the price of diamonds, and I India where it already had destroyed the local industries in the will never allow patriotism to triumph over humanity as long as 19th century. The profits of this trade went straight into British I live” (quoted by Sen, 2005, p. 108) pockets. The Indians, living in 600,000 villages, suffered from extreme poverty and could no longer sell their local textile His words would linger on during the First World War and when products. Not surprisingly, Gandhi opted for the spinning wheel fascism took over in Italy, Nazism in Germany, and “Nihonjinron” as an effective but peaceful weapon. He himself started spinning in Japan...

30 31 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? the raw Indian cotton. From 1921 he wore only this self-made “Buddhism is based on reason. There is an element of flexibility khadi. The spinning wheel became the symbol of Gandhi's inherent in it which is not to be found in any other religion. The resistance against the British and of the new self-consciousness of real basis of Buddhism is a rational way to eradicate suffering” India as a nation. (quoted by Sharma, 2002). Socialists like J. Nehru and capitalists like V. Patel became But it is also clear that Gandhi's use of Buddhism was contrary to embarrassed by Gandhi's success. Nehru's policy would Ambedkar's principles. The principle of non-violence, which nevertheless be implemented after the independence and would Gandhi had taken from the Buddhist “ahimsa”, could not solve result in the centralization of industrial activity causing the life in nor transcend India's internal problems. As a result also anti- the countless villages of India to rotten. Gandhi had defended Brahmanical, untouchable and Islamic movements developed. swadesi, the spirit to first serve your direct neighbors in the During the Round Table Conference of 1932 in London country before all others and to make use of the local products Ambedkar had refused Gandhi to represent the “Scheduled instead of products from other regions or countries. The local Classes. According to Ambedkar, just like Muslims and Sikhs, the craftsmanship is the source and the foundation of society and Untouchables had also right for a separate electoral body. mechanizing the work is only permitted in case of labor shortage. From the above comparisons between Japanese and Indian case- This “ecological” point of view “avant la lettre” contradicted the studies we suggest that similar attitudes towards business and “spirit of the time”. Gandhi and his disciples were described as socio-economic issues existed in both the countries. The final moralizing old men who lacked any theoretical basis. policy choices and their outcomes however turned out to be very Nevertheless, Gandhi was able to influence the economic policy different explaining Japan's economic successes and India's lack to some extent, as in the case of the protection of small-scale textile of them from the end of the 19th century up to 1991. industries. Even more important is that he inspired generations of Conclusion green and small-scale socio-economic philosophers like This paper has demonstrated that Japan was not an “exception” Schumacher (1993) and Lipton. Basically, the Mahatma paved the as the Eurocentric historiography has been claiming since the end way for the success of the green movement from the 1960s of the 19th century. Both the cases of India and Japan reflect onwards (Parekh, 2005; Jhingan, etc., 2006, p. 507-524). traditions which allowed very similar ways of socio-economic Considering its Indian historical connection it may not be a thinking. The final choices were, however, very different and coincidence that Dr. B.R. Ambedkar, the Indian famous leader of even contradicting. These were the result of their respective geo- the Untouchables (Outcasts, Dalits), was especially inspired by political and geo-economic realities. Japan, thanks to its the liberating principle of Buddhism. Ambedkar considered geographically remote and irrelevant situation up to the mid-19th untouchability a by-product of the caste-system, which was again century, remained independent and reconciled to its traditions a by-product of Hinduism. In 1956 he lived to his promise that “he with modernity and a foreign economic policy focussed on was born a Hindu, but will not die a Hindu”. Together with tens of economic growth and development. It was indeed a very thousands of his followers he got converted to Buddhism. He pragmatic approach similar to the concept of “nyaya”. India, explained his motives: because of its central location on trade routes and historical importance and as a major centre of production and consumption, was unable to maintain its political independence.

32 33 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality? the raw Indian cotton. From 1921 he wore only this self-made “Buddhism is based on reason. There is an element of flexibility khadi. The spinning wheel became the symbol of Gandhi's inherent in it which is not to be found in any other religion. The resistance against the British and of the new self-consciousness of real basis of Buddhism is a rational way to eradicate suffering” India as a nation. (quoted by Sharma, 2002). Socialists like J. Nehru and capitalists like V. Patel became But it is also clear that Gandhi's use of Buddhism was contrary to embarrassed by Gandhi's success. Nehru's policy would Ambedkar's principles. The principle of non-violence, which nevertheless be implemented after the independence and would Gandhi had taken from the Buddhist “ahimsa”, could not solve result in the centralization of industrial activity causing the life in nor transcend India's internal problems. As a result also anti- the countless villages of India to rotten. Gandhi had defended Brahmanical, untouchable and Islamic movements developed. swadesi, the spirit to first serve your direct neighbors in the During the Round Table Conference of 1932 in London country before all others and to make use of the local products Ambedkar had refused Gandhi to represent the “Scheduled instead of products from other regions or countries. The local Classes. According to Ambedkar, just like Muslims and Sikhs, the craftsmanship is the source and the foundation of society and Untouchables had also right for a separate electoral body. mechanizing the work is only permitted in case of labor shortage. From the above comparisons between Japanese and Indian case- This “ecological” point of view “avant la lettre” contradicted the studies we suggest that similar attitudes towards business and “spirit of the time”. Gandhi and his disciples were described as socio-economic issues existed in both the countries. The final moralizing old men who lacked any theoretical basis. policy choices and their outcomes however turned out to be very Nevertheless, Gandhi was able to influence the economic policy different explaining Japan's economic successes and India's lack to some extent, as in the case of the protection of small-scale textile of them from the end of the 19th century up to 1991. industries. Even more important is that he inspired generations of Conclusion green and small-scale socio-economic philosophers like This paper has demonstrated that Japan was not an “exception” Schumacher (1993) and Lipton. Basically, the Mahatma paved the as the Eurocentric historiography has been claiming since the end way for the success of the green movement from the 1960s of the 19th century. Both the cases of India and Japan reflect onwards (Parekh, 2005; Jhingan, etc., 2006, p. 507-524). traditions which allowed very similar ways of socio-economic Considering its Indian historical connection it may not be a thinking. The final choices were, however, very different and coincidence that Dr. B.R. Ambedkar, the Indian famous leader of even contradicting. These were the result of their respective geo- the Untouchables (Outcasts, Dalits), was especially inspired by political and geo-economic realities. Japan, thanks to its the liberating principle of Buddhism. Ambedkar considered geographically remote and irrelevant situation up to the mid-19th untouchability a by-product of the caste-system, which was again century, remained independent and reconciled to its traditions a by-product of Hinduism. In 1956 he lived to his promise that “he with modernity and a foreign economic policy focussed on was born a Hindu, but will not die a Hindu”. Together with tens of economic growth and development. It was indeed a very thousands of his followers he got converted to Buddhism. He pragmatic approach similar to the concept of “nyaya”. India, explained his motives: because of its central location on trade routes and historical importance and as a major centre of production and consumption, was unable to maintain its political independence.

32 33 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality?

Its traditions were consequently used for creating spiritual and De Vylder, G. “Light from India. Europe's Search for Indian Economic socialist alternatives to Western thinking instead of reconciling Wisdom”. Imagine Europe. The Search for European Identity and with it like the Japanese did. In doing so India got trapped in an Spirituality, European SPES Cahiers 3, Antwerp-Apeldoorn: Garant (2009), pp. 113-128. ideological “blaming-attitude” which was “niti”-oriented. De Vylder, G. “Indian Versus European Religious Traditions and As part of the rise of the West from the 18th to the 20th century Transformational Socio-Economic Leadership”. The Great Lakes Herald, Japan has received much attention from conventional Vol. 4, Issue 1, Chennai: Yale-Great Lakes Center for Management international historiography. But in the very near future the main Research (March 2010), pp. 44-52. object of historical scholarship may be as to how to explain the rise De Vylder, G. “Identical Pitfalls for East and West: Different Socio-Economic of India and China in the 21st century. Other perspectives and Interpretations of Hindu-Buddhist Philosophy”. Leadership, historical facts will most probably come to the forefront. Spirituality and the Common Good. East and West Approaches”, European Meanwhile a Eurocentric approach of world history continues to SPES Cahiers 4, Antwerp-Apeldoorn: Garant (2010), pp. 113-128. dominate historiography. Considering the scale of globalization De Vylder, G. “Economic Leadership in the 18th Century Britain: Swift's today, should there not be a more balanced approach to world Orientalism versus Defoe's Pragmatism”. Heroes and Anti-heroes. history in which the roles of Japan and India are presented in a European Literature and the Ethics of Leadership. European SPES Cahiers 5, broader perspective? Antwerpen-Apeldoorn: Garant (2010), pp. 67-90. Drucker, P.F. The frontiers of management. New York: Truman Talley Books/E.P. Dutton, 1986. Goody, J. The Theft of History. Cambridge-etc.: Cambridge University Press, 2006. References Goto-Jones, Ch.S. Political Philosophy in Japan. Nishida, the Kyoto School and Co- Basu, S.P. Economic and Political Ideas: Vivekananda, Gandhi, Subhas Bose. New Prosperity. Abingdon-New York: Routledge, 2005. Delhi: Sterling, 2000. Hobson, J.M. The Eastern Origins of Western Civilization. Cambridge-etc.: Beattie, A. False Economy. A Surprising Economic History of the World. New Cambridge University Press, 2004. York: Riverhead Books/Penguin, 2009. Jhingan, M.L., Girija, M., Manimekalai, A. & Sasikala, L. History of Economic Boardman, Calvin M. and Kato, Hideaki Kiyoshi, “The Confucian Roots of Thought. Delhi: Vrinda Publications, 2006. Business Kyosei”. Journal of Business Ethics, Vol. 48, No. 4, Kluwer Kimura, Masato. “Ethical Challenges Facing Japanese Businesses: Historical Academic Publishers, Dec. 2003, p. 317-333. and Contemporary Observations”. Asian Perspectives, Vol. 29, No. 1 Chakravarthi, U., The Social Philosophy of Buddhism and the Problem of (2005). pp. 135-155. Inequality. New Delhi: Critical Quest, 2004. Kishore, P. & Ganpati, A.K. India. An Illustrated History, Mumbai-etc.: Jaico Dasgupta, A. A History of Indian Economic Thought. London-New York: Publishing House, 2007. Routledge, 1993. Libbrecht, U. Within the Four Seas... Introduction to Comparative Philosophy. De Mente, B.L. Japanese Etiquette & Ethics in Business. Boston-etc.: McGraw Leuven: Peeters, 2007. Hill, 2004 Parekh, Bhikhu. Gandhi. A Very Short Introduction. Oxford-etc.: Oxford De Vylder, G. “The Economics of Oriental Utopia: the Case of Jonathan University Press, 2005. Swift”. Review of Business and Economics, Vol. LIII, No. 1, Leuven: ACCO (Jan.-March 2008), pp. 93-108.

34 35 India and Japan Relations Indian versus Japanese Socio-Economic Identity-Japanese Exceptionalism, Myth or Reality?

34 35 India and Japan Relations Japan-India Relations and Direction of Further Schumacher, E.F. Small is Beautiful. A Study of Economics As If People Mattered. Cooperation: An Overview London-etc.: Vintage, 1993 (1973). Sen, A. The Argumentative India. Writings on Indian History, Culture and Naoki Ono Identity. London-etc.: Allen Lane/Penguin Books, 2005. Sen, A. Identity and Violence. The Illusion of Destiny. London-etc.: Allen Lane/Penguin, 2006. Introduction The purpose of this paper is to present an overview of the recent Sen, A. The Idea of Justice. Cambridge, Mass.: The Belknap Press of Harvard University Press, 2009. Japan-India relations and the direction of their further bilateral cooperation. For this purpose, the paper begins with examining Sharma, H.D. B.R. Ambedkar. A Crusader For Equality. New Delhi: Rupa, 2002 the post cold war world systemic situation as a core background (1917). of the recent Japan-India relations and the possible areas of the Tagore, Rabindranath. Nationalism. New Delhi: Rupa, 2002. bilateral cooperation will be identified based on the world Thompson, M.J. “Operationalising the Common Good in Business through systemic background. Then a comparison of the possible areas of Leadership and Spirituality”. Leadership, Spirituality and the Common cooperation with the actual bilateral relations will be made and Good. East and West Approaches”, European SPES Cahiers 4, Antwerp- causes of gaps between the possible areas of cooperation and the Apeldoorn: Garant (2010), pp. 43-62. real situation will be identified and analyzed. After examining the Tsuru, Shigeto. Japan's Capitalism: Creative Defeat and Beyond. Cambridge- obstacles to prevent further bilateral cooperation, directions for New York-Melbourne: Cambridge University Press, 1996. further the deterioration of the bilateral cooperation will be discussed. Japan-India relations in the historical perspective; limited relations It is well known that Japan had connection with India's independent movement because Mr. Shubhas Chandra Bose developed some of his independence movement ideas during his stay in Japan during WWII. In addition to it, as shown in India's waiver of reparation payment in the Japan-India peace treaty concluded in 1952, India's position toward Japan has been very generous after Japan's surrender at WWII. Friendly and cordial bilateral relationship was maintained throughout the cold war period. The relations, however, was limited mainly to the official level and the fields of cooperation was narrow, mainly through official economic cooperation. But major recipient of Japan's Official Development Assistance (ODA) during the cold war period was Indonesia and other countries in Southeast Asia and later China. In other words, India had necessarily been a major recipient of Japan's ODA. And the bilateral cooperation in other

36 37 India and Japan Relations Japan-India Relations and Direction of Further Schumacher, E.F. Small is Beautiful. A Study of Economics As If People Mattered. Cooperation: An Overview London-etc.: Vintage, 1993 (1973). Sen, A. The Argumentative India. Writings on Indian History, Culture and Naoki Ono Identity. London-etc.: Allen Lane/Penguin Books, 2005. Sen, A. Identity and Violence. The Illusion of Destiny. London-etc.: Allen Lane/Penguin, 2006. Introduction The purpose of this paper is to present an overview of the recent Sen, A. The Idea of Justice. Cambridge, Mass.: The Belknap Press of Harvard University Press, 2009. Japan-India relations and the direction of their further bilateral cooperation. For this purpose, the paper begins with examining Sharma, H.D. B.R. Ambedkar. A Crusader For Equality. New Delhi: Rupa, 2002 the post cold war world systemic situation as a core background (1917). of the recent Japan-India relations and the possible areas of the Tagore, Rabindranath. Nationalism. New Delhi: Rupa, 2002. bilateral cooperation will be identified based on the world Thompson, M.J. “Operationalising the Common Good in Business through systemic background. Then a comparison of the possible areas of Leadership and Spirituality”. Leadership, Spirituality and the Common cooperation with the actual bilateral relations will be made and Good. East and West Approaches”, European SPES Cahiers 4, Antwerp- causes of gaps between the possible areas of cooperation and the Apeldoorn: Garant (2010), pp. 43-62. real situation will be identified and analyzed. After examining the Tsuru, Shigeto. Japan's Capitalism: Creative Defeat and Beyond. Cambridge- obstacles to prevent further bilateral cooperation, directions for New York-Melbourne: Cambridge University Press, 1996. further the deterioration of the bilateral cooperation will be discussed. Japan-India relations in the historical perspective; limited relations It is well known that Japan had connection with India's independent movement because Mr. Shubhas Chandra Bose developed some of his independence movement ideas during his stay in Japan during WWII. In addition to it, as shown in India's waiver of reparation payment in the Japan-India peace treaty concluded in 1952, India's position toward Japan has been very generous after Japan's surrender at WWII. Friendly and cordial bilateral relationship was maintained throughout the cold war period. The relations, however, was limited mainly to the official level and the fields of cooperation was narrow, mainly through official economic cooperation. But major recipient of Japan's Official Development Assistance (ODA) during the cold war period was Indonesia and other countries in Southeast Asia and later China. In other words, India had necessarily been a major recipient of Japan's ODA. And the bilateral cooperation in other

36 37 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview areas, such as security was rare. In addition, relations between the including India were not Japan's primary interests until the Plaza private sectors was not active. For example, as for trade relations, agreement in 1985, when the rapid and significant yen while Japan's major trade partner was the US, the trade was not a appreciation began. This is the third background of the friendly priority policy agenda for India during the cold war period and but very limited bilateral economic relations. India's trade activities was under the government control. Understood from the above, thus, due to the geographical There are three major reasons for this limited and narrow bilateral remoteness, the cold war international systemic background and relationship between the two countries under the cold war. First, different economic interests of the two countries, it was not easy geographically, while Japan is located in the Far East, India is for both Japan and India to establish a close relationship until the positioned in South Asia. So the possibility of physical contacts end of the cold war. between the two countries was much harder than those between In addition, the bilateral cooperation in the past was mainly at the states within the same region. And as understood from the official level and the cooperation at the private levels was limited fact that even though Japan has strong Buddhism influence, during the cold war period. Buddhism was brought not directly from India, but through China. Thus the geographical distance significantly contributed The post cold war world systemic transformation and to the limitation of the cultural exchanges and the historical possibility of cooperation connections between the two countries. In addition to it, after the These situations which were making it difficult to promote Japan- opening of Japan in the mid-19th Century, Japan's interest was India cooperation until the end of the 1980s have been changing. not in Asia but in the West. The world systemic transformation after the cold war and the Second, during the cold war period, the interests of the countries domestic structural changes developing since 1990 are critical in in Asia were in developing the relationships with either the US or this evolution. the USSR and their neighboring countries. So India's primary During the cold war years, the primary concern of the countries concern was in relationship with Pakistan and countries in South other than the two super-powers was as to how to maintain Asia and China. And then the relationship with the Soviet Union relations with the US and the USSR. Further the relations with was important for India. On the other hand, Japan's main interest other countries within the region they were located were linked was in the US and Northeast Asia. Thus the primary security with their relationship with the two super powers under the cold interest of Japan and India under the cold war was different. war. So while Japan's position was based on the US-Japan Besides, the economic interests of the two countries until the end alliance, India played roles as the leader of the non-allied nations of the 1980s were very different. After the Partition of the British in close link with the USSR. India in 1947, India pursued the socialist development model As a result of the end of the cold war and the collapse of the USSR, based on import substitution industrialization strategy. This the US, the only super-power remained, lost the most important means that trade was not a priority of India's economic interest. justification to reach everywhere in the globe. And unlike her On the other hand, Japan's primary economic interest was in the consistent position to cope with the USSR during the cold war US, because the US was her largest trade market, source of period, the US international interests after the cold war have been imported technology which was indispensable for the industrial changing from time to time depending on the issues she has to development and international finance. And the Asian markets deal with, such as nuclear problems in North Korea and Iran, and

38 39 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview areas, such as security was rare. In addition, relations between the including India were not Japan's primary interests until the Plaza private sectors was not active. For example, as for trade relations, agreement in 1985, when the rapid and significant yen while Japan's major trade partner was the US, the trade was not a appreciation began. This is the third background of the friendly priority policy agenda for India during the cold war period and but very limited bilateral economic relations. India's trade activities was under the government control. Understood from the above, thus, due to the geographical There are three major reasons for this limited and narrow bilateral remoteness, the cold war international systemic background and relationship between the two countries under the cold war. First, different economic interests of the two countries, it was not easy geographically, while Japan is located in the Far East, India is for both Japan and India to establish a close relationship until the positioned in South Asia. So the possibility of physical contacts end of the cold war. between the two countries was much harder than those between In addition, the bilateral cooperation in the past was mainly at the states within the same region. And as understood from the official level and the cooperation at the private levels was limited fact that even though Japan has strong Buddhism influence, during the cold war period. Buddhism was brought not directly from India, but through China. Thus the geographical distance significantly contributed The post cold war world systemic transformation and to the limitation of the cultural exchanges and the historical possibility of cooperation connections between the two countries. In addition to it, after the These situations which were making it difficult to promote Japan- opening of Japan in the mid-19th Century, Japan's interest was India cooperation until the end of the 1980s have been changing. not in Asia but in the West. The world systemic transformation after the cold war and the Second, during the cold war period, the interests of the countries domestic structural changes developing since 1990 are critical in in Asia were in developing the relationships with either the US or this evolution. the USSR and their neighboring countries. So India's primary During the cold war years, the primary concern of the countries concern was in relationship with Pakistan and countries in South other than the two super-powers was as to how to maintain Asia and China. And then the relationship with the Soviet Union relations with the US and the USSR. Further the relations with was important for India. On the other hand, Japan's main interest other countries within the region they were located were linked was in the US and Northeast Asia. Thus the primary security with their relationship with the two super powers under the cold interest of Japan and India under the cold war was different. war. So while Japan's position was based on the US-Japan Besides, the economic interests of the two countries until the end alliance, India played roles as the leader of the non-allied nations of the 1980s were very different. After the Partition of the British in close link with the USSR. India in 1947, India pursued the socialist development model As a result of the end of the cold war and the collapse of the USSR, based on import substitution industrialization strategy. This the US, the only super-power remained, lost the most important means that trade was not a priority of India's economic interest. justification to reach everywhere in the globe. And unlike her On the other hand, Japan's primary economic interest was in the consistent position to cope with the USSR during the cold war US, because the US was her largest trade market, source of period, the US international interests after the cold war have been imported technology which was indispensable for the industrial changing from time to time depending on the issues she has to development and international finance. And the Asian markets deal with, such as nuclear problems in North Korea and Iran, and

38 39 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview then international terrorism after the 9.11. In addition, while the The Indian economy has recorded a higher growth rate than that primary concern of the post cold war US presidents has been during the cold war years and with its liberalization policy, domestic issues, influence of domestic situation on her foreign integration of Indian economy with the world economy has been policy position has become stronger than that during the cold war in progress. As a result of the post cold war economic period. And the US government has to deal with her huge fiscal globalization combined with the India's economic liberalization deficit caused by the large defence expenditure increase after the drive, the possibility of closer economic relations between Japan 9.11 and the stimulating expenditures after the international and India has significantly increased. This is the second element. financial crisis since 2007 and the following recession triggered by The third factor is that the global issues have become one of the the collapse of the Lehman Brothers in 2008. primary concerns of the world society after the cold war. In other Under the post cold war world systemic transformation, both words, as a result of the end of the cold war, the world society has Japan and India have to deal with the US. But the major focus of been able to focus on the common issues, such as global the two countries is also on issues in Asia, in particular, their environmental problems, international terrorism, and respective sub-region where they are located, i.e. Northeast Asia international infectious diseases, which must be dealt with for Japan and South Asia for India. And rise of India and China, or globally. What is important is the fact that unlike the conventional rise of BRICs globally, is changing the post cold war power international security and economic problems which are dealt structure in Asia. In particular, China's aggressive naval activities with by governmens directly involved, global issues are problems are not limited within the East Asia and its expansion became of international collective humanity. That is, global issues have to visible in the Indian Ocean also. As a result, both Japan and India be dealt with all the units concerned, that is, all nation states and at present have the same security interest in dealing with China.1 non-state actors (international organizations (IO), multi-national This is the first factor to increase the possibility of the bilateral corporations (MNCs) and non-governmental organizations cooperation between the two countries. (NGO)). Since the global issues are the common interests of the The second outcome of the end of the cold war is on acceleration world society and their importance has increased after the cold of economic globalization. After the collapse of the USSR, most war, Japan and India now have the common interests to be dealt ex-Eastern block countries, with a few exceptions like Cuba and with. North Korea, abandoned the socialist economic system and Bilateral cooperation under the Global and Strategic adopted the market economy. So the market economy has Partnership policy become a de-fact standard of economic system at global level and Understood from the above, as a result of the end of the cold war, works as the foundation of economic globalization after the cold possibility of cooperation between Japan and India has war. Combined with the expansion of the market economy, significantly increased. And the bilateral relations have actually innovations in telecommunication, information and become more active after the cold war than before 1990. In transportation (ICT) technologies, interdependence of the world particular, after the then Prime Minister Mori's visit to India in economy have significantly deepened since the 1990s. 2000, the first PM's visit after 1990, the two sides began to call the While the post cold war economic globalization began, India's bilateral relationship as “Global partnership in the 21st Century”. economic liberalization drive was initiated by Dr. Manmohan After identifying 8 fold initiative for strengthening the Singh, the then finance minister of the Rao administration in 1991. partnership at PM Koizumi's visit to India in 2005,2 the two

40 41 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview then international terrorism after the 9.11. In addition, while the The Indian economy has recorded a higher growth rate than that primary concern of the post cold war US presidents has been during the cold war years and with its liberalization policy, domestic issues, influence of domestic situation on her foreign integration of Indian economy with the world economy has been policy position has become stronger than that during the cold war in progress. As a result of the post cold war economic period. And the US government has to deal with her huge fiscal globalization combined with the India's economic liberalization deficit caused by the large defence expenditure increase after the drive, the possibility of closer economic relations between Japan 9.11 and the stimulating expenditures after the international and India has significantly increased. This is the second element. financial crisis since 2007 and the following recession triggered by The third factor is that the global issues have become one of the the collapse of the Lehman Brothers in 2008. primary concerns of the world society after the cold war. In other Under the post cold war world systemic transformation, both words, as a result of the end of the cold war, the world society has Japan and India have to deal with the US. But the major focus of been able to focus on the common issues, such as global the two countries is also on issues in Asia, in particular, their environmental problems, international terrorism, and respective sub-region where they are located, i.e. Northeast Asia international infectious diseases, which must be dealt with for Japan and South Asia for India. And rise of India and China, or globally. What is important is the fact that unlike the conventional rise of BRICs globally, is changing the post cold war power international security and economic problems which are dealt structure in Asia. In particular, China's aggressive naval activities with by governmens directly involved, global issues are problems are not limited within the East Asia and its expansion became of international collective humanity. That is, global issues have to visible in the Indian Ocean also. As a result, both Japan and India be dealt with all the units concerned, that is, all nation states and at present have the same security interest in dealing with China.1 non-state actors (international organizations (IO), multi-national This is the first factor to increase the possibility of the bilateral corporations (MNCs) and non-governmental organizations cooperation between the two countries. (NGO)). Since the global issues are the common interests of the The second outcome of the end of the cold war is on acceleration world society and their importance has increased after the cold of economic globalization. After the collapse of the USSR, most war, Japan and India now have the common interests to be dealt ex-Eastern block countries, with a few exceptions like Cuba and with. North Korea, abandoned the socialist economic system and Bilateral cooperation under the Global and Strategic adopted the market economy. So the market economy has Partnership policy become a de-fact standard of economic system at global level and Understood from the above, as a result of the end of the cold war, works as the foundation of economic globalization after the cold possibility of cooperation between Japan and India has war. Combined with the expansion of the market economy, significantly increased. And the bilateral relations have actually innovations in telecommunication, information and become more active after the cold war than before 1990. In transportation (ICT) technologies, interdependence of the world particular, after the then Prime Minister Mori's visit to India in economy have significantly deepened since the 1990s. 2000, the first PM's visit after 1990, the two sides began to call the While the post cold war economic globalization began, India's bilateral relationship as “Global partnership in the 21st Century”. economic liberalization drive was initiated by Dr. Manmohan After identifying 8 fold initiative for strengthening the Singh, the then finance minister of the Rao administration in 1991. partnership at PM Koizumi's visit to India in 2005,2 the two

40 41 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview governments agreed in 2006 to establish the Japan-India Strategic statement in 2006, annual high level official bilateral consultation and Global Partnership.3 The Roadmap for new dimension to the on the economic strategy started in 2007 and the Japan-India Strategic and Global Partnership between Japan and India was Business Leaders Forum was established in 2009. Thus, similar to adopted in 2007.4 Six areas for cooperation identified in the political, security and defense field, consultation mechanism at roadmap are political, security and defense cooperation; various levels began since 2006. comprehensive economic partnership; science and technology; Besides India is the largest recipient of Japan's Official strategic dialogue on economic issues; people to people exchange; Development Assistance (ODA). ODA loans have been extended academic and cultural exchange; and issues of common interests. to projects identified in the Roadmap statement. Emphasis has The two governments reviewed the developments of the bilateral 5 been put on the economic infrastructure developments, in relations under the partnership framework in 2008. particular, power generation, transport and communication And at India's PM Singh's visit to Japan in 2010, the two sectors. Also the two countries agreed to enhance the currency governments issued a Joint statement on “Vision for Japan-India swap arrangement. 6 Strategic and Global Partnership in the next decade” and “Vision There are various developments in other areas identified in the for the Enhancement of Japan-India Strategic and Global roadmap, such as science and technology and human exchanges. Partnership upon entering the year of the 60th Anniversary of the And working together on the various multilateral (such as Establishment of Diplomatic Relations” statement was issued on permanent membership of the UN Security Council) and regional December 28, 2011, when Japan's PM Noda made on official visit cooperation frameworks in Asia (such as SAARC and ASEAN 7 to India. Regional Forum (ARF)) the areas of common interests have been As shown in Table 1, six areas and related issues in the respective identified. Among them, the East Asia's regional cooperation area were identified in the statement on the roadmap for the framework, in particular, East Asia Summit (EAS) is the most global and strategic partnership in 2007. And there have been important common interest of the two countries. This can be various developments in the bilateral relations since the mid- considered as a reflection of the two countries' concern on China's 2000s under the partnership framework. The most significant expansionary activities in Asia. developments are in the fields of political, security and defense Japan-India relations at present cooperation. In addition to it the two prime ministers' annual Understood from the fact that the two countries' prime ministers meetings have been regularized and the strategic dialogues have been meeting in either Tokyo or Delhi annually after the between such high level officials as minister, vice minister and Koizumi-Singh summit in New Delhi in 2005, it is obvious that director general, started after 2006. And also the strategic defense both Japan and India put a very high priority on the bilateral exchanges including joint navel exercise and cooperation relations at present. And confirmed from the above, the two between the coast guards began. governments identify wide range of areas as potential fields for Regarding the economic issues, the two governments started the the bilateral cooperation. negotiation on the Comprehensive Economic Partnership Agreement (EPA) between Japan and India in January 2007 and completed the negotiation in October 2010. And the EPA treaty was signed in February 2011. Also, based on the partnership

42 43 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview governments agreed in 2006 to establish the Japan-India Strategic statement in 2006, annual high level official bilateral consultation and Global Partnership.3 The Roadmap for new dimension to the on the economic strategy started in 2007 and the Japan-India Strategic and Global Partnership between Japan and India was Business Leaders Forum was established in 2009. Thus, similar to adopted in 2007.4 Six areas for cooperation identified in the political, security and defense field, consultation mechanism at roadmap are political, security and defense cooperation; various levels began since 2006. comprehensive economic partnership; science and technology; Besides India is the largest recipient of Japan's Official strategic dialogue on economic issues; people to people exchange; Development Assistance (ODA). ODA loans have been extended academic and cultural exchange; and issues of common interests. to projects identified in the Roadmap statement. Emphasis has The two governments reviewed the developments of the bilateral 5 been put on the economic infrastructure developments, in relations under the partnership framework in 2008. particular, power generation, transport and communication And at India's PM Singh's visit to Japan in 2010, the two sectors. Also the two countries agreed to enhance the currency governments issued a Joint statement on “Vision for Japan-India swap arrangement. 6 Strategic and Global Partnership in the next decade” and “Vision There are various developments in other areas identified in the for the Enhancement of Japan-India Strategic and Global roadmap, such as science and technology and human exchanges. Partnership upon entering the year of the 60th Anniversary of the And working together on the various multilateral (such as Establishment of Diplomatic Relations” statement was issued on permanent membership of the UN Security Council) and regional December 28, 2011, when Japan's PM Noda made on official visit cooperation frameworks in Asia (such as SAARC and ASEAN 7 to India. Regional Forum (ARF)) the areas of common interests have been As shown in Table 1, six areas and related issues in the respective identified. Among them, the East Asia's regional cooperation area were identified in the statement on the roadmap for the framework, in particular, East Asia Summit (EAS) is the most global and strategic partnership in 2007. And there have been important common interest of the two countries. This can be various developments in the bilateral relations since the mid- considered as a reflection of the two countries' concern on China's 2000s under the partnership framework. The most significant expansionary activities in Asia. developments are in the fields of political, security and defense Japan-India relations at present cooperation. In addition to it the two prime ministers' annual Understood from the fact that the two countries' prime ministers meetings have been regularized and the strategic dialogues have been meeting in either Tokyo or Delhi annually after the between such high level officials as minister, vice minister and Koizumi-Singh summit in New Delhi in 2005, it is obvious that director general, started after 2006. And also the strategic defense both Japan and India put a very high priority on the bilateral exchanges including joint navel exercise and cooperation relations at present. And confirmed from the above, the two between the coast guards began. governments identify wide range of areas as potential fields for Regarding the economic issues, the two governments started the the bilateral cooperation. negotiation on the Comprehensive Economic Partnership Agreement (EPA) between Japan and India in January 2007 and completed the negotiation in October 2010. And the EPA treaty was signed in February 2011. Also, based on the partnership

42 43 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview

Table 1. Areas & Issues identified in the Roadmap for the While the two governments have been continuing intensive G & S Partnership efforts to promote the bilateral cooperation, actual developments in bilateral relations under the partnership framework have I. Political, security and defense cooperation brought mixed results. Among the interests identified under the ①high level visits, ②further cooperation in the security field, framework, the most active area is security related issues. And ③deepening and broadening strategic dialogue at various levels, mutual visits and meetings of government officials have been ④strategic defense exchange, ⑤promotion of cooperation between increased and high level bilateral security dialogues have become the coast guards annual events. In addition, to them, military cooperation II. Comprehensive economic partnership including joint naval exercises, such as Exercise Malabar in 2007, ①expansion of bilateral trade, ②negotiations on EPA/CEPA, began. ③economic assistance, ④promotion of special economic partnership The other area in which a significant achievement is in progress is initiative (SEPI), ⑤business leaders forum, ⑥high technology trade, ⑦ the development cooperation. Not only Japan is India's largest Japanese Depositary Receipt (JDR), ⑧currency swap arrangement, bilateral ODA donor and India is Japan's largest ODA recipient, ⑨cooperation in the field of urban development, ⑩ICT (information and communication technology) but the projects chosen for the cooperation also meet priority areas of India's five year plans, in particular, the economic III. Science and Technology infrastructures. The July 30 massive blackout is a reflection of IV. Strategic Dialogue on Economic Issues critical importance of power generation sector for India's further V. People-to-People Exchange, Academic Exchange, Cultural Exchange development. And the Singh administration puts a special ①University exchange/Indian Institute of Technology (IIT), ②youth emphasis on the power generation and transportation sectors in Exchange, ③Japanese language education in India, ④Japanese-India the 12th Five Year Plan commencing 2012-2013.8 So Japan's ODA friendship year, ⑤tourism promotion will continue to contribute to India's development requirements. VI. Issues of Common Interests As for other areas covered under the partnership framework, ② East Asia Summit (EAS), ②dialogue among cultures, societies and religions in East Asia, ③cooperation towards stable development of various efforts have been made to realize objectives identified in South Asia, ④promotion of multi-layered frameworks for regional the framework. But results up to now are rather limited. cooperation, ⑤UN reform, ⑥WTO, ⑦energy, environment and climate For example, although the two countries concluded the EPA and change, ⑧civil nuclear energy cooperation, ⑨disarmament and non- opened more trade opportunities and amounts of trade have proliferation, ⑩DPRK, ⑪human security, ⑫counter terrorism increased, share of Japan in India's total trade is still very a little. And the situation is same for Japan.9 This is a reflection of the Source; compiled from “Joint Statement on the Roadmap for New Dimensions to the Strategic and Global Partnership between Japan situation that the trade structure between Japan and India is still and India”, August, 22, 2007, http://www.mofa.go.jp/region/asia- based on vertical trade, which is typical between the industrialized paci/pmv0708/joint-2.html and the industrializing countries. In other words, intra-industry trade, or horizontal trade, is not realized in Japan-India trade, so economic interdependence between the two countries is still not established. This situation is quite contrasting with intra-industry oriented trade relations among the East Asian economies.

44 45 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview

The other evidence is the number of people visiting the respective accelerate her development momentum, so that extending ODA countries. As shown on Table 2, number of visitors between Japan to those projects identified in India's Five Year Plans is beneficial and India (0.16million) is 1/35 of that between Japan and China for both the governments. (5.5million) in 2005. And number of Indian students in Japan (525) On the other hand, the level and contents of trade depend on the is 1/140 of that of China (73,644) in 2005. Comparing the exchange business interests of the respective country. Besides the social of people between Japan and China, exchange of people between sector exchanges are reflection of historical, cultural and other Japan and India is still much limited. relations of the two countries. Also the interests of local Also understood is from the fact that as of 2006, there are only 5 governments are based not on security, but economic and social friendship cities between Japan and India while exchanges factors. Thus the fact that trade, social and local government level between the local governments are also very few. This means that relations are still very limited means that the motivation of the official relationships between Japan and India are based on cooperation or mutual interests of business and societies between the central government level. Japan and India have been still weak or limited, although the situation has been much better than that of the cold war period. Considering that India has been continuing efforts to liberalize the economy since the 1990s, the possibility of increasing the horizontal (intra-industry) trade between Japan and India is increasing. In addition to it, the global issues including Japan and India's permanent membership of the Security Council of the United Nations, promoting non-state level activities have become more and more important for the two countries. Also, as a result of the accelerating India's growth momentum, the state and the local governments are increasingly playing important roles in the development process. So promoting non-state actors' cooperation between Japan and India is critical for further strengthening of the Thus understood from this mixed results is that the Japan-India bilateral relations. relations at present are mainly central government oriented For Further progress of Japan-India Relations relations and those of non-state actors and local governments are While the possibility and desirability of non-state actors' still fairly limited. In other words, except for central governments' cooperation between Japan and India has been increasing, the fact relations, Japan-India relationship at present is still not so active. that the present situation of non-state actors' bilateral cooperation The closer official relationship is a reflection of developments of is still very limited means that some requirements to enhance the post cold war security situation in Asia. That is, under China's bilateral business and social relations are still not enough to aggressive position in the East China Sea, the South China Sea and promote or accelerate the cooperation. the Indian Ocean, Japan and India have common security Background of the present situation: As for trade and other interests in dealing with China. Under the circumstance, private business relations, understanding developments of intra- emerging India needs economic infrastructural developments to

46 47 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview

46 47 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview industry (horizontal) trade relations in East Asia since mid-1980s for strengthening the intra-industry trade between Japan and will be helpful to identify problems constraining development of India through promoting FDIs. the horizontal trade relations between Japan and India. There are The fact is that Japan's FDI to India is still limited; despite very two factors that helped accelerating intra-industry trade among favorable external environment means there are problems at state countries in East Asia. One was Japan's situation and the other level. In fact, there are domestic problems or obstacles limiting was that of other countries in East Asia. Regarding Japan's further economic liberalization and accelerating infrastructural situation, it was the rapid and significant yen appreciation developments in India. For example, one of the major reasons of triggered by the Plaza Agreement in September 1985. The yen the July 2012 black out was institutional and managerial causes appreciation forced Japanese companies to seek overseas built in India's power sector since 1947, rather than the demand production bases in East Asia. On the other hand, it was the and supply gap in the electric sector.16 And it is also pointed out introduction of measures to promote foreign direct investment that the recent economic slowdown or lower growth performance (FDI) in countries in East Asia, such as Thailand, Malaysia, and than that during the first term of the Singh administration is Indonesia. This was brought by their fundamental change of brought by slow progress of further reforms planned by the development strategy in the 1980s from import-substitution to administration. And the slow progress is caused by strong export promotion industrialization to solve accumulated debt 10 11 resistance from vested interest groups and the lack of problems. China also adopted policies to promote FDI. In this transparency in government decision making process.17 connection, the economic infrastructure developments are very pre-requisite for making this policy shift effective and in making What is important is the fact that those obstacles identified are overseas production in East Asia feasible for multinationals. political problems rather than economic ones; so they depend on political will to solve the problems. Considering the strong As far as the Japan-India business environment, consultations on resistances the Singh administration has been facing in its identifying the obstacles of making FDI in India have been held at struggle for introducing retail sector liberalization reforms, such opportunities as the Japan-India Business Leadership political environment in India at present does not seem to be Forum meetings. What is pointed out as problems of limiting favorable for improving the investment environment further and Japan's FDI in India are still restrictive FDI related laws, it seems to be difficult to find easy and fast solutions at this complicated tax system, difficulties in land acquisition and high 12 moment. Thus it is plausible to consider that the possibility of cost of accommodation in business visits. The complicated improvement of investment environment for FDI is not much decision making process between the central and the local enough to boost FDI so that it will be difficult to expect deepening governments is also pointed out as one of the factors to prolong 13 economic interdependence between Japan and India for the time and make FDI decision difficult. Besides, India's economic being. infrastructure developments are not in pace with its growth momentum, as revealed in the blackout in July 2012.14 Regarding the global issues, similar situation is observed. Since Japan and India have common interests in global issues, it is On the other hand, considering the recent significant appreciation possible to expect increasing cooperation between the two of yen and the depreciation of Indian rupee combined with the countries. And as seen in their cooperation for getting permanent Indian government's high priority of economic infrastructural 15 membership of the UN Security Council and multilateral anti- development, the external environment seems to be favorable piracy operations on Somalia coast, there are issues in which

48 49 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview industry (horizontal) trade relations in East Asia since mid-1980s for strengthening the intra-industry trade between Japan and will be helpful to identify problems constraining development of India through promoting FDIs. the horizontal trade relations between Japan and India. There are The fact is that Japan's FDI to India is still limited; despite very two factors that helped accelerating intra-industry trade among favorable external environment means there are problems at state countries in East Asia. One was Japan's situation and the other level. In fact, there are domestic problems or obstacles limiting was that of other countries in East Asia. Regarding Japan's further economic liberalization and accelerating infrastructural situation, it was the rapid and significant yen appreciation developments in India. For example, one of the major reasons of triggered by the Plaza Agreement in September 1985. The yen the July 2012 black out was institutional and managerial causes appreciation forced Japanese companies to seek overseas built in India's power sector since 1947, rather than the demand production bases in East Asia. On the other hand, it was the and supply gap in the electric sector.16 And it is also pointed out introduction of measures to promote foreign direct investment that the recent economic slowdown or lower growth performance (FDI) in countries in East Asia, such as Thailand, Malaysia, and than that during the first term of the Singh administration is Indonesia. This was brought by their fundamental change of brought by slow progress of further reforms planned by the development strategy in the 1980s from import-substitution to administration. And the slow progress is caused by strong export promotion industrialization to solve accumulated debt 10 11 resistance from vested interest groups and the lack of problems. China also adopted policies to promote FDI. In this transparency in government decision making process.17 connection, the economic infrastructure developments are very pre-requisite for making this policy shift effective and in making What is important is the fact that those obstacles identified are overseas production in East Asia feasible for multinationals. political problems rather than economic ones; so they depend on political will to solve the problems. Considering the strong As far as the Japan-India business environment, consultations on resistances the Singh administration has been facing in its identifying the obstacles of making FDI in India have been held at struggle for introducing retail sector liberalization reforms, such opportunities as the Japan-India Business Leadership political environment in India at present does not seem to be Forum meetings. What is pointed out as problems of limiting favorable for improving the investment environment further and Japan's FDI in India are still restrictive FDI related laws, it seems to be difficult to find easy and fast solutions at this complicated tax system, difficulties in land acquisition and high 12 moment. Thus it is plausible to consider that the possibility of cost of accommodation in business visits. The complicated improvement of investment environment for FDI is not much decision making process between the central and the local enough to boost FDI so that it will be difficult to expect deepening governments is also pointed out as one of the factors to prolong 13 economic interdependence between Japan and India for the time and make FDI decision difficult. Besides, India's economic being. infrastructure developments are not in pace with its growth momentum, as revealed in the blackout in July 2012.14 Regarding the global issues, similar situation is observed. Since Japan and India have common interests in global issues, it is On the other hand, considering the recent significant appreciation possible to expect increasing cooperation between the two of yen and the depreciation of Indian rupee combined with the countries. And as seen in their cooperation for getting permanent Indian government's high priority of economic infrastructural 15 membership of the UN Security Council and multilateral anti- development, the external environment seems to be favorable piracy operations on Somalia coast, there are issues in which

48 49 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview cooperation at state level is already in progress. On the other cooperation at non-state actors' (business and civil society) level is hand, despite the non-state actors, in particular NGOs, playing still limited. As for promoting bilateral business relations through indispensable roles in dealing with the global issues, actual non- strengthening intra-industry trade by encouraging FDI, it is state actors' cooperation between Japan and India is very little.18 identified that India's economic infrastructural developments In this regard, Japan has more problems than India. According to and further liberalization (deregulation) are essential. But statistical data on NGOs in Japan, published by Japan NPO because of India's domestic political situation, i.e. complicated Center, a federation of Japan's NGOs, as of March 2006, the central and state governments relations and still strong anti- number of registered NGOs in Japan was 26,393 with the liberalization political atmosphere, prospects of further and rapid budgetary size of 64.4% of them was less than \5 million (about developments of economic infrastructure and further US$60,000). The budgetary size of 91.5% of Japan's registered liberalization of regulations and simplifying business related tax NGOs is less than \30 million (about US$360,000). Only 4.2% of system seems to be limited at present. So it is plausible to consider the registered NGOs is engaged in international development that it would take time to deepen the bilateral business relations and 1.9% is in peace and human rights, and 0.6% of registered further. NGOs is engaged in disaster relief.19 As for the cooperation on global issues, while it is possible to promote further cooperation at state level, increasing cooperation Understood from these figures, the number of staff of the most of at social level seems to be not easy. As mentioned above, this is Japan's NGOs is small, their budget is little. The total number of because most of Japan's NGOs is small staff units with little Japan's NGOs is relatively small compared to that of other budget and their fields of operations are mainly domestic. And countries. Besides the fields of operation of Japan's NGO are those specialized in international fields are mostly the mostly domestic. And the number of Japan's NGOs focusing on development-oriented in Asia but not active in India. Further the international issues is small and most of them are engaged in 20 they are only operation oriented. international development. Also, because of the severe shortage of professionals, the focus of Japan's NGOs is not policy-advocate Taking into account the limits of international activities of Japan's but operation. NGOs, it might be better to consider that non-state actors' cooperation in global issues between Japan and India is very These problems of the NGOs are a reflection of Japan's civil important but not immediate and rather considered as a long term society which was significantly weakened after 1942 when tax objective of the bilateral cooperation. relief for donation to philanthropic activities had been abolished.21 Although the legislations to encourage non-profit And considering difficulties of promoting bilateral cooperation at activities have been introduced since 1998, the understanding of non-state actors' level at present, it will be inevitable for the time importance of the NGOs by the civil society is still limited in Japan being to limit areas to enhance the bilateral cooperation. it would take time to revitalize Japan's civil society and policy Under the circumstances, one obvious area to promote further oriented NGOs. cooperation is the security-related official cooperation. This area Possibility of further cooperation: What is confirmed from the is already very active. But in addition to joint exercises of navies above is that while the bilateral cooperation between Japan and and operations of coastal guards of the two countries, other India at state level has been becoming very active since 2005, possibilities such as cooperation in anti-cyber terrorism and/or

50 51 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview cooperation at state level is already in progress. On the other cooperation at non-state actors' (business and civil society) level is hand, despite the non-state actors, in particular NGOs, playing still limited. As for promoting bilateral business relations through indispensable roles in dealing with the global issues, actual non- strengthening intra-industry trade by encouraging FDI, it is state actors' cooperation between Japan and India is very little.18 identified that India's economic infrastructural developments In this regard, Japan has more problems than India. According to and further liberalization (deregulation) are essential. But statistical data on NGOs in Japan, published by Japan NPO because of India's domestic political situation, i.e. complicated Center, a federation of Japan's NGOs, as of March 2006, the central and state governments relations and still strong anti- number of registered NGOs in Japan was 26,393 with the liberalization political atmosphere, prospects of further and rapid budgetary size of 64.4% of them was less than \5 million (about developments of economic infrastructure and further US$60,000). The budgetary size of 91.5% of Japan's registered liberalization of regulations and simplifying business related tax NGOs is less than \30 million (about US$360,000). Only 4.2% of system seems to be limited at present. So it is plausible to consider the registered NGOs is engaged in international development that it would take time to deepen the bilateral business relations and 1.9% is in peace and human rights, and 0.6% of registered further. NGOs is engaged in disaster relief.19 As for the cooperation on global issues, while it is possible to promote further cooperation at state level, increasing cooperation Understood from these figures, the number of staff of the most of at social level seems to be not easy. As mentioned above, this is Japan's NGOs is small, their budget is little. The total number of because most of Japan's NGOs is small staff units with little Japan's NGOs is relatively small compared to that of other budget and their fields of operations are mainly domestic. And countries. Besides the fields of operation of Japan's NGO are those specialized in international fields are mostly the mostly domestic. And the number of Japan's NGOs focusing on development-oriented in Asia but not active in India. Further the international issues is small and most of them are engaged in 20 they are only operation oriented. international development. Also, because of the severe shortage of professionals, the focus of Japan's NGOs is not policy-advocate Taking into account the limits of international activities of Japan's but operation. NGOs, it might be better to consider that non-state actors' cooperation in global issues between Japan and India is very These problems of the NGOs are a reflection of Japan's civil important but not immediate and rather considered as a long term society which was significantly weakened after 1942 when tax objective of the bilateral cooperation. relief for donation to philanthropic activities had been abolished.21 Although the legislations to encourage non-profit And considering difficulties of promoting bilateral cooperation at activities have been introduced since 1998, the understanding of non-state actors' level at present, it will be inevitable for the time importance of the NGOs by the civil society is still limited in Japan being to limit areas to enhance the bilateral cooperation. it would take time to revitalize Japan's civil society and policy Under the circumstances, one obvious area to promote further oriented NGOs. cooperation is the security-related official cooperation. This area Possibility of further cooperation: What is confirmed from the is already very active. But in addition to joint exercises of navies above is that while the bilateral cooperation between Japan and and operations of coastal guards of the two countries, other India at state level has been becoming very active since 2005, possibilities such as cooperation in anti-cyber terrorism and/or

50 51 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview non-traditional security would be important. In addition, since Finally for enhancing the cooperation in global issues at non-state the Obama administration which has just been reelected puts actors' level, Japan's NGOs are too weak at present to increase priority on security in Asia under the serious fiscal constraints for cooperation with counterparts in India. Although it is difficult to the second term, promotion of multilateral security cooperation find short term solutions to rehabilitate the weakened Japan's will be critical.22 And the US assumes Japan, India and Australia civil society and long term approach will be necessary, it is as core members of its multilateral cooperation in Asia. Also the essential to promote activities of Japan's civil society. 23 Australian government has just set its Asia policy. So it is The serious efforts to promote bilateral cooperation between necessary for Japan and India to accelerate the multilateral Japan and India have just begun in the first decade of the 21st security cooperation with the US and Australia. Century. And there are plenty of possibilities for the future Besides, the fact is that the more Indian economy grows, the more cooperation. With its history of cordial and positive bilateral state and local governments of growth areas play important roles. relations and clear and strong incentives for further cooperation And considering the increasing importance of state and local after the cold war, conditions for enhancing the bilateral relations governments in central government's policy and decision making are quite favorable at present. And it is necessary for both Japan process, Japan needs to develop closer relationship with India's and India to promote further cooperation. Thus with the state and local governments in India. continuing efforts to encourage further cooperation, the prospect of the relationship between Japan and India is very bright. As for non-state actors' level cooperation, taking long term approach will be necessary. For promoting economic cooperation between private businesses, consultations at the Japan-India Business Leadership Forum meetings are important to identify the problems of government regulations and tax laws for enhancing the bilateral trade and FDI to India and also for References extension of ODA which contributes to economic infrastructural Broadman, Harry G., Xiaolun Sun, “The distribution of foreign direct developments in India. But they are mainly focusing on problems investment in China”, Policy Research Working Paper, no. WPS 1720, which the government is in charge. And the forum was sponsored t h e W o r l d B a n k , 1 9 9 7 . h t t p : / / w w w - by the two governments and members are federations of big wds.worldbank.org/external/default/WDSContentServer/IW3P/IB businesses of Japan and India. What this means is that although /1997/02/01/000009265_3970619110946/Rendered/PDF/multi_pag the forum is useful to raise problems which governments have to e.pdf. deal with, it is symbolic rather than solving the immediate Imada Masaru ed., Nihon-no NPO-shi (history of NGO in Japan), Gyosei, problems and increasing the actual bilateral business activities. So 2006. some additional efforts might be useful to realize the actual Justin Yifu Lin; Fang Cai; Zhou Li, “China's economic reforms : pointers for results in private business relations. other economies in transition?”, Policy Research Working Paper, no. W P S 1 3 1 0 , t h e W o r l d B a n k , 1 9 9 4 . h t t p : / / w w w - In this connection, one possibility is to encourage exchanges wds.worldbank.org/external/default/WDSContentServer/IW3P/IB between Japan's new business and India's counterpart in, for /1994/06/01/000009265_3970716141032/Rendered/PDF/multi0pag example, ICT industries. What is important is to open new e.pdf. frontiers instead of the established sectors.

52 53 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview non-traditional security would be important. In addition, since Finally for enhancing the cooperation in global issues at non-state the Obama administration which has just been reelected puts actors' level, Japan's NGOs are too weak at present to increase priority on security in Asia under the serious fiscal constraints for cooperation with counterparts in India. Although it is difficult to the second term, promotion of multilateral security cooperation find short term solutions to rehabilitate the weakened Japan's will be critical.22 And the US assumes Japan, India and Australia civil society and long term approach will be necessary, it is as core members of its multilateral cooperation in Asia. Also the essential to promote activities of Japan's civil society. 23 Australian government has just set its Asia policy. So it is The serious efforts to promote bilateral cooperation between necessary for Japan and India to accelerate the multilateral Japan and India have just begun in the first decade of the 21st security cooperation with the US and Australia. Century. And there are plenty of possibilities for the future Besides, the fact is that the more Indian economy grows, the more cooperation. With its history of cordial and positive bilateral state and local governments of growth areas play important roles. relations and clear and strong incentives for further cooperation And considering the increasing importance of state and local after the cold war, conditions for enhancing the bilateral relations governments in central government's policy and decision making are quite favorable at present. And it is necessary for both Japan process, Japan needs to develop closer relationship with India's and India to promote further cooperation. Thus with the state and local governments in India. continuing efforts to encourage further cooperation, the prospect of the relationship between Japan and India is very bright. As for non-state actors' level cooperation, taking long term approach will be necessary. For promoting economic cooperation between private businesses, consultations at the Japan-India Business Leadership Forum meetings are important to identify the problems of government regulations and tax laws for enhancing the bilateral trade and FDI to India and also for References extension of ODA which contributes to economic infrastructural Broadman, Harry G., Xiaolun Sun, “The distribution of foreign direct developments in India. But they are mainly focusing on problems investment in China”, Policy Research Working Paper, no. WPS 1720, which the government is in charge. And the forum was sponsored t h e W o r l d B a n k , 1 9 9 7 . h t t p : / / w w w - by the two governments and members are federations of big wds.worldbank.org/external/default/WDSContentServer/IW3P/IB businesses of Japan and India. What this means is that although /1997/02/01/000009265_3970619110946/Rendered/PDF/multi_pag the forum is useful to raise problems which governments have to e.pdf. deal with, it is symbolic rather than solving the immediate Imada Masaru ed., Nihon-no NPO-shi (history of NGO in Japan), Gyosei, problems and increasing the actual bilateral business activities. So 2006. some additional efforts might be useful to realize the actual Justin Yifu Lin; Fang Cai; Zhou Li, “China's economic reforms : pointers for results in private business relations. other economies in transition?”, Policy Research Working Paper, no. W P S 1 3 1 0 , t h e W o r l d B a n k , 1 9 9 4 . h t t p : / / w w w - In this connection, one possibility is to encourage exchanges wds.worldbank.org/external/default/WDSContentServer/IW3P/IB between Japan's new business and India's counterpart in, for /1994/06/01/000009265_3970716141032/Rendered/PDF/multi0pag example, ICT industries. What is important is to open new e.pdf. frontiers instead of the established sectors.

52 53 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview

globalization and economic liberalization of India), 2009, 6 “Joint Statement, Viskon for Japan-India Strategic and Global Partnership http://repo.lib.hosei.ac.jp/bitstream/10114/4008/1/147nikaido.pdf in the Next Decade”, http://www.mofa.go.jp/region/asia- Nishihara Tadashi, Horimoto Takeno ed., Gunji-taikokka suru Indo (rise of paci/india/pm1010/joint_st.html. India as military power), Aki-shobo, 2010. 7 “Vision for the Enhancement of Japan-India Strategic and Global Ohata Yashichi and Urata Shujiro ed., Asean-no Keizai Nihon-no Yakuwari Partnership upon entering the year of the 60th Anniversary of the (ASEAN Economies and role of Japan), Yuhikaku, 1992. Establishment of Diplomatic Relations”, December 2011, Saito Chihiro ed., NGO Taikoku Indo (NGO in India), Akashi-shoten, 1997. h t t p : / / w w w . m o f a . g o . j p / r e g i o n / a s i a - paci/india/pmv1112/joint_statement_en.html. Singh, Manmohan, Full Text of Prime Minister's Statement at the Full Planning Commission Meeting on Twelfth Five Year Plan (2012-17) on 8 Full Text of Prime Minister's Statement at the Full Planning Commission 15.09.2012. http://planningcommission.nic.in/news/pm_ Meeting on Twelfth Five Year Plan (2012-17) on 15.09.2012. speech1509.pdf. http://planningcommission.nic.in/news/pm_speech1509.pdf

Zeng, Douglas Zhihua, “How do special economic zones and industrial 9 Share of trade with Japan in India's total trade declined from around 10% in clusters drive China's rapid development ?”, Policy Research 1987 to about 3% in 2007. Also Share of trade with India in Japan's total trade Working Paper, no. WPS 5583, the World Bank, 2011, http://www- also declined from about 3% in 1987 to some 1.5% in 2007. Nikaido Yuko, wds.worldbank.org/external/default/WDSContentServer/IW3P/IB “Gurobaruka-to Indo-no Keisaijiyuuka” (economic globalization and /2011/03/01/000158349_20110301083120/Rendered/PDF/WPS558 e c o n o m i c l i b e r a l i z a t i o n o f I n d i a ) , 2 0 0 9 , p . 2 7 , 3.pdf. http://repo.lib.hosei.ac.jp/bitstream/10114/4008/1/147nikaido.pdf.

54 55 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview

Kale, Sunila & Sumit Ganguly, “India's Dark Night”, Foreign Affairs, August 1 For India's security and other foreign policy interests, see Nishihara 8, 2012, http://www.foreignaffairs.com/articles/137819/sunila-s- Tadashi, Horimoto Takeno ed., Gunji-taikokka suru Indo (rise of India as kale-and-sumit-ganguly/indias-dark-night?page=show. military power), Aki-shobo, 2010, and Kondo Norio ed., Gendai Indo-no Kokusai-kankei (India's international relations at present), Institute of Kondo Norio ed., Gendai Indo-no Kokusai-kankei (India's international Developing Economies, 2012. relations at present), Institute of Developing Economies, 2012. 2 Mehta, Pratap Bahnu, “How India Stumbles?”, Foreign Affairs, July/August “Japan India relationship in New Asian Era”, Joint statement of PMs of 8, 2012, http://www.foreignaffairs.com/articles/137719/pratap- Japan and India, April 29, 2005, http://www.mofa.go.jp/region/asia- bhanu-mehta/how-india-stumbled?page=show. paci/india/partner0504.html. Ng, Francis, Yeats, Alexander, “Production sharing in East Asia : who does 3 “Joint Statement Towards Japan-India Strategic and Global Partnership, what for whom, and why?”, the World Bank, Policy Research D e c e m b e r 2 0 0 6 , h t t p : / / w w w . m o f a . g o . j p / r e g i o n / a s i a - Working Paper, no. WPS 2149, the World Bank, 1999.http://www- paci/india/pdfs/joint0612.pdf. wds.worldbank.org/external/default/WDSContentServer/IW3P/ 4 IB/1999/11/04/000094946_99101505330852/Rendered/PDF/multi_ “Joint Statement On the Roadmap for New Dimensions to the Strategic and page.pdf. Global Partnership between Japan and India”, August, 2007, http://www.mofa.go.jp/region/asia-paci/pmv0708/joint-2.html. Nihon Boeki Shinko Kiko (JETRO), “Indo-ASEAN Ryutsu-nettowaku Chosa” (a study on distribution network between India and ASEAN), 5 “Joint Statement on the Advancement of the Strategic and Global JETRO, 2011. P a r t n e r s h i p b e t w e e n J a p a n a n d I n d i a ” , O c t o b e r 2 0 0 8 , Nikaido Yuko, “Gurobaruka-to Indo-no Keisaijiyuuka” (economic http://www.mofa.go.jp/region/asia-paci/india/pmv0810/joint_s.html. globalization and economic liberalization of India), 2009, 6 “Joint Statement, Viskon for Japan-India Strategic and Global Partnership http://repo.lib.hosei.ac.jp/bitstream/10114/4008/1/147nikaido.pdf in the Next Decade”, http://www.mofa.go.jp/region/asia- Nishihara Tadashi, Horimoto Takeno ed., Gunji-taikokka suru Indo (rise of paci/india/pm1010/joint_st.html. India as military power), Aki-shobo, 2010. 7 “Vision for the Enhancement of Japan-India Strategic and Global Ohata Yashichi and Urata Shujiro ed., Asean-no Keizai Nihon-no Yakuwari Partnership upon entering the year of the 60th Anniversary of the (ASEAN Economies and role of Japan), Yuhikaku, 1992. Establishment of Diplomatic Relations”, December 2011, Saito Chihiro ed., NGO Taikoku Indo (NGO in India), Akashi-shoten, 1997. h t t p : / / w w w . m o f a . g o . j p / r e g i o n / a s i a - paci/india/pmv1112/joint_statement_en.html. Singh, Manmohan, Full Text of Prime Minister's Statement at the Full Planning Commission Meeting on Twelfth Five Year Plan (2012-17) on 8 Full Text of Prime Minister's Statement at the Full Planning Commission 15.09.2012. http://planningcommission.nic.in/news/pm_ Meeting on Twelfth Five Year Plan (2012-17) on 15.09.2012. speech1509.pdf. http://planningcommission.nic.in/news/pm_speech1509.pdf

54 55 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview

10 For example, see Ng, Francis, Yeats, Alexander, “Production sharing in 19 Compiled by the author from tables on data on Japan's registered NPOs in East Asia : who does what for whom, and why?”, the World Bank, Policy 2006, http://www.npo-hiroba.or.jp/know/analysis.html#graph. Research Working Paper, no. WPS 2149, the World Bank, 1999. Also Ohata 20 Yashichi and Urata Shujiro ed., Asean-no Keizai Nihon-no Yakuwari According to data released by Japan NGO Center for International (ASEAN Economies and role of Japan), Yuhikaku, 1992. http://www- Development, budgetary size of most of Japan's NGOs engaging wds.worldbank.org/external/default/WDSContentServer/ international development is between less than US$10,000 and several IW3P/IB/1999/11/04/000094946_99101505330852/Rendered/PDF/multi hundred thousand dollars and they are mainly operating in Asia, and next in _page.pdf Africa.

21 11 Broadman, Harry G., Xiaolun Sun, “The distribution of foreign direct As for the history of NGOs in Japan, see Imada Masaru ed., Nihon-no investment in China”, Policy Research Working Paper, no. WPS 1720, the NPO-shi (history of NGO in Japan), Gyosei, 2006.

W o r l d B a n k , 1 9 9 7 . h t t p : / / w w w - 22 wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/199 Remarks by the President on the Defense Strategic Review, January 5, 7/02/01/000009265_3970619110946/Rendered/PDF/multi_page.pdf. 2 0 1 2 , h t t p : / / w w w . w h i t e h o u s e . g o v / t h e - p r e s s - Also Zeng, Douglas Zhihua, “How do special economic zones and industrial office/2012/01/05/remarks-president-defense-strategic-review. clusters drive China's rapid development ?”, Policy Research Working 23 The government of Australia, Australia in the Asian Century (White Paper, no. WPS 5583, the World Bank, 2011, http://www- Paper), October 2012. wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/201 1/03/01/000158349_20110301083120/Rendered/PDF/WPS5583.pdf.

12 The 2nd Japan-India Business Leaders Forum Joint Report, http://www.mofa.go.jp/region/asia-paci/india/pmv0810/r_report.html

13 JETRO made a detailed study on problems for FDI from Japanese companies operating in ASEAN. Nihon Boeki Shinko Kiko (JETRO), “Indo- ASEAN Ryutsu-nettowaku Chosa” (a study on distribution network between India and ASEAN), JETRO, 2011.

14 Sunila Kale & Sumit Ganguly, “India's Dark Night”, Foreign Affairs, August 8, 2012, http://www.foreignaffairs.com/articles/137819/sunila-s- kale-and-sumit-ganguly/indias-dark-night?page=show.

15 Full Text of Prime Minister's Statement at the Full Planning Commission Meeting on Twelfth Five Year Plan (2012-17) on 15.09.2012.

16 Sunila Kale & Sumit Ganguly, “India's Dark Night”, Foreign Affairs, August 8, 2012, http://www.foreignaffairs.com/articles/137819/sunila-s- kale-and-sumit-ganguly/indias-dark-night?page=show.

17 Pratap Bahnu Mehta, “How India Stumbles?”, Foreign Affairs, July/August 8, 2012, http://www.foreignaffairs.com/articles/137719/pratap-bhanu- mehta/how-india-stumbled?page=show.

18 Saito Chihiro ed., NGO Taikoku Indo (NGO in India), Akashi-shoten, 1997.

56 57 India and Japan Relations Japan-India Relations and Direction of Further Cooperation; An Overview

12 The 2nd Japan-India Business Leaders Forum Joint Report, http://www.mofa.go.jp/region/asia-paci/india/pmv0810/r_report.html

14 Sunila Kale & Sumit Ganguly, “India's Dark Night”, Foreign Affairs, August 8, 2012, http://www.foreignaffairs.com/articles/137819/sunila-s- kale-and-sumit-ganguly/indias-dark-night?page=show.

15 Full Text of Prime Minister's Statement at the Full Planning Commission Meeting on Twelfth Five Year Plan (2012-17) on 15.09.2012.

16 Sunila Kale & Sumit Ganguly, “India's Dark Night”, Foreign Affairs, August 8, 2012, http://www.foreignaffairs.com/articles/137819/sunila-s- kale-and-sumit-ganguly/indias-dark-night?page=show.

17 Pratap Bahnu Mehta, “How India Stumbles?”, Foreign Affairs, July/August 8, 2012, http://www.foreignaffairs.com/articles/137719/pratap-bhanu- mehta/how-india-stumbled?page=show.

18 Saito Chihiro ed., NGO Taikoku Indo (NGO in India), Akashi-shoten, 1997.

56 57 A Comparative Study of Status of Women in India and Japan A Comparative Study of Status of Women in India and Japan were provided with education and training on health and hygiene, nutrition related skills, child health and handicrafts but Marri Padmaja women were not primarily valued for their role in the rural economy. In the 1970s there was a significant change in the Foundation's The greenery of the country indicates the status of women. The view of the role of women and their contribution to society. India word status means Position of women in social, legal, economic, and Japan, as two big democracies in Asia, can cooperate in the educational and political fields of standing. The status of women task of the integration of East Asia, as both are clear that the in India has been subjected to many great changes over the past ASEAN nations should be the hub and while helping in the few millennia. From equal status with men in ancient times networking, they would not be assigning to themselves a through the low points of the medieval period, to the promotion preponderant role (Yagamareddy.Y, 2012). of equal rights by many reformers, the history of women in India The place of women in Japanese society provides a unique has been eventful. In modern India, women have adorned high position. In the Meiji period of social upheaval, women were offices in India including that of the President, Prime minister, encouraged to be the moral foundation of the country. The Speaker of the Lok Sabha and Leader of the Opposition. As of position of women changed in Japan after World War-II. Japanese 2011, both the Speaker of the Lok Sabha and the Leader of the women have almost unquestioned authority within the family Opposition in Lok Sabha (Lower House of the parliament) are system of today's Japan. Women, both in India and Japan, play a women. However, women in India generally are still exposed to major role in the child rearing practices and it is the characteristic numerous social issues. According to a global study conducted by feature of Asian society. In the 21st century both India and Japan Thomson Reuters, India is the "fourth most dangerous country" in women hold high positions at all levels -politically, socially, the world for women. educationally, culturally and economically. In the commercial In the early 1950s discussions on the role of women in society and sector the labor provided by women becomes the key to the their contributions to the economy were predominantly framed country's economic success in the two countries from agriculture by men and focused primarily on women's roles as homemakers. to IT level. The female sex ratio in both countries increased from A specific role for women in the economic development of India 933 (2001) to 940 (2011) per thousand in India and from 1041 was not high on the agenda, when Prime Minister Jawaharlal (2001) to 1055 (2011) per thousand in Japan respectively. The Nehru and the Foundation's first Representative in India. present paper is based on secondary data and focusses its Douglas Ensminger discussed how the Foundation could help attention to cover all multi dimensional aspects on the position of India feed itself, provide adequate employment and training and women including legal provisions and gender issues in India and capacity building. Japan. However, women's live hood and well-being did receive some The status of women in Japan: Confucianism stressed the attention in the early days of the Foundation's involvement in the preeminence of men over women, stating: "A woman is to obey 1950s and 1960s in what came to be known as the Community her father as daughter, her husband as wife, and her son as aged Development (CD) program, a far reaching initiative designed to mother."A basic tenant of Buddhism is that salvation is not build economic self-reliance in Indian villages. In the context of possible for women, and the Samurai believed that "...A woman the CD program women were targeted as wives and mothers and

58 59 A Comparative Study of Status of Women in India and Japan A Comparative Study of Status of Women in India and Japan were provided with education and training on health and hygiene, nutrition related skills, child health and handicrafts but Marri Padmaja women were not primarily valued for their role in the rural economy. In the 1970s there was a significant change in the Foundation's The greenery of the country indicates the status of women. The view of the role of women and their contribution to society. India word status means Position of women in social, legal, economic, and Japan, as two big democracies in Asia, can cooperate in the educational and political fields of standing. The status of women task of the integration of East Asia, as both are clear that the in India has been subjected to many great changes over the past ASEAN nations should be the hub and while helping in the few millennia. From equal status with men in ancient times networking, they would not be assigning to themselves a through the low points of the medieval period, to the promotion preponderant role (Yagamareddy.Y, 2012). of equal rights by many reformers, the history of women in India The place of women in Japanese society provides a unique has been eventful. In modern India, women have adorned high position. In the Meiji period of social upheaval, women were offices in India including that of the President, Prime minister, encouraged to be the moral foundation of the country. The Speaker of the Lok Sabha and Leader of the Opposition. As of position of women changed in Japan after World War-II. Japanese 2011, both the Speaker of the Lok Sabha and the Leader of the women have almost unquestioned authority within the family Opposition in Lok Sabha (Lower House of the parliament) are system of today's Japan. Women, both in India and Japan, play a women. However, women in India generally are still exposed to major role in the child rearing practices and it is the characteristic numerous social issues. According to a global study conducted by feature of Asian society. In the 21st century both India and Japan Thomson Reuters, India is the "fourth most dangerous country" in women hold high positions at all levels -politically, socially, the world for women. educationally, culturally and economically. In the commercial In the early 1950s discussions on the role of women in society and sector the labor provided by women becomes the key to the their contributions to the economy were predominantly framed country's economic success in the two countries from agriculture by men and focused primarily on women's roles as homemakers. to IT level. The female sex ratio in both countries increased from A specific role for women in the economic development of India 933 (2001) to 940 (2011) per thousand in India and from 1041 was not high on the agenda, when Prime Minister Jawaharlal (2001) to 1055 (2011) per thousand in Japan respectively. The Nehru and the Foundation's first Representative in India. present paper is based on secondary data and focusses its Douglas Ensminger discussed how the Foundation could help attention to cover all multi dimensional aspects on the position of India feed itself, provide adequate employment and training and women including legal provisions and gender issues in India and capacity building. Japan. However, women's live hood and well-being did receive some The status of women in Japan: Confucianism stressed the attention in the early days of the Foundation's involvement in the preeminence of men over women, stating: "A woman is to obey 1950s and 1960s in what came to be known as the Community her father as daughter, her husband as wife, and her son as aged Development (CD) program, a far reaching initiative designed to mother."A basic tenant of Buddhism is that salvation is not build economic self-reliance in Indian villages. In the context of possible for women, and the Samurai believed that "...A woman the CD program women were targeted as wives and mothers and

58 59 India and Japan Relations A Comparative Study of Status of Women in India and Japan should look upon her husband as if he were heaven itself."An people homeless. The bombings hit other cities with similar example of how society viewed women is shown by an excerpt results, culminating in the atomic bombing of Hiroshima and from The Tale of Genji, an 11th century Japanese novel, written by Nagasaki. It is worth noting that in spite of lax enforcement, Japan a woman; she said: "If they [women] were not fundamentally evil, enacted the equal pay for equal work law 16 years before a similar they would not have been born women at all" (Robert C. law was passed in the United States (Mikiso Hane, 1986). Christopher, 1983). From a mythological perspective, it is known that god Women living under the Tokugawa Shogunate (1602-1868), as the Izanagi and goddess Izanami descended on earth to give birth government of Japan was known, did not exist legally. Women to what is referred to as an Eight Island Country. Then could not own property, and according to a Portuguese trader, a Amateratsu was created from a bronze mirror held in Izanagi's woman's "...husband may kill his wife for being lazy or bad. No left hand and light beamed down on earth. The goddess was foreigners were allowed to enter Japan, and no Japanese were created to give birth to the Japanese nation, as an omniscient allowed to travel outside Japan. Japan became a time capsule mother who would take care of the country of the rising sun and which was not opened until 1853 with the arrival of Commodore from whom descended the imperial line started by her Matthew Perry of the United States at Tokyo Bay. Thus Japan was grandson, the first Emperor Jimmu, who eventually settled his thrust into the modern world with a societal structure that was castle in the Yamato Plain in 660 BC. After him the Japanese barely discernable from that which had existed for the previous imperial line was established without excluding women from four hundred years (Mikiso Hane, 1986). it, as there were historical proofs of female rulers like the case Women, although ruthlessly exploited, became the key to the of Empress Suiko (592-628) (Oscar Ramos, 2005). country's success. In a time of social upheaval, women were Nara period (710-794) , Heian period (794-1185) and encouraged to be the moral foundation of the country. The Edo period (1600-1868) traditional notion of the Confucian family, ie.- father to son, The position of women in politics in the Nara period (710-794) senior to junior, husband to wife, was pushed off by the was highly influential, as it was believed that women had government as it attempted to increase the birth rate so that Japan certain supernatural powers that could communicate with the could compete on a more equal footing with the countries of the spiritual world. Also in the later Heian period (794-1185) Japanese West. Women were urged to live according to the saying "umeyo arts and letters flourished with the different nikki (diaries) and fuyaseyo" - produce more babies and increase the population monogatari (tales) written by educated women whose narratives (Dorothy Robins-Mowry, 1983). During World War II the role of are not only, wonderful pieces of literature but faithful portraits of women changed. Almost 2.5 million men served in the Japanese women's inner life in those periods. During Edo period (1600- armed forces, this represented 10% of the male population or 17% 1868), according to the anthropologist Hara Hiroko, Japanese of the male working population. At the end of the war 7,190,000 fathers used to help out the children looking after them. The men were serving in the armed forces. With millions of men children of the bushi (samurai) were the mother's responsibility removed from industry, women found themselves working in until it was the father who took up the moral upbringing of the coal mines, steel mills, and arms and ammunation factories. children introducing them to the literature and martial arts. Japanese wives found themselves doing double and sometimes To this we can add the comments of the Christian missionaries, triple duty (Takashi Koyama, 2005). In March 1945 a raid on who went to Japan from Portugal and Spain at the end of the Tokyo killed 83,793, injured 40,918, and left more then one million

60 61 India and Japan Relations A Comparative Study of Status of Women in India and Japan should look upon her husband as if he were heaven itself."An people homeless. The bombings hit other cities with similar example of how society viewed women is shown by an excerpt results, culminating in the atomic bombing of Hiroshima and from The Tale of Genji, an 11th century Japanese novel, written by Nagasaki. It is worth noting that in spite of lax enforcement, Japan a woman; she said: "If they [women] were not fundamentally evil, enacted the equal pay for equal work law 16 years before a similar they would not have been born women at all" (Robert C. law was passed in the United States (Mikiso Hane, 1986). Christopher, 1983). From a mythological perspective, it is known that god Women living under the Tokugawa Shogunate (1602-1868), as the Izanagi and goddess Izanami descended on earth to give birth government of Japan was known, did not exist legally. Women to what is referred to as an Eight Island Country. Then could not own property, and according to a Portuguese trader, a Amateratsu was created from a bronze mirror held in Izanagi's woman's "...husband may kill his wife for being lazy or bad. No left hand and light beamed down on earth. The goddess was foreigners were allowed to enter Japan, and no Japanese were created to give birth to the Japanese nation, as an omniscient allowed to travel outside Japan. Japan became a time capsule mother who would take care of the country of the rising sun and which was not opened until 1853 with the arrival of Commodore from whom descended the imperial line started by her Matthew Perry of the United States at Tokyo Bay. Thus Japan was grandson, the first Emperor Jimmu, who eventually settled his thrust into the modern world with a societal structure that was castle in the Yamato Plain in 660 BC. After him the Japanese barely discernable from that which had existed for the previous imperial line was established without excluding women from four hundred years (Mikiso Hane, 1986). it, as there were historical proofs of female rulers like the case Women, although ruthlessly exploited, became the key to the of Empress Suiko (592-628) (Oscar Ramos, 2005). country's success. In a time of social upheaval, women were Nara period (710-794) , Heian period (794-1185) and encouraged to be the moral foundation of the country. The Edo period (1600-1868) traditional notion of the Confucian family, ie.- father to son, The position of women in politics in the Nara period (710-794) senior to junior, husband to wife, was pushed off by the was highly influential, as it was believed that women had government as it attempted to increase the birth rate so that Japan certain supernatural powers that could communicate with the could compete on a more equal footing with the countries of the spiritual world. Also in the later Heian period (794-1185) Japanese West. Women were urged to live according to the saying "umeyo arts and letters flourished with the different nikki (diaries) and fuyaseyo" - produce more babies and increase the population monogatari (tales) written by educated women whose narratives (Dorothy Robins-Mowry, 1983). During World War II the role of are not only, wonderful pieces of literature but faithful portraits of women changed. Almost 2.5 million men served in the Japanese women's inner life in those periods. During Edo period (1600- armed forces, this represented 10% of the male population or 17% 1868), according to the anthropologist Hara Hiroko, Japanese of the male working population. At the end of the war 7,190,000 fathers used to help out the children looking after them. The men were serving in the armed forces. With millions of men children of the bushi (samurai) were the mother's responsibility removed from industry, women found themselves working in until it was the father who took up the moral upbringing of the coal mines, steel mills, and arms and ammunation factories. children introducing them to the literature and martial arts. Japanese wives found themselves doing double and sometimes To this we can add the comments of the Christian missionaries, triple duty (Takashi Koyama, 2005). In March 1945 a raid on who went to Japan from Portugal and Spain at the end of the Tokyo killed 83,793, injured 40,918, and left more then one million

60 61 India and Japan Relations A Comparative Study of Status of Women in India and Japan

16th century, and who were direct witnesses of the way and lived there for certain location providing labour services to women were considered in society. As an example of these his in-laws and then brought his wife back to his natal home is observations we can mention those left by Luís Fróis. he was in practised in limited area in Northern Honshu (Harumibefu, Japan from 1563 to 1597 who observed that in Europe husbands 1971). Especially Japanese give importance to the women hair and wives shared their property while in Japan each had their dressing. At the time of marriage, a hair dresser comes early in the own assets, and sometimes, when the woman was in a better morning to bride's house to have special hair dress to all women position, she gave a loan to the husband with an interest rate of relatives. 11% on the amount lent. The doctrine of the ryo:saikenbo: (good Women have been appointed as ambassadors of Japanese culture, wife wise mother) was followed to the letter establishing a clear and but they have not been empowered. Some cooperatives run by insurmountable division between the roles of husbands and women began to buy directly from producers and this successful wives in society. As a rule the place of women in society was at idea was awarded in 1989 the international prize for creating an home, and they had the responsibility of the upbringing of the alternative economy. During the 30s and 40s the government children, the care of the elder and the entire devotion to their emphasized the reproductive role of women, and presented it husbands. as an encouraging image for the escalating militarism of Taisho period (1912-1926): In the Taisho period (1912-1926) Japan. urban Japan showed a different face from the stereotyped rice A survey of new brides reported that only 12% expected their fields and spinning wheels of the previous age and the service marriage to be happy. A Japanese woman has almost sector sprung up offering new kinds of employment to unquestioned authority within the family system of today's women like mannequin girls, elevator girls, train girls…All Japan. Typically the wife will make all decisions regarding the these jobs involved some kind of service to the public which raising of the children, and will have absolute control of the actually protracted women's image as nurturers: first of the family's finances. There are two factors which explain this, first family and then of society. The adaptation of the English word. that "...the mother-son relationship in Japan breeds in most ga:ru (girl) implied that these jobs were only suitable for young Japanese boys a taste for dependence. Mothers are encouraged unmarried women who usually wore uniforms in a western style to help their children do their homework during holidays; if to emphasize Japan's main concern in keeping up with the assignments are not completed, mothers will be scolded by modern times. the school. During their school life children are subject to Marriage, Family & Child Rearing: It is important to understand rigorous academic testing that dictates their educational and that marriage and love do not always go together in Japan, as professional paths. Schools are an important source of shared marriage is considered a national duty. Still miai is used to arrange knowledge and national identity, for a standard form of marriages taking advantage of the technological devices like the Japanese is expected with a uniform understanding of the world. mobile phone or the chat. Women appear to be the central axis for Japanese women are famous for floral arrangement and tea consumption, creating a feminine gender identity that embodies beverages. the contradictions of the East and the West, tradition and The lives of the Japanese are planned since childhood and most modernity, continuity and change. Generally Japan prefers rituals and festivities refer to the different life cycles they have to Monogamous type of marriage. One variant matri-patri local go through. Birth and childhood have several rituals like the residence in which the groom first moved to his brides natal room

62 63 India and Japan Relations A Comparative Study of Status of Women in India and Japan

62 63 India and Japan Relations A Comparative Study of Status of Women in India and Japan celebration of girls' day on March the 3rd , or boys' day on May school education helps a girl's family a make a good marriage for the 5th when there is a display of icons like dolls from the her. All young girls are encouraged to attend Shojokai (the young imperial court at the Heian period to celebrate girls' day and ladies society, which is part-time school for girls who have not warrior armours and helmets symbolizing splendour and gone beyond the sixth grade). Each home room is responsible for a ferocity, along with the koi , hung at the balcony to celebrate boys' through cleaning when classes end. But in the home room, boys day representing the endurance expected from any human and girls do joke together and they talk over homework problems being through life. On the 15th of November. for girls of 3 and 7 ask to borrow things and discuss serious matters facing the home years of age and for boys of 3 and 5 years, shic higosan, room. All this exchange is public and conducted with a degree of communities hold a special celebration also. Adulthood (26-60) is distance (Thomas P. Rohlen, 1983). College education was marked by marriage (marriage age for men is, nowadays 27 to 29 available to an infinitesimal number of girls (Harumi Befu, 1971). for women 25-27) and children and men's lives are organized Employment: The changing role of women in Japanese society is around work dutifully serving their company even in their free also shown by their employment patterns. Traditionally Japanese time, while women's lives are organized around the house. women have worked until marriage and then they "retired" to One month after the birth of the baby the child is taken to a become housewives. Poor Samurai females in Japan worked in Shinto shrine and is offered to the gods and symbolically to the textiles and a number of regional products, notably the: sendai- whole society, miyamairi. This means the new born child is hira or yonezawa shoku were produced by Samurai female labour. considered as part of the community and will be controlled by Samurai girls are from destitute families and joined the ranks of the family, the school, the neighbourhood, the company and the labour force in the Maiji era (Jean Pierre Lehmann, 1982). eventually by the State. M curve: While women were left out of the system because the Shastipoorthi: A sixty one birthday is an important celebrating majority of them followed the M curve (peak in employment at occupation in Japan. Man and women at the time of their sixty 20 to 24 years of age, lowest at 30 to 34, reach the peak again at 45 one birthday wear a bright red dress and holds a party to celebrate to 49). Regarding employment they worked when they were reaching the last and oldest age group (Karl Memhiem, 1946). young and single, then left work either voluntarily or kindly Education: The field of education was one area where women requested to leave by the company, kata-tataki (given the tap on were able to make large inroads in terms of employment. The the shoulder) or pressured by the family, and came back again Teachers Union (Nikkyoso) ensured that women would receive after they had brought up their children.Women are valued equal pay for equal work, ensuring continued access to work after socially by their role as ryo:sai kenbo (good wife, wise mother marriage or childbirth. In 1970 women held 50% of the jobs in motto). elementary schools, 25% in junior high schools, and 40% in junior This type of patriarchal organization monitored society from colleges. It must be pointed out that a glass ceiling exists in the three angles: a) a system that controls the family through lifetime education field, as it does throughout Japan, and indeed employment, seniority based salaries and enterprise unions, tax throughout the world. In 1981 men filled 98% of the positions for and pension systems based on the household unit (family elementary school principals, 99.8% of those in junior high registration koseki), b) a Japanese welfare system based on the schools, and 97.5% in senior high schools. It is obvious that even in premise of division of labour and roles between sexes and c) the this field where women have made progress, relative to other new trend of the administration that reinforces women's professional areas, there is still much ground to cover. A high

64 65 India and Japan Relations A Comparative Study of Status of Women in India and Japan celebration of girls' day on March the 3rd , or boys' day on May school education helps a girl's family a make a good marriage for the 5th when there is a display of icons like dolls from the her. All young girls are encouraged to attend Shojokai (the young imperial court at the Heian period to celebrate girls' day and ladies society, which is part-time school for girls who have not warrior armours and helmets symbolizing splendour and gone beyond the sixth grade). Each home room is responsible for a ferocity, along with the koi , hung at the balcony to celebrate boys' through cleaning when classes end. But in the home room, boys day representing the endurance expected from any human and girls do joke together and they talk over homework problems being through life. On the 15th of November. for girls of 3 and 7 ask to borrow things and discuss serious matters facing the home years of age and for boys of 3 and 5 years, shic higosan, room. All this exchange is public and conducted with a degree of communities hold a special celebration also. Adulthood (26-60) is distance (Thomas P. Rohlen, 1983). College education was marked by marriage (marriage age for men is, nowadays 27 to 29 available to an infinitesimal number of girls (Harumi Befu, 1971). for women 25-27) and children and men's lives are organized Employment: The changing role of women in Japanese society is around work dutifully serving their company even in their free also shown by their employment patterns. Traditionally Japanese time, while women's lives are organized around the house. women have worked until marriage and then they "retired" to One month after the birth of the baby the child is taken to a become housewives. Poor Samurai females in Japan worked in Shinto shrine and is offered to the gods and symbolically to the textiles and a number of regional products, notably the: sendai- whole society, miyamairi. This means the new born child is hira or yonezawa shoku were produced by Samurai female labour. considered as part of the community and will be controlled by Samurai girls are from destitute families and joined the ranks of the family, the school, the neighbourhood, the company and the labour force in the Maiji era (Jean Pierre Lehmann, 1982). eventually by the State. M curve: While women were left out of the system because the Shastipoorthi: A sixty one birthday is an important celebrating majority of them followed the M curve (peak in employment at occupation in Japan. Man and women at the time of their sixty 20 to 24 years of age, lowest at 30 to 34, reach the peak again at 45 one birthday wear a bright red dress and holds a party to celebrate to 49). Regarding employment they worked when they were reaching the last and oldest age group (Karl Memhiem, 1946). young and single, then left work either voluntarily or kindly Education: The field of education was one area where women requested to leave by the company, kata-tataki (given the tap on were able to make large inroads in terms of employment. The the shoulder) or pressured by the family, and came back again Teachers Union (Nikkyoso) ensured that women would receive after they had brought up their children.Women are valued equal pay for equal work, ensuring continued access to work after socially by their role as ryo:sai kenbo (good wife, wise mother marriage or childbirth. In 1970 women held 50% of the jobs in motto). elementary schools, 25% in junior high schools, and 40% in junior This type of patriarchal organization monitored society from colleges. It must be pointed out that a glass ceiling exists in the three angles: a) a system that controls the family through lifetime education field, as it does throughout Japan, and indeed employment, seniority based salaries and enterprise unions, tax throughout the world. In 1981 men filled 98% of the positions for and pension systems based on the household unit (family elementary school principals, 99.8% of those in junior high registration koseki), b) a Japanese welfare system based on the schools, and 97.5% in senior high schools. It is obvious that even in premise of division of labour and roles between sexes and c) the this field where women have made progress, relative to other new trend of the administration that reinforces women's professional areas, there is still much ground to cover. A high

64 65 India and Japan Relations A Comparative Study of Status of Women in India and Japan participation in society by creating volunteering networks to care (2) Restoration of Community life: Implements counseling for the elderly fostering non-wage female labour. Women, thus, services for women. Secure employment opportunities for the have been protected by the government as members of a certain youth, women, the elderly, and the disabled in the disaster- family system not as individuals. The ambivalence women find is affected regions. Take measures to support women's that if they work, they have to be young and single or entrepreneurial activities, such as assistance in launching housewives. After child rearing, their work is seen, in fact, as community businesses in the disaster-affected regions, part of consumption, while men's contribution to society is consulting services for women in rural areas seeking to start considered as production. This is specially significant in the businesses (e.g. food processing businesses and businesses that way women's image is projected by the media as described trade goods/services between urban and rural areas), and by Rosenberger. training to help women acquire know‐how in the field of business Women NGO'S: Organizations focus on consumer and management. environmental issues. One woman said that the "Government (3) Revival of Local Economic Activities (agriculture): Creates should listen to the voiceless voice." The groups protested against income and employment opportunities not only by promoting the high prices of beef and rice, price fixing of color televisions, agricultural production but also by combining various other and most importantly, environmental pollution. Japan has paid a efforts, including promotion of "reconstruction tourism,“ high price for its rapid rebirth. People have endured mercury coordinating with welfare services, etc., with elderly people and poisoning, polluted rivers and lakes, PCB tainted cooking oil, and women participating in these areas. air pollution so dense that sometimes Mt. Fuji cannot be seen. Reflecting recent disasters including the Great East Japan Media: Japanese women and their interest is in the family well- Earthquake, the Central Disaster Management Council decided being is shown in the topics covered like food, fashion and on some revisions to the Basic Plan for Disaster Prevention. These interior design. Magazines have certain power over the way include drastic improvement of earthquake and tsunami women categorize themselves and the discourse of ideas they countermeasures and revision of disaster prevention present are those approved by society. countermeasures. The revised plan includes more concrete Politics: Women in Japan in general are highly marginalized in measures such as reflection of the needs of women and families decision-making at all levels, is an indicator of remaining with babies and mental healthcare at temporary housing. constraints on women's empowerment. Minister Fukushima is Promote the participation of women in operational management one of the only two women in the 18-member Cabinet, for of shelter and take into consideration the perspectives of both example, Japan is below the Asia regional and global averages for men and women, including differing needs. Especially, shelters the percentage of women in its lower house of Parliament. should be operated in a manner that reflects the needs of women and families with babies, which include setting up spaces for Policies and Measures/Women Training in Disaster drying women's articles, changing facilities, nursing rooms, Management: distributing women's sanitary products ensuring the safety of (1) Building disaster-resistant and resilient regions: Promotes a shelters. new concept of building towns that gives due consideration to the Law: Japan has one of the lowest rates of domestic violence in the elderly, children, women, disabled persons, etc. world, according to world health organization research. But the

66 67 India and Japan Relations A Comparative Study of Status of Women in India and Japan participation in society by creating volunteering networks to care (2) Restoration of Community life: Implements counseling for the elderly fostering non-wage female labour. Women, thus, services for women. Secure employment opportunities for the have been protected by the government as members of a certain youth, women, the elderly, and the disabled in the disaster- family system not as individuals. The ambivalence women find is affected regions. Take measures to support women's that if they work, they have to be young and single or entrepreneurial activities, such as assistance in launching housewives. After child rearing, their work is seen, in fact, as community businesses in the disaster-affected regions, part of consumption, while men's contribution to society is consulting services for women in rural areas seeking to start considered as production. This is specially significant in the businesses (e.g. food processing businesses and businesses that way women's image is projected by the media as described trade goods/services between urban and rural areas), and by Rosenberger. training to help women acquire know‐how in the field of business Women NGO'S: Organizations focus on consumer and management. environmental issues. One woman said that the "Government (3) Revival of Local Economic Activities (agriculture): Creates should listen to the voiceless voice." The groups protested against income and employment opportunities not only by promoting the high prices of beef and rice, price fixing of color televisions, agricultural production but also by combining various other and most importantly, environmental pollution. Japan has paid a efforts, including promotion of "reconstruction tourism,“ high price for its rapid rebirth. People have endured mercury coordinating with welfare services, etc., with elderly people and poisoning, polluted rivers and lakes, PCB tainted cooking oil, and women participating in these areas. air pollution so dense that sometimes Mt. Fuji cannot be seen. Reflecting recent disasters including the Great East Japan Media: Japanese women and their interest is in the family well- Earthquake, the Central Disaster Management Council decided being is shown in the topics covered like food, fashion and on some revisions to the Basic Plan for Disaster Prevention. These interior design. Magazines have certain power over the way include drastic improvement of earthquake and tsunami women categorize themselves and the discourse of ideas they countermeasures and revision of disaster prevention present are those approved by society. countermeasures. The revised plan includes more concrete Politics: Women in Japan in general are highly marginalized in measures such as reflection of the needs of women and families decision-making at all levels, is an indicator of remaining with babies and mental healthcare at temporary housing. constraints on women's empowerment. Minister Fukushima is Promote the participation of women in operational management one of the only two women in the 18-member Cabinet, for of shelter and take into consideration the perspectives of both example, Japan is below the Asia regional and global averages for men and women, including differing needs. Especially, shelters the percentage of women in its lower house of Parliament. should be operated in a manner that reflects the needs of women and families with babies, which include setting up spaces for Policies and Measures/Women Training in Disaster drying women's articles, changing facilities, nursing rooms, Management: distributing women's sanitary products ensuring the safety of (1) Building disaster-resistant and resilient regions: Promotes a shelters. new concept of building towns that gives due consideration to the Law: Japan has one of the lowest rates of domestic violence in the elderly, children, women, disabled persons, etc. world, according to world health organization research. But the

66 67 India and Japan Relations A Comparative Study of Status of Women in India and Japan official collection of data on domestic violence only began with verses suggest that the women married at a mature age and were the passage of the 2001 Law for the Prevention of Spousal probably free to select their husband. Scriptures such as Rig Veda Violence and the Protection of Victims. Domestic violence cases and Upanishads mention several women sages and seers, notably reported to the police increased by nearly 12 percent from 2008 to Gargi and Maitreyi. There are very few texts specifically dealing 2009. Social sanctions and limited awareness of legal protections with the role of women; an important exception is the Stri Dharma are among the factors that keep women from speaking against Paddhati of Tryambakayajvan, an official at Thanjavur around abusers. UNIFEM is encouraging greater attention in Japan to the c.1730. The text compiles strictures on womenly behaviour dating issue of violence against women, both domestically and globally. back to the Apastamba sutra (c. 4th c. BCE). The opening verse Through its new liaison office is in Sakai City, it works with the goes: Government think tanks, non-government organizations and mukhyo dharmaH smr^tiShu vihito bhartr^shushruShANam hi : others on advancing women's rights. women are enjoined to be of service to their husbands. Gender Equality: According to Human Development Report 2005, Some kingdoms in the ancient India had traditions such as Japan ranks 11th (among 177 countries) with 0.943 of the Human nagarvadhu ("bride of the city"). Women competed to win the Development Index (HDI), and 14th (among 140 countries) with coveted title of the nagarvadhu. Amrapali is the most famous 0.937 of the Gender-Related Development Index (GDI). However, example of a nagarvadhu. However, later (approximately 500 Japan drops to 43rd place (among 80 countries) with just 0.534 of B.C.), the status of women began to decline with the Smritis. the Gender Empowerment Measure (GEM). The UNDP and HDI According to Manusmriti the girl has to spend her childhood take care about women health and long life living standard. under the care of father, later in marriage life under the care of Politics: Even more critical, according to the February 2006 data husband and the old life under the care of a son. Later with the compiled by the Inter-Parliamentary Union (IPU), Japan stood in Islamic invasion of Babar and the Mughal empire and later 105th place on women's shares of seats in a lower or single house Christianity curtailing women's freedom and rights the status (9 percent). Today, many developing countries such as Rwanda was further reduced. Although reformatory movements such as (48.8 percent), Pakistan (21.3 percent) and the Philippines (15.7 Jainism allowed women to be admitted to the religious order, by percent) far exceed Japan in terms of women's share of seats in a and large, the women in India faced confinement and restrictions. lower or single house. (HDR). Mizuho Fukushima, Japan's The practice of child marriages is believed to have started from Minister of State for Consumer Affairs and Food Safety. Social around sixth century. affairs and Gender Equality, has signed on to say NO-UNITE, Medieval period: In the Medieval period the status of women pledging her full support for the UNIFEM initiative. decreased when compared to the ancient period. Sati among Status of women in India: some communities, child marriages and a ban on widow remarriages became part of social life among some communities Vedic Period: According to studies, women enjoyed equal status in India. The Muslim conquest in the Indian subcontinent brought and rights during the early Vedic period. The women enjoyed the purdah practice in the Indian society. Among the Rajputs of equal status in ancient India with men in all fields of life. Rajasthan, the Jauhar was practised. In some parts of India, the However, some others hold contrasting views. Works by ancient Devadasis or the temple women were sexually exploited. Indian grammarians such as Patanjali and Katyayana suggest Polygamy was widely practised especially among Hindu that women were educated in the early Vedic period. Rigvedic

68 69 India and Japan Relations A Comparative Study of Status of Women in India and Japan official collection of data on domestic violence only began with verses suggest that the women married at a mature age and were the passage of the 2001 Law for the Prevention of Spousal probably free to select their husband. Scriptures such as Rig Veda Violence and the Protection of Victims. Domestic violence cases and Upanishads mention several women sages and seers, notably reported to the police increased by nearly 12 percent from 2008 to Gargi and Maitreyi. There are very few texts specifically dealing 2009. Social sanctions and limited awareness of legal protections with the role of women; an important exception is the Stri Dharma are among the factors that keep women from speaking against Paddhati of Tryambakayajvan, an official at Thanjavur around abusers. UNIFEM is encouraging greater attention in Japan to the c.1730. The text compiles strictures on womenly behaviour dating issue of violence against women, both domestically and globally. back to the Apastamba sutra (c. 4th c. BCE). The opening verse Through its new liaison office is in Sakai City, it works with the goes: Government think tanks, non-government organizations and mukhyo dharmaH smr^tiShu vihito bhartr^shushruShANam hi : others on advancing women's rights. women are enjoined to be of service to their husbands. Gender Equality: According to Human Development Report 2005, Some kingdoms in the ancient India had traditions such as Japan ranks 11th (among 177 countries) with 0.943 of the Human nagarvadhu ("bride of the city"). Women competed to win the Development Index (HDI), and 14th (among 140 countries) with coveted title of the nagarvadhu. Amrapali is the most famous 0.937 of the Gender-Related Development Index (GDI). However, example of a nagarvadhu. However, later (approximately 500 Japan drops to 43rd place (among 80 countries) with just 0.534 of B.C.), the status of women began to decline with the Smritis. the Gender Empowerment Measure (GEM). The UNDP and HDI According to Manusmriti the girl has to spend her childhood take care about women health and long life living standard. under the care of father, later in marriage life under the care of Politics: Even more critical, according to the February 2006 data husband and the old life under the care of a son. Later with the compiled by the Inter-Parliamentary Union (IPU), Japan stood in Islamic invasion of Babar and the Mughal empire and later 105th place on women's shares of seats in a lower or single house Christianity curtailing women's freedom and rights the status (9 percent). Today, many developing countries such as Rwanda was further reduced. Although reformatory movements such as (48.8 percent), Pakistan (21.3 percent) and the Philippines (15.7 Jainism allowed women to be admitted to the religious order, by percent) far exceed Japan in terms of women's share of seats in a and large, the women in India faced confinement and restrictions. lower or single house. (HDR). Mizuho Fukushima, Japan's The practice of child marriages is believed to have started from Minister of State for Consumer Affairs and Food Safety. Social around sixth century. affairs and Gender Equality, has signed on to say NO-UNITE, Medieval period: In the Medieval period the status of women pledging her full support for the UNIFEM initiative. decreased when compared to the ancient period. Sati among Status of women in India: some communities, child marriages and a ban on widow remarriages became part of social life among some communities Vedic Period: According to studies, women enjoyed equal status in India. The Muslim conquest in the Indian subcontinent brought and rights during the early Vedic period. The women enjoyed the purdah practice in the Indian society. Among the Rajputs of equal status in ancient India with men in all fields of life. Rajasthan, the Jauhar was practised. In some parts of India, the However, some others hold contrasting views. Works by ancient Devadasis or the temple women were sexually exploited. Indian grammarians such as Patanjali and Katyayana suggest Polygamy was widely practised especially among Hindu that women were educated in the early Vedic period. Rigvedic

68 69 India and Japan Relations A Comparative Study of Status of Women in India and Japan

Kshatriya rulers. In many Muslim families, women were a state in India. restricted to Zenana areas. Social Evils: The social evils are prevented by the acts of Sati, Razia Sultana became the only woman monarch in politics to Child Marriage Restraint Act, Widow Remarriage Act. have ever ruled Delhi. Later the Gond queen Durgavati ruled for Independent India: Indira Gandhi, who served as Prime Minister fifteen years, before she lost her life in a battle with Mughal of India for an aggregate period of fifteen years is the world's emperor Akbar's general Asaf Khan in 1564. Chand Bibi defended longest serving woman Prime Minister. She gave women Ahmednagar against the mighty Mughal forces of Akbar in 1590s. upliftment in all fields like social economical educational and Jehangir's wife Nur Jehan effectively wielded imperial power and political and health wise. 1975 was declared as the year of was recognized as the real force behind the Mughal throne. The Women. One of the first national level issues that brought the Mughal princesses Jahanara and Zebunnissa were well-known women's groups together was the Mathura rape case. poets in literature. Shivaji's mother,Jijabai was deputed as queen regent, because of her ability as a warrior and an administrator. The Role of Women in Marriage and Family System in India: Mothers inroots the braveness to the children from the childhood With the expanding social reform and female emancipation that onwards by narrating the patriotism and braveness as a citizen of accompanied economic and literacy growth after independence, India. In South India, many women administered villages, towns, many commentators predicted the gradual demise of arranged divisions and heralded social and religious institutions. We know marriages in India, and the inexorable rise of so-called "love very well the braveness of Jansi Lakshmi Bhai (Nationalist Hero) marriages". That has not yet come to pass and the institution and Rani Rudramma Devi before independence. Even in the 19th proved to be "remarkably resilient" in the Indian social context, century Maguvamanchali's story explains how women trains her though it has undergone radical change (Gita Aravamudan). husband to face the war. Kittur Chennamma, the queen of the Child marriages are also in steady decline and deemed unlawful princely state Kittur in Karnataka, led an armed rebellion against in India (with legal age of marriage at 21 years for men and 18 the British in response to the Doctrine of lapse. Chandramukhi years for women), so the term "arranged marriage" now Basu, Kadambini Ganguly and Anandi Gopal Joshi were a few of increasingly refers to marriages between consenting adults well the earliest Indian women to obtain educational degrees past the age of sexual maturity (Patricia Uberoi, 2006) (T.Padma& KPC. Rao, 2011). The performance of marriage in Hindu system is based on Independence Period: Women played an important part in sacredness and follows Pani Grahana, Sapthapadi and Homa and India's independence struggle. Some of the famous freedom Vedic Hymns, Muslim and Christian marriages are performed fighters include Bhikaji Cama, Dr. Annie Besant, Pritilata according to their rites. Few runaway marriages are common. In Waddedar, Vijayalakshmi Pandit, Rajkumari Amrit Kaur, Aruna the traditional marriage system “Sthri Dhana” is given to girls as Asaf Ali, Sucheta Kriplani and Kasturba Gandhi. Other notable for security purpose in the form of gold, silver and land etc. At names include Muthulakshmi Reddy, Durgabai Deshmukh etc. present this is known as Dowry and it is demanded by boy's The Rani of Jhansi Regiment of Subhas Chandra Bose's Indian parents and this leads to bride burning issues today. National Army consisted entirely of women including Captain When compared, Indian traditional system of marriage and voice Lakshmi Sahgal. Sarojini Naidu, a poet and a freedom fighter, was of women her voice raised in choosing her life partner in the the first Indian woman to become the President of the Indian present system. Filocentric nature developed in girls in the National Congress and the first woman to become the governor of modern era. The reasons may be due to higher education and

70 71 India and Japan Relations A Comparative Study of Status of Women in India and Japan

70 71 India and Japan Relations A Comparative Study of Status of Women in India and Japan employment in girls. Even today half of the Indian women Female Literacy. This mission aims to bring down female preferred for arrange marriages and rest of them engaged with illiteracy by half of its present level. love marriages. 10 per cent preferred registered marriage. In India, it was found that there is a large disparity between The joint family system in India has been a part of Indian culture female literacy rates in different states. For example, while Kerala for centuries. But with rapid development and industrialization, actually has a female literacy rate of about 86 percent, Bihar and this tradition is now being replaced by nuclear families. Uttar Pradesh have female literacy rates around 55-60 percent. India is undergoing enormous changes, “In India, there is a These values are further correlated with health levels of the disintegration of the joint family system, there are inter- Indians, where it was found that Kerala is the state with the lowest generational conflicts and the divorce rate is also increasing.” infant mortality rate while Bihar and Uttar Pradesh are the states with the lowest life expectancies in India. Furthermore, the India also has a traditional and nuclear family system. The role of disparity of female literacy rates across rural and urban areas is women in joint family is better when compared to nuclear family. also significant in India (Nutrition in India, Viewed on 11 March In the joint family, work is shared is among women. Mostly half of 2011, (Out of the 24 states in India, 6 of them have female literacy the percentage of women in India in nuclear family are job rates of below 60 percent. The rural state Rajasthan has a female holders. Besides domestic chores, mother and wife roles and literacy rate of less than 12 percent (Landscaping Women's responsibilities, the employment rites and duties have to be Empowerment) performed. The women at present though they are educated, Family planning: employed they undergo with stress and strain regarding their The average woman in rural areas of India has work at office and work at home. Very few life partners share the little or no control over her reproductivity. Women, particularly work. Children are busy with their education. The earning is for women in rural areas, do not have access to safe and self- sake of the modern education, better position and to acquire controlled methods of contraception. The public health system modern equipments and sophisticated life. When compared to emphasises permanent methods like sterilisation, or long-term father, mother role is more in shaping the children in socialization methods like IUDs that do not need follow-up. Sterilization process. Women balances kinship ties both from Uxorilocal and accounts for more than 75% of total contraception, with female virilocal. sterilisation accounting for almost 95% of all sterilisations. In 2011 a "Right to Pee" (as called by the media) campaign began in Education: Education is a weapon for women empowerment. Mumbai, India's largest city. They created awareness regarding Constitutional directives received prominence in the Five Year sanitation and AIDS programme (Jim Yardley, 2012). Plan (1975-79). Provision of additional educational facilities was censured by this plan. Facilities through evening colleges, Role of NGOs in women Development: correspondence courses and private study were expanded. “These NGOs believe in the tasks of mobilizing and National Adult Education Programme (NAEP) and integrated conscentization of the masses or their specific target groups-be Child Development Services (ICDS) were launched. According to they women, children, agricultural labourers, construction 2000-2012 census report, more than half of the female population workers or the social castaways like widows, devdasis or under increased their literacy rates with the highest literacy in Kerala. trial prisoners. They believe sincerely in educating the people and Most of the budget is allocated for girls education.Recently the preparing them for ongoing struggle. They believe in social Indian government has launched Saakshar Bharat Mission for awakening including legal literacy and condence-building.

72 73 India and Japan Relations A Comparative Study of Status of Women in India and Japan employment in girls. Even today half of the Indian women Female Literacy. This mission aims to bring down female preferred for arrange marriages and rest of them engaged with illiteracy by half of its present level. love marriages. 10 per cent preferred registered marriage. In India, it was found that there is a large disparity between The joint family system in India has been a part of Indian culture female literacy rates in different states. For example, while Kerala for centuries. But with rapid development and industrialization, actually has a female literacy rate of about 86 percent, Bihar and this tradition is now being replaced by nuclear families. Uttar Pradesh have female literacy rates around 55-60 percent. India is undergoing enormous changes, “In India, there is a These values are further correlated with health levels of the disintegration of the joint family system, there are inter- Indians, where it was found that Kerala is the state with the lowest generational conflicts and the divorce rate is also increasing.” infant mortality rate while Bihar and Uttar Pradesh are the states with the lowest life expectancies in India. Furthermore, the India also has a traditional and nuclear family system. The role of disparity of female literacy rates across rural and urban areas is women in joint family is better when compared to nuclear family. also significant in India (Nutrition in India, Viewed on 11 March In the joint family, work is shared is among women. Mostly half of 2011, (Out of the 24 states in India, 6 of them have female literacy the percentage of women in India in nuclear family are job rates of below 60 percent. The rural state Rajasthan has a female holders. Besides domestic chores, mother and wife roles and literacy rate of less than 12 percent (Landscaping Women's responsibilities, the employment rites and duties have to be Empowerment) performed. The women at present though they are educated, Family planning: employed they undergo with stress and strain regarding their The average woman in rural areas of India has work at office and work at home. Very few life partners share the little or no control over her reproductivity. Women, particularly work. Children are busy with their education. The earning is for women in rural areas, do not have access to safe and self- sake of the modern education, better position and to acquire controlled methods of contraception. The public health system modern equipments and sophisticated life. When compared to emphasises permanent methods like sterilisation, or long-term father, mother role is more in shaping the children in socialization methods like IUDs that do not need follow-up. Sterilization process. Women balances kinship ties both from Uxorilocal and accounts for more than 75% of total contraception, with female virilocal. sterilisation accounting for almost 95% of all sterilisations. In 2011 a "Right to Pee" (as called by the media) campaign began in Education: Education is a weapon for women empowerment. Mumbai, India's largest city. They created awareness regarding Constitutional directives received prominence in the Five Year sanitation and AIDS programme (Jim Yardley, 2012). Plan (1975-79). Provision of additional educational facilities was censured by this plan. Facilities through evening colleges, Role of NGOs in women Development: correspondence courses and private study were expanded. “These NGOs believe in the tasks of mobilizing and National Adult Education Programme (NAEP) and integrated conscentization of the masses or their specific target groups-be Child Development Services (ICDS) were launched. According to they women, children, agricultural labourers, construction 2000-2012 census report, more than half of the female population workers or the social castaways like widows, devdasis or under increased their literacy rates with the highest literacy in Kerala. trial prisoners. They believe sincerely in educating the people and Most of the budget is allocated for girls education.Recently the preparing them for ongoing struggle. They believe in social Indian government has launched Saakshar Bharat Mission for awakening including legal literacy and condence-building.

72 73 India and Japan Relations A Comparative Study of Status of Women in India and Japan

NGOs have gained importance now and are increasing in number secondary institutions. very fast. NGOs are fighting for women empowerment, women Nearly 25 % of the women are in software field and this is the most legal (like Nirbhyas Case), social, educational, economic and significant feature of women development. One of the most health problems. Many women NGOs are working for women famous female business success stories is the Shri Mahila Griha welfare and women rights. The Property Act was passed in 1986 Udyog Lijjat Papad. In 2006, Kiran Mazumdar-Shaw, who started that the girls who got married after 1986 have their property right Biocon - one of India's first biotech companies, was rated India's in their born families. Pre-natal diagnosis Acts and dowry richest woman. Lalita D. Gupte and Kalpana Morparia were the prohibition Acts, female infanticide prohibition Acts are only businesswomen in India who made the list of the Forbes protection for girl child. Since alcoholism is often associated World's Most Powerful Women in 2006. Gupte ran India's with violence against women in India, many women groups second-largest bank, ICICI Bank, until October 2006, and launched anti-liquor campaigns through out India. In 2010 March Morparia is the CEO of JPMorgan India. Chanda Kochhar Ranks 9, one day after International Women's day, Rajyasabha passed 59 position in the worlds most powerful women and is the first Women's Reservation Bill, ensuring 33% reservation to women in women to run ICICI bank which is the second largest lender in Parliament and state legislative bodies (www.ngosd 30699). India and Kiran Mazumdar-Shaw Ranks 80th position in the Women, Agriculture and Industry: In rural India, women are the worlds most powerful women and India's first Biotech back bone in the field of agriculture. Agriculture and allied Entrepreneur in the 2012 Forbes list. industrial sectors employ as much as 89.5% of the total female Arts and Literature: Singers and vocalists such as M.S. labour. In overall farm production, women's average Subbulakshmi, Gangubai Hangal, Lata Mangeshkar, Janaki, contribution is estimated at 55% to 66% of the total labour. Suseela and Asha Bhosle are widely revered in India. Anjolie Ela According to a 1991 World Bank report, women accounted for Menon is one of the famous painters. Many well-known women 94% of total employment in dairy production in India. Women writers are in Indian literature as poets and story writers. Sarojini constitute 51% of the total employed in forest-based small-scale Naidu, Kamala Surayya, Shobha De, Arundhati Roy, Anita Desai enterprises. are some of them.Sarojini Naidu is called the nightingale of India. Contrary to the common perception, a large percent of women in Arundhati Roy was awarded the Booker Prize (Man Booker India work. The National data collection agencies accept the fact Prize) for her novel The God of Small Things. that there is a serious under-estimation of women's contribution Sports: Although the general sports scenario in India is not very as workers. However, there are far fewer women in the paid good, some Indian women have made notable achievements in workforce than there are men. In urban India Women have the field. Some of the famous female sportspersons in India impressive number in the workforce. As an example at software include P.T.Usha, J.J.Shobha (athletics), KunjaraniDevi industry 30% of the workforce is female. They are at par with their (weightlifting), DianaEdulji (cricket), Koneru Hampi (chess) and male counterparts in terms of wages, position at the work place. Sania Mirza (tennis). Karnam Malleswari (weightlifter), is the The number of women is increasing in the fields of police only Indian woman to have won an Olympic medal (Bronze departments and Pilots. Kiran Bedi IPS officer is the inspiration of medal in 2000). Indian women. In schools and colleges half of the percentage population are women teachers and they are shaping the children Politics: Through the Panchayat Raj institutions, over a million in socialization process not only at primary institutions but also at women have actively entered political life in India. As per the

74 75 India and Japan Relations A Comparative Study of Status of Women in India and Japan

73rd and 74th Constitutional Amendment Acts, all local elected 1927: The All India Women's Conference was founded. bodies reserve one-third of their seats for women. Although the 1944: Asima Chatterjee became the first Indian woman to be percentages of women in various levels of political activity has conferred the Doctorate of Science by an Indian university risen considerably, women are still under-represented in governance and decisionmaking positions. In the recent politics 1947: On 15 August 1947, following independence, Sarojini Naidu women like Sonia Gandhi, Sheela Deekshit , Prathiba Patil, Meera became the governor of the United Provinces, and in the process Kumari, Jaya lalitha, Y.S.Vijayamma, Purandheswari played a became India's first woman governor. dominant role. (Advani, Abhishek, 2012) 1951: Prem Mathur of the Deccan Airways becomes the first The Following Data Indicates the Indian Women Indian women commercial pilot. Significance: 1953: Vijaya Lakshmi Pandit became the first woman (and first Indian) president of the United Nations General Assembly 1848: Jyotirao Phule, along with his wife Savitribai Phule, opened a school for girls in Pune, India. Savitribai Phule became the first 1959: Anna Chandy becomes the first Indian woman judge of a women teacher in India. High Court (Kerala High Court) 1879: John Elliot Drinkwater Bethune established the Bethune 1963: Sucheta Kriplani became the Chief Minister of Uttar School in 1849, which developed into the Bethune College in 1879, Pradesh, the first woman to hold that position in any Indian state. thus becoming the first women's college in India. 1966: Captain Durga Banerjee becomes the first Indian woman 1883: Chandramukhi Basu and Kadambini Ganguly became the pilot of the state airline, Indian Airlines. first female graduates of India and the British Empire. 1966: Kamaladevi Chattopadhyay wins Ramon Magsaysay 1886: Kadambini Ganguly and Anandi Gopal Joshi became the award for community leadership. first women from India to be trained in Western medicine. 1966: Indira Gandhi becomes the first woman Prime Minister of 1905: Suzanne RD Tata becomes the first Indian woman to drive a India car. 1970: Kamaljit Sandhu becomes the first Indian woman to win a 1916: The first women's university, SNDT Women's University, Gold in the Asian Games was founded on 2 June 1916 by the social reformer Dhondo 1972: Kiran Bedi becomes the first female recruit to join the Indian Keshav Karve with just five students. Police Service. 1917: Annie Besant became the first female president of the Indian 1979: Mother Teresa wins the Nobel Peace Prize, becoming the National Congress. first Indian female citizen to do so. 1919: For her distinguished social service, Pandita Ramabai 1984: On 23 May, Bachendri Pal became the first Indian woman to became the first Indian woman to be awarded the Kaisar-i-Hind climb Mount Everest. Medal by the British Raj. 1989: Justice M. Fathima Beevi becomes the first woman judge of 1925: Sarojini Naidu became the first Indian born female the Supreme Court of India. president of the Indian National Congress 1997: Kalpana Chawla becomes the first India-born woman to go

76 77 India and Japan Relations A Comparative Study of Status of Women in India and Japan

76 77 India and Japan Relations A Comparative Study of Status of Women in India and Japan into space. women's mobilization 'from the ground-up' as the impetus 1992: Priya Jhingan becomes the first lady cadet to join the Indian toward a gender-equal society, and to sustain public debate on Army (later commissioned on 6 March 1993) this issue. Today, Japanese women have gained significant socio- economic status. But improved access to education and jobs do 1994: Harita Kaur Deol becomes the first Indian woman pilot in not readily translate into the ability to overcome Japanese the Indian Air Force (IAF), on a solo flight. women's low share of seats in representative assemblies. This 2000: Karnam Malleswari became the first Indian woman to win article illustrates how Japanese women's groups are overcoming an Olympic medal (bronze medal in the 2000 Summer Olympics gender-specific barriers in standing for elections. The research at Sydney) suggests that women representatives at the local level are working toward social renewal by reconnecting citizens with 2002: Lakshmi Sahgal became the first Indian woman to run for local government in a directly democratic way. the post of President of India. According to Manudharmashastra the women in India is under 2004: Punita Arora became the first woman in the Indian Army to the care of father, husband and son throughout her life. Even in don the highest rank of Lieutenant General. Japan the woman is dependent in Nara, Heain and edo Periods. 2007: Pratibha Patil becomes the first woman President of India. Both in India and Japan the monogamous marriage is prevalent 2009: Meira Kumar became the first woman Speaker of Lok Sabha, and the family affairs and child rearing practices are common and the lower house in Indian Parliament Asian characteristic features are similar. When compared the education issues in India, the rate of women literacy rate is high 2011: Selvi J Jayalalithaa was sworn in as the Chief Minister of when compared to Japan. Employment women are standard in Tamil Nadu for the third time on 16.5.2011. India and no M-curve Path is found where as in Japan M-curve 2012 : Sonia Gandhi Ranks 6th power women in the worlds most path is found. Both in India and Japan women are the backbone of powerful women and acts as the chief of Indian National the agriculture. In India young women 25% are in software fields. Congress Party Political role of women in India plays a key position when compared to Japan. In Japan now the political participation is 2012 : Chanda Kochhar Ranks 59 position in the worlds most increasing. Both in India and Japan women Participate in army. powerful women and is the first women to run ICICI bank which Women activists fought for the development of women in India is the second largest lender in India. and Japan. Women are empowered much in India because of 2012 : Kiran Mazumdar-Shaw Ranks 80th position in the world's women developmental programmes like DWCRA, self help most powerful women and India's first Biotech Entrepreneur. groups. The laws implemented for the development of women in India when compared to Japan. Particularly in Japan women are Conclusion: trained very well in Dasister management regarding tsunami. In The Japanese case reveals the importance of women's medical, social and legal fields women's participation is high mobilization 'from the ground-up' as the impetus toward a when compared to Japan. India ranks 4th dangerous Country gender-equal society, and to sustain public debate on this issue. regarding violence against women. Whereas in Japan the Building a gender-equal society demands that equal participation domestic violence is low. Both in India and Japan the family of women in public life remains on the political agenda and in socialization and rules and regulations and culture is traditional public debate. The Japanese case reveals the importance of

78 79 India and Japan Relations A Comparative Study of Status of Women in India and Japan into space. women's mobilization 'from the ground-up' as the impetus 1992: Priya Jhingan becomes the first lady cadet to join the Indian toward a gender-equal society, and to sustain public debate on Army (later commissioned on 6 March 1993) this issue. Today, Japanese women have gained significant socio- economic status. But improved access to education and jobs do 1994: Harita Kaur Deol becomes the first Indian woman pilot in not readily translate into the ability to overcome Japanese the Indian Air Force (IAF), on a solo flight. women's low share of seats in representative assemblies. This 2000: Karnam Malleswari became the first Indian woman to win article illustrates how Japanese women's groups are overcoming an Olympic medal (bronze medal in the 2000 Summer Olympics gender-specific barriers in standing for elections. The research at Sydney) suggests that women representatives at the local level are working toward social renewal by reconnecting citizens with 2002: Lakshmi Sahgal became the first Indian woman to run for local government in a directly democratic way. the post of President of India. According to Manudharmashastra the women in India is under 2004: Punita Arora became the first woman in the Indian Army to the care of father, husband and son throughout her life. Even in don the highest rank of Lieutenant General. Japan the woman is dependent in Nara, Heain and edo Periods. 2007: Pratibha Patil becomes the first woman President of India. Both in India and Japan the monogamous marriage is prevalent 2009: Meira Kumar became the first woman Speaker of Lok Sabha, and the family affairs and child rearing practices are common and the lower house in Indian Parliament Asian characteristic features are similar. When compared the education issues in India, the rate of women literacy rate is high 2011: Selvi J Jayalalithaa was sworn in as the Chief Minister of when compared to Japan. Employment women are standard in Tamil Nadu for the third time on 16.5.2011. India and no M-curve Path is found where as in Japan M-curve 2012 : Sonia Gandhi Ranks 6th power women in the worlds most path is found. Both in India and Japan women are the backbone of powerful women and acts as the chief of Indian National the agriculture. In India young women 25% are in software fields. Congress Party Political role of women in India plays a key position when compared to Japan. In Japan now the political participation is 2012 : Chanda Kochhar Ranks 59 position in the worlds most increasing. Both in India and Japan women Participate in army. powerful women and is the first women to run ICICI bank which Women activists fought for the development of women in India is the second largest lender in India. and Japan. Women are empowered much in India because of 2012 : Kiran Mazumdar-Shaw Ranks 80th position in the world's women developmental programmes like DWCRA, self help most powerful women and India's first Biotech Entrepreneur. groups. The laws implemented for the development of women in India when compared to Japan. Particularly in Japan women are Conclusion: trained very well in Dasister management regarding tsunami. In The Japanese case reveals the importance of women's medical, social and legal fields women's participation is high mobilization 'from the ground-up' as the impetus toward a when compared to Japan. India ranks 4th dangerous Country gender-equal society, and to sustain public debate on this issue. regarding violence against women. Whereas in Japan the Building a gender-equal society demands that equal participation domestic violence is low. Both in India and Japan the family of women in public life remains on the political agenda and in socialization and rules and regulations and culture is traditional public debate. The Japanese case reveals the importance of

78 79 India and Japan Relations A Comparative Study of Status of Women in India and Japan and similar even in the changing society. The computer era Takashi Koyama, “The Changing Social Position of Women in Japan”, 2005, brought drastic change in the lives of women and it uplift the Geneve: UNESCO, p.11. status of women both in India and Japan. Thomas P. Rohlen, “Japans high Schools”, 1983, University of California Press, p.289. Yagamareddy.Y Preface in “India-Japan towards harnessing Potentials of Partnership” (ed.), 2012, Kawari Books, New Delhi, 110002, IXth page.

References Advani, Abhishek, "JP Morgan's India CEO" (17 November 2009) Forbes R e t r i e v e d 2 3 J a n u a r y , 2 0 1 2 (http://forbesindia.com/search.php?writer=abhishek+advani). Dorothy Robins-Mowry, “The Hidden Sun: Women of Modern Japan”, 1983, Westview Press, p.76. Gita Aravamudan, “Voices in my blood”, 1990, Sterling Publishers. Harumibefu, “Japan-An Anthropological Introduction”, 1971, Chandlar Publishing Company, Sanfrancisco, pp.48-49 Jean Pierre Lehmann, “The Roots of Modern Japan”, 1982, MacMillian Education Ltd, London, p.89-91. Jim Yardley, http://www.nytimes.com/2012/06/15/world/asia/in- m u m b a i - a - c a m p a i g n - a g a i n s t - r e s t r o o m - injustice.html?pagewanted=al, June 2012. Karl Menhiem, “Japanese Culture” in John Fembree (ed.), “A Japanese Village Suye Mura”, 1946, London, P.142-157. Mikiso Hane, “Modern Japan: A Historical Perspective”, 1986, Westview Press, p. 36. Oscar Ramos, “Japanese womens Role. Past and present”, 2005, Bulletin of Portuguese/ Japanese Studies, Universidade Nova de Lisboa, pp.223- 242. Padma, T. & K.P.C. Rao “Law relating to women”, 2011, Alt Publications, Hyd 2, p. 4 Patricia Uberoi, “Freedom and destiny: gender, family, and popular culture in India”, 2006, Oxford University Press. Robert C. Christopher, “The Japanese Mind”, 1983, New York: Fawcett Columbine, p. 116.

80 81 India and Japan Relations A Comparative Study of Status of Women in India and Japan and similar even in the changing society. The computer era Takashi Koyama, “The Changing Social Position of Women in Japan”, 2005, brought drastic change in the lives of women and it uplift the Geneve: UNESCO, p.11. status of women both in India and Japan. Thomas P. Rohlen, “Japans high Schools”, 1983, University of California Press, p.289. Yagamareddy.Y Preface in “India-Japan towards harnessing Potentials of Partnership” (ed.), 2012, Kawari Books, New Delhi, 110002, IXth page.

80 81 Foreign Direct Investment of Japan in India after Liberalisation Foreign Direct Investment of Japan in India after Liberalisation Introduction Foreign direct investment (FDI) is investment directly into Priti Atrey production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is carried on for many reasons including taking Abstract advantage of cheaper wages in the country, special investment This paper has three sections which tell us about the different aspects related privileges such as tax exemption offered by the country as an to FDI of Japan as summarized in the below points: incentive to gain tariff-free access to the markets of the country or Foreign Direct Investment (FDI) inflows to India. the region. FDI usually involves participation in management, Second Sections highlight emerging trends of Japanese FDI inflows to joint-venture, transfer of technology and expertise. Foreign Direct India after liberalisation. Investment has been recognized as the most powerful and Third Sections highlight the obstacles faced by the Japanese firms in convenient tool of transforming a conventional economy into a India. modern economy. FDI is often used as an engine of growth by Foreign Direct Investment has been recognized as the most powerful and developing countries. Foreign direct investment is, therefore, an convenient tool of transforming a conventional economy into a modern intertwining of interests of both the host and the home country. economy. India has been witnessing a low growth in savings sector since independence and hence keeping more pressure on the need of resources India followed a restrictive foreign private investment policy required for rapid rate of growth and development is the need of the hour. until 1991, relying more on bilateral or multilateral loans with Keeping this in mind, since July 24, 1991, India has been trying hard to attract long-term maturity. The Foreign Exchange and Regulation Act more FDI inflows to meet its development needs, on one hand and to (FERA) 1974, stipulated that foreign firms could have equity accelerate the speed of growth and development, on the other hand. holdings only up to 40 per cent. Since the beginning of New The present paper analyses the emerging trends and issues in FDI inflows to Economic Policy (NEP) on July 24, 1991, Indian FDI policy has India while highlighting on the Japanese FDI inflows to India. Japan has been been classified into two major segments. First is the era covering one of the top five investors in India for a long time. This paper is an attempt the period between 1991 and 1999, wherein operations in FDI to analyse the constraints on Japanese investment in India. The companies that were studied are YKK, Honda Siel Pvt. Ltd, Sona Koyo Steering, Kyocera were allowed and which were specifically spelt out Unless Wireless India Ltd, Mitsubishi Chemical Corporation PTA India (MCC specifically permitted FDI was prohibited. Even where they were PTA), Toyota Kirloskar Motor Ltd, Satake India Engineering Ltd and Eisai permitted, one had to take the Governments' approval in most Pharmaceutical Pvt. Ltd. The paper recommends a speedy conclusion of the cases. Gradually more and more operations were brought under Indo-Japan Comprehensive Economic Partnership to increase investments; the automatic approval list. The second phase is after 1999. In the India will need to create an investor friendly environment by introducing early 1999, a fundamental shift took place. Accordingly, FDI in further economic reforms and changing policies to address the complaints expressed by the Japanese investors. specific areas has become prohibited or regulated. Except in such areas, FDI inflows were allowed freely. Under this regime, which Keywords: Foreign Direct Investment, Japanese FDI inflows to India, Japanese firms in India, obstacles faced by the Japanese firms in India. coincided with Foreign Exchange Management ACT (FEMA) legislated, the globe was put on notice that it was welcome to invest in any activity in India. Till 14 September 2012, Government of India allowed FDI in aviation up to 49%, in

82 83 Foreign Direct Investment of Japan in India after Liberalisation Foreign Direct Investment of Japan in India after Liberalisation Introduction Foreign direct investment (FDI) is investment directly into Priti Atrey production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is carried on for many reasons including taking Abstract advantage of cheaper wages in the country, special investment This paper has three sections which tell us about the different aspects related privileges such as tax exemption offered by the country as an to FDI of Japan as summarized in the below points: incentive to gain tariff-free access to the markets of the country or Foreign Direct Investment (FDI) inflows to India. the region. FDI usually involves participation in management, Second Sections highlight emerging trends of Japanese FDI inflows to joint-venture, transfer of technology and expertise. Foreign Direct India after liberalisation. Investment has been recognized as the most powerful and Third Sections highlight the obstacles faced by the Japanese firms in convenient tool of transforming a conventional economy into a India. modern economy. FDI is often used as an engine of growth by Foreign Direct Investment has been recognized as the most powerful and developing countries. Foreign direct investment is, therefore, an convenient tool of transforming a conventional economy into a modern intertwining of interests of both the host and the home country. economy. India has been witnessing a low growth in savings sector since independence and hence keeping more pressure on the need of resources India followed a restrictive foreign private investment policy required for rapid rate of growth and development is the need of the hour. until 1991, relying more on bilateral or multilateral loans with Keeping this in mind, since July 24, 1991, India has been trying hard to attract long-term maturity. The Foreign Exchange and Regulation Act more FDI inflows to meet its development needs, on one hand and to (FERA) 1974, stipulated that foreign firms could have equity accelerate the speed of growth and development, on the other hand. holdings only up to 40 per cent. Since the beginning of New The present paper analyses the emerging trends and issues in FDI inflows to Economic Policy (NEP) on July 24, 1991, Indian FDI policy has India while highlighting on the Japanese FDI inflows to India. Japan has been been classified into two major segments. First is the era covering one of the top five investors in India for a long time. This paper is an attempt the period between 1991 and 1999, wherein operations in FDI to analyse the constraints on Japanese investment in India. The companies that were studied are YKK, Honda Siel Pvt. Ltd, Sona Koyo Steering, Kyocera were allowed and which were specifically spelt out Unless Wireless India Ltd, Mitsubishi Chemical Corporation PTA India (MCC specifically permitted FDI was prohibited. Even where they were PTA), Toyota Kirloskar Motor Ltd, Satake India Engineering Ltd and Eisai permitted, one had to take the Governments' approval in most Pharmaceutical Pvt. Ltd. The paper recommends a speedy conclusion of the cases. Gradually more and more operations were brought under Indo-Japan Comprehensive Economic Partnership to increase investments; the automatic approval list. The second phase is after 1999. In the India will need to create an investor friendly environment by introducing early 1999, a fundamental shift took place. Accordingly, FDI in further economic reforms and changing policies to address the complaints expressed by the Japanese investors. specific areas has become prohibited or regulated. Except in such areas, FDI inflows were allowed freely. Under this regime, which Keywords: Foreign Direct Investment, Japanese FDI inflows to India, Japanese firms in India, obstacles faced by the Japanese firms in India. coincided with Foreign Exchange Management ACT (FEMA) legislated, the globe was put on notice that it was welcome to invest in any activity in India. Till 14 September 2012, Government of India allowed FDI in aviation up to 49%, in

82 83 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation

Broadcast sector up to 74%, in multi-brand retail up to 51% and in sector, which is yet to accept the new age India while the other single-brand retail up to 100%. The Indian cabinet also approved economies of the West, North and East have already taken note of FDI in multi-brand retail up to 51% in 2012 (Though the actual it. Ever since India decided to globalize, a concentrated effort was application of this has been left to each federally constituted made to attract Japanese participation through foreign direct State). investment. FDI Inflow into India Japan's participation in FDI in India is conditioned by Indian Since July 24, 1991, India has been trying hard to attract more FDI foreign investment policy as well as its industrial policy. Japan's inflows to meet its development needs on the one hand and on the foreign direct investment into India can be divided into two other hand to accelerate the speed of growth and development phases as below: .But India has failed in attracting the required volume of FDI 1. The post liberalisation phase-I that is from 1991 to 2000 inflow. Since August 1991 till the end of December 2007, India has 2. The post liberalisation phase-II this is from 2000 to the date attracted just US $ 50 billion FDI inflows which cannot be considered as a productive parameter of attracting or emerging as In the first phase, the Government of India had allowed a a major destination for global FDI in the world. The major maximum of 49 per cent equity participation by foreign investing countries are Mauritius, United Sates, United Kingdom, companies in a limited number of sectors. Over a period of time, Netherlands, Japan, Germany, and Singapore. The largest share the cap on equity participation by foreign companies as well as has been of Mauritius as high as nearly 33 per cent and the lowest the sectors in which foreign companies could participate was has been of Singapore as low as 3.3 per cent. Starting from a increased. baseline of less than $1 billion in 1990, a recent UNCTAD survey However, one did see some hybrid domestic brands like Hero- projected that India has emerged as the second most important Honda operating in the Indian market. By the 1980s, some FDI destination (after China) for transnational corporations relaxation was made in the foreign investment policy, and that during 20102012. As per the data, the sectors which attracted saw the setting up of Maruti, a central government joint venture higher inflows were services, telecommunication, construction with Suzuki Motors of Japan, in 1982. A crop of Japanese activities and computer software and hardware. Mauritius, companies followed, who gained entry through technical Singapore, Japan, the US and the UK were among the leading collaborations or by getting exemptions. Sanyo and JVC used the sources of FDI. technical collaboration route. Japan's FDI Inflow into India According to a survey conducted by the Japan Bank for Since independence, a lot of concerted efforts have been done by International Cooperation (JBIC) released in December 2009 both the Governments i.e. Indian Government and Japanese covering 620 Japanese manufacturing companies, India remains Government to create sound and stable economic relations the second favorite investment destination for Japanese between themselves. But unfortunately the economic relations companies after China. The survey reflects Japanese companies' are at the low ebb as compared to other countries namely the US, mounting interests in Indian businesses, especially in sectors such the UK and Netherlands. This has been because of the limited role as automobiles, IT, infrastructure, steel, power and of the private sector in enhancing the degree of economic ties. The pharmaceuticals. major reason for this state of affairs has been the Japanese private

84 85 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation

The Post Liberalisation Phase-I The importance of Japan and East Asia was realised during the first stage of initiative of liberalization in India. Dr. Man Mohan In 1991, with the beginning of the industrial liberalisation policy, Singh, the then finance minister, launched India's 'Look East' a significant change came in FDI climate. Foreign investment policy in 1992 to seek out and develop economic ties with the came to be regarded as supply of capital, technology and members of ASEAN and the major East Asian economies. The managerial skills. India, having observed the development gains policy was a natural extension of the reform programmed which made by the Southeast Asian countries through foreign aimed at opening up the Indian economy and expanding its investments, benchmarked its own policies to help attract FDI. participation in the global economy. There was also hope for Over the decade, India permitted foreign investment in almost all closer ties with East Asian economies. sectors. Table 1: Japanese Investment in India 1991-2000 Unfortunately however, the 'Look East' policy did not capture Japan on its radar and failed to stimulate Japanese investment Year Investment in Year Investment in into India. But some sectors that attracted Japanese investment US$ million US$ million were automobiles, telecommunications, fuel, chemicals and 1991 21.5 1995 482.3 trading. Honda in the automobile sector and Sony in the 1992 233.2 1996 432.8 electronics sector were the two important Japanese brands that 1993 84.0 1997 531.5 made their entry in 1991. Taking advantage of the movement of 1994 127.8 1998 324.8 the zipper industry from being a small scale industry to become a Source: Government of India Statistics large scale industry, a company like YKK made its entry too. By The cumulative FDI inflow received from Japan during the period the end of the decade, important brands like Toyota, Toshiba and 1991-1999 was US$2.6 billion. This placed Japan in the fourth Panasonic had also entered the Indian market. There was also an position among the countries which were investing in India. A explosion of companies in auto parts, fuels, chemical and closer look at the top ten investing countries in India (Table 2) industrial goods sectors. shows that a 20 per cent share of the investment came from the US The following diagram shows the sectors of Japanese investment alone. Mauritius and the U.K. put together, made up almost in India which clearly shows that Transportation sector was the another 18 per cent share of the total investment. Thus, Japan with top sector attracting 28% FDI inflows from Japan between 1991 a 4 per cent share of the total FDI, had not taken advantage of the and 1999. The second top sector was telecommunication opening up of the Indian economy. attracting 18% FDIs inflows and then followed the Fuel sector Table 2: Top Ten Investing Countries in India 1991-2000 attracting 14% FDIs inflow, Chemical sector attracting 12% FDIs inflow, Trading sector attracting 7% FDIs inflow and others Rank Country %age with total Rank Country %age with total sectors attracting 21% FDIs inflow. FDI Inflows (+) FDI Inflows (+) 1 U.S.A 20.4 6 Germany 3.4 2 Mauritius 11.9 7 Australia 2.7 3 UK 6.4 8 Malaysia 2.3 4 Japan 4.0 9 France 2.1 5 South Korea 3.9 10 Netherlands 1.9 Source: Handbook of Industrial Policy and Statistics, 2001

86 87 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation

Figure 1: Share of Top Sectors Attracting FDI Inflow from Japan 1991-1999 There was substantial increase in Japanese investment in 2008-09 to 2010-11, it increased from US$405 million to US$1562 million in the year 2010-11 (see Table 4).There was a big improvement between 2008 and 2011. Further the number of Japanese companies with business operations in India has doubled during the three years. In April 2005 there were 267 Japanese Companies in India, in Jan 2008 it increased to 438 Companies and in Oct 2010 it increased to 725 Companies (see Table 5). Table 5: Number of Japanese Companies in India Source: Government of India Statistics Number of Japanese Year The Post Liberalisation Phase-II Companies in India In the second phase, 2000-2008, though there was a substantial April 2005 248 increase in Japanese investment in 2002 it fell to a pathetic low of Jan 2006 267 US$94.4 million in the year 2003 (see Table 3).There was some Feb 2007 362 improvement between 2004 and 2006 though it was only in the Jan 2008 438 last two years of this phase that show a significant improvement Oct 2008 550 to levels of above US$600 million. Oct 2009 627 Table 3: FDI inflows in India from Japan ($ Billions) Oct 2010 725 FDI Inflows from Source; Embassy of Japan, New Delhi Year Japan( $ Billions) In a bid to encourage further investment in India, Japan has set up 2002-03 0.41 a business support centre in Mumbai. This business centre is 2003-04 0.08 expected to facilitate the technical transfer agreements between 2004-05 0.13 Japanese and Indian companies. Further, the Japanese companies 2005-06 0.21 have shown a keen interest in investing in joint ventures with 2006-07 0.09 Indian companies. The top FDI inflows received from Japan 2007-08 0.82 through Indian companies from January 2000 to November 2007 2008-09 0.23 include Maruti Udyog, Escorts, Yamaha Motor Ltd., Yamaha Source: DIPP, FDI fact sheet, various issues Motor India Pvt. Ltd., Sanyo BPL Pvt. Ltd., Yamaha Motors Escorts Ltd., Welspun Products, Telco Constructions Equipment Table 4: FDI inflows in India from Japan ($ Million) Co., Birla NGK Insulator Pvt. Ltd., Toyota Kirloskar Motors Ltd. Year FDI Inflows from Japan in $ million etc. (See table 7) 2008-09 405 2009-10 1183 2010-11 1562 2011-12(Apr11-Feb12) 2869 Source: Fact sheet on Foreign Direct Investment from Apr 2000 to Feb 2012 88 89 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation

Table 6: FDI inflows received from Japan through Indian Companies project funded is the “Delhi Mass Rapid Transport System Project Phase 2”. In the port sector, aid will be given to expand the cargo No. Name of the Indian company Name of Foreign Collaborator Sector handling facilities of the “Vishakhapatnam Port Expansion 1 Maruti Udyog Ltd. Suzuki Motor Co. Ltd. Transportation Industry Project”. (Passenger Cars) One of the most significant projects that have received funds 2 Escorts Yamaha Motor Ltd. Yamaha Transportation Industry under the ODA is the Delhi-Mumbai Industrial Corridor (DMIC). Automobile Industry 3 Yamaha Motor India Pvt. Ltd. Yamaha Japan has assured technical and monetary support for the project 4 Sanyo BPL Pvt. Ltd Sanyo Electric Co. Ltd. Telecommunications which will require an estimated investment of $50 billion. The 5 Telco Constructions Hitachi Constructions Mfg./Sale Construction 1,483 kilometer long industrial corridor would be located beside Equipment Co. Machinery Co. Ltd. Equipment's/Earth the proposed Delhi-Mumbai Freight Corridor. The corridor will Moving Machinery cover six states - Uttar Pradesh, Delhi-NCR, Haryana, Rajasthan, 6 Birla NGK Insulators Pvt. Ltd. NGK Insulators Ltd. Ceramics Gujarat and Maharashtra. It will link a number of cities with a 7 Welspun Productions Pvt. Ltd. Dunearn Investment Textiles (including dyed, population of more than 10 lakh including Faridabad, Surat, Mauritius P. Ltd. printed) Delhi, Greater Mumbai, Meerut, Jaipur, Ahmedabad, Surat, 8 Toyota Kirloskar Motor Ltd Toyota Auto parts Vadodara, Pune and Nashik. The government may identify 9 Hero Honda Honda Motor Company 2-wheelers around 20 industrial hubs along the proposed Delhi-Mumbai industrial corridor, covering approximately 12,500 hectares. The 10 Mitsubishi Chemical Mitsubishi Chemical Chemical Corporation PTA, India Corporation industrial corridor will have a 4,000 MW power plant, three ports and six airports, apart from connectivity with existing seaports. 11 YKK India Pvt. Ltd., YKK Corporation of Japan Zippers 12 Mitsubishi Chemical Mitsubishi Chemical Chemical Four projects to improve sanitation and the quality of water have Corporation PTA, India been approved. These include two water supply projects, viz. “Kerala Water Supply Project Phase 2” and “Agra Water Supply 13 Toyota Toyota Transportation Industry (Passenger Cars) Project”. The other two are in the sewerage sector, viz. “Amritsar Sewerage Project” and “Orissa Integrated Sanitation In recent years, India and Japan have strengthened bilateral ties Improvement Project”. Further, the pro-poor rural development through new initiatives and programmes ranging from economic projects to be funded include “Andhra Pradesh Irrigation and and cultural linkages to defence and security. The year 2007 was Livelihood Improvement Project”, “Tripura Forest celebrated as the Year of Friendship between the two countries. Environmental Improvement and Poverty Alleviation Project” Japan gives 30 per cent of its Overseas Development Assistance and “Gujarat Forestry Development Project Phase 2”. (ODA) to India and it remains so committed even in the period of India received FDI equity inflows of a total of US$ 159.97 billion the global economic downturn. A large part of Japan's assistance during April 2000-2012 (up to January 2012). Out of this, FDI to India has been for infrastructural development (particularly inflows from Japan (which ranks 3rd) are US$ 12.10 billion which power and transportation). Projects in the power sector include represents 8 per cent of the cumulative inflows received. the “Bangalore Distribution up gradation Project” and the “Transmission System Modernization and Strengthening Project in Hyderabad Metropolitan Area”. In the railroad sector, the

90 91 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation

Table 7: Share of Top Investing Countries FDI Inflow from 2-Lack of Infrastructure April 2000 to January 2012 The issue of infrastructure is a two-faceted one is the conventional %age with total infrastructure of roads, ports, airports, power and water. The S. No. Country FDI Inflows (+) other is the soft infrastructure telecommunications, internet 1 MAURITIUS 39 facilities, connectivity, etc. Infrastructure as an obstacle is a major 2 SINGAPORE 10 concern among the FDI players. However, in this study, MCC- 3 JAPAN 8 PTA India ranked only infrastructure as the most important bottleneck. Among the infrastructural obstacles, power and water 4 U.S.A 6 were rated as vital. Power is an essential requirement for 5 UK 6 operations and when land is acquired, promises are made about NETHERLANDS 4 6 uninterrupted power and water supply. However, in reality, lack 7 CYPRUS 4 of uninterrupted power supply is a major impediment. Similarly, 8 GERMANY 3 often uninterrupted flow of water is a rarity as pipelines and 9 FRANCE 2 water connectivity are poor as they are in green field locations. All 10 UAE 1 this added to the overall cost to the company. Roadways, seaways Source: Source: Fact sheet on Foreign Direct Investment and airways are yet another important infrastructural from Apr 2000 to Feb 2012 requirement. MCC PTA India has been hard hit on the infrastructure front. As a chemical unit, it requires efficient movement of goods by road, and also on the sea and by air. The Obstacles Faced By Japanese FDIs in India movement of goods has been hampered in all respects in their The obstacles faced by the Japanese companies in their operations location. The arterial road leading to the Haldia plant is yet to are not very different from those often listed in the literature on meet the specifications of a standard highway road. this subject. There are innumerable obstacles which have hampered the inflows of Japanese FDIs in India. They can be 3-Legal Obstacles broadly categorized as follows:- In matters of the law and legal issues, India more or less follows the western practice and this is perceived as an advantage by the 1- Problem of Land Acquisition companies. However, problems arise because there are far too The process of acquiring land continues to be extremely many laws that are subjected to varying interpretations. Apart complicated and it is not a transparent process in India. The from the fact that hearings in these courts tend to take a long time automobile sector that required a large area for its operation was to complete, cases often move up to the High Court and the obviously the most affected. For instance, Honda faced the Supreme Court where the verdict may vary. problem of a temple in one corner of the plot of land allocated to them. Finally they relinquished the area possessed by the temple The politicisation of the legal system also adds to the problems authority. Honda and YKK have had many years of operation in faced by these companies. There is no indication that a longer stay India and still they have ranked this obstacle as number one. YKK, in India has reduced their perception because Honda gives this on the other hand, faced many administrative bottlenecks while obstacle the fourth rank. Sona Steering and Kyocera ranked legal setting up its plant in Rewari district. obstacles as the second most important obstacle. However, the factors that lead to this perception are different in the two cases.

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This section throws some light on how the companies deal with The interactions revealed that most of the manpower problems the problems of infrastructure, regulations and institutional the companies faced were directly related to the sectors in which hurdles. The companies that have Indian partners in joint they operated. Thus, for convenience, in the following section we ventures rely on their partners to take care of the regulatory and discuss the labour problems of the automobile companies, auto legal obstacles. They have wisely divided the operational component companies and the processing companies clubbed responsibilities: the Japanese partner concentrates on production, together under the manufacturing sector. The pharmaceutical technical know-how and management of the plant while the company, rice mill machinery company and IT Company have Indian partner is responsible for contacting the local, state and been dealt with separately. central government authorities and for procurement, developing 5-Workforce and Satake (Rice Mill Machinery) the goodwill of the local community and industrial relations. To Satake India, being a marketing and customer servicing overcome the lack of infrastructural facilities, Japan had been company, faces a major problem in finding suitable talent for its following a two-pronged strategy of investing in a country while operations, as it requires a skill-set of at least a Master's degree in giving Overseas Development Assistance. For example, in the agricultural engineering. Unfortunately, Indian agricultural period 1996-1997, a bridge was built to connect Delhi to the Noida institutes are not geared up to meet their requirement. export processing zone with the help of the Japanese construction All the companies follow the practice of apprenticeship firms because there were a sizable number of Japanese companies /management trainees before inducting the employees in operating in the Noida export zone. Some companies have chosen permanent roles. In the large manufacturing sector, this helps to generate power on their own at their operational locations. companies to get labour at a low cost and gives the organisations additional scope to evaluate the individual attitudes and 4-Obstacles related to Human Resource compatibilities. Honda Siel, Sona Steering and YKK have adopted There has been a perception that the quality of human resources ITIs to help bridge the skill gap and to build human resource and the existing labour laws have been the important factors that capability. TKM's answer to the skill gap was to open a training have deterred many Japanese firms from investing in India. Most institute within the factory premises. The duration of the course is Japanese firms think that India has a smart and intelligent three years of which one year is in the factory. Apart from workforce but also feel that it is casual and lacks discipline and is technical papers, the course also educates students on economics, argumentative. It is also felt that controlling them and getting politics and housekeeping skills. All this helps the student to work out of them iare difficult. Therefore, it is not surprising that build character, which is what is desired by TKM. This four companies gave it the eighth rank. Eisai and Kyocera gave programme of TKM is also seen as an answer to the union this obstacle the eighth rank. Sona Steering also gave it the eighth problems that they had faced intermittently. rank. MCC-PTA India, which ranked human resource as an obstacle at position eight, clarified that by involving all levels of 6-Obstacles related to Labour and Unions employees in the decision-making process of the company, a During the initial days, labour unions were looked upon with favorable environment was created. On the other hand, TKM suspicion. Honda encouraged them to form an in-house union. considered human resource as the most important obstacle and Over the time, this cordial relationship was refined by the ranked it at number one. The reason however, was not tied to the management to allow the deserving shop-floor level supervisors labour unrest that it had faced intermittently from the time it to move up to the managerial posts. started its operations.

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MCC PTA India, YKK and Sona Steering also have in-house 8-Institutional Obstacles unions and encourage open dialogue between the workers and Obtaining compliance for manufacturing units continues to cause management. TKM, however, has faced union problems ever inconvenience to the Japanese companies. Often, Indian policies since its operations began in India. As early as in 2001, it faced two have contradictions or there is administrative overlap, resulting strikes. Then, in 2002, a strike was followed by a 53-day lock-out. in companies having to liaison with several government The next major incident happened in January 2006. TKM resumed departments simultaneously. The process of obtaining approvals operations after nearly sixteen days of deadlock under heavy continues to be one of the major obstacles faced by the companies. security arrangements. As TKM pointed out, approvals are often given and subsequently Since then, there has been a significant change in the company's withdrawn, causing a lot of avoidable confusion and delay. This approach towards labour. Japanese managers relied on their results in delays and causes setbacks in project deadlines or Indian counterparts who had a strong sense of hierarchy and had production targets. driven the management-labour relations on the principle of the (a) Obstacles related to Regulation: The companies felt that “iron fist”. Today, the company's human resource policy has regulatory and procedural obstacles existed in all three tiers of the strong humanitarian concerns and it is implemented through an governance. However, the cause of dissatisfaction varied. A open-door policy which is encouraged among the Japanese major issue between the companies and the centre was taxation expatriates. and custom duties. For all companies, the state government was 7-Obstacles related to Market the main approving authority. Bureaucratic red tape and the Understanding the Indian market has been one of the most consequent delays resulted into one major issue. The main difficult tasks for the Japanese companies. Some companies faced complaint was that there was a lack of transparency in the problems when they initially launched their products. Honda for guidelines for approvals, the local authority as an obstacle was instance, had through a survey found red as the most popular ranked fifth by Honda Siel, Sona Steering, MCC PTA, Kyocera colour among the car consumers. However, when they launched and Eisai. their car, white turned out to be the most popular colour. (b) Obstacles related to Taxation and Subsidies: Indian taxation Specific to Eisai, Kyocera, Satake and Sona Steering feel that is complex and thus difficult to understand. Many components of Indian consumers are price sensitive and look for cheap products. taxation change every year and this is not immediately notified The companies on the other hand are conscious of the quality of through proper channels. The supplementary taxes like their products and thus they cannot compromise with it to lower education cess, 5 per cent R&D cess on technology transfer, IT their prices. software duty of 8.24 per cent etc. add to the operating costs, for which no justification is found. As for customs duties, the system Toyota was able to avoid a similar experience by an in-house is complicated by the additional duties and countervailing duties. consumer survey as a result of which they were able to identify The corporate tax policy of differentiating between the domestic the niche market segment for SUVs and launch 'Innova' companies (30 per cent) and the foreign companies (40 per cent) is successfully. In fact, their marketing strategy has been applauded viewed to be discriminatory. for its correct assessment of the Indian consumer. (c) Obstacles related to Procedural Delays: By and large, the major complaint is that the decisions announced by the

96 97 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation

96 97 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation authorities are not acted upon with speed and clarity. As many present in India. India provides a favorable investment climate to initiatives are not announced through proper channels, the these companies, which includes freedom of entry and exit, implementing agency often refuses to act. The bureaucratic investment location, choice of technology, import and export etc. delays invariably inhibit an effective communication, and it rests What India needs to do is disseminating information on on the companies to deal with the technical issues that are, again, investment opportunities and identifying new areas of subject to interpretation. collaboration and cooperation and easing procedural hassles and (d) Obstacles related to Political Instability: The frequency with removing the delays to boost Japanese investment in India. which political leadership changes at the centre and the states are Policy Suggestions of concern but what causes greater concern is the way the Japanese investment in India has undoubtedly risen, but its share administrative machinery always slows down before elections. It is small when compared to the potential that exists. The challenge is also known that many policies are reversed when a different is not only to exploit this potential but also to make investment political party is elected to run the government. more broad-based with a marked bias towards high technology Conclusion and manufactured goods. Japan's FDI has been concentrated In India, FDI inflows are required to fill the resources gap as largely in two major sectors: automotive industry (60 per cent of India's savings are inadequate to finance investment required to the total) and petrochemicals sector (20 per cent) during 2000- stimulate and accelerate the pace of economic growth resulting 2007. However, new areas of investment are emerging such as into higher degree of development. Today the biggest problem is the other manufacturing industries, pharmaceuticals, food where FDI inflows could play an increasing and pivotal role its processing, IT software and textiles. Japan and India could contribution is mostly limited to only infrastructural collaborate in the bio technology, nano technology, information development. India could attract more FDI inflows which would technology, automobile, aerospace, textiles, leather, marine require efforts on the part of the Government Planners and policy product and other industries. India's fast expanding economy makers to change the perception of the Japanese investors about will create a large demand for energy. There are many investing in Indian economy in general and infrastructural opportunities for collaboration between the Indian and the development in particular. Japanese companies in the area of energy efficiency and environment friendly technologies. The study highlights the fact that India has taken steps to make foreign investment policies more investor-friendly. Clearly, since India will need to create an investor friendly environment by the first days of liberalization, Japanese companies operating in introducing further economic reforms and by changing policies to India have acquired a greater understanding of the Indian market address the complaints expressed by the Japanese investors to while the Indian government has simultaneously moved, increase their investments. towards creating a more investor friendly policy environment. Over a period of time, this should translate into greater investment interest and a greater flow of foreign direct investment from Japanese companies into India. 500 companies from the US, the UK, Germany, France, Japan, Netherlands, South Korea, Switzerland, Canada and Sweden are

98 99 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation authorities are not acted upon with speed and clarity. As many present in India. India provides a favorable investment climate to initiatives are not announced through proper channels, the these companies, which includes freedom of entry and exit, implementing agency often refuses to act. The bureaucratic investment location, choice of technology, import and export etc. delays invariably inhibit an effective communication, and it rests What India needs to do is disseminating information on on the companies to deal with the technical issues that are, again, investment opportunities and identifying new areas of subject to interpretation. collaboration and cooperation and easing procedural hassles and (d) Obstacles related to Political Instability: The frequency with removing the delays to boost Japanese investment in India. which political leadership changes at the centre and the states are Policy Suggestions of concern but what causes greater concern is the way the Japanese investment in India has undoubtedly risen, but its share administrative machinery always slows down before elections. It is small when compared to the potential that exists. The challenge is also known that many policies are reversed when a different is not only to exploit this potential but also to make investment political party is elected to run the government. more broad-based with a marked bias towards high technology Conclusion and manufactured goods. Japan's FDI has been concentrated In India, FDI inflows are required to fill the resources gap as largely in two major sectors: automotive industry (60 per cent of India's savings are inadequate to finance investment required to the total) and petrochemicals sector (20 per cent) during 2000- stimulate and accelerate the pace of economic growth resulting 2007. However, new areas of investment are emerging such as into higher degree of development. Today the biggest problem is the other manufacturing industries, pharmaceuticals, food where FDI inflows could play an increasing and pivotal role its processing, IT software and textiles. Japan and India could contribution is mostly limited to only infrastructural collaborate in the bio technology, nano technology, information development. India could attract more FDI inflows which would technology, automobile, aerospace, textiles, leather, marine require efforts on the part of the Government Planners and policy product and other industries. India's fast expanding economy makers to change the perception of the Japanese investors about will create a large demand for energy. There are many investing in Indian economy in general and infrastructural opportunities for collaboration between the Indian and the development in particular. Japanese companies in the area of energy efficiency and environment friendly technologies. The study highlights the fact that India has taken steps to make foreign investment policies more investor-friendly. Clearly, since India will need to create an investor friendly environment by the first days of liberalization, Japanese companies operating in introducing further economic reforms and by changing policies to India have acquired a greater understanding of the Indian market address the complaints expressed by the Japanese investors to while the Indian government has simultaneously moved, increase their investments. towards creating a more investor friendly policy environment. Over a period of time, this should translate into greater investment interest and a greater flow of foreign direct investment from Japanese companies into India. 500 companies from the US, the UK, Germany, France, Japan, Netherlands, South Korea, Switzerland, Canada and Sweden are

98 99 India and Japan Relations Foreign Direct Investment of Japan in India after Liberalisation

References Selected Web Sites Badar Alam Iqbal and Dr. Farha Naz Ghuari FDI AND INDIAN www.worldbank.org.in ECONOMY: A CASE OF JAPAN FDI , Business and Management www.jbic.go.jp/en/ Review Vol. 1(2) pp. 25 31, April, 2011 http://www.jetro.go.jp/en/reports/ Bala Komaraiah, J,(2003), “India-Japan Business Relations in the 21st Century”, in Japan's Role in South East Asia M.D Dharamdasini (ed.), http://www.toyotabharat.com/ Lancer Books, New Delhi. http://www.hondacarindia.com Bishop, Matthew (2004). Essential Economics. London: The Economist http://www.sonagroup.com/ Newspaper. pp. 102103 http://ykkindia.com Choudhury Srabani Roy Japan's Foreign Direct Investment Experiences in India: Lessons Learnt from Firm Level Surveys, December 2009, http://www.kyocera-wireless.com Working Paper No. 243. ICRIER, New Delhi. http://www.mitsubi shicorp.com Ganesh, S (1997), “Who Is Afraid of Foreign Firms,” Economic Political Weekly http://www.satakeindia.com/index.asp Review, India, 32: 1265-1274 www.icrier.org/pdf/WorkingPaper245.pd Geethanjali Nataraj, India-Japan Investment Relations:Trends & Prospects, January 2010 Working Paper No. 245. ICRIER, New Delhi. http://www.businessjournalz.org/articlepdf/BMR_1206.pdf Goldar, Biswanath and Etsuro Ishigami, “Foreign Direct Investment in http://www.caluniv.ac.in/ifps/5th_February_2011.pdf Asia”, Economic and Political Weekly, vol. 34, No. 22, (May 29-June 4, http://www.icrier.org/pdf/WorkingPaper243.pdf 1999), pp. M50- M60, Mumbai. http://www.icrier.org/pdf/Yuichi%20Sagawa.pdf Guha, Ashok & Amit Ray, (2000), “Multinational Versus Expatriate FDI: A Comparative Analysis of the Chinese and Indian Experience”, Working www.icrier.org/pdf/WorkingPaper245.pdf Paper No. 58.ICRIER, New Delhi. dipp.nic.in/English/Publications/FDI.../india_FDI_February2012.pdf Hideki, Esho (2001), “The Japanese Response to India's New Economic Policy”, in Economic Liberalisation in India: Japanese and Indian Perspective (ed.), ICSSSR, New Delhi. IBEF's (2007) “India Japan: A Little Japan in India”, available at www.ibef.org. Kumar, Nagesh, (2002), “ Liberalisation and Japanese Foreign Direct Investments in India” in Building a global Partnership: 50 Years of India- Japan Relations, Kesavan (ed.),Lancers Book, New Delhi Nagraj, R. (2003), “Foreign Direct Investment in India in the 1990s: Trends and Issues”, Economic Political Weekly Review, India, 38 : 1701-1712 Sanjana Joshi, India-Japan Relations: It's Economics All the Way, Institute of Foreign Policy Studies, ICRIER, New Delhi.

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100 101 Indo-Japan Foreign Direct Investment Indo-Japan Foreign Direct Investment operating outside of the economy of the investor.”It is a tool for Shreyali Srivastava economic growth through its strengthening of domestic capital, productivity and employment. It also plays a vital role in the up- gradation of technology, skills and managerial capabilities in Abstract various sectors of the economy. India is one of the fastest-growing economies in the world .It has recorded a growth of Japanese FDI in various sectors of the Indian economy over 200 times in per capita in the period from 1947 to 2011. The liberalization move by the Indian Government in 1990s has given a boost to the Indian economy and put Economies of India and Japan stand today together as one of the her into a fast track economic growth route. Foreign Direct Investment has been most influential and attractive economies of Asia. Indian recognized as the most powerful and convenient tool of transforming a traditional economy is emerging as a super power post the liberalization economy into a modern economy.Foreign direct investment (FDI) is defined as phase of the 1990s. These two leading economies of Asia share a “investment made to acquire lasting interest in enterprises operating outside of the similar economic structure especially in relation to the industrial economy of the investor.”It is a tool for economic growth through its strengthening of domestic capital, productivity and employment. It also plays a vital role in the up sector. In Japan , services sector accounts for almost 65per cent of gradation of technology, skills and managerial capabilities in various sectors of the the GDP; industrial accounts for almost 34per cent of the GDP economy. whereas the agricultural sector accounts only for 1 per cent of the Japan is the world's largest creditor nation, generally running an annual trade total GDP. In India , services sector accounts for almost 52 per cent surplus and having a considerable net international investment surplus. Japan gives of the GDP; industrial sector accounts for 30per cent and the 30 per cent of its overseas development assistance to India and has, even in this period agricultural sector accounts for 18 per cent of the total GDP. The of global economic downturn, committed more than $4 billion to the Delhi-Mumbai agricultural sector which was the back bone of the Indian Industrial Corridor. This paper would deal with the issues relating to the topic under the following heads economy took a back seat in the post independence 21st century. India's growth rate has been at an average of 7per cent since 1997 Japanese FDI in various sectors of the Indian economy : Service sector, telecommunication , construction , computer software and hardware etc., and has maintained a growth rate above 5per cent even in times of global recession. Evaluation of the impact of FDI on the Indian economy , Reasons for the decline in inflows from Japan after 2000 , The service sector comprises of trade, hotels and restaurants, transport, storage, communication, financing, insurance, real Recommendations to increase the inflows. estate and business services, community services (public Indo-Japanese relations have undergone a paradigm shift in recent times. Though Japan is the sixth largest investor in India, there is hope that the proportion of administration and defence) and other services. This sector investment by Japan will significantly increase. provides services of final consumption and also the services of intermediate nature, the latter accounting for a major share. The Keywords: Foreign Direct Investment, Indian economy, Investment, Creditor substantial part of services such as transport and communications are in the form of providing intermediate inputs for production of other goods and services. Introduction With growing economic strength, India has adapted its foreign Foreign Direct Investment has been recognized as the most policy to increase its global influence. Consequently, Indo- powerful tool of transforming a traditional economy into a Japanese relations have undergone a paradigm shift and there is modern economy. Foreign direct investment (FDI) is defined as now an ongoing effort to build a strategic and global partnership “investment made to acquire lasting interest in enterprises

102 103 Indo-Japan Foreign Direct Investment Indo-Japan Foreign Direct Investment operating outside of the economy of the investor.”It is a tool for Shreyali Srivastava economic growth through its strengthening of domestic capital, productivity and employment. It also plays a vital role in the up- gradation of technology, skills and managerial capabilities in Abstract various sectors of the economy. India is one of the fastest-growing economies in the world .It has recorded a growth of Japanese FDI in various sectors of the Indian economy over 200 times in per capita in the period from 1947 to 2011. The liberalization move by the Indian Government in 1990s has given a boost to the Indian economy and put Economies of India and Japan stand today together as one of the her into a fast track economic growth route. Foreign Direct Investment has been most influential and attractive economies of Asia. Indian recognized as the most powerful and convenient tool of transforming a traditional economy is emerging as a super power post the liberalization economy into a modern economy.Foreign direct investment (FDI) is defined as phase of the 1990s. These two leading economies of Asia share a “investment made to acquire lasting interest in enterprises operating outside of the similar economic structure especially in relation to the industrial economy of the investor.”It is a tool for economic growth through its strengthening of domestic capital, productivity and employment. It also plays a vital role in the up sector. In Japan , services sector accounts for almost 65per cent of gradation of technology, skills and managerial capabilities in various sectors of the the GDP; industrial accounts for almost 34per cent of the GDP economy. whereas the agricultural sector accounts only for 1 per cent of the Japan is the world's largest creditor nation, generally running an annual trade total GDP. In India , services sector accounts for almost 52 per cent surplus and having a considerable net international investment surplus. Japan gives of the GDP; industrial sector accounts for 30per cent and the 30 per cent of its overseas development assistance to India and has, even in this period agricultural sector accounts for 18 per cent of the total GDP. The of global economic downturn, committed more than $4 billion to the Delhi-Mumbai agricultural sector which was the back bone of the Indian Industrial Corridor. This paper would deal with the issues relating to the topic under the following heads economy took a back seat in the post independence 21st century. India's growth rate has been at an average of 7per cent since 1997 Japanese FDI in various sectors of the Indian economy : Service sector, telecommunication , construction , computer software and hardware etc., and has maintained a growth rate above 5per cent even in times of global recession. Evaluation of the impact of FDI on the Indian economy , Reasons for the decline in inflows from Japan after 2000 , The service sector comprises of trade, hotels and restaurants, transport, storage, communication, financing, insurance, real Recommendations to increase the inflows. estate and business services, community services (public Indo-Japanese relations have undergone a paradigm shift in recent times. Though Japan is the sixth largest investor in India, there is hope that the proportion of administration and defence) and other services. This sector investment by Japan will significantly increase. provides services of final consumption and also the services of intermediate nature, the latter accounting for a major share. The Keywords: Foreign Direct Investment, Indian economy, Investment, Creditor substantial part of services such as transport and communications are in the form of providing intermediate inputs for production of other goods and services. Introduction With growing economic strength, India has adapted its foreign Foreign Direct Investment has been recognized as the most policy to increase its global influence. Consequently, Indo- powerful tool of transforming a traditional economy into a Japanese relations have undergone a paradigm shift and there is modern economy. Foreign direct investment (FDI) is defined as now an ongoing effort to build a strategic and global partnership “investment made to acquire lasting interest in enterprises

102 103 India and Japan Relations Indo-Japan Foreign Direct Investment between the two countries. In the recent years, India and Japan Maharashtra. The top Japanese consultants, including have strengthened their bilateral ties through new initiatives and Mitsubishi, Nikken Sekkei and IBM Japan, have joined hands programmes ranging from economic and cultural linkages to with three state governments and the Delhi-Mumbai Industrial defence and security ties. The year 2007 was celebrated as the Year Corridor Development Corporation (DMIDC) to develop the eco- of Friendship between the two countries. friendly infrastructure for the new cities planned along the DMIC. India's robust economic growth in the recent years has not gone An analysis of the sector wise inflows from Japan shows that the unnoticed on the Japanese radar. According to a survey automobile sector has received the most FDI , constituting nearly conducted by the Japan Bank for International Cooperation (JBIC) 41 per cent of the total FDI inflows from Japan. The other favoured in 2008, India has become the most favoured investment sectors are the electrical equipments, trading, services and destination for long-term Japanese investments. Nearly 70 per telecommunications. These five sectors together constitute nearly cent of the Japanese manufacturers regarded India as the most 72 per cent of the total FDI inflows from Japan. A significant attractive country to do business during the following 10 years or amount of portfolio investments from Japan has been invested in so. India. Japan is now the sixth-largest FDI facilitator in India. Japan's Recently Japanese joint venture companies in India are investing contribution to India's FDI inflow is rising steadily, especially in further and expanding production capacities for the purpose of the Indian financial market. Though Japan has remained one of exporting goods manufactured in India to third countries. Recent the top ten investors in India since the 1990's, its contribution to FDI projects involving Japan include: India's FDI inflow has been only 4.29 per cent of the total FDI Honda, the Japanese auto major, has announced its foray into inflows between 1991 and 2007. The investment volumes have the compact car segment in India and is going to invest $205.25 fluctuated since then. million in its Rajasthan plant. An important aspect of the Indo-Japanese economic relations is Japan's second-largest lender, Mizuho Financial Group, has the official development assistance (ODA) provided by Japan. tied up with one of India's top banks, the State Bank of India. Japan has been India's largest bilateral donor since 1957. In 1958, The tie-up will include cooperation in various areas including Japan started providing ODA to India in the form of yen loans. A syndicated lending and infrastructure finance. large part of Japan's assistance to India has been for infrastructure development, (particularly power and transportation). One of the Maruti Suzuki India Ltd (MSIL) will invest $1.8 billion for most significant projects that has received funds under the ODA research and development (R&D) at a new facility in Haryana. is the Delhi-Mumbai Industrial Corridor (DMIC). Japan has The $63 billion Toshiba Corporation has entered into a joint assured technical and monetary support for the project which will venture with the JSW group to manufacture turbines for large require an estimated investment of $50 billion. power plants. The DMIC would be built along the lines of the successfully Toyota, another Japanese car major, is going to spend $680 operating Tokyo-Osaka belt in Japan. The 1,483 kilometre long million on the planned second car factory in India where it will industrial corridor would be located beside the proposed Delhi- begin producing its new compact car and the Corolla Sedan, Mumbai Freight Corridor. The corridor will cover six states - from 2010. Uttar Pradesh, Delhi-NCR, Haryana, Rajasthan, Gujarat and

104 105 India and Japan Relations Indo-Japan Foreign Direct Investment between the two countries. In the recent years, India and Japan Maharashtra. The top Japanese consultants, including have strengthened their bilateral ties through new initiatives and Mitsubishi, Nikken Sekkei and IBM Japan, have joined hands programmes ranging from economic and cultural linkages to with three state governments and the Delhi-Mumbai Industrial defence and security ties. The year 2007 was celebrated as the Year Corridor Development Corporation (DMIDC) to develop the eco- of Friendship between the two countries. friendly infrastructure for the new cities planned along the DMIC. India's robust economic growth in the recent years has not gone An analysis of the sector wise inflows from Japan shows that the unnoticed on the Japanese radar. According to a survey automobile sector has received the most FDI , constituting nearly conducted by the Japan Bank for International Cooperation (JBIC) 41 per cent of the total FDI inflows from Japan. The other favoured in 2008, India has become the most favoured investment sectors are the electrical equipments, trading, services and destination for long-term Japanese investments. Nearly 70 per telecommunications. These five sectors together constitute nearly cent of the Japanese manufacturers regarded India as the most 72 per cent of the total FDI inflows from Japan. A significant attractive country to do business during the following 10 years or amount of portfolio investments from Japan has been invested in so. India. Japan is now the sixth-largest FDI facilitator in India. Japan's Recently Japanese joint venture companies in India are investing contribution to India's FDI inflow is rising steadily, especially in further and expanding production capacities for the purpose of the Indian financial market. Though Japan has remained one of exporting goods manufactured in India to third countries. Recent the top ten investors in India since the 1990's, its contribution to FDI projects involving Japan include: India's FDI inflow has been only 4.29 per cent of the total FDI Honda, the Japanese auto major, has announced its foray into inflows between 1991 and 2007. The investment volumes have the compact car segment in India and is going to invest $205.25 fluctuated since then. million in its Rajasthan plant. An important aspect of the Indo-Japanese economic relations is Japan's second-largest lender, Mizuho Financial Group, has the official development assistance (ODA) provided by Japan. tied up with one of India's top banks, the State Bank of India. Japan has been India's largest bilateral donor since 1957. In 1958, The tie-up will include cooperation in various areas including Japan started providing ODA to India in the form of yen loans. A syndicated lending and infrastructure finance. large part of Japan's assistance to India has been for infrastructure development, (particularly power and transportation). One of the Maruti Suzuki India Ltd (MSIL) will invest $1.8 billion for most significant projects that has received funds under the ODA research and development (R&D) at a new facility in Haryana. is the Delhi-Mumbai Industrial Corridor (DMIC). Japan has The $63 billion Toshiba Corporation has entered into a joint assured technical and monetary support for the project which will venture with the JSW group to manufacture turbines for large require an estimated investment of $50 billion. power plants. The DMIC would be built along the lines of the successfully Toyota, another Japanese car major, is going to spend $680 operating Tokyo-Osaka belt in Japan. The 1,483 kilometre long million on the planned second car factory in India where it will industrial corridor would be located beside the proposed Delhi- begin producing its new compact car and the Corolla Sedan, Mumbai Freight Corridor. The corridor will cover six states - from 2010. Uttar Pradesh, Delhi-NCR, Haryana, Rajasthan, Gujarat and

104 105 India and Japan Relations Indo-Japan Foreign Direct Investment

Some other investments and deals between the two countries are FDI provides opportunities to host countries to enhance their as follows : economic development and opens new opportunities to home 1- Hitachi Transport System, an offshoot of Japan's Hitachi, countries to optimize their earnings by employing their ideal has acquired Flyjac Logistics for nearly US$ 54.61 million, resources. Foreign direct investment (FDI) plays an extraordinary giving it a firm footing in India's logistics and warehousing growth role in the global business. It includes services , industrial sector. The deal propels Hitachi to the top 10 Indian logistics and agricultural sectors. The various sectors under the Services companies. Sector in India are construction, trade, hotels, transport, restaurant, communication and storage, social and personal 2- Japan's JR Kyushu Group and Patni Computer Systems, services, community, insurance, financing, business services, and have announced a 51:49 ratio venture to provide real estate. information technology (IT) and product engineering services to the Japanese enterprise market. The venture is According to the economic theory, the three principal being formed with a capital of US$ 1.09 million. contributions of FDI to : 3- Tata Steel, India's largest steel producer, has entered into a a) host country are: joint venture (JV) with Japan's Nippon Steel for production the financial capital invested by foreign firms; and sale of automotive cold-rolled flat products at the export market access provided by them; and, Jamshedpur. The JV is expected to invest US$ 400 million the faster technology development that is expected to occur towards setting up of an automobile venture in India. through technology transfer as part of the FDI package. Each 4- The initiatives of the Ministry of Trade and Economy, Japan of these is believed to help the host country to achieve faster and the Japan External Trade Organisation (JETRO) have industrial catching-up than is not normally feasible otherwise helped rope in Japanese companies into investing in India's and thus contributes to the host country's economic growth first exclusive industrial parks for Japanese firms in and development. Rajasthan. The companies include majors such as Daikin b) to firm are : Industries Ltd, Nissin Kyogo Ltd and Mitsui Chemicals. it provides the firm with new markets and marketing channels ; Evaluation of the impact of FDI on the Indian economy Cheaper production facilities ; Foreign direct investment (FDI) is defined as “investment made to acquire lasting interest in enterprises operating outside of the access to new technology , products, skills and financing. economy of the investor.” The FDI relationship consists of a The foreign direct investment, in its classic definition, is defined parent enterprise and a foreign affiliate which together form a as a physical investment by a company from one country into Multinational corporation (MNC). In order to qualify as FDI the building a factory in another country. The direct investment in investment must afford the parent enterprise control over its buildings, machinery and equipment is in contrast with making a foreign affiliate. The UN defines control in this case as owning portfolio investment, which is considered an indirect investment. 10% or more of the ordinary shares or voting power of an In recent years, given the rapid growth and change in the global incorporated firm or its equivalent for an unincorporated firm. investment patterns, the definition has been broadened to include the acquisition of a lasting management interest in a company or

106 107 India and Japan Relations Indo-Japan Foreign Direct Investment

106 107 India and Japan Relations Indo-Japan Foreign Direct Investment enterprise outside the investing firm's home country. As such, it long-term business relationship, whereas a joint venture is may take many forms, such as a direct acquisition of a foreign based on a single business transaction. Individuals or firm, construction of a facility, or investment in a joint venture or companies choose to enter into joint ventures in order to share strategic alliance with a local firm with attendant input of strengths, minimize risks, and increase competitive technology, licensing of intellectual property . In the past decade, advantages in the marketplaces. The joint ventures can be FDI has come to play a major role in the internationalization of distinct business units (a new business entity may be created business. for the joint venture) or collaborations between businesses. In With the increasing role of technology, loosening of direct a collaboration, for example, a high-technology firm may investment restrictions in many markets and decreasing contract with a manufacturer to bring its idea for a product communication costs , newer and non-traditional forms of into market; the former provides the know-how, the latter the investment will play an important role in the future. Companies means. whose primary product is an intellectual property right such as a Portfolio investment The acquisition of financial assets (which software program or a software-based technology or process , can includes stock, bonds, deposits, and currencies) from one be housed almost anywhere . Thus, the traditional way of country into another country. In contrast to foreign direct investing in fixtures , machinery and plants is not required. Some investment, which is the acquisition of controlling interest in other non traditional methods are : foreign firms and businesses, portfolio investment is foreign Licensing and technology transfer This has helped in investment into the stock markets. Most economists consider promoting collaboration between the academic and business foreign direct investment more useful than portfolio communities. Ever since the legal hurdles were removed that investment since this last one is generally regarded as allowed universities to hold title to research and development temporary and then the foreign country can leave at the first done in their labs, licensing agreements have helped turn raw sign of trouble. technology into finished products that are viable in The IMF definition of FDI includes as many as twelve different competitive marketplaces. elements-equity capital, reinvested earnings of foreign Reciprocal distribution agreements - It represents a type of companies, inter company debt transactions, short‐term and direct investment. When , two companies, usually within the long-term loans, financial leasing, trade credits, grants, bonds, same or affiliated industries, agree to act as a national non-cash acquisition of equity, investment made by foreign distributor for each other's products , they are said to have venture capital investors, earnings data of the indirectly-held FDI entered into a reciprocal distribution agreement. The classical enterprises, control premium and non-competition fee. India, example is to be found in the furniture industry ;where however, does not adapt any other element other than the equity company A agrees to sell the product of company B and vice capital reported on the basis of issue or transfer of equity or versa. preference shares to foreign direct investors. Joint venture and other hybrid strategic alliances- A joint The major investing countries in india are Mauritius, United venture is a contractual business undertaking between two or Sates, United Kingdom, the Netherlands, Japan, Germany, and more parties. It is similar to a business partnership, with one Singapore. Japanese FDI inflows are lacking in diversification. key difference: a partnership generally involves an ongoing, The major chunk of Japanese FDI is confined only to transport

108 109 India and Japan Relations Indo-Japan Foreign Direct Investment enterprise outside the investing firm's home country. As such, it long-term business relationship, whereas a joint venture is may take many forms, such as a direct acquisition of a foreign based on a single business transaction. Individuals or firm, construction of a facility, or investment in a joint venture or companies choose to enter into joint ventures in order to share strategic alliance with a local firm with attendant input of strengths, minimize risks, and increase competitive technology, licensing of intellectual property . In the past decade, advantages in the marketplaces. The joint ventures can be FDI has come to play a major role in the internationalization of distinct business units (a new business entity may be created business. for the joint venture) or collaborations between businesses. In With the increasing role of technology, loosening of direct a collaboration, for example, a high-technology firm may investment restrictions in many markets and decreasing contract with a manufacturer to bring its idea for a product communication costs , newer and non-traditional forms of into market; the former provides the know-how, the latter the investment will play an important role in the future. Companies means. whose primary product is an intellectual property right such as a Portfolio investment The acquisition of financial assets (which software program or a software-based technology or process , can includes stock, bonds, deposits, and currencies) from one be housed almost anywhere . Thus, the traditional way of country into another country. In contrast to foreign direct investing in fixtures , machinery and plants is not required. Some investment, which is the acquisition of controlling interest in other non traditional methods are : foreign firms and businesses, portfolio investment is foreign Licensing and technology transfer This has helped in investment into the stock markets. Most economists consider promoting collaboration between the academic and business foreign direct investment more useful than portfolio communities. Ever since the legal hurdles were removed that investment since this last one is generally regarded as allowed universities to hold title to research and development temporary and then the foreign country can leave at the first done in their labs, licensing agreements have helped turn raw sign of trouble. technology into finished products that are viable in The IMF definition of FDI includes as many as twelve different competitive marketplaces. elements-equity capital, reinvested earnings of foreign Reciprocal distribution agreements - It represents a type of companies, inter company debt transactions, short‐term and direct investment. When , two companies, usually within the long-term loans, financial leasing, trade credits, grants, bonds, same or affiliated industries, agree to act as a national non-cash acquisition of equity, investment made by foreign distributor for each other's products , they are said to have venture capital investors, earnings data of the indirectly-held FDI entered into a reciprocal distribution agreement. The classical enterprises, control premium and non-competition fee. India, example is to be found in the furniture industry ;where however, does not adapt any other element other than the equity company A agrees to sell the product of company B and vice capital reported on the basis of issue or transfer of equity or versa. preference shares to foreign direct investors. Joint venture and other hybrid strategic alliances- A joint The major investing countries in india are Mauritius, United venture is a contractual business undertaking between two or Sates, United Kingdom, the Netherlands, Japan, Germany, and more parties. It is similar to a business partnership, with one Singapore. Japanese FDI inflows are lacking in diversification. key difference: a partnership generally involves an ongoing, The major chunk of Japanese FDI is confined only to transport

108 109 India and Japan Relations Indo-Japan Foreign Direct Investment industry and the relative share of this particular segment is as Reasons for the decline in inflows from Japan after 2000 much as 53 per cent . The second important sector attracting Japan has been one of the top five investors in India for a long Japanese FDI in India is electrical equipments and the relative time. However, since 2000, many countries have surpassed Japan share stood at 7.1 per cent. The service sector covering both in their investment in the Indian economy. This can be attributed financial and non-financial services is the third biggest sector and to several reasons. In a recent report submitted to the Department also accounted for 3.3 per cent of the total Japanese FDI inflows to of Industrial Policy and Promotion, the Japan Chamber of India. The other significant sector attracting more Japanese FDI is Commerce and Industry in India (JCCII) has termed the Indian the earth-moving machinery with a relative share of 3.3 per cent. business environment as “tough”. The most alarming feature of Japanese FDI inflows to India is the JCCII has listed 61 issues related to infrastructure, the taxation huge disparities in sectoral terms. system and customs clearance that need to be settled before more The focus areas of Japan's ODA to India has been - Japanese investors look to India. Japanese investors describe the infrastructure sectors including power and transportation, tax system in India as being too complicated and difficult to understand . The document titled “Suggestions for Government of agricultural and rural development, India by JCCII” contains detailed suggestions related to the environmental protection through afforestation and following issues: improvement in the quality of water and, inefficiency and lack of administrative transparency , health and medical care. infrastructure , This has helped in enhancing the development of the country. intellectual property rights , Japan has been reviewing the performance of ODA recipient countries periodically. In fact, the recent policies of Japan's ODA land acquisition and utilization , to India are largely based on the recognition of India as an logistics distribution , emerging economic power in the region and in the world relaxation of FDI regulations , economy. social security agreement , The main objectives of extending ODA to India as stated by the Japanese government are : specific issues related to the financial sector and steel , 1- strengthening India's commitment to the international tax system , economy and help in its growth as a constructive partner in visa application procedure , and, the Asian region , other suggestions including standardisation of bid 2- promoting closer bilateral relations to strengthen Japan's requirements as per international standards . security environment by maintaining stability in South Asia where India is a dominant regional player, and , India's land acquisition and utilisation procedures have been termed complicated and non-transparent. Further unresolved 3- contributing to India's poverty reduction strategies for issues include intellectual property rights, regulation of foreign achieving the Millennium Development Goals (MDGs). capitals and visa concerns. JCII contends that these issues need to be settled to generate greater interest among Japanese investors.

110 111 India and Japan Relations Indo-Japan Foreign Direct Investment industry and the relative share of this particular segment is as Reasons for the decline in inflows from Japan after 2000 much as 53 per cent . The second important sector attracting Japan has been one of the top five investors in India for a long Japanese FDI in India is electrical equipments and the relative time. However, since 2000, many countries have surpassed Japan share stood at 7.1 per cent. The service sector covering both in their investment in the Indian economy. This can be attributed financial and non-financial services is the third biggest sector and to several reasons. In a recent report submitted to the Department also accounted for 3.3 per cent of the total Japanese FDI inflows to of Industrial Policy and Promotion, the Japan Chamber of India. The other significant sector attracting more Japanese FDI is Commerce and Industry in India (JCCII) has termed the Indian the earth-moving machinery with a relative share of 3.3 per cent. business environment as “tough”. The most alarming feature of Japanese FDI inflows to India is the JCCII has listed 61 issues related to infrastructure, the taxation huge disparities in sectoral terms. system and customs clearance that need to be settled before more The focus areas of Japan's ODA to India has been - Japanese investors look to India. Japanese investors describe the infrastructure sectors including power and transportation, tax system in India as being too complicated and difficult to understand . The document titled “Suggestions for Government of agricultural and rural development, India by JCCII” contains detailed suggestions related to the environmental protection through afforestation and following issues: improvement in the quality of water and, inefficiency and lack of administrative transparency , health and medical care. infrastructure , This has helped in enhancing the development of the country. intellectual property rights , Japan has been reviewing the performance of ODA recipient countries periodically. In fact, the recent policies of Japan's ODA land acquisition and utilization , to India are largely based on the recognition of India as an logistics distribution , emerging economic power in the region and in the world relaxation of FDI regulations , economy. social security agreement , The main objectives of extending ODA to India as stated by the Japanese government are : specific issues related to the financial sector and steel , 1- strengthening India's commitment to the international tax system , economy and help in its growth as a constructive partner in visa application procedure , and, the Asian region , other suggestions including standardisation of bid 2- promoting closer bilateral relations to strengthen Japan's requirements as per international standards . security environment by maintaining stability in South Asia where India is a dominant regional player, and , India's land acquisition and utilisation procedures have been termed complicated and non-transparent. Further unresolved 3- contributing to India's poverty reduction strategies for issues include intellectual property rights, regulation of foreign achieving the Millennium Development Goals (MDGs). capitals and visa concerns. JCII contends that these issues need to be settled to generate greater interest among Japanese investors.

110 111 India and Japan Relations Indo-Japan Foreign Direct Investment

Japanese investors describe the tax system in India as too As mentioned earlier , the Japanese FDI inflows are lacking in complicated and difficult to understand. India's land acquisition diversification. The major chunk of Japanese FDI is confined only and utilisation procedures are also cited as major obstacles to to transport industry and the relative share of this particular Japanese investment in India because they are both complicated segment is as much as 53 percent. The second important sector and non-transparent. The failure to fulfil contractual obligations attracting Japanese FDI in India is electrical equipments and the includes those relating to power and water supply, drainage etc. relative share stood at 7.1 per cent. The service sector covering The case of industrial parks is another major issue. The Japanese both financial and non-financial services is the third biggest sector companies have also asked for simplification and speeding up of and also accounted for 3.3 per cent of the total Japanese FDI procedures for various permissions related to construction. inflows to India. The other significant sector attracting more Besides the above reasons , another factor which has lead to a Japanese FDI is the earth-moving machinery with a relative share decline in inflow from Japan is the recent crisis . Japan's economy of 3.3 per cent. These disparities in the sectoral investments shrank much more than the expected in the first quarter and allotments heavily for the factors of limited FDI . slipped into recession after the triple blow of the March The limited role of Private sector in enhancing the degree of earthquake, tsunami and nuclear crisis, it hit the business and economic ties is the main reason for limited investment in the consumer spending and tore apart the supply chains. With all the indian economy .Realizing the trend and situation, The Japanese damage the earthquake and tsunami left on the infrastructure, Policy Body known as Japan Forum on International Relations Japan is taking steps for its reconstruction in order to get their (JFIR), for the first time has come out with a positive attitude and economy up and running again. However, several risks remain approach and opined that the Japanese business community which could derail their recovery. Japan is still dealing with the should change their mindset and adapt a truly global plan and effects of the radiation leaks from the Fukushima Daichii nuclear policy keeping in mind the ground realities in India that have power plant, which led to widespread power shortages in the gone a sea change and as a result, there would be a huge potential country. On top of that as Japan is sitting right on the Pacific Ring for investment and opportunities of economic ties between India of Fire, there's always the possibility of another earthquake. and Japan. The Japanese firms are still unaware of Indian business potential and the opportunities of growth. Recommendations to increase the inflows The current economic growth in developing Asia is impressive Accordingly, Indian Government has requested the Japanese and there is a widespread speculation on how the world economy firms to apply assembly/export model business model in India is going to shift from the EU, Japan-US triad towards Asia, with on the pattern and lines which they have followed in other East China and India playing the two giants. The Asian countries are Asian economies. Some of the most productive and purposeful taking proactive measures to attract huge FDI.However , while suggestions given by JFIR with regard to enhancing the existing the Asian tigers have reached the innovation driven stage of degree of economic relations include the following: development , India and China still have a long way ahead . The Japanese firm should involve more local employees in the Since independence, a lot of concerted efforts have been done by process of decision making. both the Governments i.e. Indian Government and Japanese The local employees should be given responsible positions Government to improve the economic relations between them. and place in the firm. But unfortunately the economic relations are low as compared to They should also adapt top-down approach. other countries namely-the US, the UK and the Netherlands.

112 113 India and Japan Relations Indo-Japan Foreign Direct Investment

These firms should manufacture those goods that are more References suitable and friendly to local markets. BadarAlamIqbal & FarhaNazGhuari ; Fdi And Indian Economy: A Case Of These firms must call for a diversification in FDI inflows. Japan Fdi ; Business and Management Review Vol. 1(2) pp. 25 31, April, 2011. The Korean products appear to have fared well in the price- sensitive Indian market. Main reason is that Korean companies Arjun Singh Sirari& Mr. Narendra Singh Bohra ; Foreign Direct Investment (Fdi) In India Service Sector (A Study Of Post Liberalization) ,Ijer , Mar have localised the production of components and parts and used - Apr 2011. local labour. Smitha Francis, Foreign Direct Investment Concepts: Implications for Some recommendations to increase the Japanese inflow are as investment negotiations ,http://www.macroscan.org/pol/jun10/ follows : pdf/National_FDI.pdf. Providing information to the investors through the print and H. A. C. Prasad&R. Sathish , Policy for India's Services Sector , Ministry of electronic media. Conferences and exhibitions can also be put Finance : Government of India , March 2010. up to discuss India's investement policies. GeethanjaliNataraj ,India-Japan Investment Relations: Trends & Prospects , Indian Council For Research On International Economic Relations , Simplification of land acquisition and utilisation procedures January 2010. to attract more Japanese investors . Services Sector, http://indiabudget.nic.in. Forming a committee to address the grievances of the Japan-India Relations:Japan's Active Engagement in Business Cooperation investors and implementing some measures to overcome the with India II , The Embassy of Japan , April 2007 ,http://www.in.emb- same . japan.go.jp/Japan-India-Relations/Japan Active Engagement Improving the aviation links between the countries. 2007.html. Graham, Jeffrey P. and R. Barry Spaulding , Understanding foreign direct Setting up of some divisional cells under the Income Tax investment (FDI), June 16 ,2005, Going Global Web site: department to help the investors understand the taxation http://www.going-global.com/articles/understanding_foreign_ policy of the country. direct_investment.htm . Indo-Japanese relations have undergone a paradigm shift in the FDI in figures , OECD , July 2012 , http://www.oecd.org/daf/international recent times. Though Japan is only the sixth largest investor in investment/investmentstatisticsandanalysis/FDI%20in%20figures.p India, there is hope that the proportion of investment will df. significantly increase. The successful Indo-Japanese ventures Ramkishen S. Rajan, Sunil Rongala&RamyaGhosh , Attracting Foreign such as Suzuki-Maruti, Hero Honda, and Toyota Kirloskar are the Direct Investment (FDI) to India , April 2008 , http://www.freewebs. few that need to be emulated. India definitely needs to create an com/rrajan1/ifdi.pdf. investor friendly environment by introducing further economic reforms and changes in the policies to address the grievances expressed by the Japanese investors to increase investments in India.

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114 115 Role of FDI in Economic Development of India: Top Five Sectoral Analyses Role of FDI in Economic Development of India: Top Five Sectoral Analyses Sectors prohibited for FDI. Activities that require industrial license. Girish Kumar. K and B. Amarnath Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field.

Abstract Proposals for acquisition of shares in an existing Indian Company in financial service sector and where SEBI FDI plays an important role in the development process of a country. It has potential for making a contribution to the development through the transfer regulations 1997 are attracted. of financial resources, technology and innovative and improved All proposals falling outside the notified sectoral policy in management techniques along with raising productivity. The four major which FDI is not permitted. aims of this study are to analyze the FDI flows as to identify the country wise approvals of FDI inflows to India, to explore the Sector wise distribution of Industrial Sectors of India FDI inflows in order to point out the dominating sector and to rank the India has been a major recipient of FDI Inflows in the majority of sectors based upon highest FDI inflows and to find out the co relation between FDI and Economic Development. Finally, we would like to sectors. There has been an unnerving upsurge in the economic conclude that the Developing countries like India need substantial foreign developments of the country. In the liberalization era, India is inflows to achieve the required investment to accelerate economic growth known to have attracted a quantum amount of Foreign Direct and development. It can act as a catalyst for domestic industrial Investment, especially after the liberalization. The huge market development. Further, it helps in speeding up economic activity and brings for computer hardware in India, coupled with the availability of with it other scarce productive factors such as technical know how and skilled workforce in this sector has boosted the inflow of FDI. managerial experience, which are equally essential for economic development. The paper has been concluded that the FDI plays a vital role in High growth prospects, in terms of increased consumption in Economic Development of India. India as well as increasing demand for exports are expected to Keywords: Economic development, financial resources, FDI inflows to India, country- lead to more Foreign Direct Investments in this sector.FDI wise inflows of FDI, sector wise distribution, FDI issues and policy recommendation. opportunities in the telecommunication sector in India exist in the areas of Ecommerce, Manufacturing of equipments and components, Tele-education, Tele-banking, Exports of telecom equipment and services, telemedicine, setting up a national long FDI distance bandwidth capacity in the country. Construction FDI is generally defined as “A form of long term international projects which have received the maximum FDI include, housing, capital movement, made for the purpose of productive activity commercial premises, hotels, resorts, hospitals, educational and accompanied by the in five ion of managerial control or institutions, recreational facilities, city and regional level participation in the management of foreign firm. infrastructure projects. FDI Inflows in the construction industry Policy on FDI in India are permissible under the automatic route to ensure India are among the most liberal and transparent policies on FDI flexibility in construction activities which will boost the Indian of the emerging economies. FDI up to100% is allowed under the economy. In the real estate sector, the foreign investors are not automatic route in all the sectors except the following, which allowed to sell undeveloped land, such as, lands which do not require prior approval of the Government: have proper facilities of roads, water, electricity, drainage and all other basic requirements for inhabitation.

116 117 Role of FDI in Economic Development of India: Top Five Sectoral Analyses Role of FDI in Economic Development of India: Top Five Sectoral Analyses Sectors prohibited for FDI. Activities that require industrial license. Girish Kumar. K and B. Amarnath Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field.

116 117 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses

The huge size of the market in the power sector in India and high Not all firms are affected equally; some will be losers while others returns on investment are important factors in boosting FDI will be winners, depending on their characteristics. inflows to power. There are huge opportunities of FDI in power Nagesh Kumar (2001) analyses the role of infrastructure sector in India. Opportunities of Foreign Direct Investment (FDI) availability in determining the attractiveness of countries for FDI in the Power Sector in India exist in Hydro Projects, Captive inflows for export orientation of MNC production. Power, Ultra Mega Power Projects, Nuclear Power, National Grid Program, Rural Electrification, Trading, Renewable Energy etc. Anand Virmani and Susan Collins (2007) studied empirically India's Important factors which are conductive to FDI Inflows to economic growth experience during 1960-2004 focussing on the Electronics are the availability of low-cost, efficient, and post 1973 acceleration. The analysis focuses on the unusual technically skilled workforce; opportunities for the dimensions of India's experience. They find that India will need to manufacturing of consumer electronic goods and mobile broaden its current expansion to provide manufactured goods to handsets are high given the growing demand in the domestic the world market and jobs for its large pool of low skilled workers. electronics market. The electronics hardware is growing leaps Kulwinder Singh (2005) has analyzed FDI flows from 1991-2005. A and bounds globally, large-scale manufacturing units of sectoral analysis in his study reveals that while FDI shows a electronics hardware will be set up in the special economic zones gradual increase the progress is hollow. The telecommunication with a total exemption of duties and taxes. India has high chances and power sector are the reasons for the success of infrastructure. to acquire a size of USD 11 billion in terms of contract He finds that in the comparative studies the notion of manufacturing out of USD 500 billion by 2010. Designing of infrastructure has gone a definitional change. FDI in sectors is electronics will touch USD 7 billion by 2010; component exports held up primarily by telecommunication and power is not evenly will touch USD 5 billion by 2010. NOKIA and Elcoteq Network distributed. are planning to set up manufacturing operations in India. In their study on FDI and its economic effects in India, Chandand Nature and Source of Data Chakroborty and Peter Munnen Kamp (2006) assess the growth The present study is of analytical nature and makes use of implications of FDI in India by subjecting industry specific FDI secondary data. The relevant secondary data are collected from and output to causality tests. various publications of Government of India, Reserve Bank of Jaya Gupta (2007) in his paper made an attempt to review the India and World Investment Report 2009 Published by UNCTAD change in sectoral trends in India due to FDI Inflows since etc. liberalization. This paper also examines the changed policy Literature Review implications on sectoral growth and economic development of Cheng, (1993) noted the growing importance of cross-border R & India as a whole. D activities and suggested that additional research on FDI should Jayashree Bose (2007) in his book studied the sectoral experiences be done on why firms internationalize their R & D. faced by India and China in connection with FDI inflows. This Dijkstra (2000), Tybout (2000) and Vachani (1997) found that book provides information on FDI in India and China, emerging investment policy liberalisations have major impacts on firms in issues, globalization, foreign factors, trends and issues in FDI less developed countries (LDCs) where the pre-liberalisation inflows, FDI inflows in selected sectors. A comparative study has level of protection was high. also been conducted on FDI outflows from India and China. This

118 119 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses

118 119 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses book also revealed the poFivetial and opportunities in various Table 1 Countrywise FDI Inflows - Top 10 Countries (From 2007-2010) sectors in India that would surpass FDI inflows in India as (Amount Rupees in Crores) compared to China. Tanay Kumar Nandi and Ritankar Saher (2007) in their work made an attempt to study the Foreign Direct Investment in India with a special focus on Retail Trade. This paper stresses the need of FDI in India in retail sector and uses the argument that FDI is allowed in multiple sectors and the effects have been quite good without harming the domestic economy. The study also suggests that FDI in retail sector must be allowed. Objectives The main objective of the study is to analyze the FDI inflows in India with special reference to Sector wise inflows. The other objectives are: To analyze the FDI flows as to identify the country wise India's 83% of cumulative FDI is contributed by nine countries approvals of FDI inflows to India. while remaining 17 per cent by rest of the world. The analysis of To explore the Sector wise distribution of FDI inflows in order country wise inflows of FDI in India indicates that during 2007- to point out the dominating sector, which has attracted the 2010, the total amount of Rs 526537 of FDI was received from 113 major share? countries including NRI investments. To rank the sectors based upon highest FDI inflows. India's perception abroad has been changing steadily over the years. This is reflected in the ever growing list of countries that are To find out the co relation between FDI and the economic showing interest to invest in India. Mauritius emerged as the development. most dominant source of FDI contributing 44 % of the total Nature and Source of Data investment in the country. Singapore was the second dominant The present study is of analytical nature and makes use of source of FDI inflows with 9% of the total inflows. However, USA secondary data. The relevant secondary data has been collected slipped to third position by contributing 7% of the total inflows. from reports of the Ministry of Commerce and Industry, They maintained continuous increasing trend under the period of Department of Industrial Promotion and Policy, Government of study. UK occupied fourth position with 5%followed by India, Centre for Monitoring Indian Economy, Reserve Bank of Netherlands with 4%, Japan with 4%, Cyprus with 4%, Germany India, World Investment Report and World Investment Report. with 3%, France with 1%, UAE with 1%. Analysis of Country-wise Inflows of FDI It has been observed that some of the countries like Israel, Thailand, Hong Kong, South Africa and Oman increased their It is proposed to analyze the country-wise share of foreign direct share gradually during the period under study. It is also investment in India from 2006-2010.The data relevant to the interesting to note that some of the new countries such as analysis is presented in Table 1.

120 121 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses book also revealed the poFivetial and opportunities in various Table 1 Countrywise FDI Inflows - Top 10 Countries (From 2007-2010) sectors in India that would surpass FDI inflows in India as (Amount Rupees in Crores) compared to China. Tanay Kumar Nandi and Ritankar Saher (2007) in their work made an attempt to study the Foreign Direct Investment in India with a special focus on Retail Trade. This paper stresses the need of FDI in India in retail sector and uses the argument that FDI is allowed in multiple sectors and the effects have been quite good without harming the domestic economy. The study also suggests that FDI in retail sector must be allowed. Objectives The main objective of the study is to analyze the FDI inflows in India with special reference to Sector wise inflows. The other objectives are: To analyze the FDI flows as to identify the country wise India's 83% of cumulative FDI is contributed by nine countries approvals of FDI inflows to India. while remaining 17 per cent by rest of the world. The analysis of To explore the Sector wise distribution of FDI inflows in order country wise inflows of FDI in India indicates that during 2007- to point out the dominating sector, which has attracted the 2010, the total amount of Rs 526537 of FDI was received from 113 major share? countries including NRI investments. To rank the sectors based upon highest FDI inflows. India's perception abroad has been changing steadily over the years. This is reflected in the ever growing list of countries that are To find out the co relation between FDI and the economic showing interest to invest in India. Mauritius emerged as the development. most dominant source of FDI contributing 44 % of the total Nature and Source of Data investment in the country. Singapore was the second dominant The present study is of analytical nature and makes use of source of FDI inflows with 9% of the total inflows. However, USA secondary data. The relevant secondary data has been collected slipped to third position by contributing 7% of the total inflows. from reports of the Ministry of Commerce and Industry, They maintained continuous increasing trend under the period of Department of Industrial Promotion and Policy, Government of study. UK occupied fourth position with 5%followed by India, Centre for Monitoring Indian Economy, Reserve Bank of Netherlands with 4%, Japan with 4%, Cyprus with 4%, Germany India, World Investment Report and World Investment Report. with 3%, France with 1%, UAE with 1%. Analysis of Country-wise Inflows of FDI It has been observed that some of the countries like Israel, Thailand, Hong Kong, South Africa and Oman increased their It is proposed to analyze the country-wise share of foreign direct share gradually during the period under study. It is also investment in India from 2006-2010.The data relevant to the interesting to note that some of the new countries such as analysis is presented in Table 1.

120 121 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses

Hungary, Nepal, Virgin Islands, and Yemen are making Analysis significant investments in India. The Sector wise Analysis of FDI Inflow in India reveals that the maximum FDI has taken place in the service sector including the Table 2 Sector-wise FDI Inflows (Rupees in Crores) telecommunication, information technology, travel and many others. The service sector is followed by the computer hardware and software in terms of FDI. High volumes of FDI take place in telecommunication, real estate, construction, power, automobiles, etc. The rapid development of the telecommunication sector was due to the FDI inflows in the form of international players entering the market and transfer of advanced technologies. The telecom industry is one of the fastest growing industries in India. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. FDI inflows to real estate sector in India have developed the sector. The increased flow of foreign direct investment in the real estate sector in India has helped in the growth, development, and expansion of the sector. FDI Inflows to Construction Activities has led to a phenomenal growth in the economic life of the country. India has become one of the most prime destinations in terms of construction activities as well as real estate investment. Based upon the data given by department of Industrial Policy and Promotion, in India there are sixty two (62) sectors in which FDI inflows are seen but it is found that only the Top Five sectors attract almost seventy percent (52%) of FDI inflows. The cumulative FDI inflows from the above results reveal that service sector in India attracts the maximum FDI inflows amounting to Rs. 106992 crores, followed by Computer Software and Hardware amounting to Rs. 44611 crores. These two sectors collectively attract more than thirty percent (30%) of the total FDI inflows in India. The housing and real estate sector and the construction industry are among the new sectors attracting huge FDI inflows that come under Top Five sectors attracting maximum FDI inflows.

122 123 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses

Thus the sector wise inflows of FDI in India shows a varying trend Correlation Value but acts as a catalyst for growth, quality, finance and The value of Karl Pearson co relation(r) is found to be +.89. It development of Indian Industries to a greater and larger extent. means that there is a high degree of positive correlation between The technology transfer is also seen as one of the major change the FDI and the economic development. apart from increase in operational efficiency, managerial efficiency, employment opportunities and infrastructure FDI Issues and Policy Recommendation development. FDI can be instrumental in developing rural economy. There is abundant opportunity in Greenfield Projects. But the issue of FDI and Economic Development land acquisition and steps taken to protect local interests by the FDI is considered to be the life blood and an important vehicle of various state governments are not encouraging. MOU economic development as far as the developing nations are Arecelor-Mittal controversy is one of the best examples of such concerned. The important effect of FDI is its contribution to the disputes. growth of the economy. FDI has an important impact on country's India has a huge pool of working population. However, due to trade balance, increasing labour standards and skills, transfer of poor quality primary education and even the higher education technology and innovative ideas, skills and the general business there is still an acute shortage of talent. This factor has negative climate. FDI also provides opportunity for technological transfer repercussion on domestic and foreign business. FDI in and up-gradation, access to global managerial skills and Education Sector is less than 1%. Given the status of primary practices, optimal utilization of human capabilities and natural and higher education in the country, FDI in this sector must be resources, making industry internationally competitive, opening encouraged. However, appropriate measure must be taken to up export markets, access to international quality goods and ensure quality. The issues of commercialization of education, services and augmenting the employment opportunities. regional gap and structural gap have to be addressed on priority. Indian economy is largely agriculture based. There is plenty of scope in food processing, agriculture services and agriculture machinery. FDI in this sector should be encouraged. The issue of food security, interest of small farmers and marginal farmers need that they cannot be ignored for the sake of mobilization of foreign funds for development. India has a well developed equity market but does not have a well developed debt market. Steps should be taken to improve the depth and liquidity of debt market as many companies The reliance on FDI is rising heavily due to its all round may prefer leveraged investment rather than investing their contributions to the growth of the economy. FDI to the own cash. Looking for debt funds in their own country invites developing countries since 1990's is the leading source of external exchange rate risk. financing. The rise in FDI volume is accompanied by marked change in its composition.

124 125 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses

In order to improve technological competitiveness of India, Blomström, M., R. Lipsey and M. Zejan (1994). “Host Country Competition FDI into R&D should be promoted. Various issues pending and Technology Transfer by Multinationals”, Weltwirtschaftliches Archiv, relating to the Intellectual Property Rights, Copy Rights and 130, pp. 521-533. Puffiest need to be addressed on priority. Special package can Daisuke, H. (2008). “Japan's Outward FDI in the Era of Globalization”, in R.S. be also instrumental in mobilizing FDI in R&D. Rajan, R. Kumar and N. Vargill, eds. (2008) “New Dimensions of Economic Globalization: Surge of Outward FDI from Asia”, World Scientific Press, The service sector is one of the major sources of mobilizing FDI Chapter 4. to India, plenty of scope exists. Still we find the financial Dua, P. and A.I. Rasheed (1998). “Foreign Direct Investment and Economic inclusion is missing. Large part of population still doesn't have Activity in India”, Indian Economic Review, 33, pp. 153-168. bank accounts, insurance of any kind, under insurance etc. Foreign Direct Investment Policy (2006), department of Industrial policy and These problems could be addressed by making service sector promotion, Ministry of Commerce and Industry, Government of India. more competitive. Removal of sectoral cap in insurance is still awaited. International Conference on Technology and Business Management, March 28-30, 2011, Ila Chaturvedi Japan Bank for International Cooperation, (2002), “Foreign Direct Investment and Development: Where Do We Stand?” Research Paper no: 15. References Nagraj, R. (2003), “Foreign Direct Investment in India in the 1990s: Trends and Issues”, Economic Political Weekly Review, India,38 : 1701-1712 A s h e r , M . G . ( 2 0 0 7 ) . “ I n d i a ' s R i s i n g R o l e i n A s i a ” , Patrick, Oskarsson, (2005), “India Attraction: Profitable Multinationals as http://www.spp.nus.edu.sg/wp/wp0701b.pdf. Subsidy Junkies-A Study of Incentives for Foreign Direct Investment in Athreye, S. and S. Kapur (2001). “Private Foreign Investment in India: Pain or India”, Finnwatch, Finland. Panacea?” The World Economy, 24, pp. 399-424. Narula Rajneesh, Lall Sanjay, (2006), (ed.), “Understanding FDI-Assisted Agosin, M. and R. Mayer (2000). “Foreign investment in Developing Economic Development”, London: Routledge. Countries: Does it Crowd in Domestic Investment?” Discussion Paper No. Srivastava, S. & Rajan, R. (2004). What Does the Economic Rise of China 146, UNCTAD, Geneva. imply for ASEAN and India: Focus on Trade and Investment Flows. In H. Bala Komaraiah, J,(2003), “India-Japan Business Relations in the 21st Kehal Century”, in Japan's Role in South East Asia M.D Dharamdasini (ed.), Lancer Books, New Delhi. Bartlett, C.A., Gita Piramal, Sumantra Ghoshal, (2000), “Managing Radical Change”, Viking, New Delhi. Bearnish Paul W, et.al, (1997), “Japanese Multinationals in the Global Economy”, Edward Elgar Publishing, UK. Blomström, M. and A. Kokko (2003). “The Economics of Foreign Direct Investment Incentives”, Working. Paper No. 9489, NBER. Borensztein, E., J. De Gregorio and J. Lee (1995). “How does Foreign Direct Investment Affect Growth”, Journal of International Economics, 45, pp. 115- 135.

126 127 India and Japan Relations Role of FDI in Economic Development of India: Top Five Sectoral Analyses

126 127 India-Japan Economic and Commercial Relations: A Study India-Japan Economic and Commercial Relations: A Study Noda announced the intention of the Government of Japan to make available the finance totaling to 4.5 billion US dollars in the B. Venkatesula Reddy and P. Surya Kumar next five years for the DMIC project during his visit to India in December 2011. Asia is progressively emerging as a power centre of the world. The “Arc of Advantage” comprising of Japan, India, the India-Japan relations have always been strong. For centuries, Association of Southeast Asian Nations (ASEAN) members, India and Japan have engaged in cultural exchanges, primarily as China and the Republic of Korea (ROK) proposed by Prime a result of Buddhism which spread indirectly from India to China Minister Manmohan Singh of India generates approximately 30% and then to Japan. During the Second World War, Subhas of the world income. In addition, countries in Asia have been Chandra Bose's Indian National Army and the Japanese Imperial strengthening their initiative for economic partnerships, namely, Army fought together in battles against the British forces. India is Free Trade Agreements (FTA)/Economic Partnership the largest recipient of Japanese Official Development Assistance Agreements (EPA). A fervent new dynamism has been (ODA). developing in Asia and in December 2005 the East Asia Summit The two nations have remained warm since India's was held to discuss the regional cooperation from a strategic independence. Japanese companies, such as Sony, Toyota, and viewpoint. Honda, have manufacturing facilities in India and with the Japan and India are responsible and are major players in Asia growth of the Indian economy, India is a big market for Japanese sharing strategic interests and upholding common values such as firms. Japanese firms were, in fact, some of the first firms to invest democracy, human rights and a market economy. With regard to in India. The most prominent Japanese company to have an the size of their economies, Japan has the second largest Gross investment in India is the automobiles giant Suzuki, which is in Domestic Product (GDP) in the world and India has the tenth partnership with the Indian automobiles company Maruti largest GDP in the world. In particular, the strong economic Suzuki, the largest car manufacturer in India and a subsidiary of growth of India is predicted to continue over the long-run and the Japanese company. there are the ever-widening prospects for the country to become The Japan-India Comprehensive Economic Partnership an economic power. Against this backdrop, both countries are Agreement (CEPA) took effect in August 2011, which will expected to become the driving forces for further prosperity in eliminate about 94% of the tariffs between Japan and India within Asia. the following 10 years. The negotiation on Japan-India Social Japan and India have continued to develop their friendly Security Agreement was commenced in July 2011. The third relations founded on a long history of exchanges. At the start of round of negotiations was held in February 2012. the 21st century, with a view to further enhance their friendly India has been the largest recipient of the Japanese ODA Loan for cooperative relations that had been nurtured historically, both the the past several years. Delhi Metro is one of the most successful countries agreed to Japan-India Global Partnership in August examples of Japanese cooperation through the utilization of 2000 on the occasion of Prime Minister Mori's visit to India. ODA. The Dedicated Freight Corridor (DFC) and the Delhi- Further more, the two countries issued a joint statement called the Mumbai Industrial Corridor (DMIC) are the two symbolic “Japan-India Partnership in a New Asian Era” on the occasion of projects of cooperation between Japan and India. Prime Minister Prime Minister Junichiro Koizumi's visit to India in 2005.This

128 129 India-Japan Economic and Commercial Relations: A Study India-Japan Economic and Commercial Relations: A Study Noda announced the intention of the Government of Japan to make available the finance totaling to 4.5 billion US dollars in the B. Venkatesula Reddy and P. Surya Kumar next five years for the DMIC project during his visit to India in December 2011. Asia is progressively emerging as a power centre of the world. The “Arc of Advantage” comprising of Japan, India, the India-Japan relations have always been strong. For centuries, Association of Southeast Asian Nations (ASEAN) members, India and Japan have engaged in cultural exchanges, primarily as China and the Republic of Korea (ROK) proposed by Prime a result of Buddhism which spread indirectly from India to China Minister Manmohan Singh of India generates approximately 30% and then to Japan. During the Second World War, Subhas of the world income. In addition, countries in Asia have been Chandra Bose's Indian National Army and the Japanese Imperial strengthening their initiative for economic partnerships, namely, Army fought together in battles against the British forces. India is Free Trade Agreements (FTA)/Economic Partnership the largest recipient of Japanese Official Development Assistance Agreements (EPA). A fervent new dynamism has been (ODA). developing in Asia and in December 2005 the East Asia Summit The two nations have remained warm since India's was held to discuss the regional cooperation from a strategic independence. Japanese companies, such as Sony, Toyota, and viewpoint. Honda, have manufacturing facilities in India and with the Japan and India are responsible and are major players in Asia growth of the Indian economy, India is a big market for Japanese sharing strategic interests and upholding common values such as firms. Japanese firms were, in fact, some of the first firms to invest democracy, human rights and a market economy. With regard to in India. The most prominent Japanese company to have an the size of their economies, Japan has the second largest Gross investment in India is the automobiles giant Suzuki, which is in Domestic Product (GDP) in the world and India has the tenth partnership with the Indian automobiles company Maruti largest GDP in the world. In particular, the strong economic Suzuki, the largest car manufacturer in India and a subsidiary of growth of India is predicted to continue over the long-run and the Japanese company. there are the ever-widening prospects for the country to become The Japan-India Comprehensive Economic Partnership an economic power. Against this backdrop, both countries are Agreement (CEPA) took effect in August 2011, which will expected to become the driving forces for further prosperity in eliminate about 94% of the tariffs between Japan and India within Asia. the following 10 years. The negotiation on Japan-India Social Japan and India have continued to develop their friendly Security Agreement was commenced in July 2011. The third relations founded on a long history of exchanges. At the start of round of negotiations was held in February 2012. the 21st century, with a view to further enhance their friendly India has been the largest recipient of the Japanese ODA Loan for cooperative relations that had been nurtured historically, both the the past several years. Delhi Metro is one of the most successful countries agreed to Japan-India Global Partnership in August examples of Japanese cooperation through the utilization of 2000 on the occasion of Prime Minister Mori's visit to India. ODA. The Dedicated Freight Corridor (DFC) and the Delhi- Further more, the two countries issued a joint statement called the Mumbai Industrial Corridor (DMIC) are the two symbolic “Japan-India Partnership in a New Asian Era” on the occasion of projects of cooperation between Japan and India. Prime Minister Prime Minister Junichiro Koizumi's visit to India in 2005.This

128 129 India and Japan Relations India-Japan Economic and Commercial Relations: A Study joint statement was formulated taking into account the increasing dimension that makes the Japanese and the Indian economies further significance of the Japan-India Global Partnership and the complementary. It is thus possible for both the countries to surge of developments in Asia. In the Joint Statement, the two enhance their mutually beneficial cooperative relations. countries announced that they would give a new strategic focus to Reforms are the key to further economic growth. India-Japan the Japan-India Global Partnership and that as responsible and Governments are actively engaging in reforms. The reforms in major players in Asia, they will expand their traditional bilateral Japan include the privatization of the postal services, financial relations to those promoting security, stability and prosperity of reform and the promotion of special zones for structural reform, Asia as well as advancing international peace and equitable while the reforms in India include the easing of restrictions on development and are committed to work together to promote the foreign investment, development of agriculture, infrastructure vision of an East Asian community. development and refinements in the taxation system. Removing Nevertheless, the current state of the economic relations between the impediments to Japan-India economic relations and the two countries shows that their potential has not been fully advancing closer economic relations would further promote the harnessed when compared to the role they are expected to play. reforms in both the countries and would contribute to create The Japan-India Joint Study Group (JSG) received a mandate to employment. study specific areas that would realize the full potential of the Coupled with the stronger Japan-India economic relations, it is economic relations between Japan and India and make the two expected that the transfer of technology and mutual countries the driving forces of prosperity in Asia. This report understanding of business culture would be advanced along with takes into account the existing ground realities in both the the expansion of trade and investment. In addition, both the countries and presents a wide range of measures as well as the countries should strengthen their exchanges and cooperative potential sectors and products that should be considered for relations in a wide range of areas, including people-to-people strengthening Japan-India economic relations. exchanges, academic exchanges, IT, science and technology Japan has advantages in terms of capital, technological skills, and cooperation and environmental and energy cooperation. The JSG product development. India has a huge market made up of has made it its mission to focus on policies needed to approximately 1,100 million people as well as a large and high- comprehensively expand trade in goods and services, investment quality labour force. In addition, a middle-class with a strong and other areas of economic relations, as stated in the Japan-India purchasing power is emerging in India comprising of Joint Statement. approximately 200 million people. The country also has technical Present status of domestic economies and foreign skills in new sectors such as Information Technology (IT) and Biotechnology. economic policies in India and Japan Indian economy has been posting an average 6% annual The rapidly growing IT industry of India hopes to see the economic growth since its economic liberalization in 1991. There Japanese companies with an edge in the hardware sector expand has been a further acceleration of the growth rates to over 8% their businesses in India, which will enable India to enlarge its during the past couple of years. In particular the IT industry has industrial structure into the hardware sector to supplement its been expanding rapidly. For instance, its software and service software exports. In addition, the difference in the population exports grew by a factor of roughly 40 over the last ten years. dynamics of Japan and India, with the former having an ageing Further more, the share of primary industries has been overtaken society and the latter a large younger population, is another

130 131 India and Japan Relations India-Japan Economic and Commercial Relations: A Study joint statement was formulated taking into account the increasing dimension that makes the Japanese and the Indian economies further significance of the Japan-India Global Partnership and the complementary. It is thus possible for both the countries to surge of developments in Asia. In the Joint Statement, the two enhance their mutually beneficial cooperative relations. countries announced that they would give a new strategic focus to Reforms are the key to further economic growth. India-Japan the Japan-India Global Partnership and that as responsible and Governments are actively engaging in reforms. The reforms in major players in Asia, they will expand their traditional bilateral Japan include the privatization of the postal services, financial relations to those promoting security, stability and prosperity of reform and the promotion of special zones for structural reform, Asia as well as advancing international peace and equitable while the reforms in India include the easing of restrictions on development and are committed to work together to promote the foreign investment, development of agriculture, infrastructure vision of an East Asian community. development and refinements in the taxation system. Removing Nevertheless, the current state of the economic relations between the impediments to Japan-India economic relations and the two countries shows that their potential has not been fully advancing closer economic relations would further promote the harnessed when compared to the role they are expected to play. reforms in both the countries and would contribute to create The Japan-India Joint Study Group (JSG) received a mandate to employment. study specific areas that would realize the full potential of the Coupled with the stronger Japan-India economic relations, it is economic relations between Japan and India and make the two expected that the transfer of technology and mutual countries the driving forces of prosperity in Asia. This report understanding of business culture would be advanced along with takes into account the existing ground realities in both the the expansion of trade and investment. In addition, both the countries and presents a wide range of measures as well as the countries should strengthen their exchanges and cooperative potential sectors and products that should be considered for relations in a wide range of areas, including people-to-people strengthening Japan-India economic relations. exchanges, academic exchanges, IT, science and technology Japan has advantages in terms of capital, technological skills, and cooperation and environmental and energy cooperation. The JSG product development. India has a huge market made up of has made it its mission to focus on policies needed to approximately 1,100 million people as well as a large and high- comprehensively expand trade in goods and services, investment quality labour force. In addition, a middle-class with a strong and other areas of economic relations, as stated in the Japan-India purchasing power is emerging in India comprising of Joint Statement. approximately 200 million people. The country also has technical Present status of domestic economies and foreign skills in new sectors such as Information Technology (IT) and Biotechnology. economic policies in India and Japan Indian economy has been posting an average 6% annual The rapidly growing IT industry of India hopes to see the economic growth since its economic liberalization in 1991. There Japanese companies with an edge in the hardware sector expand has been a further acceleration of the growth rates to over 8% their businesses in India, which will enable India to enlarge its during the past couple of years. In particular the IT industry has industrial structure into the hardware sector to supplement its been expanding rapidly. For instance, its software and service software exports. In addition, the difference in the population exports grew by a factor of roughly 40 over the last ten years. dynamics of Japan and India, with the former having an ageing Further more, the share of primary industries has been overtaken society and the latter a large younger population, is another

130 131 India and Japan Relations India-Japan Economic and Commercial Relations: A Study by the share of secondary industries and an economic structure expected to reach approximately 151% of GDP. The fiscal tailored to achieve stable economic growth is being established. structural reform is, therefore, a challenge. In view of the importance of agriculture, poverty reduction and Under the policies of “without reform there will be no growth”, employment initiatives, Indian Prime Minister has called for “leave to the private sector what it can do,” and “leave to the “economic growth accompanied by employment” and has localities what they can do,” Koizumi Administration aims to announced the objective of achieving a 8-10% annual economic promote structural reforms covering finance, taxation, regulation growth in a manner that generates employment. India has been and public expenditure to bring out the vitality of the private steadily relaxing its regulations on foreign investment in various sector and the motivation of regions to overcome deflation and sectors while aiming at “economic reforms with a human face.” revitalize the economy. During the vital period up to FY2006, Meanwhile, factors constraining economic growth are emerging Japan gave priority to the following three challenges while and the Government of India has emphasized the fact that the accelerating structural reform: 1) to create a “small and efficient infrastructure sector would need US$150 billion in foreign government;” 2) to create a strong foundation that will allow investment in the next few years. With the injection of public Japan to deal with the issues of declining birthrate, aging funds serving as the catalyst, the enormous infrastructure needs population and globalization; and 3) to overcome deflation and to must be covered by private investment. make sure that the private demand-led economic growth India launched its “Look East Policy” in 1991 and is making continues. efforts to strengthen its relations with the Asian countries Japan is promoting EPA negotiations in an effort to complement including the members of the ASEAN. India has signed an FTA its multilateral free trade structure centered on the World Trade framework agreement with Thailand and a Comprehensive Organization (WTO). In this respect, while Japan is advancing Economic Cooperation Agreement (CECA) with Singapore and is negotiations with the aim of realizing EPAs which are consistent already implementing the early harvest measures. With a view to with WTO agreements, it also aims to strengthen comprehensive protect foreign direct investment, India has also already economic partnerships by promoting EPAs which include not concluded bilateral investment protection agreements with 48 only trade of goods and services but also investment, intellectual countries and agreements are currently being negotiated with 30 property, competition and development of business additional countries. environment, with traditional bilateral FTAs consisting of tariff The Japanese economy has been making a modest recovery after a elimination and reduction at the core. long period of recession. Considering that the current trend of In particular, Japan intends to strengthen its economic recovery has been achieved by the private sector, driven by the partnerships with the Asian countries with which it has deep progress of IT related adjustments and the recovery of exports interdependent relations, not only through the expansion of rather than by increasing public spending and the target for trade, investment, etc. but also through the creation of common disposal of non-performing loans has now been reached, it can be rules in various fields and facilitation of the movement of people. said that Japan has already emerged out from the long period of Japan aims to develop and strengthen the competitiveness of the economic stagnation it suffered after the burst of the so-called entire Asian region. bubble economy. Japan's public finances have been worsening since the late 1990s and its outstanding domestic long-term debt is

132 133 India and Japan Relations India-Japan Economic and Commercial Relations: A Study by the share of secondary industries and an economic structure expected to reach approximately 151% of GDP. The fiscal tailored to achieve stable economic growth is being established. structural reform is, therefore, a challenge. In view of the importance of agriculture, poverty reduction and Under the policies of “without reform there will be no growth”, employment initiatives, Indian Prime Minister has called for “leave to the private sector what it can do,” and “leave to the “economic growth accompanied by employment” and has localities what they can do,” Koizumi Administration aims to announced the objective of achieving a 8-10% annual economic promote structural reforms covering finance, taxation, regulation growth in a manner that generates employment. India has been and public expenditure to bring out the vitality of the private steadily relaxing its regulations on foreign investment in various sector and the motivation of regions to overcome deflation and sectors while aiming at “economic reforms with a human face.” revitalize the economy. During the vital period up to FY2006, Meanwhile, factors constraining economic growth are emerging Japan gave priority to the following three challenges while and the Government of India has emphasized the fact that the accelerating structural reform: 1) to create a “small and efficient infrastructure sector would need US$150 billion in foreign government;” 2) to create a strong foundation that will allow investment in the next few years. With the injection of public Japan to deal with the issues of declining birthrate, aging funds serving as the catalyst, the enormous infrastructure needs population and globalization; and 3) to overcome deflation and to must be covered by private investment. make sure that the private demand-led economic growth India launched its “Look East Policy” in 1991 and is making continues. efforts to strengthen its relations with the Asian countries Japan is promoting EPA negotiations in an effort to complement including the members of the ASEAN. India has signed an FTA its multilateral free trade structure centered on the World Trade framework agreement with Thailand and a Comprehensive Organization (WTO). In this respect, while Japan is advancing Economic Cooperation Agreement (CECA) with Singapore and is negotiations with the aim of realizing EPAs which are consistent already implementing the early harvest measures. With a view to with WTO agreements, it also aims to strengthen comprehensive protect foreign direct investment, India has also already economic partnerships by promoting EPAs which include not concluded bilateral investment protection agreements with 48 only trade of goods and services but also investment, intellectual countries and agreements are currently being negotiated with 30 property, competition and development of business additional countries. environment, with traditional bilateral FTAs consisting of tariff The Japanese economy has been making a modest recovery after a elimination and reduction at the core. long period of recession. Considering that the current trend of In particular, Japan intends to strengthen its economic recovery has been achieved by the private sector, driven by the partnerships with the Asian countries with which it has deep progress of IT related adjustments and the recovery of exports interdependent relations, not only through the expansion of rather than by increasing public spending and the target for trade, investment, etc. but also through the creation of common disposal of non-performing loans has now been reached, it can be rules in various fields and facilitation of the movement of people. said that Japan has already emerged out from the long period of Japan aims to develop and strengthen the competitiveness of the economic stagnation it suffered after the burst of the so-called entire Asian region. bubble economy. Japan's public finances have been worsening since the late 1990s and its outstanding domestic long-term debt is

132 133 India and Japan Relations India-Japan Economic and Commercial Relations: A Study

Trade Relations between India and Japan known as the Comprehensive Economic Partnership Agreement, India-Japan Trade Relations is as old as the post world war II era. which eliminates tariffs on most of the goods traded between the The trade relations between India and Japan flourished after the two countries. establishment of the diplomatic ties, especially after the World War II. Japan resurrected from the debacle of the World War II Table: Trade Relations between India and Japan (US$ in Millions) loss with the help of India's iron ore export. Japan reciprocated Year Export/Import India/Japan India's total Trade % of Share India by providing yen loans to India in 1958, first of its type, by with All Countries any Japanese government. And as a matter of fact since then, Export 1794.5 44560.3 4.03 2000-01 Japan is India's largest aid donor. Indian Exports to Japan Import 1842.2 50536.5 3.64 includes items like-Agricultural products, Fresh Fruits and dried Export 1510.4 43826.7 3.45 2001-02 fruits, Fruit juices and concentrates, Vegetables, Oilseeds, Import 2146.4 51413.3 4.15 Vegetable oils and fats, Edible nuts, Sugar and honey, Grains and Export 1864.0 52719.4 3.53 Pulses, Wheat, Tea, Coffee, Spices and herbs, Tobacco, Leather 2002-03 Import 1836.3 61412.1 2.99 garments and goods, Handicrafts, Carpets, Cashew, Fisheries Export 1709.3 63842.6 2.68 products, Cotton, Animal feed. In 1987-88 India exports earnings 2003-04 from Japan were noted to be US$1244 millions. These earnings Import 2667.7 78149.1 3.41 Export 2127.9 83535.9 2.54 were increased to US $ 1794 million in 2000-01 and again these 2004-05 earnings rose to US $ 6356 million in 2011-12. In terms of share in Import 3235.1 111517.4 2.90 1987-88 Japan's share was 10.29 per cent of India's exports Export 2481.3 103090.5 2.41 2005-06 earnings. In 2000-01, these exports' share was 4.03 and this share Import 4061.1 149165.7 2.72 declined to 2.09 per cent in 2011-12. The major items of import Export 2862.7 126414.1 2.26 2006-07 from Japan are machinery, electronic goods, transport Import 4595.6 185735.2 2.47 equipment, iron and steel, professional instruments and organic Export 3853.8 162904.2 2.36 2007-08 chemicals. The imports from Japan to India were noted to be Import 6323.2 251439.2 2.51 US$1640 million in 1987-88. These imports expenditure was Export 3002.1 185295.0 1.62 increased to US$1842 million in 2000-01 and again these 2008-09 Import 7790.9 303696.3 2.58 expenditures rose to US $ 12223 million in 2011-12. Among the Export 3613.3 178751.4 2.02 imports the Japan's share was accounted at 2.9 per cent in 1951-52. 2009-10 This share rose to 5.5 per cent in 1960-61. Further these imports Import 6722.5 288372.9 2.33 Export 5088.2 251136.2 2.03 share declined to 4.3 per cent in 1969-70. And again this share was 2010-11 increased to 9.5 per cent in 1987-88. During the year 2000-01, the Import 8627.5 369769.1 2.33 imports share from Japan was registered at 3.65 per cent. These Export 6356.0 304623.5 2.09 2011-12 imports share fell to 2.49 per cent in 2010-11. The trade between Import 12223.8 489417.4 2.50 India and Japan is expected to double in the coming years. In 2011, Note: Data for 2010-11 are revised and for 2011-12 are provisional. the bilateral trade was worth a relatively modest $17.8 billion; it is Source: DGCI&S targeted to grow to $ 25 billion by 2014. This expectation is powered by the signing of a free trade agreement in last August,

134 135 India and Japan Relations India-Japan Economic and Commercial Relations: A Study

to manufacture turbines for large power plants. In a bid to encourage more investment in India, Japan has decided to open its second business support centre in Mumbai, which will become operational in the next fiscal year. The collective figures from August 1991 to August 2007 exhibit that Japan ranks third in terms of technology transfers to India. Between August 1991 and August 2007, Japan contributed 10.93 per cent of total technological transfers to India. Conclusion and Suggestions Source: DGCI&S The Japan-India economic relations are already on an ascending FDI Trends between India and Japan curve. It is vital to ensure that these trends continue, develop and further accelerate. In particular, diversifying the trade and India's stable 8-9 per cent growth and the rising foreign exchange investment structure is a challenge and the JSG's task is to present reserves have sent out positive indicators globally. India's measures to consider the potential fields and products, with a workforce, demography and technology have contributed view to strengthening Japan-India economic relations, taking into immensely to its success in attracting investors. As a result, the account the existing ground realities in the two countries. number of Japanese firms operating in India has grown by 50 per cent in the recent years. The number of Japanese business In order to strengthen the economic relations between Japan and establishments now operating in India has increased to over 550. India, it is important to bolster comprehensive cooperative Japan ranks fifth in terms of cumulative Foreign Direct relations in a wide range of sectors that include not only trade and Investment (FDI) equity inflow into India. Japanese FDI into India investment but also IT, science and technology, energy, touched US$ 138.6 billion in January-September 2007, environment and people-to-people exchanges. representing a 132 per cent increase over the FDI of US$ 59.7 billion received in the entire calendar year of 2006. Japan's FDI in India is projected to be around US $ 5.5 billion over the most five years from 2006 to 2010. The recent FDI projects involving Japan include Honda, the Japanese auto major is planning its foray into the compact car segment in India and it is going to invest US$ 205.25 million in its References Rajasthan plant by mid-2009. Maruti Suzuki India Ltd (MSIL) Birendra Prasad, Indian Nationalism and Asia, 1900-1947, Delhi: plans to invest US$ 1.8 billion for Research and Development B.R.Publishing Corporation, 1979. (R&D) at a new facility in Haryana. Toyota, another Japanese car major, is going to spend US$ 680 million on a planned second car David Brewster, “The India-Japan Security Relationship: An Enduring Security Partnership?”, Asian Security, Vol.6, No.2, 2010. factory in India where it will begin producing its new compact car and also the Corolla sedan, from 2010. The US$ 63 billion Toshiba Garten, Jeffrey (9 December 2006). Really Old School, New York Times. Corporation has entered into a joint venture with the JSW Group “India, Japan to ease visa procedures”, business.rediff.com.

136 137 India and Japan Relations India-Japan Economic and Commercial Relations: A Study

136 137 India and Japan Relations India - Japan strategic Partnership: The Way Ahead “Indo-Japan Deal Impact”, business.rediff.com. Ian Sumner (2001). The Indian Army 1914-1947, Osprey Publishing. Bhawna Pokharna Leupp, Gary P. (2003). Interracial Intimacy in Japan. Continuum International Publishing Group. Narasimha Murthy, P.A, India and Japan: Dimensions of their Relations: Historical and Political, New Delhi: ABC Publishing House, 1996. India and Japan, the two Asian giants have been friends for ages. Nayar, Mandira (15 February 2007). India, Japan and World Peace. Buddhism has all pervasive impact over the lives of the Japanese Nehru and Non-alignment, P.V.Narasimha Rao, Mainstream Weekly, 2 June people which finds the peoples of the two countries. The Cultural 2009. exchanges between India and Japan began as early as in 6th Prakash Nanda, Rediscovering Asia: The Evolution of India's Look East century with the introduction of Buddhism in Japan from India. Policy, New Delhi: Lancer Publishers and Distributors, 2003. The Indian Monk Bodhisena arrived in Japan in 736 AD to spread Buddhism. Buddhism and the intrinsically linked Indian culture Sareen, T.R. “India and Japan in Historical Perspective”, Lecture Series on Japan, Issue No.4, January 2007. had a great impact on the Japanese culture which is still felt today and it resulted in a natural sense of amicability between the two countries. One of the most famous Japanese travellers to the Indian subcontinent was Tenjiku Tokubei ( 1612-1692) named after Tenjiku ( Heavenly abode), the Japanese name for India. In the 16th Century, Japan established political contact with the Portuguese colonies in India. Throughout the 16 and 17 Century, the Indian seamen frequently visited Japan as crew members aboard the Portugese ships and later aboard the British ships in the 18 and 19th Century. But the direct political exchange began only in the Meiji era ( 1868-1912) when Japan embarked on the process of modernization whereby the Japan- India Association was founded in 1903. Japan's victory over Russia in 1905 is viewed by many as Asian resurgence and Japan's anti-colonial contribution including the support to Netaji Subash Chandra Bose and his Indian National Army, even bothered the rest of Asia. 1 One of the first treaties, Japan signed after the World War - II was its peace treaty with India in 1952 that established diplomatic relations between the two countries. In many ways, India was instrumental in bringing Japan into the mainstream of international and regional policies by inviting it to the first Asian games in New Delhi in 1951 and by encouraging Tokyo's

138 139 India and Japan Relations India - Japan strategic Partnership: The Way Ahead “Indo-Japan Deal Impact”, business.rediff.com. Ian Sumner (2001). The Indian Army 1914-1947, Osprey Publishing. Bhawna Pokharna Leupp, Gary P. (2003). Interracial Intimacy in Japan. Continuum International Publishing Group. Narasimha Murthy, P.A, India and Japan: Dimensions of their Relations: Historical and Political, New Delhi: ABC Publishing House, 1996. India and Japan, the two Asian giants have been friends for ages. Nayar, Mandira (15 February 2007). India, Japan and World Peace. Buddhism has all pervasive impact over the lives of the Japanese Nehru and Non-alignment, P.V.Narasimha Rao, Mainstream Weekly, 2 June people which finds the peoples of the two countries. The Cultural 2009. exchanges between India and Japan began as early as in 6th Prakash Nanda, Rediscovering Asia: The Evolution of India's Look East century with the introduction of Buddhism in Japan from India. Policy, New Delhi: Lancer Publishers and Distributors, 2003. The Indian Monk Bodhisena arrived in Japan in 736 AD to spread Buddhism. Buddhism and the intrinsically linked Indian culture Sareen, T.R. “India and Japan in Historical Perspective”, Lecture Series on Japan, Issue No.4, January 2007. had a great impact on the Japanese culture which is still felt today and it resulted in a natural sense of amicability between the two countries. One of the most famous Japanese travellers to the Indian subcontinent was Tenjiku Tokubei ( 1612-1692) named after Tenjiku ( Heavenly abode), the Japanese name for India. In the 16th Century, Japan established political contact with the Portuguese colonies in India. Throughout the 16 and 17 Century, the Indian seamen frequently visited Japan as crew members aboard the Portugese ships and later aboard the British ships in the 18 and 19th Century. But the direct political exchange began only in the Meiji era ( 1868-1912) when Japan embarked on the process of modernization whereby the Japan- India Association was founded in 1903. Japan's victory over Russia in 1905 is viewed by many as Asian resurgence and Japan's anti-colonial contribution including the support to Netaji Subash Chandra Bose and his Indian National Army, even bothered the rest of Asia. 1 One of the first treaties, Japan signed after the World War - II was its peace treaty with India in 1952 that established diplomatic relations between the two countries. In many ways, India was instrumental in bringing Japan into the mainstream of international and regional policies by inviting it to the first Asian games in New Delhi in 1951 and by encouraging Tokyo's

138 139 India and Japan Relations India - Japan strategic Partnership: The Way Ahead participation in the Afro Asian Conference in Bandung their cooperation and pursue all round and comprehensive (Indonesia) in 1955. 2 In the post world war - II Period, India development of bilateral relations. It was decided that both the helped a great deal for Japan's recovery from the devastation.3 countries would strive to develop closer dialogue and collaboration to secure peace, stability and prosperity in Asia and Bilateral Exchanges: to promote democracy and development and to explore a new The visit of Japanese Prime Minister, Noubsuke Kishi to India and architecture for closer regional cooperation in Asia. Since that the Indian Prime Minister Jawaharlal Nehru's visit to Japan visit Japan - India Annual Summits have been held in their provided an additional momentum to this bilateral relationship. respective capitals. 6 Because of the Japanese Prime Minister Nobusuke Kishi's visit to India in 1957, Japan started providing Yen loans to India in 1958. Thereafter Prime Minister of India Dr. Manmohan Singh paid an The first Yen loan aid was extended by Japanese government in official visit to Japan in December 2006. The two Prime Ministers 1986. Since then Japan has become India's largest aid donor, and launched the 'India - Japan friendship year 2007' and attended the has remained so till today. 4 inaugural event of the festival of India in Japan on 14 December 2006. During the visit a Joint Statement “Towards India - Japan The cultural agreement between Japan and India was signed in Strategic and Global Partnership” was signed by the two Prime 1956 and took effect the following year. The cultural exchanges Ministers. The former Prime Minister of Japan Mr. Shinzo Abe were speeded up in the 1980s. A Japan month was held in October Visited India in August 2007. During his visit a Joint Statement on - November 1987. The then Prime Minister of India Rajiv Gandhi " The Roadmap for New Dimension the Strategic and Global attended the opening ceremony of the festival of India in April Partnership Between India and Japan" and a Joint Statement on 1988. In January 1994, the Japan foundation opened an office in the “Enhancement of Cooperation on Environmental Protection New Delhi which is actively engaged in cultural exchanges since and Energy Security” were signed. 1978. Japan has been extending cultural grant in - aid to research institutes, universities and cultural faculties to encourage various The Indian Prime Minister Manmohan Singh visited Japan for the activities. G-8 Summit from 7-9 July 2008. Again he visited Japan in October 2008. The Indian Prime Minister held intensive talks with The post cold war world presented a good opportunity for India Japanese Prime Minister Taro Aso. A Joint Declaration on and Japan to enhance the bilateral cooperation .Mr. Yashiro Mori, Security Cooperation and a Joint Statement on the Advancement the then Prime Minister of Japan and Mr. Atal Bihari Vajpayee, the of Strategic and Global Partnership between India and Japan were then Prime Minister of India agreed during the Japanese Prime signed. Then Japanese PM Yukio Hatoyama visited India for the Minister's land mark visit to India in August 2000 to establish the " 5 Annual Summit meeting from 27-29 December 2009, when the Global Partnership in the 21st Century." The global partnership two Prime Minister agreed to hold India - Japan 2 + 2 Dialogue. between Japan and India reflects a broad convergence of their long term political, economic and strategic interests, aspirations, Thereafter Indian Prime Minister paid an official working visit to objectives and concerns. The visit was a major turning point and it Tokyo from 20-24 October 2010 for the Annual Bilateral Summit. prepared the ground for treating India as an important regional This land mark visit has imparted a further momentum and ally by declaring Japan and India as global partners. continuity to the India - Japan Strategic and Global Partnership. During the visit, a Joint statement "Vision for India - Japan Then Japanese Prime Minister Junichiro Koizumi visited India in Strategic and Global Partnership in the next Decade” and a Joint April 2005 when the two countries agreed to further strengthen

140 141 India and Japan Relations India - Japan strategic Partnership: The Way Ahead participation in the Afro Asian Conference in Bandung their cooperation and pursue all round and comprehensive (Indonesia) in 1955. 2 In the post world war - II Period, India development of bilateral relations. It was decided that both the helped a great deal for Japan's recovery from the devastation.3 countries would strive to develop closer dialogue and collaboration to secure peace, stability and prosperity in Asia and Bilateral Exchanges: to promote democracy and development and to explore a new The visit of Japanese Prime Minister, Noubsuke Kishi to India and architecture for closer regional cooperation in Asia. Since that the Indian Prime Minister Jawaharlal Nehru's visit to Japan visit Japan - India Annual Summits have been held in their provided an additional momentum to this bilateral relationship. respective capitals. 6 Because of the Japanese Prime Minister Nobusuke Kishi's visit to India in 1957, Japan started providing Yen loans to India in 1958. Thereafter Prime Minister of India Dr. Manmohan Singh paid an The first Yen loan aid was extended by Japanese government in official visit to Japan in December 2006. The two Prime Ministers 1986. Since then Japan has become India's largest aid donor, and launched the 'India - Japan friendship year 2007' and attended the has remained so till today. 4 inaugural event of the festival of India in Japan on 14 December 2006. During the visit a Joint Statement “Towards India - Japan The cultural agreement between Japan and India was signed in Strategic and Global Partnership” was signed by the two Prime 1956 and took effect the following year. The cultural exchanges Ministers. The former Prime Minister of Japan Mr. Shinzo Abe were speeded up in the 1980s. A Japan month was held in October Visited India in August 2007. During his visit a Joint Statement on - November 1987. The then Prime Minister of India Rajiv Gandhi " The Roadmap for New Dimension the Strategic and Global attended the opening ceremony of the festival of India in April Partnership Between India and Japan" and a Joint Statement on 1988. In January 1994, the Japan foundation opened an office in the “Enhancement of Cooperation on Environmental Protection New Delhi which is actively engaged in cultural exchanges since and Energy Security” were signed. 1978. Japan has been extending cultural grant in - aid to research institutes, universities and cultural faculties to encourage various The Indian Prime Minister Manmohan Singh visited Japan for the activities. G-8 Summit from 7-9 July 2008. Again he visited Japan in October 2008. The Indian Prime Minister held intensive talks with The post cold war world presented a good opportunity for India Japanese Prime Minister Taro Aso. A Joint Declaration on and Japan to enhance the bilateral cooperation .Mr. Yashiro Mori, Security Cooperation and a Joint Statement on the Advancement the then Prime Minister of Japan and Mr. Atal Bihari Vajpayee, the of Strategic and Global Partnership between India and Japan were then Prime Minister of India agreed during the Japanese Prime signed. Then Japanese PM Yukio Hatoyama visited India for the Minister's land mark visit to India in August 2000 to establish the " 5 Annual Summit meeting from 27-29 December 2009, when the Global Partnership in the 21st Century." The global partnership two Prime Minister agreed to hold India - Japan 2 + 2 Dialogue. between Japan and India reflects a broad convergence of their long term political, economic and strategic interests, aspirations, Thereafter Indian Prime Minister paid an official working visit to objectives and concerns. The visit was a major turning point and it Tokyo from 20-24 October 2010 for the Annual Bilateral Summit. prepared the ground for treating India as an important regional This land mark visit has imparted a further momentum and ally by declaring Japan and India as global partners. continuity to the India - Japan Strategic and Global Partnership. During the visit, a Joint statement "Vision for India - Japan Then Japanese Prime Minister Junichiro Koizumi visited India in Strategic and Global Partnership in the next Decade” and a Joint April 2005 when the two countries agreed to further strengthen

140 141 India and Japan Relations India - Japan strategic Partnership: The Way Ahead

Declaration on the “The India - Japan Comprehensive Economic strengthening day by day .The Annual Summit Meetings of the Partnership Agreement” ( CEPA) were signed. prime ministers of the two countries suggests the convergence of On 16th February 2011, the Comprehensive Economic interests of the two countries in the 21st century and the Partnership Agreement was signed by Minister of Commerce and importance the two countries give to each other. Industry Mr. Anand Sharma and Japanese foreign Minister Mr. India and Japan security cooperation took a concrete shape Seiji Maehara. Thereafter Japanese Prime Minister Noda during Prime Minister of India, Man Mohan Singh's visit to Japan Yashihiko visited India in late December 2011 and held talks with in October 2008 wherein the Prime Ministers of the two countries Indian Prime Minister Manmohan Singh. The bilateral talks were issued " The Joint Declaration on Security Cooperation between concentrated on issues related to infrastructure, energy, security, Japan and India." Furthermore an action plan based on the joint industry, nuclear and currency swap. declaration was issued during Prime Minister Hatoyama's visit to Japan Foreign Minister Korchiro Genba paid an official visit to India in December 2009 to advance security co-operation. India in April 2012 and held high level lakes with Indian There are also various frameworks of security dialogue between counterpart S M Krishna. During the visit, the Sixth Round of Japan and India. The Comprehensive Security Dialogue at the strategic dialogue between India and Japan took place. Both the level of joint secretary ( Director General level) was set up in 2001 leaders agreed to prepare for a joint naval exercise off the coast of and eight rounds of dialogue have been conducted since then. The Japan in 2012. Besides agreeing to build a secretary - level annual sub- cabinet / senior officials 2 + 2 dialogue / which was maritime cooperation and consultation mechanism to reach a agreed in 2009, was held in New Delhi in July 2010.8 consensus to implement the first joint military exercise between The Defence Minister of India, Mr. A.K. Antony visited Japan in the Japan Maritime Self Defence Force and the Indian Navy in the 7 November 2011 to attend the Japan - India Defense Ministerial second half of 2012. Meeting with Mr. Ichikawa, Japanese Defence Minister. During High Level Talks the meeting the two ministers decided to carry out bilateral In addition to the annual summit meetings and annual strategic exercise between the Japan Maritime Self - Defence force and the meetings, the Foreign Ministers' Level meetings have also been Indian Navy. held in their respective capitals from 2007. The launch of At the Annual summit in December 2011, Prime Minister Noda of Ministerial level economic dialogue was agreed upon during Japan and Prime Minister Man Mohan Singh affirmed that they Prime Minister Singh's visit to Japan in October 2010. would expand cooperation in the area of Maritime security, 9 India - Japan Strategic Cooperation : The way Ahead including safety and freedom of navigation. Between the coast guards of the countries some combined exercises on anti - piracy, The year 2012 was historical in India - Japan bilateral relations as search and reserve etc. have been conducted since 2000. The coast both countries are celebrating 60 years of establishment of guards of both the countries conducted joint exercises at Chennai diplomatic relations. India and Japan have come a long way in in January 2012. The heads of coast guards of both the countries their bilateral relationship . The end of cold war paved the way for visit each other almost every year and the two coast guards enhanced India Japan cooperation from Global Partnership in exchanged a memorandum of cooperation at the occasion of 2000 to Strategic and Global Partnership in 2006 and commandant Ishikawa of Japan's visit to India in November 2006. 10 Comprehensive Economic Partnership in 2011. Thus India - Japan relations are witnessing an upward trend and are

142 143 India and Japan Relations India - Japan strategic Partnership: The Way Ahead

The India - Japan Maritime cooperation is also an important The Indian exports to Japan comprise mostly of raw materials and aspect of bilateral relations for both the countries which heavily minerals such as marine products and iron ore. Agriculture rely on the freedom of Sea lanes of communication for their product, handicrafts, cotton, carpets and leather garments are import and exports to force the threat of piracy in the area which other items. India's imports from Japan are the heavy industrial led to bilateral exercise in September 2011. Export and joint machines, transport equipment, electronics, pharmaceuticals, development of defence equipments could be seen as the next biotechnological products and toys. step for the bilateral relationship. In November 2011, Tokyo gave The comprehensive economic partnership agreement with Japan the green signal for Shin Maywa Industries to respond to New was signed in February 2011 which came into effect in August Delhi's request for search and reserve seaplane. A day before 2011. CEPA covers trade in goods and services. This CEPA is Japanese PM Noda arrived in New Delhi, the Japanese Cabinet broader than free trade Agreement.The CEPA will facilitate the eased the restriction on arms exports. bilateral trade significantly and both the countries have aimed at a Another important development is India Japan- USA trilateral target of $ 25 billion in bilateral trade by 2014. security cooperation which was initiated in 2011 in Washington . The Victory of Shinzo Abe in Japan and implications The third and recent round of trilateral dialogue took place in New Delhi on 29 October 2012 whereby the issues related to The victory of Shinzo Abe in recent election in Japan has multiple combating maritime security, combating piracy and leveraging regional and global implications.In his speech in Indian their strength were discussed to shape Asia Pacific architecture. Parliament in August 2007, Abe conceived the idea of " Broader This trilateral cooperation is proving crucial in the wake of Asia" with reference to the dynamic coupling of Pacific Ocean China's growing power and influence in the Asia pacific region. with Indian Ocean. Obviously Abe highlighted the growing The strategic experts believe that this trilateral cooperation aims India- Japan relations and said that both the countries have the to contain the Chinese influence in the region. The Asia pacific ability and responsibility to broaden the relationship further and region has become very important in the 21st century and USA make these seas to become the seas of clearest transparence.” The has already declared its policy to enhance its military presence in Japanese and Indian respect and recognition for the freedom, the region. Russia is already flexing its muscles to enhance its democracy and human rights and strategic interests can help the presence in the region, China is already an emerging superpower bilateral relations to survive even in bad weather. The Japanese . All these suggest that Asia Pacific is going to be a new diplomatic circle is keen to form the region called the Arc of battleground for superpowers. Hence the cooperation among Freedom and prosperity" and India is an important partner in India , Japan and USA would help to build a new security such forum and then that would also be a major bulwark against architecture in the region to the advantage of these countries. China. The new innings of Shinzo Abe at the helm of the affairs in Japan would give new inspiration and boost to India Japan India-Japan Economic Relations relations. Both the countries are natural partners and they have a An analysis of India-Japan relations would be incomplete without strong vision for "Rising - Asia" and strong committment to discussing their bilateral economic relations. The bilateral trade democratic values. between Japan and India has been rising steadily since 2003. It was Indian Prime Minister Manmohan Singh also congratulated US $ 3.7 billion in 2002-2003 and US $ 6.5 billion in 2005-06 and US $ Shinzo. In response, Prime Minister Abe stated that we believed, " billion in 2008-2009.Japan is among India's top 5 trading partners Japan-India relationship is blessed with the largest potential for with a potential to reach US $ 14 billion by 2012.

144 145 India and Japan Relations India - Japan strategic Partnership: The Way Ahead

144 145 India and Japan Relations India - Japan strategic Partnership: The Way Ahead development of any bilateral relationship anywhere in the world region, has led Japan to rethink of its constitutional provision that and both the Prime Ministers agreed that Japan and India are the country has renounced the " threat or use of force as a means of important strategic partners for each other and it is crucial for settling international disputes". The Changing international them to strengthen the partnership in diplomatic and security order including most notably, the rise of China, will see the two field and further enhance the economic ties. 11 countries increasingly thrown together on a variety of issues. 13 Prior to this the Indian and the Japanese Prime Ministers met in The emergence of China as a potential regional hegemon in Asia has thus compelled India and Japan to adopt a balancing Cambodia during the 22nd ASEAN summit meeting wherein 14 both the leaders agreed to further strengthen their cooperation in behaviour to prevent a potential threat to their security. As areas of political affairs, security and economy as order as people Brahama Chellany points it out, " India and Japan desire a multipolar Asia and a multipolar world." These converging views to people and academic exchanges. The two Prime Ministers also 15 agreed to further strengthen the relation between Japan's have created the momentum for increased cooperation." maritime self defence forces and the Indian navy. Prime Minister There are two precedent points in the direction of a more assertive Noda stated that Japan has decided to extend loans totalling Japan: First is the ongoing debate over the revision of the 184.810 billion yen for two projects namely. "Dedicated freight constitution, so as to allow the Japanese self defence forces to be Corridor project phase 2 (ii) and Chennai Metro Rail Project III. deployed in a stream levied process. A revision of the constitution Shinzo Abe has adopted a rationalistic and aggressive posture would make Japan more normal and self reliant. Second is the towards China during his campaigning. This attribute has precedent set by the Hatoyama Administration in questioning the helped him to win the election with comfortable majority. The American Military presence on the Japanese soil. Although the year 2012 has witnessed the formation of some new equations. new LDP administration is expected to restore the ties with The Japan - China relations are strained with fresh row over the Washington, Japan could move towards multilateralism in disputed islands of Senakaku / Diaoyu island in South China Sea. future. In this regard its partnership with India could become Therefore the volume of direct investment from Japan to China more broad and deep as Shinzo Abe in his book opined." Towards has dropped to US $ 460 million, down by nearly a third from a Beautiful Country : My Vision for Japan, that it would not be a 12 surprise if it aims in another decade to achieve Japan-India what it was one year ago. The recent waves of anti Japanese 16 sentiments in China, leading to large scale boycott of Japanese relations overtake Japan-US and Japan-China Ties. products in China, has further embittered this relations. China has already reacted to Abe's election through the state Moreover the US decision to pivot its strategy to Asia has given media Xinhua. An editorial published in the English version of new dimension to the existing equations in the region. Now China today states that Abe's foreign and defence policies may China is more worried about its security and strategic interests in destablise East Asia because he has called for an increase in the region keeping in view the deepening cooperation among Japan's defence spending, easing constitutional restrictions on the India, Japan and the US. Both the US and Japan want India to play military and even changing Japan's so called self defencse forces a greater role not only in the Indian Ocean but also in the South into a full - fledged military. 17 China Sea and beyond in the Pacific Ocean. India - Vietnam Keeping in view the recent developments in the South China sea Cooperation in oil and natural gas explanation in South China Sea particularly the Chinese assertion in the region , India - Japan and Chinese opposition to this joint venture has further bilateral cooperation should be more important and beneficial for aggravated the problems. Moreover, the growing tension in the the two countries.

146 147 India and Japan Relations India - Japan strategic Partnership: The Way Ahead development of any bilateral relationship anywhere in the world region, has led Japan to rethink of its constitutional provision that and both the Prime Ministers agreed that Japan and India are the country has renounced the " threat or use of force as a means of important strategic partners for each other and it is crucial for settling international disputes". The Changing international them to strengthen the partnership in diplomatic and security order including most notably, the rise of China, will see the two field and further enhance the economic ties. 11 countries increasingly thrown together on a variety of issues. 13 Prior to this the Indian and the Japanese Prime Ministers met in The emergence of China as a potential regional hegemon in Asia has thus compelled India and Japan to adopt a balancing Cambodia during the 22nd ASEAN summit meeting wherein 14 both the leaders agreed to further strengthen their cooperation in behaviour to prevent a potential threat to their security. As areas of political affairs, security and economy as order as people Brahama Chellany points it out, " India and Japan desire a multipolar Asia and a multipolar world." These converging views to people and academic exchanges. The two Prime Ministers also 15 agreed to further strengthen the relation between Japan's have created the momentum for increased cooperation." maritime self defence forces and the Indian navy. Prime Minister There are two precedent points in the direction of a more assertive Noda stated that Japan has decided to extend loans totalling Japan: First is the ongoing debate over the revision of the 184.810 billion yen for two projects namely. "Dedicated freight constitution, so as to allow the Japanese self defence forces to be Corridor project phase 2 (ii) and Chennai Metro Rail Project III. deployed in a stream levied process. A revision of the constitution Shinzo Abe has adopted a rationalistic and aggressive posture would make Japan more normal and self reliant. Second is the towards China during his campaigning. This attribute has precedent set by the Hatoyama Administration in questioning the helped him to win the election with comfortable majority. The American Military presence on the Japanese soil. Although the year 2012 has witnessed the formation of some new equations. new LDP administration is expected to restore the ties with The Japan - China relations are strained with fresh row over the Washington, Japan could move towards multilateralism in disputed islands of Senakaku / Diaoyu island in South China Sea. future. In this regard its partnership with India could become Therefore the volume of direct investment from Japan to China more broad and deep as Shinzo Abe in his book opined." Towards has dropped to US $ 460 million, down by nearly a third from a Beautiful Country : My Vision for Japan, that it would not be a 12 surprise if it aims in another decade to achieve Japan-India what it was one year ago. The recent waves of anti Japanese 16 sentiments in China, leading to large scale boycott of Japanese relations overtake Japan-US and Japan-China Ties. products in China, has further embittered this relations. China has already reacted to Abe's election through the state Moreover the US decision to pivot its strategy to Asia has given media Xinhua. An editorial published in the English version of new dimension to the existing equations in the region. Now China today states that Abe's foreign and defence policies may China is more worried about its security and strategic interests in destablise East Asia because he has called for an increase in the region keeping in view the deepening cooperation among Japan's defence spending, easing constitutional restrictions on the India, Japan and the US. Both the US and Japan want India to play military and even changing Japan's so called self defencse forces a greater role not only in the Indian Ocean but also in the South into a full - fledged military. 17 China Sea and beyond in the Pacific Ocean. India - Vietnam Keeping in view the recent developments in the South China sea Cooperation in oil and natural gas explanation in South China Sea particularly the Chinese assertion in the region , India - Japan and Chinese opposition to this joint venture has further bilateral cooperation should be more important and beneficial for aggravated the problems. Moreover, the growing tension in the the two countries.

146 147 India and Japan Relations India - Japan strategic Partnership: The Way Ahead

Conclusion 6. Ibid India and Japan are the two prominent Asian countries and the 7. Rajaram Panda, " India and Japan Exploring strategic potentials. Vol. 4, bilateral relations have been in existence since the ancient times. No. 4, December 2010. Buddhism has had deep and long lasting effect on the Japanese 8. htpp://www.mofa.go mofa.go. jp/region/ asia- paci/ india / people and the culture further cemented the bilateral ties. India index.htmp. and Japan interacted on many occasions during India's struggle 9. http;// www.mofa.go.jp/ region/ asia - faci india/ india.html. for independence. The modern time interaction initiated soon 10. Ibid. after India's independence was marred by cold war rivalries whereby bilateral relations between the two countries remained 11. www.mofa.go.tp/region/ asia- paci/india/12/228 01.htms. restricted. But the post cold war world paved the way for 12. R.S. Kalha, The return of shinzo abe as Japan's New Prime Minister: enhanced India-Japan relations. India and Japan are now strategic What does it seem for India? IDSA Comment December 19, 2012. and global partners and the Annual Summit Meetings between 13. Jacob J, Rajamohan P. G., and Rahul P.B. " Changing Paradigm of India- the Prime Ministers of the two countries is a peculiar feature of Japan Relations: Opportunities and Challenges working, paper No. 212, this relationship at present. India - Japan Security relations would Indian Council for Research on International Economic Relations, April strengthen their leverage in Asia Pacific and would help to 2006. contain Chinese influence in the region . Moreover India Japan 14. Is the return of Shizo Abe good News for India: IDSA issue brief, Jan 8, USA trilateral security cooperation would help to evolve a new 2013. security architecture in the region which would be favourable for 15. Chellany, B., " Towards Asian Power Equilibrium" http;// the peace and stability of the Asia Pacific region. www.hindu.com/2008/11/01/ Stories/2008-10/15528100htm. 16. Abe S, Towards a Beautiful country: My vision for Japan, Vertical, 2007. 17. The diplomat website, " How Beijing see Abe's return." http// thediplomat.com/ china-power/ how- beijing- sees - abes - return - to - power / accessed on December, 26, 2012,

Endnotes

1. PA Narsimha Murty, India and Japan : Dimensions of their Relations, ABS Publishing House , New Delhi, p.107-108,1986 2. Harsh v Pant , “ India- Japan Relations : A Slow but Steady Transformation in Sumit Ganguly (ed). , India's Foreign Policy : A Retrospect and Prospect, OUP, New Delhi, p.207 3. http://www.mofa.go mofa.go. jp/region/ asia- paci/ india / index.html 4. Ibid. 5. htpp://www.mofa.go mofa.go. jp/region/ asia- paci/ india / index.htmp.

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Endnotes

148 149 India-Japan Relations: Growing Engagement India-Japan Relations: Growing Engagement confirmed their commitment to establish a “strategic and global I. Babu Rao partnership” between the two countries, and agreed to strengthen their bilateral relationship. On the other hand, Abe's 2007 visit helped to create a road map for newer dimensions to take the process forward with renewed vigour. The successive years India-Japan relations which were confined to the cultural sphere witnessed further consolidation and expansion of the bilateral since the 7th Century AD also embraced political and economic relations. This paper deals with the evolution and rapidly domains in the Post-World War II period. Japan and India have growing bilateral relationship in political and security not only engaged significant historical and cultural ties through cooperation, comprehensive economic partnership and people to Buddhist channels among others in the past, but have also people exchange areas. influenced each other greatly in modern times. Japan's victory in India Japan Relations its war against Russia during 1904-05, inspired the Indian people, India and Japan have not only enjoyed significant historical and who were at that time under colonial rule. After independence, cultural ties through Buddhism among others, in the past, but the first Prime Minister of India specially invited Japan to the first have also influenced each other greatly in modern times. Asian Games held in New Delhi and signed a separate peace Buddhism was the most ancient link between India and Japan. treaty with Japan. During Cold War era due to different Buddhism reached Japan through Korea and had a remarkable ideological following both had average re1ationship. growth there. It is said that Buddhism reached Japan as a gift India and Japan took fifty years to engage each other seriously. At from the king of Korea in 552 AD. Twenty years later, the convert the dawn of the 21st century they resolved to take their bilateral prince of Japan constructed Buddhist temples, viharas, hospitals relations to qualitatively new level. Following the termination of and homes, and sent many students to China for the study of Cold War. India unveiled its Look East Policy in the early 1991 so Budhism1. In fact, for the Japanese, China was a reality while as to deepen and broaden its relations with the countries of India, where the Buddha was born, a dream. Panchatantra and Southeast and East Asia. Prime Minister Yoshiro Mori visited Jataka tales, translated into Chinese, reached Japan and became India in August 2000 and the two heads of Government agreed to part of Japanese folklore. In the Japanese version of Ramayana, develop a “Global partnership in the 21stCentury”. Due to the Rama was replaced by Sakyamuni, but the rest of narrative was heightening necessity to cooperate with India in the fight against almost the same. Infact, the number of students of Sanskrit terrorism, after 9/11 in October 2001, Japan unveiled its anywhere outside India is still the highest in Japan2. Okakura- “economic measures” towards India. The post-Cold War Tenshin, a legendry figure in classical Japanese Art, visited India international system exclusively changing Asian balance of in the early twentieth century, and nurtured close relationships power has been extremely important driver of present state of with the great Indian poet, Rabindranath Tagore, the first Asian Indo-Japan relationship. The growing Indian profile in Asia- Nobel laureate in literature, as well as with Swami Vivekananda, Pacific has become extremely important in the post-Cold War the famous spiritual leader of India. Tagore himself visited Japan scenario. five times between 1916 and 1929. On the political side, Japan's However, the expectations have further heightened in light of victory against Russia during 1904-05, encouraged the Indian 3 successful visit by the Indian Prime Minister, Manmohan Singh to people, who where at that time under colonial rule. Japan in December 2006. During this visit, the two leaders

150 151 India-Japan Relations: Growing Engagement India-Japan Relations: Growing Engagement confirmed their commitment to establish a “strategic and global I. Babu Rao partnership” between the two countries, and agreed to strengthen their bilateral relationship. On the other hand, Abe's 2007 visit helped to create a road map for newer dimensions to take the process forward with renewed vigour. The successive years India-Japan relations which were confined to the cultural sphere witnessed further consolidation and expansion of the bilateral since the 7th Century AD also embraced political and economic relations. This paper deals with the evolution and rapidly domains in the Post-World War II period. Japan and India have growing bilateral relationship in political and security not only engaged significant historical and cultural ties through cooperation, comprehensive economic partnership and people to Buddhist channels among others in the past, but have also people exchange areas. influenced each other greatly in modern times. Japan's victory in India Japan Relations its war against Russia during 1904-05, inspired the Indian people, India and Japan have not only enjoyed significant historical and who were at that time under colonial rule. After independence, cultural ties through Buddhism among others, in the past, but the first Prime Minister of India specially invited Japan to the first have also influenced each other greatly in modern times. Asian Games held in New Delhi and signed a separate peace Buddhism was the most ancient link between India and Japan. treaty with Japan. During Cold War era due to different Buddhism reached Japan through Korea and had a remarkable ideological following both had average re1ationship. growth there. It is said that Buddhism reached Japan as a gift India and Japan took fifty years to engage each other seriously. At from the king of Korea in 552 AD. Twenty years later, the convert the dawn of the 21st century they resolved to take their bilateral prince of Japan constructed Buddhist temples, viharas, hospitals relations to qualitatively new level. Following the termination of and homes, and sent many students to China for the study of Cold War. India unveiled its Look East Policy in the early 1991 so Budhism1. In fact, for the Japanese, China was a reality while as to deepen and broaden its relations with the countries of India, where the Buddha was born, a dream. Panchatantra and Southeast and East Asia. Prime Minister Yoshiro Mori visited Jataka tales, translated into Chinese, reached Japan and became India in August 2000 and the two heads of Government agreed to part of Japanese folklore. In the Japanese version of Ramayana, develop a “Global partnership in the 21stCentury”. Due to the Rama was replaced by Sakyamuni, but the rest of narrative was heightening necessity to cooperate with India in the fight against almost the same. Infact, the number of students of Sanskrit terrorism, after 9/11 in October 2001, Japan unveiled its anywhere outside India is still the highest in Japan2. Okakura- “economic measures” towards India. The post-Cold War Tenshin, a legendry figure in classical Japanese Art, visited India international system exclusively changing Asian balance of in the early twentieth century, and nurtured close relationships power has been extremely important driver of present state of with the great Indian poet, Rabindranath Tagore, the first Asian Indo-Japan relationship. The growing Indian profile in Asia- Nobel laureate in literature, as well as with Swami Vivekananda, Pacific has become extremely important in the post-Cold War the famous spiritual leader of India. Tagore himself visited Japan scenario. five times between 1916 and 1929. On the political side, Japan's However, the expectations have further heightened in light of victory against Russia during 1904-05, encouraged the Indian 3 successful visit by the Indian Prime Minister, Manmohan Singh to people, who where at that time under colonial rule. Japan in December 2006. During this visit, the two leaders

150 151 India and Japan Relations India-Japan Relations: Growing Engagement

It is well known to the Japanese public that Netaji Subhas economic interdependence, harmony and coexistence6.On her Chandra Bose and his Indian National Army (INA) collaborated part, Indira Gandhi, during the negotiations requested Japan to with the Japanese forces during World War II, and that justice play a major global role beyond economics and said. “It is now Radha Binod Pal raised dissenting openions at the International recognized everywhere that Japan is an economic super power Military Tribunal of the Far East. The first four decades of the 20th but it has also in the coming years an increasing role to play in century witnessed the growth of mutual interests, and World Affairs. Asia in particular is a troubled continent and Japan understanding between India and Japan to such an extent that is a factor for stability”.7 some Indian nationalist leaders and a segment of the Indian press The warmth in indo-Japanese relations was further consolidated even advocated a federation of the Asiatic people under the when Prime Minister Rajiv Gandhi paid an official visit to Japan stewardship of Japan.4 An Indian Hindi daily Kal moted the from November 28 to December 1, 1985. The conclusion of an suggestion of a “confederacy of Asiatic nations under the agreement between India and Japan on cooperation in the field of leadership of Japan”. Close ties between India and Japan science and technology was one of the important highlights of the continued in the days following the World War II. visit. The agreement opened up new opportunities for both the Surprisingly, a decade after India's independence India and Japan countries to work “as partners of progress not only for their relations suffered a period of estrangement. Between the 1960's mutual benefit, but also for peace and prosperity in Asia and in and early 1980's high level interaction between the two countries the world”.8 Japan's economic engagement grew somewhat after was rather infrequent. It was in 1957 that the Prime Minister of the visit as Japan granted a larger Yen credit to India for specific two countries Nobusuke Kishi and Jawarharlal Nehru exchanged projects. Rajiv Gandhi also becomes the first ever Prime Minister visits. Nehru hoped that his visit to Japan, which he himself to address the Japanese Diet where he said, “Our rediscovery of termed as a “Life long ambition”, would help mutual each other must not be limited to the market place. Let us understanding between our two countries5. However, the interest rediscover ourselves in the minds and hearts of people. … it is not of both nations towards each other is reflected in the fact that a only for mutual benefit that we should work together. We must peace treaty was signed in 1952 and thereafter both countries do in the larger interest of human kind”.9 steadily forged closeness by sining a few important agreement This resulted in many Japanese companies come to India, albeit such as: Agreement of Air service (1956), Cultural Agreement under restriction. Changes in the world order in 1990's led to the (1957), and Agreement of Commerce (1958). termination of Cold War and thus freed both nations to explore Things began to change slowly, when, to maintain its status as an strengthening their relationship. Though by the 1990s Japan faced economic super power, Japan needed more trade, markets and recession domestically, it had spread its investments across the areas of investment beyond Southeast Asia. Besides, it realized world. India, under Prime Minister Narasimha Rao, adopted the the possible adverse fallouts of a resurgent China wanting to have 'Look East Policy' and steadily opened up the Indian economy. a decisive say in East and Southeast Asia. India thus became an All this proved propitious for Indo-Japan relations. attractive country for Japan. It was against this background that a Post-Cold War Relations major development in Indo-Japanese relations took place in 1984 when the Prime Minister of Japan, Yasuhiro Nakasone, made an The end of the Cold War came after the Soviet Union crumbled official visit to India. During the visit, Nakasone consistently and disintegrated down to the curtain on an era in international highlighted the themes of world peace, nuclear disarmament, politics. The post-Cold War international system exclusively

152 153 India and Japan Relations India-Japan Relations: Growing Engagement

152 153 India and Japan Relations India-Japan Relations: Growing Engagement changing Asian balance of power has been extremely important It was then in 1994, during visit to Singapore that Prime Minister driver of present state of Indo-Japan relationship. The growing Narasimha Rao gave significant indications about New Delhi's Indian profile in Asia pacific has become extremely important in intensions to associate with East Asian countries increasingly. post-Cold War scenario. Efforts were made to connect with the Japanese as the then The end of the Cold War had an impact on India's domestic, finance minister Manmohan Singh told the Indian embassy in security and foreign policy. The new choice for India in politics Tokya to establish direct links with the Japanese business and security was to improve its relations with the western community. Singh also spent two days meeting the big business houses of Japan and multinational corporations interested in countries, including the United States. Besides, in the economic 14 sphere India's major shift to the path of economic liberalization investing in India. There was in many ways on abortive attempt between India and Japan in their economic policies. Moreover, at connecting with Japan during the nascent years of India's Japan expeditiously announced US $150 million emergency “Look East” policy. As bemoaned by former foreign secretary J.N. 10 Dixit. “Japan was identified as one of the most important sources assistance at the time of India's financial crisis , and left a strong 15 impression on the Indian side about the significance of an of both investment and technology by the government of India”. economic partnership with Japan. The disastrous failure of the closed-door economy had become too apparent and had dried up the economy. India's GDP per With India's policy changes, India -Japan relations began to show 16 indications of improvement, with an increase number of capita stood at US $350 in the year 1991 and the country faced a interactions and visits at the head of government level. Prime severe balance of payments crisis. There was also the conscious Minister Kaifu visited India in 1990 as a Japanese premier, for the realization and reality of the relative and diametrically opposite first time in six years. India reciprocated in 1992 through Prime economic trend among other 'Asian tigers' as well as China. It was Minister Narasimha Rao visit to Japan. The year 1992 was also the then that India made a conscious effort and attempt to “Look fortieth anniversary of the normalization of diplomatic ties East” build ties with countries in the region. Of these, of course, between the two countries. Such movements nurtured the the Southeast Asian economies were the first target. The band growing interest towards India among the Japanese public width gradually expanded to encompass countries like Japan in created a “Mini Indian boom”.11 what come to be known as the IInd Phase of India's Look East policy. Domestically, some restructuring was undertaken. In end 1991, the then Prime Minister Narasimha Rao issued a note asking the Meanwhile, India faced similar quandaries with its Asian foreign office and their diplomatic centers to focus more on the neighbour with whom it shows continuing trends and areas of economic aspects of foreign relations.12 A number of high profile tension. Like Japan, India has had a history of conflict with China. delegations visited parts of Southeast and East Asia. There was The 1962 border war has brought bilateral relations to a nadir. The border continues to remain undemarcated till today. At the core also a greater flexibility exhibited in foreign policy matters. 17 During his visit to Tokyo in 1992, for instance, Rao accepted a of border question in the Mc Mohan Line . In more recent times, Japanese proposal to set up joint working level consultations on China has been vociferously claiming the Indian state of disarmament and nuclear issues.13 There was a realization that Arunachal Pradesh as its territory. In the immediate post Cold Southeast and Northeast Asian economies and China had long War period, there was a brief period of warming up of bilateral ties between Beijing and New Delhi. There were attempts made to surpassed India economically and that had indeed become a role 18 model. resolve the border dispute . But the “Honeymoon” was short

154 155 India and Japan Relations India-Japan Relations: Growing Engagement changing Asian balance of power has been extremely important It was then in 1994, during visit to Singapore that Prime Minister driver of present state of Indo-Japan relationship. The growing Narasimha Rao gave significant indications about New Delhi's Indian profile in Asia pacific has become extremely important in intensions to associate with East Asian countries increasingly. post-Cold War scenario. Efforts were made to connect with the Japanese as the then The end of the Cold War had an impact on India's domestic, finance minister Manmohan Singh told the Indian embassy in security and foreign policy. The new choice for India in politics Tokya to establish direct links with the Japanese business and security was to improve its relations with the western community. Singh also spent two days meeting the big business houses of Japan and multinational corporations interested in countries, including the United States. Besides, in the economic 14 sphere India's major shift to the path of economic liberalization investing in India. There was in many ways on abortive attempt between India and Japan in their economic policies. Moreover, at connecting with Japan during the nascent years of India's Japan expeditiously announced US $150 million emergency “Look East” policy. As bemoaned by former foreign secretary J.N. 10 Dixit. “Japan was identified as one of the most important sources assistance at the time of India's financial crisis , and left a strong 15 impression on the Indian side about the significance of an of both investment and technology by the government of India”. economic partnership with Japan. The disastrous failure of the closed-door economy had become too apparent and had dried up the economy. India's GDP per With India's policy changes, India -Japan relations began to show 16 indications of improvement, with an increase number of capita stood at US $350 in the year 1991 and the country faced a interactions and visits at the head of government level. Prime severe balance of payments crisis. There was also the conscious Minister Kaifu visited India in 1990 as a Japanese premier, for the realization and reality of the relative and diametrically opposite first time in six years. India reciprocated in 1992 through Prime economic trend among other 'Asian tigers' as well as China. It was Minister Narasimha Rao visit to Japan. The year 1992 was also the then that India made a conscious effort and attempt to “Look fortieth anniversary of the normalization of diplomatic ties East” build ties with countries in the region. Of these, of course, between the two countries. Such movements nurtured the the Southeast Asian economies were the first target. The band growing interest towards India among the Japanese public width gradually expanded to encompass countries like Japan in created a “Mini Indian boom”.11 what come to be known as the IInd Phase of India's Look East policy. Domestically, some restructuring was undertaken. In end 1991, the then Prime Minister Narasimha Rao issued a note asking the Meanwhile, India faced similar quandaries with its Asian foreign office and their diplomatic centers to focus more on the neighbour with whom it shows continuing trends and areas of economic aspects of foreign relations.12 A number of high profile tension. Like Japan, India has had a history of conflict with China. delegations visited parts of Southeast and East Asia. There was The 1962 border war has brought bilateral relations to a nadir. The border continues to remain undemarcated till today. At the core also a greater flexibility exhibited in foreign policy matters. 17 During his visit to Tokyo in 1992, for instance, Rao accepted a of border question in the Mc Mohan Line . In more recent times, Japanese proposal to set up joint working level consultations on China has been vociferously claiming the Indian state of disarmament and nuclear issues.13 There was a realization that Arunachal Pradesh as its territory. In the immediate post Cold Southeast and Northeast Asian economies and China had long War period, there was a brief period of warming up of bilateral ties between Beijing and New Delhi. There were attempts made to surpassed India economically and that had indeed become a role 18 model. resolve the border dispute . But the “Honeymoon” was short

154 155 India and Japan Relations India-Japan Relations: Growing Engagement lined and came to a halt in 1998 with India's nuclear tests. New while. India rejected the Japanese and international response to Delhi made it clear that the nuclear test was meant to be a the tests especially as the plea that Tokyo need not moralize on the deterrent to China's growing power. nuclear issue, considering that it had a nuclear umbrella itself. Bilateral ties received a further set back with the Japanese interest India's Pokhran Tests Japanese Response and inclination to mediate on the Kashmir issue. The then India's nuclear tests evoked as sharp reaction from Tokyo and Japanese Prime Minister Ryutaro Hashimoto and foreign pushed bilateral relations to a nadir. In the bilateral level, the minister Keizo Obuchi both referred to and highlighted the Japanese Diet Passed a unanimous resolution condemning the Kashmir issue and Japan's interest in participating to resolve it. test. Official dialogues were cancelled, new Yen loans and grant Japan's neutrality during the Kargil crisis between India and aid to India were frozen, except emergency and humanitarian aid Pakistan in 1999 also disturbed relations23. and grant assistance for grassroots project. The government also decided to “cautiously examine” loans given to India by A decision to revoke the stringent measures taken against India international financial institutions19. Even though some Japanese was announced in October 2001, while expressing satisfaction officials were quick to point out that Tokyo was only imposing over New Delhi's announcement of having a moratorium on “Measures” as opposed to “Sanction” by other member of the conducting further tests. This came under the back drop of the international community. The cost and impact of these measures September 11 attacks on the United States. During Prime Minister was of some consequence. At that time, Japan's commitment to Mori's visit to India in August 2000, he proposed a “Global New Delhi in terms of loans was to the tune of 133 billion Yen, partnership” a term which was used by Japan only to describe its while 3.5 billion as grants was at stake.20 relations with the United States. Japan's vision was to recognize “India as an important partner to work with not only for our At the regional and multilateral level, Japan a non-permanent respective peoples but also the world community at large24. The member of the UN Security Council at that time-also became one idea was to look at wide ranging international issues like UN of the key countries which took a lead (Joined by Sweden, Costa reform, maritime security, joining hands to combat terrorism and Rica and Slovenia) in formulating and proposing a UN resolution environment. Stress was being laid on the responsibility of both to condemn the nuclear test in May 1998. It also became know that countries to defend and spread the values of democracy and an earlier draft of the resolution on the nuclear tests in the United freedom. Nations formulated by Tokyo had called for the need to address the Kashmir issue perceived to be the root cause of tension in the The visible change in India's foreign policy and its nuclear power region21. A meeting of the Aid India Consortium to be held in status along with the wider ambit of its “extended neighborhood” Tokyo was cancelled. Tokyo also used the G-8 platform to raise policy encouraged more interaction with neighbors in the east. concerns over the nuclear tests. As opined by Purnendra Jain, There was also the concurrent reality of India as a fast growing Japans action was “Swift and Serve”, “out of Proportion”, and economy. The recognition of India's emergence as an economic unnecessary22 and there seemed to be a lack of geopolitical power house became evident. In a Yomiuri shimbun poll taken in calculation that India might act as a useful balance to a rising July 2006, as many as 20 percent of Japanese choose India as the China. third most important country in the future of world economy after China and the United States25. The warming up of In contrast, when China conducted five nuclear tests in 1996. The Washington relations with New Delhi especially since the late Japanese reaction was mild in freezing grant aid only for a short 1990's also led Japan to take a more positive note of India.

156 157 India and Japan Relations India-Japan Relations: Growing Engagement lined and came to a halt in 1998 with India's nuclear tests. New while. India rejected the Japanese and international response to Delhi made it clear that the nuclear test was meant to be a the tests especially as the plea that Tokyo need not moralize on the deterrent to China's growing power. nuclear issue, considering that it had a nuclear umbrella itself. Bilateral ties received a further set back with the Japanese interest India's Pokhran Tests Japanese Response and inclination to mediate on the Kashmir issue. The then India's nuclear tests evoked as sharp reaction from Tokyo and Japanese Prime Minister Ryutaro Hashimoto and foreign pushed bilateral relations to a nadir. In the bilateral level, the minister Keizo Obuchi both referred to and highlighted the Japanese Diet Passed a unanimous resolution condemning the Kashmir issue and Japan's interest in participating to resolve it. test. Official dialogues were cancelled, new Yen loans and grant Japan's neutrality during the Kargil crisis between India and aid to India were frozen, except emergency and humanitarian aid Pakistan in 1999 also disturbed relations23. and grant assistance for grassroots project. The government also decided to “cautiously examine” loans given to India by A decision to revoke the stringent measures taken against India international financial institutions19. Even though some Japanese was announced in October 2001, while expressing satisfaction officials were quick to point out that Tokyo was only imposing over New Delhi's announcement of having a moratorium on “Measures” as opposed to “Sanction” by other member of the conducting further tests. This came under the back drop of the international community. The cost and impact of these measures September 11 attacks on the United States. During Prime Minister was of some consequence. At that time, Japan's commitment to Mori's visit to India in August 2000, he proposed a “Global New Delhi in terms of loans was to the tune of 133 billion Yen, partnership” a term which was used by Japan only to describe its while 3.5 billion as grants was at stake.20 relations with the United States. Japan's vision was to recognize “India as an important partner to work with not only for our At the regional and multilateral level, Japan a non-permanent respective peoples but also the world community at large24. The member of the UN Security Council at that time-also became one idea was to look at wide ranging international issues like UN of the key countries which took a lead (Joined by Sweden, Costa reform, maritime security, joining hands to combat terrorism and Rica and Slovenia) in formulating and proposing a UN resolution environment. Stress was being laid on the responsibility of both to condemn the nuclear test in May 1998. It also became know that countries to defend and spread the values of democracy and an earlier draft of the resolution on the nuclear tests in the United freedom. Nations formulated by Tokyo had called for the need to address the Kashmir issue perceived to be the root cause of tension in the The visible change in India's foreign policy and its nuclear power region21. A meeting of the Aid India Consortium to be held in status along with the wider ambit of its “extended neighborhood” Tokyo was cancelled. Tokyo also used the G-8 platform to raise policy encouraged more interaction with neighbors in the east. concerns over the nuclear tests. As opined by Purnendra Jain, There was also the concurrent reality of India as a fast growing Japans action was “Swift and Serve”, “out of Proportion”, and economy. The recognition of India's emergence as an economic unnecessary22 and there seemed to be a lack of geopolitical power house became evident. In a Yomiuri shimbun poll taken in calculation that India might act as a useful balance to a rising July 2006, as many as 20 percent of Japanese choose India as the China. third most important country in the future of world economy after China and the United States25. The warming up of In contrast, when China conducted five nuclear tests in 1996. The Washington relations with New Delhi especially since the late Japanese reaction was mild in freezing grant aid only for a short 1990's also led Japan to take a more positive note of India.

156 157 India and Japan Relations India-Japan Relations: Growing Engagement

However, since India behaved responsibly during Kargil During the visit of Prime Minister Manmohan Singh to Japan encounter and there was a manifestation of a new regional from December 13-16-2006, Indo- Japanese were elevated to the environment in Asia, Japan could not ignore India and a new and status of “Global and Strategic Partnership”.29 In terms of much a more progressive relationship between the two nations took off expanded economic and political engagement, this visit laid the in the 21st century. first concrete foundations of things to do list for both countries to India's Engagement of Japan expand and facilitate trade, develop structured security initiatives for mutual benefit and also opened the doors for Indian Chronologically, it all started with Prime Minister Vajpayee and industry and R&D institutions to the frontiers of science and Prime Minister Mori signing the Japan India Global partnership technology in which Japan had an acknowledged leadership in the year 2000; and in 2011 Prime Minister Dr. Manmohan Singh position. Significantly the Joint Declaration observed that, and Prime Minister Yoshiro Noda affirmed this relationship in “nuclear energy can play an important role as a safe sustainable stating a vision for enhancement of a Strategic Global Partnership. and non-polluting source of energy………. and that international The holding of India Japan summits on a regular basis greatly civil nuclear energy cooperation should be enhanced through helped exchange of perceptions and rapid diversification and constructive and appropriate IAEA safeguards.”30 On the other strengthening of bilateral relations. In October 2001, the Japanese hand, Abe's 2007 visit was meant to create a road map for newer government announced suspension of its “economic measures” dimensions yet another mile stone in the intensity of India- Japan towards India26. This was due to the heightening necessity to relations. If the last summit has listed a 'thing to do' that the cooperative in the aftermath of 9/11. In December of the same 'roadmap'. Climate Change and Environment was on the top of year Prime Minister Vajpayee visit to Japan, through hardly the agenda. Under the Special Economic Partnership Initiative spectacular was successful in that it did result in the Tokyo Joint (SEPI) multi billion dollar projects moved another step towards Declaration27. In January 2003, Foreign Minister Kawaguchi realization. These include the Multi Modal Freight Corridor and visited India and announced Japan's economic assistance of a the Delhi-Mumbai Industrial Corridor project which have the scale of 110 billion Yen. From this year onwards, India surpassed potential to transform the Indian infrastructure milieu as well as China to become the largest recipient of Japanese Overseas rural India. Both leaders also reiterated their continued Development Assistance (ODA). Moreover, in April 2005 Prime commitment on civil nuclear energy cooperation under Minister Koizumi visited India and jointly with his safeguards and the need to work Jointly on disarmament and as Indiancounterpart, announced “Eight Fold initiative”, imparting partners against proliferation.31 a strategic orientation to the Global Partnership. Both Prime An acceleration in the growing proximity between the two Ministers announced their “Common resolve that India and Japan countries was visible once again during the successful October should strengthen cooperation in order to contribute towards the 2008 visit of Prime Minister Manmohan Singh to Japan for the stability of Asia and the world in the 21st century”. Prime Minister 32 Japan-India Annual Summit in Tokyo. The Joint Statement Vajpayee said, “Japan had agreed to back India's efforts to get a recorded that the Prime Ministers “…. shared the view that India permanent seat on the United Nations Security Council, in return for and Japan must advance bilateral cooperation as well as helping Japan secure representation in the international court of 28 cooperation in regional and multilateral areas….”. Further there Justice”. The declaration clearly sought to evolve context of their was explicit recognition that much more could be done as “… search for a global partnership. there is still immense untapped potential for the further

158 159 India and Japan Relations India-Japan Relations: Growing Engagement

158 159 India and Japan Relations India-Japan Relations: Growing Engagement expansion of bilateral relations.”33 and the South China Sea and, therefore, vital lifeline for Japan's 35 In sum, the Joint Statement is a watershed in the development of international trade . As the SLOCs have become vulnerable in understanding and a clear indication that both countries are recent years to piracy attacks and terrorism at sea, Japan considers genuinely convinced that “a strong, prosperous and dynamic India as a strategic asset for closer naval cooperation. India is the interest of Japan and a strong, prosperous and India's energy supplies are largely sourced from the Middle East dynamic Japan is in the interest of India”. Specifically, the thrust is as well as now from Africa. Official statistics show that 67.43 towards economic cooperation in mega infrastructure projects, percent of India's oil imports came from the Middle East and two- energy security, maritime security including Sea Lanes of thirds of it comes from four countries Saudi Arabia, Kuwait, Iran Communication (SLOC) and sea based terrorism, climate change, and Nigeria.36 As much as 90 percent of India's trade is sea-borne. pollution free and proliferation resistant nuclear power in the This is due to the fact that there are three major barriers to land- future. borne-transit-natural causes (the Himalayan range across the Areas of Cooperation northern region), neighbouring countries of Pakistan and Bangladesh and insurgency. Hence, there is no doubt about the Exchange of visits by top officials and leaders facilitated an critically, vulnerability and dependence of the need for energy as appreciation of mutual problems, an exchange of viewpoints on well as the maritime route in India's case. various issues, a clearing the clouds of misunderstanding and misapprehensions, besides the identification of areas of The threats of SLOCs are from various quarters blockades, cooperation and of evolving strategies for promoting peace and political instabilities in the neighboring countries, mines, oil spills prosperity of both the countries. In a congenial atmosphere India from accidents, pirate attacks and now terror attacks37. Radical and Japan cooperated on a wide range of areas. Islamists have identified and recognized the targeting of oil facilities as a legitimate means of economic Jihad. Terror attacks a. Maritime Security are more likely to be focused on transmit facilities because of the Maritime Security has acquired increasing significance not just as difficulty in protecting them and hence the need to secure these an issue in itself involving countering piracy and safety of Sea routes assumes significance. Lines of Communication (SLOCs), but also because of its inseparability with energy security. More intrinsic and central to In the 1999 incident of prompt rescuing or a Japanese freight ship, the maritime security of India, Japan and China is the fact that all Alondra Rainbow, by the Indian coast guard highlighted notonly of them have vast coastlines that need to be protected34. The Japanese vulnerabilities in the critical Indian Ocean transport geographical location endows India with an opportunity to play a routes but also Indian maritime capabilities. “The Indian coast critical role in ensuring maritime safety. India's strategic guard was invited for the first time to a meeting convened by the positioning between two choke pints for global oil supplies-the P.M. Keizo Obuchi of navies and coast guards in March 2000 of 38 Strait of Malacca to its East and the Strait of Hormuz to its west the Asia Pacific”. Since then India and Japan have been actively attracts major economies in Asia whose energy supplies must collaborating in ensuring the security of Sea Lanes of pass through these two Straits. It is estimated that as much as 33 Communication in the Indian Ocean region. Of importance was percent of international trade and 50 percent of world's oil pass the first ever visit by Indian defence minister George Fernandes in through these Sea Lanes. As regards Japan in particular, the January 2000. He later claimed. “New Delhi will hold annual high Straits of Malacca is the main passage between the Indian Ocean level defence consultations with Tokyo, while Japanese

160 161 India and Japan Relations India-Japan Relations: Growing Engagement expansion of bilateral relations.”33 and the South China Sea and, therefore, vital lifeline for Japan's 35 In sum, the Joint Statement is a watershed in the development of international trade . As the SLOCs have become vulnerable in understanding and a clear indication that both countries are recent years to piracy attacks and terrorism at sea, Japan considers genuinely convinced that “a strong, prosperous and dynamic India as a strategic asset for closer naval cooperation. India is the interest of Japan and a strong, prosperous and India's energy supplies are largely sourced from the Middle East dynamic Japan is in the interest of India”. Specifically, the thrust is as well as now from Africa. Official statistics show that 67.43 towards economic cooperation in mega infrastructure projects, percent of India's oil imports came from the Middle East and two- energy security, maritime security including Sea Lanes of thirds of it comes from four countries Saudi Arabia, Kuwait, Iran Communication (SLOC) and sea based terrorism, climate change, and Nigeria.36 As much as 90 percent of India's trade is sea-borne. pollution free and proliferation resistant nuclear power in the This is due to the fact that there are three major barriers to land- future. borne-transit-natural causes (the Himalayan range across the Areas of Cooperation northern region), neighbouring countries of Pakistan and Bangladesh and insurgency. Hence, there is no doubt about the Exchange of visits by top officials and leaders facilitated an critically, vulnerability and dependence of the need for energy as appreciation of mutual problems, an exchange of viewpoints on well as the maritime route in India's case. various issues, a clearing the clouds of misunderstanding and misapprehensions, besides the identification of areas of The threats of SLOCs are from various quarters blockades, cooperation and of evolving strategies for promoting peace and political instabilities in the neighboring countries, mines, oil spills prosperity of both the countries. In a congenial atmosphere India from accidents, pirate attacks and now terror attacks37. Radical and Japan cooperated on a wide range of areas. Islamists have identified and recognized the targeting of oil facilities as a legitimate means of economic Jihad. Terror attacks a. Maritime Security are more likely to be focused on transmit facilities because of the Maritime Security has acquired increasing significance not just as difficulty in protecting them and hence the need to secure these an issue in itself involving countering piracy and safety of Sea routes assumes significance. Lines of Communication (SLOCs), but also because of its inseparability with energy security. More intrinsic and central to In the 1999 incident of prompt rescuing or a Japanese freight ship, the maritime security of India, Japan and China is the fact that all Alondra Rainbow, by the Indian coast guard highlighted notonly of them have vast coastlines that need to be protected34. The Japanese vulnerabilities in the critical Indian Ocean transport geographical location endows India with an opportunity to play a routes but also Indian maritime capabilities. “The Indian coast critical role in ensuring maritime safety. India's strategic guard was invited for the first time to a meeting convened by the positioning between two choke pints for global oil supplies-the P.M. Keizo Obuchi of navies and coast guards in March 2000 of 38 Strait of Malacca to its East and the Strait of Hormuz to its west the Asia Pacific”. Since then India and Japan have been actively attracts major economies in Asia whose energy supplies must collaborating in ensuring the security of Sea Lanes of pass through these two Straits. It is estimated that as much as 33 Communication in the Indian Ocean region. Of importance was percent of international trade and 50 percent of world's oil pass the first ever visit by Indian defence minister George Fernandes in through these Sea Lanes. As regards Japan in particular, the January 2000. He later claimed. “New Delhi will hold annual high Straits of Malacca is the main passage between the Indian Ocean level defence consultations with Tokyo, while Japanese

160 161 India and Japan Relations India-Japan Relations: Growing Engagement coastguard ships and Indian vessels will conduct. Joint training in b. Strategic Cooperation talking piracy. The issue though is not piracy alone”. Referring to As two important players in Asia, both India and Japan have the unresolved territorial disputes in South China Sea, he said, “A unearthed a great deal of complementarities in their economies. strong India, economically and military well endowed, will be a The process of this search was precipitated by the collapse of very solid agent to see that the sea lanes are not disturbed and that Soviet Union and the subsequent change in India's economic conflict situation are contained”.39 The coast guard of two policy away from import substitution and inward - looking and countries have been conducting Joint exercise regularly and towards export-oriented development strategies. This was additionally the Indian navy and the Japanese Maritime Self- unfold vast areas of cooperation between India and Japan. As a Defense Forces (JMSF) have also begun to enhance their contacts result, a great deal of commonalities is now visible in and activities. As part of the upgraded navy to navy cooperation, strengthening bilateral ties in political, economic and security the two navies for the first time participated in trilateral maritime fields. exercises (with the U.S. being the third one) in April 2007 of The strategic environment of the world, particularly in Asia, is in Japan's East Coast in the pacific. This was not only the first time a state of dramatic flux. The overwhelming economic and military that two navies participated but also first time for the Indian navy presence of the United States in Asia is on the wane. China is to take part in multilateral exercises in the pacific near Japan. The raising power, both economically and militarily, and its power 2008 “Joint Declaration on security cooperation between Japan projection capabilities are causing concern amongst its neighbors. and India”, make a specific reference to “Navy-to-Navy staff Japan had become a declaiming power for some time and out of Talks” in addition to the “two coast guards will continue to its prolonged recession. China has already overtaken Japan as the promote cooperation to ensure maritime safety, maritime world's second largest economy in June 2010. China is not the security and to protect marine environment through Joint 41 logical successor, not at least in near term. These developments exercise and meeting between the two coast guards, according to have led to realignment of power equations between countries in the memorandum on cooperation between the Japan coast guards Asia. In this unfolding strategic landscape, both India and Japan and the Indian coast guard”.40 Thus, maritime security are exploring the strategic dimensions of their relationships. cooperation will continue to be a major aspect of India -Japan relations. The Joint Statement of April 2005, therefore underlined the importance of strategic dialogue and cooperation in identifying This kind of interaction involves attempts to increase 'Eight-Fold' initiative for strengthening India-Japan global communication and cooperation both for times of war as well as partnership which included: provision of disaster relief. India and Japan can have a reciprocal security arrangement for sea lines in their zones once both sides 1. An enhanced and upgraded dialogue architecture including reach a certain level interoperability. Responses to natural the launching of a high level strategic dialogue and full disasters like tsunami become arenas for cooperation too. The two utilization of the existing dialogue mechanism; maritime forces and coast guards can also join hands in UN-led 2. Comprehensive Economic Engagement operations as sea. It is critical for Japan to break free from its constitutional constraints for this kind of cooperation to become 3. Enhanced Security Dialogue and cooperation; more effective and robust. 4. Science and Technology Initiative; 5. Culture and Academic Initiatives and Strengthening People to

162 163 India and Japan Relations India-Japan Relations: Growing Engagement coastguard ships and Indian vessels will conduct. Joint training in b. Strategic Cooperation talking piracy. The issue though is not piracy alone”. Referring to As two important players in Asia, both India and Japan have the unresolved territorial disputes in South China Sea, he said, “A unearthed a great deal of complementarities in their economies. strong India, economically and military well endowed, will be a The process of this search was precipitated by the collapse of very solid agent to see that the sea lanes are not disturbed and that Soviet Union and the subsequent change in India's economic conflict situation are contained”.39 The coast guard of two policy away from import substitution and inward - looking and countries have been conducting Joint exercise regularly and towards export-oriented development strategies. This was additionally the Indian navy and the Japanese Maritime Self- unfold vast areas of cooperation between India and Japan. As a Defense Forces (JMSF) have also begun to enhance their contacts result, a great deal of commonalities is now visible in and activities. As part of the upgraded navy to navy cooperation, strengthening bilateral ties in political, economic and security the two navies for the first time participated in trilateral maritime fields. exercises (with the U.S. being the third one) in April 2007 of The strategic environment of the world, particularly in Asia, is in Japan's East Coast in the pacific. This was not only the first time a state of dramatic flux. The overwhelming economic and military that two navies participated but also first time for the Indian navy presence of the United States in Asia is on the wane. China is to take part in multilateral exercises in the pacific near Japan. The raising power, both economically and militarily, and its power 2008 “Joint Declaration on security cooperation between Japan projection capabilities are causing concern amongst its neighbors. and India”, make a specific reference to “Navy-to-Navy staff Japan had become a declaiming power for some time and out of Talks” in addition to the “two coast guards will continue to its prolonged recession. China has already overtaken Japan as the promote cooperation to ensure maritime safety, maritime world's second largest economy in June 2010. China is not the security and to protect marine environment through Joint 41 logical successor, not at least in near term. These developments exercise and meeting between the two coast guards, according to have led to realignment of power equations between countries in the memorandum on cooperation between the Japan coast guards Asia. In this unfolding strategic landscape, both India and Japan and the Indian coast guard”.40 Thus, maritime security are exploring the strategic dimensions of their relationships. cooperation will continue to be a major aspect of India -Japan relations. The Joint Statement of April 2005, therefore underlined the importance of strategic dialogue and cooperation in identifying This kind of interaction involves attempts to increase 'Eight-Fold' initiative for strengthening India-Japan global communication and cooperation both for times of war as well as partnership which included: provision of disaster relief. India and Japan can have a reciprocal security arrangement for sea lines in their zones once both sides 1. An enhanced and upgraded dialogue architecture including reach a certain level interoperability. Responses to natural the launching of a high level strategic dialogue and full disasters like tsunami become arenas for cooperation too. The two utilization of the existing dialogue mechanism; maritime forces and coast guards can also join hands in UN-led 2. Comprehensive Economic Engagement operations as sea. It is critical for Japan to break free from its constitutional constraints for this kind of cooperation to become 3. Enhanced Security Dialogue and cooperation; more effective and robust. 4. Science and Technology Initiative; 5. Culture and Academic Initiatives and Strengthening People to

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People Contacts; a regime change will not affect the relationship. 6. Cooperation in Ushering a New Asian era; c. Economic Linkages 7. Cooperation in the United Nations and other international Indian and Japan are two leading economies in India. Japan ranks organizations, including cooperation for the early realization fifth among the leading trading partners of India and occupies of UN reforms, particularly Security Council reform; and 10th position among India's export destinations; on the other hand, India stands at 26th among Japan exports. Though found to 8. Cooperation in responding to global challenges and be fluctuating during 1998-2002, bilateral trade has registered a 42 opportunities. study growth from US $3.7 billion (2003) to US $10.9 billion in Among these initiatives four were related to security cooperation 2009, with a target of US $14.0 billion set for 2012.Japan ranks sixth between the two Asian nations. with cumulative FDI inflows of US $ 3.3 billion, accounting for 3.0 percent of Total FDI inflows in India during 2000-2009, as against Despite the slow peace of movement in bilateral relations, India 46 US $ 1.5 billion during the 1990s. Despite its declining economy, Japan strategic cooperation began to expand in the first decade of a marked increase in Japan's bilateral assistance to India, in the 21st century. India and Japan signed on declaration on security form of Official Development Assistance (ODA), grant-in-aid and cooperation and asserted that their partnership would be “an Technical cooperation, indicates Japan's focused interest in essential pillar for the future architecture of the region.”43 reinforcing its partnership with India. But when entire Japan was observing the year end holidays, An important of Indo-Japanese economic relations is the Official Japanese Prime Minister Hatoyama made a visit to New Delhi on Development Assistance provided by Japan. Japan has been December 29 and singed yet another Joint Statement in which India's largest bilateral donar since 1957. In 1958 Japan started both leaders “reaffirmed that India and Japan as partners which providing ODA to India in the form of Yen loans since the share common values and strategic interests, will develop the beginning of its ODA policy in 1952. Since then must ODA has strategic and global partnership further for the deepening of their been in the form of Yen Loans. bilateral relations as well as peace and prosperity of the region and the world”.44 The focus areas of Japan's ODA to India have been; The Indo-Japan strategic relationship reached a new height when a. Infrastructure sectors including Power and Transportation; Prime Minister Naoto Kan with his Indian counterpart decided to b. Agriculture and Rural Development; “steadily expand security and defence cooperation between India and Japan” and pledged to “cooperate to enhance their capacity in c. Environmental protection through afforstation and responding to security challenges such as maritime security improvement in the quality of water and; which entails the safety and freedom of navigation and counter d. Health and Medical Care.47 piracy humanitarian assistance and disaster relief and response Japan reviews the performance of ODA recipient countries inter alia, through bilateral and multilateral exercises, information periodically. Infact the recent policies of Japan's ODA to India are sharing, training and dialogue”.45 The developments at the Indo- largely based on the recognition of India as an emerging economic Japanese strategic fronts during the two successive Democratic power in the region and in the world economy. The objectives of party of Japan (DPJ) Prime Ministers suggest that support for the extending ODA to India include: bilateral relationship between the two countries is bipartisan and

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1. Strengthening India's commitment to the international Japan Overseas Cooperation Volunteers (JOCV) programme and economy and help in its growth as a constructive partner in the the IndiaJapan intellectual exchange programme. Asian region; The most significant projects that have received funds under the 2. Promoting bilateral relations to strengthen Japan's security ODA is the Delhi-Mumbai Industrial Corridor (DMIC). Japan has environment by maintaining stability in South Asia where assured technical and monetary support for the project, which India is a dominant regional played; and, will require an estimated investment of $ 50 billion. Japan agreed to partner the corridor project during Indian Prime Minister 3. Contributing to India's poverty reduction strategies for 50 achieving the Millennium Development Goals (MDGs).48 Manmohan Singh's visit to Tokyo in December 2006. The DMIC would be build along the lines of the successfully operating The saga of ODA to India has been regular except for the period Tokyo-Osaka belt in Japan. The 1,483 km long industrial corridor just after1998 when India conducted its nuclear tests. Japan itself would be located beside the proposed Delhi-Mumbai Freight has slipped to the fifth position as an ODA donor country behind Corridor. The corridor will cover six states Uttar Pradesh, Delhi- the United States, Germany, the United Kingdom and France. NCR, Haryana, Rajasthan, Gujarat and Maharastra. It will link a India was the largest recipient of Japan's ODA loans for number of cities with a population of more than 10 Lakh developing infrastructure including transport and power as well including Faridabad, Surat, Delhi, Greater Mumbai, Meerut, as eradication of poverty. New Delhi received a total US $ 599. 81 Jaipur, Ahmadabad, Vadodara, Pune and Nashik. The million in 2008 in the form of grant aid and Yen loans. Perhaps the government may identify around 20 industrial hubs along the most noteworthy ongoing project as of 2008 has been the Delhi proposal Delhi Mumbai industrial Corridor, covering Mass Rapid Transport system now in phase - 2. The Japanese approximately 12,500 hectors. The industrial corridor will have a commitment of ODA loan in the year 2008 showed an increase by 4,000 MW power plant, three ports and six airports, apart from 4.8 percent over the previous year, making India the largest connectivity with existing sea ports. Besides giving a grant, Japan recipient of Japanese ODA loan for six consecutive years from will also invest in the project. Work on the Delhi Mumbai 49 fiscal year 2003. Industrial Corridors began in January 2008 and is expected to be Japan is offering ODA to tackle the increasingly serious problem completed in seven years. It will take an initial investment of $ 2 51 of environmental pollution in India. To address environmental billion from both countries. The remaining of the total cost of $ 50 concerns, Japan's ODA will be directed towards providing billion will be met through foreign investment and private sector assistance to improve water supply and sewage systems, partners. afforestation programmes, renewable energy and energy saving On the other hand, Japanese ODA to India has been the highest for projects, urban environment projects and environmental some time and has not only contributed to infrastructure conservation of rivers and lakes. development but also to poverty reduction health and medical One of the important goals of Japan's ODA to India is to build care and also areas like aforestation. With affirming its mutual understanding between the two countries. To achieve importance Prime Minister Noda pledged another US $ 4.5 billion this, a substantial increase in people- to-people contact is in the next five years for the DMIC project. A gamut of issues like required, particularly in areas involving technology. Japan will, energy cooperation, technology up gradation was also therefore, collaborate with the private sector in the areas of discussed. Foretelling a large amount of activity by Japanese human resources development youth invitation programmes, the companies in India.

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Economic relations between India and Japan have been growing products, gems and jewellery, textiles and non-metallic mineral steadily in recent years. Bilateral trade has nearly doubled from products.56 More recently, exports of oil related products have US $ 5.4 billion in 2004 -2005 to US $ 10.9 billion in 2008-09. Direct increased rapidly. investment Japan to India has also grown rapidly from US $ 126 While many of these concerns and issues relate to India's own million in 2004-05 to more than US $ 1 billion during April infrastructural and governance deficiencies as well as differences November 2009-10. Japan is currently the fifth largest source 52 in work cultures, Tokyo and New Delhi have set a firm foot on the country for Foreign Direct Investment in India. In December path to a growth in economic relations with the signing of the 2006, the Prime Ministers of the two countries decided to launch CEPA in early 2011, The CEPA will give Tokyo the same immediate negotiations for the conclusion of a bilateral Economic advantages that the South Koreans have garnered in concluding a Partnership Agreement (EPA)/ Comprehensive Economic similar agreement with India. This assumes significance simply Partnership Agreement (CEPA) aiming to complete in substance because of the fact that South Korea competes with Japan in as soon as possible in approximately two years. For Japan, this is 53 sectors such as automobiles and electronics and would find the the first EPA with BRICS countries. An EPA according to the vast Indian consumer market very attractive. South Korean Ministry of Foreign Affairs of Japan aims at “elimination of companies like Samsung, LG and Hyundai have gained a strong restraints on foreign investments, establishment of rules foothold in the Indian market. The opportunities offered by the governing investment, harmonization of intellectual property Indian market (as well as the Chinese) assume manifold systems and competition policy and cooperation in various 54 significance especially for the disaster- struck Japanese economy, areas”. Fourteen rounds of negotiations were held in New Delhi which was already in doldrums. This would also smoothen the and Tokyo before the CEPA was finally conclude in February Japanese use of vast Indian manpower resources. 2011. The conclusion of CEPA reported got delayed due to a few unresolved issues like those of non-tariff barriers to the export of The India-Japan CEPA, a comprehensive document with 147 generics and pharmaceuticals to Japan. In the automobile Articles, was signed with the following objectives in view: industry, unlike other players, Japanese manufactures import Facilitation of Liberalisation and Trade in Goods between both most parts from Japanese suppliers. Another promising area of sides; chemicals also remains relatively underdeveloped due to the fact Increasing Investment Opportunities and Strengthening that the Japanese side has very strict approval requirements for 55 Protection for Investments; the same. Protection of Intellectual Property and Cooperation; In terms of Trade, Japan has exported machinery, Transport equipment and Iron and steel. There is a need to diversify trade Improving Business Environment, and portfolio between the two countries. The turning point in the case Creation of Effective Procedures for Implementation and could be the recent successful conclusion of the EPA. Application of the CEPA and Resolution of Disputes.57 India's trade with Japan was focused on the exports of the cotton Under the provisions of the CEPA, India agreed to remove tariffs yarn in the pre-war years and changed to that of iron in the post- on as many as 94 per cent of goods over a period of 10 years. This war years. India exports gems Jewellery, iron and marine would facilitate easier and more comfortable Japanese entry into products to Japan. The major item of India's exports to Japan are the Indian market. Of course, some sectors have been kept marine products (like fish, shellfish, shrimps), ironore, petroleum

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168 169 India and Japan Relations India-Japan Relations: Growing Engagement protected and insulated from foreign competition like agriculture economic relationship. Towards that end, India has to take steps and agricultural products and some auto parts. Japan, on the like improvement of infrastructure and cutting down on other hand, has agreed to remove import tariffs for up to 97 per redtapism and corruption and become an attractive and cent tariff lines. The agreement also includes and incorporates the welcoming trade and investment destination. New Delhi also service sector within its ambit. needs to proactively work towards developing in areas like production of rare earth minerals so as to prove to be a viable Conclusion alternative to China. Furthermore, it will also help to find The India-Japan relationship has traversed a lengthy pathway- commonalities even in divergences. For instance, on the one largely inconsistent with its actual potential at most given prospects of civilian nuclear cooperation, yet to occur, the two points in history as well as in the present. The Cold War sides can work towards research and development on how best to international scenario reinforced the chill in bilateral ties as the minimize risks to nuclear sites in case of natural calamities like the two found themselves with divergent interests of the Fukushima disaster or terror attacks on nuclear facilities. international system then. This resultantly became a protracted Moreover, there remain other low key sectors of cooperation like delaying factor in energising relations. The end of the Cold War in science and technology and water and food security. Lastly, the a sense removed one of the biggest obstacles keeping the two language barrier has to be overcome and consistent efforts made sides aloof. Thereafter, there were two significant turning points to increase awareness and people-to-people exchange. in the course of the history of the bilateral relationship. The detailed joint-statement document laid out the pillars and It is clear that Japan and India have reached a new level of blueprint for a well-rounded, comprehensive and all-inclusive understanding of each other's strengths and needs, and in recent roadmap towards greater cooperation and collaboration in years diplomatic relations between the two nations have grown to manifold arenas. At present, both a favourable environment and a show that both Japan and India are keen on building on this blueprint for the fruition of relations are present. On the strategic relationship to further the interests of both countries and the and political front, regular high-level dialogues and exchanges, region. security dialogues (since 2001) on the 2+2 format are in place, while the CEPA has been successfully concluded to what could be the initiation of a rich trade and investment portfolio. There are a number of avenues for cooperation and coordination which could be enlarged in scope to become consequential. Of these, perhaps References nuclear energy would be the most noteworthy. 1. Utpal K. Banarjee, Role of Cultural Diplomacy in Indian Foreign Policy: Agenda for the 21st century, Vol.1 (Konark Publishers, New It is clear that in order to raise the bar of bilateral ties to the next Delhi, 1998) P.401. level in the future, these convergences have to be cultivated and optimized, while divergences have to be diluted and narrowed 2. Ibid. down. It is important not to limit the cause of furthering India- 3. Tokio Yamda, “Japan India Relation A time for Sea Change” in Japan relations just as a measure to counter or hedge against the K.Kesavapany, A, Mani & P. Ramaswamy (eds), Rising India and Indian Communities in East Asia, (ISEAS, Singapore, 2008), p. 147. rise of China, but to see more substance in it. Some steps need to be taken to further strengthen and bolster India-Japan ties. 4. M.M Ahluwalia, “Freedom Struggle in India 1858-1909” (Delhi 1965), p. Firstly, it is important to work on and ameliorate the bilateral 204.

170 171 India and Japan Relations India-Japan Relations: Growing Engagement protected and insulated from foreign competition like agriculture economic relationship. Towards that end, India has to take steps and agricultural products and some auto parts. Japan, on the like improvement of infrastructure and cutting down on other hand, has agreed to remove import tariffs for up to 97 per redtapism and corruption and become an attractive and cent tariff lines. The agreement also includes and incorporates the welcoming trade and investment destination. New Delhi also service sector within its ambit. needs to proactively work towards developing in areas like production of rare earth minerals so as to prove to be a viable Conclusion alternative to China. Furthermore, it will also help to find The India-Japan relationship has traversed a lengthy pathway- commonalities even in divergences. For instance, on the one largely inconsistent with its actual potential at most given prospects of civilian nuclear cooperation, yet to occur, the two points in history as well as in the present. The Cold War sides can work towards research and development on how best to international scenario reinforced the chill in bilateral ties as the minimize risks to nuclear sites in case of natural calamities like the two found themselves with divergent interests of the Fukushima disaster or terror attacks on nuclear facilities. international system then. This resultantly became a protracted Moreover, there remain other low key sectors of cooperation like delaying factor in energising relations. The end of the Cold War in science and technology and water and food security. Lastly, the a sense removed one of the biggest obstacles keeping the two language barrier has to be overcome and consistent efforts made sides aloof. Thereafter, there were two significant turning points to increase awareness and people-to-people exchange. in the course of the history of the bilateral relationship. The detailed joint-statement document laid out the pillars and It is clear that Japan and India have reached a new level of blueprint for a well-rounded, comprehensive and all-inclusive understanding of each other's strengths and needs, and in recent roadmap towards greater cooperation and collaboration in years diplomatic relations between the two nations have grown to manifold arenas. At present, both a favourable environment and a show that both Japan and India are keen on building on this blueprint for the fruition of relations are present. On the strategic relationship to further the interests of both countries and the and political front, regular high-level dialogues and exchanges, region. security dialogues (since 2001) on the 2+2 format are in place, while the CEPA has been successfully concluded to what could be the initiation of a rich trade and investment portfolio. There are a number of avenues for cooperation and coordination which could be enlarged in scope to become consequential. Of these, perhaps References nuclear energy would be the most noteworthy. 1. Utpal K. Banarjee, Role of Cultural Diplomacy in Indian Foreign Policy: Agenda for the 21st century, Vol.1 (Konark Publishers, New It is clear that in order to raise the bar of bilateral ties to the next Delhi, 1998) P.401. level in the future, these convergences have to be cultivated and optimized, while divergences have to be diluted and narrowed 2. Ibid. down. It is important not to limit the cause of furthering India- 3. Tokio Yamda, “Japan India Relation A time for Sea Change” in Japan relations just as a measure to counter or hedge against the K.Kesavapany, A, Mani & P. Ramaswamy (eds), Rising India and Indian Communities in East Asia, (ISEAS, Singapore, 2008), p. 147. rise of China, but to see more substance in it. Some steps need to be taken to further strengthen and bolster India-Japan ties. 4. M.M Ahluwalia, “Freedom Struggle in India 1858-1909” (Delhi 1965), p. Firstly, it is important to work on and ameliorate the bilateral 204.

170 171 India and Japan Relations India-Japan Relations: Growing Engagement

5. Y. Yagama Reddy, India-Japan Towards Harnessing Potential of 26. Ibid. Partnership, (Kaveri Books, New Delhi, 2012), Preface p. vi 27. JapanIndia Joint Declaration, Tokyo, December 10, 2001, 6. Foreign Affairs Record, Vol. xxx, No.5,May 1984, pp. 174-78. http//www.mofa.go.jp/region/asia-paci/india/joint0112.html. 7. Prakash Nanda, Rediscovering Asia: The Evolution of India's Look 28. Sujeet Samoddar, “INDO-JAPAN RELATIONS retrospect and East Policy (Lancer Publishers, New Delhi, 2003), p. 236 prospect”. Journal of Indian Ocean Studies. Vo.16. No. 3. December 2008. p. 177 8. Annual Report, Ministry of External Affairs, 1985-86, p.17. 29. Joint statement towards “JapanIndian Strategic and Global Partnership”. 9. Foreign Affairs Record, vol. xxx1, No.11, November 1985, P. 367. http//www.in.emb-Japan.go.jp/whats new archives.html. 10. Tokio Yamda, “Japan India Relation No. 3 p.149. 30. Samoddar. INDO-JAPAN No.28, p.178 11. Ibid. 31. “Joint Statement on the Road Map for New Dimensions to the Strategic 12. Dixit J.N., My South Block Years: Memories of Foreign Secretary, a n d G l o b a l p a r t n e r s h i p b e t w e e n J a p a n a n d I n d i a . ” (UBSPD New Delhi, 1996), p. 58, http//www.mofa.go.Jp/ region/asia-pacl/pmv0708/Joint-2.html. 13. Grare Frederic & Mattoo Amitab, India and ASEAN the Politics of 32. “Joint Statement on the Advancement of the Strategic and Global India's Look East Policy (Manohar Publications, New Delhi, 2001), p.28- Partnership between Japan and India”, Tokyo, October 22, 2008. Source 29. http//www.mofa.go.jp/region/asia paci/pmr0708/joint-2. Html 14. Ibid p. 28. 33. Samoddar, INDO-JAPAN, No.28, P. 179. 15. Dixit, My South Block Years: No.12 p. 254. 34. The coast lengths of India, Japan and China are as follows: India 7000km, Japan -29,751 km and China 14,5000 km. Data from the CIA World Fact 16. Arpita Mathur, INDIA-JAPAN RELATIONS Drivers Trends and Book. Prospects, (RSIS Monograph No.23, Singapore 2012). P. 19. 35. Rajaram Panda, “India and Japan: Exploring Strategic Potentials”, Focus, 17. Ibid p. 20. Vol. No. 4 October 2010. P. 92 18. Dixit J.N., Across Borders: 50 years of India's Foreign Policy (Sangam 36. Planning Commission, Government of India, Draft report of the Expert Books Ltd., 1998), p. 219. committee on integrated energy policy, December 2005, 19. Response to the Second Nuclear Testing conducted by India, 14 May http//www.planning commission. nic.in/reports/generep/intengpol. 1998. http://www.mota.go.jp/announce/announce/1998/5/0312-09 html. PDF, on 30 May, 2009, p. 60 20. Satu P, Limaye, “Tokyo Dynamics Diplomay: Japan and the 37. “World oil Transit choke points” http//www.eia.doe,gov/cabs/world oil- Subcontinents Nuclear Tests”. Contemporary Southeast Asia, Vo. 22, Transit Chokepoints/fullhtml. issue 2, 2000. P. 322. 38. G.V.C Naidu, “IndiaJapan Relations”, World Focus, Special issue, 21. S. Jaishankar, India Japan relations after pokhran II. Seminar. http:// (October, 2010), p. 462. www. India-seminar.com/ 2000/487/487%20 Jaisankar.htm. 39. Ibid. 22. Arpita Mathur, INDIA-JAPAN RELATIONS No.16 p. 24. 40. Ibid. 23. Ibid p. 25. 41. Rajaram Panda, “India and Japan”, No.35, p.90. 24. Hiroshi Hirabayashi,. “The Directions of Japan's Foreign Policy”, in K.V. 42. Naidu G.V.C. “New Dimensions to the India-Japan strategic Kesavan (ed.), Building a Global Partnership: Fifty Years of Indo partnership: Shinzo Abe visit” Strategic Analysis, Vol. 31. Issue 6, 2007. Japanese Relations (Lancer Books, New Delhi, 2002), p. 26. Pp. 965-971. 25. Tokio Yamda, “JapanIndia Relation No.3 p. 150.

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172 173 India and Japan Relations India-Japan Relations in the Post 1990 Phase: 43. Siddhartha Varadarajan, “India- Japan say new security ties not directed Some Reflections on the Security Sector Cooperation against China”, The Hindu, 23 October 2008. 44. “Joint Statement New Stage of India-Japan Strategic and Global B.C. Upreti Partnership” 29 December, 2009. http//www.mea.gov.in/mystart.php? id=100515441. 45. “Joint Statement; Vision for India Japan Strategic and Global Partnership in the next decade” 25 October, 2010, http//www.mea.gov .in/ my start One of the important dimensions of the post cold war world order php ? id=100516597. has been the shifting of the focus of world politics from Europe to 46. Y .Yagama Reddy, “India-Japan towards”, No. 5 Preface p. ix Asia. Another important dimension is an added emphasis on geo- 47. Geetanjali Nataraj, “India-Japan. Investment Relation: Trends and strategic to geo-economic aspects, expansion of market forces and Prospect” ICRIER (Working Paper no.245, New Delhi 2010), p.9. the quest for Asian supremacy has given rive to big power rivalry in South Asia. While the cold war era powers are still trying to 48. Ibid. ensure their hold in Asia, the emerging Asian powers too have 49. Arpita Mathur, INDIA-JAPAN, No.16 p.86. been asserting upon their Asian identity and solidarity.1 It has 50. Geetanjali Nataraj, “India-Japan. Investment Relation”, No.49, p.10. made Asia a hot spot of the contemporary world politics. It is in 51. Ibid. this context that the relations between two major Asian powers: 52. Sindeerpal Singh, “A New Japan and Possible implications for Japan and India and Japan carry significance. India relations” South Asia Issue No.15 (ISAS, Singapore, April 2010), Further the context of the changing political and security scenario p.4. in Asia is a significant development. Three major Asian powers 53. BRICS is an acronym to the five economies of Brazil, Russia, India, China, India, China and Japan are looking for Asian peace and solidarity and South Africa (include in 2010). and at the same time their own prospects for their prominence in 54. A Free Trade Agreement has been defined as an agreement with the context of the changing dynamics of the Asian politics is an objectives like elimination of barriers to foreign participation in domestic important issue. The emerging dynamics of security sector service industries, cooperation between India-Japan is indeed a clear indication of 55. Confederation of Indian Industry, A Brief note on India-Japan Trade and the changing perceptions of the countries of the region and their Investment Relations April, 2007, http//cii.in/documents/india%, quest for mutual security, peace and stability. 20japan%,20trade%20and 20 investment% 20relations, pdf on 12 November 2009. Japan's Asia Policy: Trends During the Post Second 56. Fact sheet on Japan (as on 24 June 2009) Ministry of External Affairs, World War Era India http//meindia.nic.in. Japan took least interest in international affairs in the years 57. Original Text of the Comprehensive Economic Partnership Agreement following the end of the Second World War. It was clear that between Japan and the Republic of India. Retrieved from Japan was interested in adopting a policy of isolation except for its http://www.mofa.go.jp/ region/asia-paci/india/epa201102/pdfs alliance with the U.S. /ijcepa_ba_e.pdf. p.10. One striking feature of Japan's foreign policy in thepost second world war era was that unlike many countries of the western block there was a strong urge in Japan to build itself without military forces and without any involvement in the international

174 175 India and Japan Relations India-Japan Relations in the Post 1990 Phase: 43. Siddhartha Varadarajan, “India- Japan say new security ties not directed Some Reflections on the Security Sector Cooperation against China”, The Hindu, 23 October 2008. 44. “Joint Statement New Stage of India-Japan Strategic and Global B.C. Upreti Partnership” 29 December, 2009. http//www.mea.gov.in/mystart.php? id=100515441. 45. “Joint Statement; Vision for India Japan Strategic and Global Partnership in the next decade” 25 October, 2010, http//www.mea.gov .in/ my start One of the important dimensions of the post cold war world order php ? id=100516597. has been the shifting of the focus of world politics from Europe to 46. Y .Yagama Reddy, “India-Japan towards”, No. 5 Preface p. ix Asia. Another important dimension is an added emphasis on geo- 47. Geetanjali Nataraj, “India-Japan. Investment Relation: Trends and strategic to geo-economic aspects, expansion of market forces and Prospect” ICRIER (Working Paper no.245, New Delhi 2010), p.9. the quest for Asian supremacy has given rive to big power rivalry in South Asia. While the cold war era powers are still trying to 48. Ibid. ensure their hold in Asia, the emerging Asian powers too have 49. Arpita Mathur, INDIA-JAPAN, No.16 p.86. been asserting upon their Asian identity and solidarity.1 It has 50. Geetanjali Nataraj, “India-Japan. Investment Relation”, No.49, p.10. made Asia a hot spot of the contemporary world politics. It is in 51. Ibid. this context that the relations between two major Asian powers: 52. Sindeerpal Singh, “A New Japan and Possible implications for Japan and India and Japan carry significance. India relations” South Asia Issue No.15 (ISAS, Singapore, April 2010), Further the context of the changing political and security scenario p.4. in Asia is a significant development. Three major Asian powers 53. BRICS is an acronym to the five economies of Brazil, Russia, India, China, India, China and Japan are looking for Asian peace and solidarity and South Africa (include in 2010). and at the same time their own prospects for their prominence in 54. A Free Trade Agreement has been defined as an agreement with the context of the changing dynamics of the Asian politics is an objectives like elimination of barriers to foreign participation in domestic important issue. The emerging dynamics of security sector service industries, cooperation between India-Japan is indeed a clear indication of 55. Confederation of Indian Industry, A Brief note on India-Japan Trade and the changing perceptions of the countries of the region and their Investment Relations April, 2007, http//cii.in/documents/india%, quest for mutual security, peace and stability. 20japan%,20trade%20and 20 investment% 20relations, pdf on 12 November 2009. Japan's Asia Policy: Trends During the Post Second 56. Fact sheet on Japan (as on 24 June 2009) Ministry of External Affairs, World War Era India http//meindia.nic.in. Japan took least interest in international affairs in the years 57. Original Text of the Comprehensive Economic Partnership Agreement following the end of the Second World War. It was clear that between Japan and the Republic of India. Retrieved from Japan was interested in adopting a policy of isolation except for its http://www.mofa.go.jp/ region/asia-paci/india/epa201102/pdfs alliance with the U.S. /ijcepa_ba_e.pdf. p.10. One striking feature of Japan's foreign policy in thepost second world war era was that unlike many countries of the western block there was a strong urge in Japan to build itself without military forces and without any involvement in the international

174 175 India and Japan Relations India-Japan Relations in the Post 1990 Phase: Some Reflections on the Security Sector Cooperation affairs, particularly related to disputes involving countries and Senkakis. There is Korean occupied Takeshim Island in the sea of power blocks. The article 9 of the Japanese constitution Japan. Japan has also to look into these issues in the broader renounced right to war and decided not to go for a military force. perspective of the activities in the Korean peninsula and also the Japan insisted on peace and stability all over the world. Despite its possible quest for Asian supremacy.4 renouncement to war, armed forces and war weaponry, Japan as The conflict between Taipei and Beijing is a cause of concern for stated above, opted for a close alliance with the United States, Japan obviously for geo-strategic reasons if not any thing else. The which provided a security umbrella to that country. This short of conflict in the Korean peninsula has made the region more risk alliance also saved it from indulgence in the politics of cold war. prone, particularly after North Korea's attempts towards Under the security umbrella of the United States Japan nuclearisation. It has also attracted external powers in the region concentrated on its economic development. As a result she and enhancing possibilities for more regional disturbances. Japan emerged as a strong economic power after 1970, along with a considers it a security threat in the region. strong base for a stable and democratic political-system.2 Japan's general silence in world affairs and its acceptance of close China is also becoming an important factor in Japan's new look association with the United States resulted in Japan's disinterest towards its role in Asia. Japan for see its competition with China, in the affairs of Asia. Japan obviously did not have a clearly India and Indonesia in the Asian region. Japan is particularly defined long term goals and strategies in Asia. concerned about China because of its moderate shift to market economy and rapid economic growth. China is not only a giant The Post Cold war Scenario country with world's largest population but also a nuclear The reshaping of the world order and international affairs after weapon state and a leading regional military power. There are the end of the cold war in 1990 tempted Japan as well, like many possibilities of a conflict between Japan and China over resources other countries, to reorient and recast its foreign policy objectives of Asia. Apart from the question of controlling Asian market, and strategies in the context of changing needs and priorities. In Japan is also concerned about China's interest in Asia particularly the changed circumstances Japan seems to have realized that the in South-East Asia, which is a region of economic and politico- regional peace, security and developmental issues were more strategic importance. China is not only interested inconsolidating important compared to the global issues. its relations with the ASEAN but also in consolidating its security In the last few years there is a greater awareness in Japan's foreign relations in Asia. Thus, China might pose security threats to Japan policy calculations and Japan is trying to look to Asia in a more in a long-term perspective, apart from strong economic assertive way. There are certain factors that seem to have competitionswith that country. It may also be added here that compelled Japan to concentrate more on the security and India has also been consistently interested in expanding its economic issues in Asia, particularly in the northeast Asia. The relations with ASEAN after 1990.Thus, Japan finds competition 5 territorial security and regional stability has become an important with both India and China in South East Asia. 3 issue for Japan. Japan's neighbours are Russia, Korea, China and Japan has also decided to go for the defense build up. For a long Taiwan. Japan has territorial disputes over the Russian occupied time Japan had resisted it. But it seems that with the increased northern territories comprising of the two southern most islands security risks in the neighbouring region, severe security risks in of the Kurilechain: The Etorofu and Kunashirislands and the the neighbouring region, increasing security and strategic smaller island of Shikotan and the Habomai. Japan has also interests in Asia, Japan has decided to go for defense dispute with China and Taiwan over islands near Ryukyns called preparations. This might have long-term implications for the

176 177 India and Japan Relations India-Japan Relations in the Post 1990 Phase: Some Reflections on the Security Sector Cooperation affairs, particularly related to disputes involving countries and Senkakis. There is Korean occupied Takeshim Island in the sea of power blocks. The article 9 of the Japanese constitution Japan. Japan has also to look into these issues in the broader renounced right to war and decided not to go for a military force. perspective of the activities in the Korean peninsula and also the Japan insisted on peace and stability all over the world. Despite its possible quest for Asian supremacy.4 renouncement to war, armed forces and war weaponry, Japan as The conflict between Taipei and Beijing is a cause of concern for stated above, opted for a close alliance with the United States, Japan obviously for geo-strategic reasons if not any thing else. The which provided a security umbrella to that country. This short of conflict in the Korean peninsula has made the region more risk alliance also saved it from indulgence in the politics of cold war. prone, particularly after North Korea's attempts towards Under the security umbrella of the United States Japan nuclearisation. It has also attracted external powers in the region concentrated on its economic development. As a result she and enhancing possibilities for more regional disturbances. Japan emerged as a strong economic power after 1970, along with a considers it a security threat in the region. strong base for a stable and democratic political-system.2 Japan's general silence in world affairs and its acceptance of close China is also becoming an important factor in Japan's new look association with the United States resulted in Japan's disinterest towards its role in Asia. Japan for see its competition with China, in the affairs of Asia. Japan obviously did not have a clearly India and Indonesia in the Asian region. Japan is particularly defined long term goals and strategies in Asia. concerned about China because of its moderate shift to market economy and rapid economic growth. China is not only a giant The Post Cold war Scenario country with world's largest population but also a nuclear The reshaping of the world order and international affairs after weapon state and a leading regional military power. There are the end of the cold war in 1990 tempted Japan as well, like many possibilities of a conflict between Japan and China over resources other countries, to reorient and recast its foreign policy objectives of Asia. Apart from the question of controlling Asian market, and strategies in the context of changing needs and priorities. In Japan is also concerned about China's interest in Asia particularly the changed circumstances Japan seems to have realized that the in South-East Asia, which is a region of economic and politico- regional peace, security and developmental issues were more strategic importance. China is not only interested inconsolidating important compared to the global issues. its relations with the ASEAN but also in consolidating its security In the last few years there is a greater awareness in Japan's foreign relations in Asia. Thus, China might pose security threats to Japan policy calculations and Japan is trying to look to Asia in a more in a long-term perspective, apart from strong economic assertive way. There are certain factors that seem to have competitionswith that country. It may also be added here that compelled Japan to concentrate more on the security and India has also been consistently interested in expanding its economic issues in Asia, particularly in the northeast Asia. The relations with ASEAN after 1990.Thus, Japan finds competition 5 territorial security and regional stability has become an important with both India and China in South East Asia. 3 issue for Japan. Japan's neighbours are Russia, Korea, China and Japan has also decided to go for the defense build up. For a long Taiwan. Japan has territorial disputes over the Russian occupied time Japan had resisted it. But it seems that with the increased northern territories comprising of the two southern most islands security risks in the neighbouring region, severe security risks in of the Kurilechain: The Etorofu and Kunashirislands and the the neighbouring region, increasing security and strategic smaller island of Shikotan and the Habomai. Japan has also interests in Asia, Japan has decided to go for defense dispute with China and Taiwan over islands near Ryukyns called preparations. This might have long-term implications for the

176 177 India and Japan Relations India-Japan Relations in the Post 1990 Phase: Some Reflections on the Security Sector Cooperation

Asian region as well as in the global context. Hence it is going to be at the global level, which has prompted to build up its strong a major development in the post cold war foreign policy of Japan. foundation in terms of its role in South Asia. Japan is looking It has also to be pointed out here that Japan is passing through a forward for its position as a permanent member of Security transitional phase after 1990. There are two contradictory aspects Council of UNO. She is also interested in the restructuring of emerged in Japanese nationalism during the last decades. Japan UNO. It is in the context of these changing scenario, goals and had bitter experiences of nuclear holocaust towards the end of the objectives that Japan has tried to reshape its policy towards Asia Second World War. Japan denounced war, arms building and after 1990. armed forces. However, it accepted a policy of close association Japan and India with the United States. Japan's national identity is based on the It is true that in Asia Japan has given more importance to China, western ideals, strong impulses of modernization and Korea and South East Asia in comparison to the South Asian technological advancement and its rich cultural heritage. Japan region for a long time. It is also true that during the Cold War Era, succeeded in building its identity on the basis of a strong it did not receive attention in Japan's diplomatic calculations. admixture of tradition and modernity. But it did not accord a Despite the fact that Japan's reemergence after the Second World status to Japan in the arena of international politics. Japan War was greatly appreciatedby India. Japan's participation to the emerged as a strong economic and technological power but it was Afro-Asian conference at Bandung in 1955 was supported by neither accepted as a global power nor as an Asian giant in India Sri Lanka and Myanmar. However, India remained international relations. Many people in Japan would still like to neglected in Japan's foreign policy calculations. There have been continue to yearn with the past glories. But the Post World War several constraints and problems in this regard. generation of Japan has a different orientation. They are not sentimental about Japan's economic development would like to The geographical distance has been a major obstacle in Japan's see the economic giant to play an assertive role in international relations with India. Japan forms part of the North-East Asia politics. Apart from Japan's search for a political space, the while the South Asian region constitutes the Southwest part of emerging security concern in Asia have necessitated for it to come Asia. Thus, physically Japan and India are poles apart. This closer to Asia and find out a role in the region. geographical distance prevented the two regions from any natural attraction towards the each other. Japan is an economic power it has faced critical years of economic recession but has succeeded in overcoming it. Japan believes that The cultural difference between Japan and India has a serious it can play a significant role in peace and stability through foreign constraint. Despite the fact that Japanese are followers of aid. Japan was a major recipient of aid after the world war. Today Buddhism and also that Japanese are tradition-loving people, Japan has become a major donor in Asia. there are vast differences in socio-cultural, economic and political life of the people of the two countries. The people of Japan have Japan is also interested in promoting democracy. It believes that great regards for their tradition and culture. But they are as much economic prosperity and peace can be achieved through modernized as Europeans. Japan has a highly modernized society democratic governance. Japan has also become key actor in and economy as Europeans. Japan has a highly modernized and regional economic organizations in Asia.Japan has tried to play a industrially advance society, which has obviously influenced role in regional organizations. Japan is the only Asian country their life style, norms, behaviour and orientation. The two having membership of G-8. Hence it provides a link between countries little know about each other's culture. developed and developing countries. Japan also has larger goals

178 179 India and Japan Relations India-Japan Relations in the Post 1990 Phase: Some Reflections on the Security Sector Cooperation

There have been little knowledge and understanding between Japan also began to reshape its foreign policy priorities in the post Japan and South Asian countries towards each other. The cold-war phase. There was a greater emphasis on consolidating linguistic, geographical and cultural barriers have been major its Asia policy and finding a role there in. In the subsequent years, obstacles in exchanges of knowledge. there has been a considerable change in the attitude and status of Japan's perception of India has been for long that of a region Japan. Consequently, there has also been a shift in Japan's attitude and policy.6 A number of factors contributed to the shift in Japan's characterized by high rate of population growth, low literacy, 7 poverty, poor infrastructural facilities, ethno-regional and attitude. communal tensions, urban-rural divides and so on. Therefore, it 1. The market reforms and liberalization measures taken up by lacked strong economic and commercial potentials. The perennial India under the influence of the new international economic conflicts between India and Pakistan gave impression that the order, lead to the restructuring of its economy. It opened new South Asian region was a conflict-ridden zone where large-scale and better opportunities of investment and trade in the investments were risky. There had also been problems of political country. instability, ethnic and political violence and inconsistency in 2. Japan has realized that there are large investment economic policies in India. These were also discouraging factors opportunities in India Similarly; India also provides a huge in building meaningful relations between the two. market for Japanese goods. India could also provide raw The cold war politics also influenced the India-Japan relations to a material to Japan. considerable extent. Japan had a closer understanding with the 3. The process of globalization and liberalization unleashed a big United States. India was viewed as a close allay of the Soviet competition between multinational corporations. They were Union though India was not involved in the politics of cold war. in search of market particularly in developing countries In fact, India had been strongly and successfully advocating Japan's cool attitude towards India would have pushed it back. policy of nonalignment and it helped India to keep the cold war Hence, it became imperative for Japan to take interest in the politics at a bay. India developed friendly relations with USSR country, keeping in view the trends of globalization and particularly after 1970, which were misperceived. It, however, market economy. resulted in Japan's cool look towards South Asia. 4. In the context of its renewed interest in Asia, Japan realized Reshaping Foreign Policy Priorities that there was an acute conflictual situation in South Asia The end of the cold war politics in 1990, and the disintegration of particularly due to hot climate of Indo-Pakistan relations. the Soviet Union induced considerable changes in the foreign Peace and stability was considered to be vital for the region. policy perception of a large number of countries, developed as Japan also realized that India and Pakistan's attempts towards well as developing. The world wide expansion of the policies of nuclear proliferation would trigger proliferation of nuclear globalization and liberalization, expansion of market forces, weapons in other areas as well particularly by North Korea. reduction in the significance of geopolitics in interstate relations and in its place geo-economic taking an overwhelming 5. There has also been a greater realization on the part of Japan importance, encouraged nation-states to reshape their foreign regarding geo-strategic importance of India. The South Asian policies and recast their foreign policy priorities. region commands trade routes between South East Asia and the West. It also has command over routes to western Asian oil supplies.

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6. The shifts in regional environment in Asia in the post cold war Pakistan-China-North Korea axis. era also prompted Japan to take increased interest in India. 6. Need for creating a strategic equilibrium in South East Asia. India's emergence as a major economic power, the increased Chinese economic and security interests in Asia, reshaping of Some common factors have brought India and Japan together US- China relations, emergence of independent states of over the issue of security sector cooperation: Central Asia and the 'great game' being played in a renewed 1. Adherence to peace democracy, development and peace. form in the region etc., were some of the factors which have been significant. 2. Common understanding of Asian peace, and security. 3. Strategic balance in Asia-Pacific. Shift in India's Perception Like many other countries India's foreign policy also underwent a 4. Rise of International terrorism. massive reshaping of in the post cold war phase. It became 5. Nuclearisation. essential for India to search for new alliances in the absence of a powerful friendly country Soviet Union. It had also become Cooperation for East Asian Security imperative for India to recast its priorities of economic linkages in India-Japan cooperation is important in the perspective of 8 the context of globalization and liberalization. Like most of the emerging issues of Asian security. It is a fact that Asia has been in countries of the third world India also followed the look east the focus in the post cold war era and the growing external policy in the early 1990's, which obviously took India's interest interest in Asia and the rise of Asian powers has tremendously South East Asia, and beyond. increased the possibilities of for power in Asia. India, Japan and China are rising Asian powers and they are aware of the fact that India's interest has been in the changing politico-strategic their prospects of acquiring the status of a world power would environment of Asia and more specifically in the Asia Pacific depend upon their position in Asia. China has emerged very fast region. over the years. In the context of Asian supremacy China is a Apart from India's emphasis an geo-economic issues in the serious contender against both India and Japan. Interestingly, context of the emerging international order and India's look east Japan has disputes with China over Islands in South China Sea policy there were other related issues which prompted India to and India has border dispute with China. In this context both forge a closer security cooperation with Japan, will as follows: India and Japan can play a significant role in Asian security India 1. Emergence of China as a major world power and its assertion has shown interest in the East Asian security. In fact, in the context for Asian prominence. of increasing Japan-China dispute and the nuclear armament by North Korea, East Asia is becoming a vulnerable region and the 2. India-US rapprochement, particularly the civil nuclear deal peace in East Asia would also determine peace in Asia.9 It may be and defense and security cooperation. added here that there are a number of unsettled 3. Rise of international terrorism particularly cross border territorial/boundary and maritime disputes in the region and it is terrorism. also an economically vibrant region. In the context of the rising challenges of security, peace and stability both India and Japan 4. China-Pakistan axis have greed for a closer security cooperation. Some of the areas 5. North Korean nuclear programme and the emerging threats of where both the countries have taken certain steps are as follows.

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Defense Cooperation India-Japan Nuclear Cooperation India and Japan have agreed for cooperation in the field of There are two important aspects in the context of India-Japan defense. In the past few years the two countries have agreed for nuclear cooperation. Japan is among those countries of the world, the following in the area of defense: which has been advocating for worldwide ban on nuclear 1. Annual comprehensive security dialogue. proliferations and a staunch supporter NPT. Japan tried to restrain nuclear proliferations even for peaceful purposes for a 2. Military to military talks. longtime. In 1998 after Indian and Pakistani nuclear test 3. Joint military exercises explosions Japan joined the United States of American to lay economic sanctions on India and Pakistan. 4. Sending self defense forces in each others country. However, there has been a change of perception in Japan during Energy Security Cooperation the last one decade. Japan has seemingly followed a liberal Energy is becoming an important dimension of the energy sector approach. Things have undergone a remarkable change. Japan's cooperation between India and Japan. It may be pointed out here attitude towards India's nuclear policy has changed after the that both India and Japan need energy resources. Japan is largely India-US nuclear deal took place. Japan not only supported it but dependent on the external sources of energy resources. The also took a liberal view of India's stand on nuclear test bans. India protection of sea-lanes is an important issue. The issues of climate and Japan for the first time discussed nuclear issues in January change and disaster management are equally important for both 2006 during Japanese Foreign Minister Taro Aso's New Delhi the countries. Both the countries have shown interest in bilateral visit. India agree to partnership is order to pursue goals of global and multilateral cooperation for energy security. Japan is nuclear disarmament and non-proliferation. Japan has followed a interested in providing assistance for energy resource liberal and cooperative view of India's civil nuclear energy development in India and the other countries of South Asia. development programme. Cyber Security Maritime Security Issues With the advancement of Modern technologies and its easy India-Japan maritime security relations began to take shape in the accessibility, the issue of cyber security has become prominent. mid 1990's when officials and the defense ministries of the two Japan is much more concerned about cyber security due to its countries began consultations on issues of common interests. In excessive dependence on cyber technology. Both the countries 1990 India helped in rescuing a Japanese fright ship in the Indian have agreed on exchange of information and bilateral cooperation Ocean. In March 2000 Indian coastguard was invited for a on the issues relating to cyber security. meeting in Japan. Since then India and Japan have been working Space Security together to contain sea piracy and protection of sea-lanes. In April 2007 the Indian, Japanese and the US naval forces participated in Space security is becoming highly important due to the strategic trilateral maritime exercises. importance of space in modern times. The combat operations, missile attack warming's, communication, surveillance, etc are The coast guards of two countries have been conducting joint possible through space. The space technology has developed to exercises regularly and the Indian Navy and the Japanese the extent in modern times that it has become an asset as well as a Maritime Self-Defense Forces have been in regular contacts to to liability. ensure maritime safety.10

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It may be pointed out here that the strait of Malacca forms the life for their respective reasons. The peace and stability in Asia line for Japanese economy 90percent of Japan's oil requirements depends to a large extent, on the peace and cooperation between are met through Persia Gulf. Nearly 50 percent of crude oil passes the Asian triangle. There is a compulsion for each of this triangle through sea-lanes. Therefore Japan needs collaboration with to take cognizance of the other and it is this perception that has countries like India for the security of sea-lanes. Anti piracy, brought Japan and India together to entre into multidimensional patrolling of sea-lanes, security against terrorism, attack on ships collaboration in the area of defense and security. is other such issues. Japan's dilemma has also been its excessive dependence on Ballistic Missile Development external energy resources for which there is a need for the security The Ballistic Missile Development Programme also constitutes an of sea-lanes. The space and cyber security are other emerging important part of the security sector collaboration between the issues. two countries. It is interesting to note that both India and Japan It is in India's interest to strengthen its strategic and security ties were opposed to Ballistic Missile Development Programme. with Japan, as India needs support for its drive against terrorism, A clear perception was that the missile development programme energy security, etc. It is true that there is no geographical has led to arms race. But the US president Bush motivated the two proximity between the two countries but there are several areas of countries to entre into BMD Programme in 2001.11 The new work common interest that opens up avenues of cooperation. plan launched in 2001 stipulated that BMD was essential to It is interesting to note that the India-Japan security sector counter different types of threats. It was also viewed important in cooperation has been activated with India's improved relations the context of creating a strategic equilibrium and also to with the United States: Indo-US civil nuclear deal and defense strengthen defense cooperation. and strategic collaborations. It means that the United States of Both India and Japan has shown interest in collaborating for BMD America has been an important motivating factor. Japan has been programme since 2001. very close to the United States ever since the end of Second World War and there has been a shift in US altitude towards India. Summing up However, a long term India-Japan security sector collaboration It is a fact that India and Japan have gone a long way during the has to take place outside the US umbrella. last one and a half decade, particularly in forging meaningful security sector cooperation. There has been a mutuality of objectives and perceptions. Both the countries are concerned for Asian solidarity and peace and stability in Asia. Japan's major concern has been Asia pacific and the North Korean nuclear References programme and the disputes with China disturbs it. While India's major concern has been Pakistan and China. The cross-border 1. For detailed discussion of the major emerging issues in the post cold war era see, Dilip H. Mohite and Amit Dholakia (eds.), India and the terrorism sponsored by Pakistan has been a major issue for India. Emerging World Order, Foreign Policy and Security Perspectives, China is a common factor for both the countries. Both India and Kalinga publication, Delhi, 2001. Japan see China as main contender in Asia. China has emerged as a strong world power. China has left Japan for behind interns of 2. Purendra Jain, “Democratic Development in Japan”, Indian Journal of Asian Affairs, Vol. 17, No. 1, June 2004. economic development. But it is not possible both to ignore China

186 187 India and Japan Relations India-Japan Relations in the Post 1990 Phase: Some Reflections on the Security Sector Cooperation

186 187 India and Japan Relations India-Japan Maritime Cooperation 3. Wolf Mendl, Japan's Asia Policy, Regional Security and Global Extending Milestones Interest, Rutledge, London, 1997: 5-7. 4. See, Akaha Tsuneo, “Japan's Security Agenda in the Post Cold War Era”, Prabhakaran Paleri The Pacific Review, Vol. 8 No. 1, 1995: 1-2. 5. Mohan Malik, “Japan's Wary of Assertive China” Jains Intelligence Review, 12-12, December 2000; Also See, David Shambaugh, “Growing Abstract Strong: China's Challenges to Asian Security”, Survival, Vol. 36, No. 2, Summer, 1994: 4359. India and Japan, though entirely diverse on socio-political entities, were historically drawn into an unusually warm and friendly relationship in spite of all the challenges 6. See, K.V. Kesvan, “Japan and South Asia: Some Security Considerations” that had been shaping the world in the past. Any attempts of cooperation between in M.D. Dharamdasani (ed.), Japan's Role in South Asia;Kanishka, these two countries are, therefore, to be examined under the premise of natural Delhi, 2003: 76-78. friendship and civility rather than the “need of the hour” strategic challenges that usually happen in international politics. The relationship is not, in its core, prompted 7. See, Purendra Jain “Japan and South Asia between Cooperation and to act against the interests of other countries but aimed at international peace and Confrontation” in Inoguchi Takashi and Purendra Jain, Japan-Asia survival, though there are chances of interpreting it as adversarial to others at times. Relations, New York, 2000: 275-278. The misinterpretation can happen because of the geostrategic situations that both the countries have to understand and evade. The historic relationship had its latest 8. See, Tsutomu Kikuchi, “Security Situation in South Asia in the Post Cold affirmation in December 2006 with the signing of the “Joint Statement towards War Era: A Japanese Perspective”, in K.V. Kesvan & Lalima Varma (eds.), Japan-India Strategic and Global Partnership” during the visit of the prime minister Japan and South Asia: Security and Economic Perspectives, Lancer's of India to Japan. The maritime cooperative efforts between India and Japan had New Delhi, 2000: 29. commenced much earlier with the participation of the coast guards of the two 9. Surendra Kumar “Strategic Triangle, China, India Japan: Opportunities countries in joint discussions and exercises annually alternated between the two and Constraints, Area Studies, 6/1 January-June, 2012. countries. The maritime engagement was extended to military cooperative programmes with the participation of the Japan Maritime Self-defense Force 10. B.C. Upreti, “Japan and South Asia: Towards a Broad Based (JMSDF) in the naval exercise, code named “Malabar 2007,” in the Indian Ocean in Relationship,” Sajosps, South Asian Journalof Socio- Political 2007 which was declared “India-Japan Friendship Year.” The situation today stands Studies,Vol.6,No.2,Jan-June,2006:25-26. extended with various maritime activities and dialogues between India and Japan at governmental and non-governmental levels on the respective tracks. The paper 11. GVC Naidu, “Ballistic Missile Defense: Perspective on India-Japan examines the maritime cooperative efforts between India and Japan against this Cooperation, Strategic Analysis, 31:1, January-February, 2007: 155-177. background with an attempt to peep into the future.

India-Japan Cooperation-Examining the Background India and Japan are two maritime states. The similarities outwardly end here. Or, rather, the similarities are embedded in a strange historical bonding from the days of yore. The reasons for such bonding are not well researched. But there are many examples of bonding between different cultures in history. Obviously there could be reasons. But, they have been always eluding scholars. Creating cooperative environments for the

188 189 India and Japan Relations India-Japan Maritime Cooperation 3. Wolf Mendl, Japan's Asia Policy, Regional Security and Global Extending Milestones Interest, Rutledge, London, 1997: 5-7. 4. See, Akaha Tsuneo, “Japan's Security Agenda in the Post Cold War Era”, Prabhakaran Paleri The Pacific Review, Vol. 8 No. 1, 1995: 1-2. 5. Mohan Malik, “Japan's Wary of Assertive China” Jains Intelligence Review, 12-12, December 2000; Also See, David Shambaugh, “Growing Abstract Strong: China's Challenges to Asian Security”, Survival, Vol. 36, No. 2, Summer, 1994: 4359. India and Japan, though entirely diverse on socio-political entities, were historically drawn into an unusually warm and friendly relationship in spite of all the challenges 6. See, K.V. Kesvan, “Japan and South Asia: Some Security Considerations” that had been shaping the world in the past. Any attempts of cooperation between in M.D. Dharamdasani (ed.), Japan's Role in South Asia;Kanishka, these two countries are, therefore, to be examined under the premise of natural Delhi, 2003: 76-78. friendship and civility rather than the “need of the hour” strategic challenges that usually happen in international politics. The relationship is not, in its core, prompted 7. See, Purendra Jain “Japan and South Asia between Cooperation and to act against the interests of other countries but aimed at international peace and Confrontation” in Inoguchi Takashi and Purendra Jain, Japan-Asia survival, though there are chances of interpreting it as adversarial to others at times. Relations, New York, 2000: 275-278. The misinterpretation can happen because of the geostrategic situations that both the countries have to understand and evade. The historic relationship had its latest 8. See, Tsutomu Kikuchi, “Security Situation in South Asia in the Post Cold affirmation in December 2006 with the signing of the “Joint Statement towards War Era: A Japanese Perspective”, in K.V. Kesvan & Lalima Varma (eds.), Japan-India Strategic and Global Partnership” during the visit of the prime minister Japan and South Asia: Security and Economic Perspectives, Lancer's of India to Japan. The maritime cooperative efforts between India and Japan had New Delhi, 2000: 29. commenced much earlier with the participation of the coast guards of the two 9. Surendra Kumar “Strategic Triangle, China, India Japan: Opportunities countries in joint discussions and exercises annually alternated between the two and Constraints, Area Studies, 6/1 January-June, 2012. countries. The maritime engagement was extended to military cooperative programmes with the participation of the Japan Maritime Self-defense Force 10. B.C. Upreti, “Japan and South Asia: Towards a Broad Based (JMSDF) in the naval exercise, code named “Malabar 2007,” in the Indian Ocean in Relationship,” Sajosps, South Asian Journalof Socio- Political 2007 which was declared “India-Japan Friendship Year.” The situation today stands Studies,Vol.6,No.2,Jan-June,2006:25-26. extended with various maritime activities and dialogues between India and Japan at governmental and non-governmental levels on the respective tracks. The paper 11. GVC Naidu, “Ballistic Missile Defense: Perspective on India-Japan examines the maritime cooperative efforts between India and Japan against this Cooperation, Strategic Analysis, 31:1, January-February, 2007: 155-177. background with an attempt to peep into the future.

188 189 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones future is relatively easy between two sociopolitical entities that voters. But he had to face a series of gaffes and scandals among are bonded by feelings of sensitivity. The bond of emotion many political accomplishments before resigning exactly a year between India and Japan is strong. Attempts for cooperative later, on 26 September 2007. His contribution towards engagements were also there in the past. Such engagements were international relations was a novel outlook aptly called the arc of not found difficult. It could be done easily and wholeheartedly. freedom and prosperity. But, the outcome of such engagements has never been seriously The arc of freedom and prosperity theory introduced during Shinzo measured or examined for maximum output or reactive strategy Abe's period was popularised by the then minister of foreign in international politics. It is the historically accumulated affairs, Taro Aso, as a new pillar in diplomacy that Japan intended goodwill between India and Japan that has often surfaced in their to follow as a government-wide effort.1 According to the theory, relations compared to the outcome of the previous engagements. closer ties with India were in Japan's interest. India was the Both the countries depend on the goodwill surplus when they are world's largest democracy and its relations with China still interactively engaged. needed credible projections of peace and coexistence. That made The first president of India, Rajendra Prasad, expressed it while India a natural ally in Japan's perspective. dining with Emperor Hirohito in Tokyo on 28 September 1958. He The Arc Theory propounded by Shinzo Abe looked much beyond said that the bonds of friendship between India and Japan were the concept of India-Japan relations. It had wide ranging age-old. He desired that the bonds should be reinforced by the diplomatic appeal. The background geography was large. The arc friendliest ties of understanding, mutual regard, and a desire to selectively covered the needy in Europe and Asia including the be of help to each other in the wider interests of the people of the Middle East according to Japan's perspective. India became two countries and the world at large. important in the passage of the arc to Southeast Asia and the The relationship mostly expressed as strong and cordial has been Pacific. The arc, according to Taro Aso, loosely traced the outer nurtured through cultural exchanges, warm political and trade rim of the Eurasian continent in which Japan has to function. Next relations, and strategic dialogues. If Buddhism and its embedded was Japan's perception of freedom and prosperity within the arc. Indianism have brought the countries together under mutual Japan recognised and respected the distinct characteristics of each understanding and respect, the latest in the chain of friendship nation within the arc and understood their needs to grow and are the strategic dialogues and global partnership. India is the develop their economies and prosper. Japan admittedly largest recipient of Japan's overseas development assistance supported their national pride and sovereignty and wanted to (ODA). Japan has been funding a large number of infrastructure partake in fulfilling their aspirations. Japan recognised the needs projects in India. The modern relations between India and Japan of the people to move, express and forge their own future. This relates to economic, military, social and cultural fields. In freedom was needed to thrive economically. Japan too had faced December 2006, the two nations signed the “Joint Statement harsh economic situations and absence of freedom in the past. It towards Japan-India Strategic and Global Partnership,” when the has wavered along the line of the passage to democracy. Japan prime minister of India, Manmohan Singh, met with the prime wanted the countries too in the arc to experience freedom and minister of Japan, Shinzo Abe, in Tokyo. The latter had just taken prosperity. It was a conceptualised version of redefining Japan's over (26 September 2006). He was the youngest prime minster to diplomacy with an objective of expanding its horizons.2 take office in Japan since World War II. He was acclaimed as a new person of the modern agetelegenic, outspoken and appealing to

190 191 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones future is relatively easy between two sociopolitical entities that voters. But he had to face a series of gaffes and scandals among are bonded by feelings of sensitivity. The bond of emotion many political accomplishments before resigning exactly a year between India and Japan is strong. Attempts for cooperative later, on 26 September 2007. His contribution towards engagements were also there in the past. Such engagements were international relations was a novel outlook aptly called the arc of not found difficult. It could be done easily and wholeheartedly. freedom and prosperity. But, the outcome of such engagements has never been seriously The arc of freedom and prosperity theory introduced during Shinzo measured or examined for maximum output or reactive strategy Abe's period was popularised by the then minister of foreign in international politics. It is the historically accumulated affairs, Taro Aso, as a new pillar in diplomacy that Japan intended goodwill between India and Japan that has often surfaced in their to follow as a government-wide effort.1 According to the theory, relations compared to the outcome of the previous engagements. closer ties with India were in Japan's interest. India was the Both the countries depend on the goodwill surplus when they are world's largest democracy and its relations with China still interactively engaged. needed credible projections of peace and coexistence. That made The first president of India, Rajendra Prasad, expressed it while India a natural ally in Japan's perspective. dining with Emperor Hirohito in Tokyo on 28 September 1958. He The Arc Theory propounded by Shinzo Abe looked much beyond said that the bonds of friendship between India and Japan were the concept of India-Japan relations. It had wide ranging age-old. He desired that the bonds should be reinforced by the diplomatic appeal. The background geography was large. The arc friendliest ties of understanding, mutual regard, and a desire to selectively covered the needy in Europe and Asia including the be of help to each other in the wider interests of the people of the Middle East according to Japan's perspective. India became two countries and the world at large. important in the passage of the arc to Southeast Asia and the The relationship mostly expressed as strong and cordial has been Pacific. The arc, according to Taro Aso, loosely traced the outer nurtured through cultural exchanges, warm political and trade rim of the Eurasian continent in which Japan has to function. Next relations, and strategic dialogues. If Buddhism and its embedded was Japan's perception of freedom and prosperity within the arc. Indianism have brought the countries together under mutual Japan recognised and respected the distinct characteristics of each understanding and respect, the latest in the chain of friendship nation within the arc and understood their needs to grow and are the strategic dialogues and global partnership. India is the develop their economies and prosper. Japan admittedly largest recipient of Japan's overseas development assistance supported their national pride and sovereignty and wanted to (ODA). Japan has been funding a large number of infrastructure partake in fulfilling their aspirations. Japan recognised the needs projects in India. The modern relations between India and Japan of the people to move, express and forge their own future. This relates to economic, military, social and cultural fields. In freedom was needed to thrive economically. Japan too had faced December 2006, the two nations signed the “Joint Statement harsh economic situations and absence of freedom in the past. It towards Japan-India Strategic and Global Partnership,” when the has wavered along the line of the passage to democracy. Japan prime minister of India, Manmohan Singh, met with the prime wanted the countries too in the arc to experience freedom and minister of Japan, Shinzo Abe, in Tokyo. The latter had just taken prosperity. It was a conceptualised version of redefining Japan's over (26 September 2006). He was the youngest prime minster to diplomacy with an objective of expanding its horizons.2 take office in Japan since World War II. He was acclaimed as a new person of the modern agetelegenic, outspoken and appealing to

190 191 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones

But the fact Taro Aso mentioned was the importance of the The next major change in Japan's outlook of the world came in relation of Japan with the United States as a continuing power- 2009. After many negotiations and discussions, the Diet passed an inducing-factor in which the country should invest ceaselessly. A anti-piracy law that called for Japan Maritime Self-defense Forces strong Japan-US alliance is the cornerstone of Japan's diplomacy to protect all foreign ships travelling off the coast of Somalia aside in the modern world. According to him, Europe had shifted its from protecting the Japanese owned/manned ships. The House policy from “West to East.” Japan reciprocated by adopting an of Councilors had vetoed it. But the House of Representatives “East to West” outlook that brought Indian Ocean more overturned the veto. Under the law, the power of arrest of the prominence than ever perceived in the overall picture. At the end pirates was with the officers of Japan Coast Guard (JCG). SDF of it was Iraq with all the happenings in those years. These officers were not allowed to have the powers of arrest. changes simultaneously lead to Japan's forces entering the Indian On 14 March 2009 Japan dispatched the maritime self defence Ocean to refuel ships of the US and NATO countries as well as 4 force ships to the coast of Somalia and the Gulf of Aden. Pakistan. Taro Aso praised the self-defense forces (SDF) of Japan Compared to other countries, Japan's response came much late. for their refueling operations and believed that it further But it was a major change in Japan's international outlook. By then strengthened the Japan-US alliance. Taro Aso had become the prime minister (24 September 200816 The arc of freedom and prosperity was envisaged at a time when September 2009). There were three aspects of this decision as Japan's economy was on a high. Therefore it was natural for the noticed by experts: first, Japan used the “Law of Maritime country to be duty bound to help other nations for their freedom Security” that was there as emergency measure; second, the rule and prosperity. Japan also felt the need for a more balanced self- of engagement (ROE) at sea was loosened; third, the new law image. That was the ultimate objective of the Japan's arc of against acts of piracy became permanent. The combined strategic freedom and prosperity as explained by Taro Aso in 2007. outcome of these aspects was the possibility of expanding the The important revelation of the minister of foreign affairs was his activities of the maritime self defence forces (MSDF). The force hope in working together seriously with Russia and China too. was gradually slipping out of the cocoon of legal restraint. Japan considered them as major powers that had the ability to These are operationally important for India during its influence and shape the world. Along the arc he valued India as cooperative engagements with the JMSDF or the JCG as Japan is the largest democracy. Japan cherished common values with one of the security partners of India under the “India-Japan Joint India with ample opportunities for cooperation.3 Declaration on Security Cooperation” announced on 22 October Japan devised plans under various diplomatic initiatives to make 2008. But the restraints of MSDF operation overseas were the arc of freedom and prosperity proceed towards its declared hampering the practical joint exercises with the Indian maritime objectives. Participation with India was very much needed for forces. Under the security cooperation agreement both the achieving the objectives in ASEAN and SAARC. The framework countries can hold military exercises, police the seaways and of East Asia Summit represented the realisation of Japan in conduct military-to-military exchanges on combating terrorism. ASEAN along with Australia, New Zealand and India. In January Japan has such agreement only with two other countriesthe US 2005, SAARC agreed to welcome Japan as an observer. Japan and the Australia. attended the 14th Summit of SAARC, held on April 2007, in India, in that capacity.

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Maritime Comparison 9 of the Constitution, which renounces Japan's right to declare The matrix of maritime cooperation between India and Japan may war or use military force in international dispute. The coast guard not be necessarily restricted to occasional ocean based activities is the primary maritime law enforcement and service agency. and goodwill or flag-showing visits and exercises at bilateral or Japan Coast Guard Law was in force on 1 May 1948. The coast multilateral levels. It will have larger interests, especially in the guard's duties and functions are given below. overall foreign relations, between the two countries. However the Ensuring safety and security. engagement will be in relation to the ocean, which again is not necessary to be restricted to the Indian Ocean only. It will depend Ensuring safety of life and property at sea upon the maritime dimensions and interests of both the countries. Protecting the marine environment The maritime dimensions of India and Japan are vastly different Disaster management though the strategic interests are identicalmilitary security, safety Ocean exploration of the sea lines of communication (SLOC), suppression of unlawful activities at and from the sea, resolution of maritime Support to navigation disputes with neighbours, marine environmental and resource International cooperation security, safety of life and property at sea from natural calamities, disaster security, preventing and remedying casualties, etc. The Japan has many unsettled transnational issues. Japan feels domain of operation of the maritime forces will naturally extend extremely sensitive about its “Northern Territories” which is beyond the neighbourhood waters of both the countries in under Russian jurisdiction in the Sakhalin Oblast Region after modern times. Only the nature of the strategic interests will be occupation by the then Soviet Union in 1945. The area comprising different and varying. Therefore, the strategic approaches too will the islands of Etorofu, Kunashiri, and Shikotan, and the Habomai have to be ascertained and focused separately. group are known in Russia as “Southern Kurile Islands.” It is a primary sticking point between Japan and the present day Russia. Japan-Maritime Dimension Japan and South Korea claim Liancourt Rocks in South China Sea Japan is an island nation, an archipelago of about 6,852 islands, in which are called Takeshima in Japan and Tokdo in South Korea. the Pacific Ocean with 35,000-km coastline.5 It occupies a strategic South Korea occupied the area in 1954. Japan disputes the claim of location in Northeast Asia. Its maritime claims are 12-nm China and Taiwan to the uninhabited islands of the Senkakau shoto territorial sea with allowances for the international straits known as Diayou in Chinese. Japan's unilaterally declared (between 3 nm and 12 nm-La Peruse or Soya, Tsugaru, Osumi and exclusive economic zone in the East China Sea is also under Eastern and Western Channels of the Korea or Tsushima Strait), dispute with China and Taiwan.6 24-nm contiguous zone and 200-nm exclusive economic zone. In July 2012, Satoshi Marimoto, Japan's minister for defense said The maritime forces and agencies are the maritime self-defence that defence of islands, disputed or not, will be conducted by the force (Kaijyou Jieitai), which is the naval branch of the self-defense coast guard and the police. However, the law stipulates that the forces under the Ministry of Defense, and a coast guard (Kaijyou troops of self-defence force can act if local authorities are unable to Hoan Chou) under the Ministry of Land, Infrastructure, Transport handle the situation. Prime Minister Yoshihiko Noda told the and Tourism. The maritime self-defense force is charged with the National Diet that he would take stern action against any illegal naval defense of Japan. Japan's military is restricted under Article actions on Japan's territory referring to a hypothetical question

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194 195 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones about a Chinese military attack. Chinese vessels had reportedly Safety of life and property at sea. entered Japan's waters raising tensions in the month. China has Collection of scientific data. appointed military officers at a newly-established garrison in the South China Sea, the country's latest step to bolster claims to Other duties as and when prescribed by the Government of disputed islands in the area. China's neighbours reacted furiously India. to the move with Vietnam, which also claimed the Paracel Islands, In addition to the coast guard, India has a border security force 7 filing a formal protest and saying it “violates international law.” with a water wing meant for creeks and rivers in the border areas India-Maritime Dimension and a customs marine organization with jurisdiction over the contiguous waters under the Customs Act, 1962 and marine India is a littoral state in the Southern Asia overlooking the Indian police organisations under the coastal states and union territories Ocean. India has 1,191 islands both in the ocean and also hugging 8 including the islands to police the territorial waters. the mainland. The country has 7,517-km coastline opening out to the Indian Ocean. It claims 12-nm territorial sea, 24-nm India has seven maritime neighbours. It has well demarcated contiguous zone and 200-nm exclusive economic zone. Its claim maritime boundaries with all except Pakistan and Bangladesh. on the continental shelf is 200 nm or to the outer edge of the Maritime Interests-Comparison continental margin. It has a navy and a coast guard. The coast The maritime interests of both the countries will depend upon guard was formed on 19 August 1978 under the Coast Guard Act, their maritime dimensions and national and international 1978. Like the navy, the coast guard is also under the Ministry of objectives. In a larger scale, it may be converging. But in a Defence as an independent armed force of the Union according to situation-based approach, it will be different. For example, it is the Constitution. In its military role, the coast guard will function quite unlikely Japan may face a threat from the sea (at least for under the navy. It has exclusive duties and functions otherwise, now) similar to the state sponsored terrorist attacks in Mumbai, under the Coast Guard Act, it can act to protect the maritime and India on 26 November 2008. Or India may not find a Senkakau like other national interests of India within the maritime zones of situation despite the border anomalies. But in the maritime India as it deems fit without duplication of efforts. They are given domain there can be many common interests like piracy below. operations, disaster management, unlawful activities, issues of Safety and protection of artificial islands, offshore terminals, sovereignty, etc., where both the countries can engage in mutual and other structures and devices. support at sea and over the land in international dealings. Protection of Indian fishers. Maritime Cooperation Assistance to fishers in distress at sea. While examining the maritime cooperation between India and Japan, the attention should not lose focus on the critical issues Preservation and protection of marine environment. related to the partnership between the two countries as a whole. Prevention and control of marine pollution. Maritime cooperation is a part of it and not a standalone concept. Assisting the customs and other authorities in anti-smuggling It cannot be seen isolated from other issues. The biggest potential operations. between the two countries lies in their economic and business engagements. Understanding and recognising this fact, India and Enforcement of maritime laws in force. Japan signed the Comprehensive Economic Partnership

196 197 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones about a Chinese military attack. Chinese vessels had reportedly Safety of life and property at sea. entered Japan's waters raising tensions in the month. China has Collection of scientific data. appointed military officers at a newly-established garrison in the South China Sea, the country's latest step to bolster claims to Other duties as and when prescribed by the Government of disputed islands in the area. China's neighbours reacted furiously India. to the move with Vietnam, which also claimed the Paracel Islands, In addition to the coast guard, India has a border security force 7 filing a formal protest and saying it “violates international law.” with a water wing meant for creeks and rivers in the border areas India-Maritime Dimension and a customs marine organization with jurisdiction over the contiguous waters under the Customs Act, 1962 and marine India is a littoral state in the Southern Asia overlooking the Indian police organisations under the coastal states and union territories Ocean. India has 1,191 islands both in the ocean and also hugging 8 including the islands to police the territorial waters. the mainland. The country has 7,517-km coastline opening out to the Indian Ocean. It claims 12-nm territorial sea, 24-nm India has seven maritime neighbours. It has well demarcated contiguous zone and 200-nm exclusive economic zone. Its claim maritime boundaries with all except Pakistan and Bangladesh. on the continental shelf is 200 nm or to the outer edge of the Maritime Interests-Comparison continental margin. It has a navy and a coast guard. The coast The maritime interests of both the countries will depend upon guard was formed on 19 August 1978 under the Coast Guard Act, their maritime dimensions and national and international 1978. Like the navy, the coast guard is also under the Ministry of objectives. In a larger scale, it may be converging. But in a Defence as an independent armed force of the Union according to situation-based approach, it will be different. For example, it is the Constitution. In its military role, the coast guard will function quite unlikely Japan may face a threat from the sea (at least for under the navy. It has exclusive duties and functions otherwise, now) similar to the state sponsored terrorist attacks in Mumbai, under the Coast Guard Act, it can act to protect the maritime and India on 26 November 2008. Or India may not find a Senkakau like other national interests of India within the maritime zones of situation despite the border anomalies. But in the maritime India as it deems fit without duplication of efforts. They are given domain there can be many common interests like piracy below. operations, disaster management, unlawful activities, issues of Safety and protection of artificial islands, offshore terminals, sovereignty, etc., where both the countries can engage in mutual and other structures and devices. support at sea and over the land in international dealings. Protection of Indian fishers. Maritime Cooperation Assistance to fishers in distress at sea. While examining the maritime cooperation between India and Japan, the attention should not lose focus on the critical issues Preservation and protection of marine environment. related to the partnership between the two countries as a whole. Prevention and control of marine pollution. Maritime cooperation is a part of it and not a standalone concept. Assisting the customs and other authorities in anti-smuggling It cannot be seen isolated from other issues. The biggest potential operations. between the two countries lies in their economic and business engagements. Understanding and recognising this fact, India and Enforcement of maritime laws in force. Japan signed the Comprehensive Economic Partnership

196 197 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones

Agreement (CEPA) on 1 August 2011. It will help Japan to revive support of India. It was one of the very proactive engagements its shrinking markets and India to leverage on the boom through that brought the two countries together in maritime cooperation investment and two-way trade. Trade is expected to rise between and linked them closely with the maritime Southeast Asia in a the two countries by 2021 with India cutting down 90 per cent of cohesive manner towards a common cause. import duties on Japan's products and Japan cutting down 97 per The cooperation was enhanced with the joint acts of Indian Navy cent of tariff on imports from India. Presently the trade flow is with the Japan Maritime Self Defense Force in recent times against limited. Increase in trade also means increased shipping the pirates of Somalia in and around Gulf of Aden. Maritime movements and port utilisation in both the countries. This has a interaction between the navies is part of the overall military serious maritime angle considering the sea lines of 9 interaction between the two countries. communication. The interaction of India with Japan also percolated into track 2 Another area is energy security. India has major interests in oil dialogues very early. The Ocean Policy Research Foundation exploration in South China Sea and elsewhere in East Asian (OPRF), Tokyo had lead many initiatives to engage Indian waters. Considering that the entire area is under dispute with intelligentsia and the government establishments under track 2 multiple claimants, India will have to weather rough initiatives very successfully. This also included coordinating environment in its attempts to enhance energy security jointly Nippon Foundation's sponsorship for Indian scholars and with other countries. It will certainly require friendly and professionals to the courses in World Maritime University, understanding collaborators in the area to support its moves Malmö. The efforts of OPRF resulted in wide range of scholarly under international law. It can be harnessed by friendly relations engagements in maritime affairs between India and Japan. under mutual benefit. There was also a beginning in trilateral dialogue between India, Indian Coast Guard and Japan Coast Guard have been in close Japan and South Korea. The first trilateral dialogue between the cooperation and friendly engagements since the time the former state sponsored strategic academia from the Institute for Defence apprehended the pirates of Malacca Straits with the hijacked Studies and Analyses, India, Korea National Diplomatic Japanese vessel Alondra Rainbow on 16 November 1999. It was Academy, South Korea and Tokyo Foundation, Japan took place unprecedented in the modern times. The success of the operation in New Delhi on 29 July 2012. The representatives were and the subsequent coast guard interactions further led to the unanimous on strategic maritime cooperation to keep the seas as formation of the Regional Cooperation Agreement for Combating regions of cooperation and not of competition. According to Piracy and Armed Robbery against Ships in Asia (ReCAAP). It them, there is a compelling need to cooperate to maintain trade, was the first regional government-to-government agreement to energy and economic security related to the maritime space. promote and enhance cooperation against piracy and armed There could be significant cooperation between the countries in robbery against ships in Asia. Todate, 17 states have become dealing with not only the conventional risks but also those contracting parties to ReCAAP. The information centre formally associated with the nuclear and missile proliferation in the established in Singapore has Japan and Indian coast guard neighbourhoods. The idea was to promote mutual security representation and is responsible for passing information on through deepened cooperation. Democratic values, open society, piracy and alerting ships on passage along with the International human rights and the rule of law as leading democracies are Maritime Bureau's piracy reporting centre (PRC) at Kuala inherent in the three countries. They could cooperate to maintain Lumpur. The ReCAAP was a Japanese initiative with the early

198 199 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones

198 199 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones freedom of seas, combat terrorism, and promote inclusive Notes economic growth. Such cooperation was more relevant as the 1 On the Arc of Freedom and Prosperity, An Address by H.E. Mr. Taro Aso, region was witnessing competing claims in the potential for Minister of Foreign Affairs on the Occasion of the 20th Anniversary of the unexplored and untapped resources. Founding of the Japan Forum on International Relations, Inc. on March 12, Latest official talks between India and Japan on defence and 2007, mofa.go.jp/policy/pillar/address0703.html, accessed 12 August 2012. security issues were held on 22 October 2012 in Tokyo. It was a 2 Ibid. 2+2 dialogue. Indian team was headed by the foreign secretary 3 Ibid. and defence secretary. The Japan's side was led by the deputy foreign minister and administrative vice defense minister. The 4 Tomoko Kiyota, Maritime Security-Japan Self-defense Force in Somalia two sides reviewed bilateral security and defence cooperation. Coast, IPCS Issues Brief, No. 95, Institute of Peace and Conflict Studies, New They exchanged views on maritime, cyber, and outer space Delhi, March 2009. security and discussed regional and international security 5 Paleri, Prabhakaran, Coast Guards of the World and Emerging Maritime concerns and situations. The talk came against the backdrop of Threats, Tokyo, Ocean Policy Research Foundation, 2009. tensions between Japan and China over maritime disputes and 6 C e n t r a l I n t e l l i g e n c e A g e n c y , T h e W o r l d F a c t B o o k , also as a prologue to the annual summit talk between the two cia.gov/library/publications/the-world-factbook/ geos/ja.html, accessed prime ministers scheduled on 15 November 2012 in Tokyo. 17 September 2012. Conclusions 7 Stay Away from Senkakau or Face Troops, Japan Tells China, The New India and Japan are decisive factors in the Asian balance of power. Indian Express, Kozhikode, 28 Jul 2012, p. 11. Cooperation between these two countries in maritime affairs can 8 Paleri, Prabhakaran, Role of the Coast Guard in the Maritime Security of India, safeguard the maritime terrain not only in a limited sense but also New Delhi: Knowledge World, 2nd ed., 2007, p. extending over the oceans on this side of the world. The socio- 9 H.E. Mr. Akitaka Saiki, India-Japan Partnership in a Resurgent Asia, cultural proximity between India and Japan that exists since Observer Research Foundation Discourse, Vol. 5, Issue. 12, November 2011. historical times is a catalyst. The pace has increased in recent p. 11. times with around all cooperative agreements and understanding. Both the countries should gain from this relationship economically as well as geostrategically. Maritime security is a complex affair, more when it has to be integrated with the elements of national security. The international cooperation can add some synergy into it, especially, when it is among countries, which are geopolitically compatible. The prognosis therefore is on all out effort by the two countries to forge a maritime alliance that can combat the challenges of maritime security keeping international politics and power games at bay and focusing on economic security by negotiating consensus on the balance of power in the region.

200 201 India and Japan Relations India-Japan Maritime Cooperation Extending Milestones freedom of seas, combat terrorism, and promote inclusive Notes economic growth. Such cooperation was more relevant as the 1 On the Arc of Freedom and Prosperity, An Address by H.E. Mr. Taro Aso, region was witnessing competing claims in the potential for Minister of Foreign Affairs on the Occasion of the 20th Anniversary of the unexplored and untapped resources. Founding of the Japan Forum on International Relations, Inc. on March 12, Latest official talks between India and Japan on defence and 2007, mofa.go.jp/policy/pillar/address0703.html, accessed 12 August 2012. security issues were held on 22 October 2012 in Tokyo. It was a 2 Ibid. 2+2 dialogue. Indian team was headed by the foreign secretary 3 Ibid. and defence secretary. The Japan's side was led by the deputy foreign minister and administrative vice defense minister. The 4 Tomoko Kiyota, Maritime Security-Japan Self-defense Force in Somalia two sides reviewed bilateral security and defence cooperation. Coast, IPCS Issues Brief, No. 95, Institute of Peace and Conflict Studies, New They exchanged views on maritime, cyber, and outer space Delhi, March 2009. security and discussed regional and international security 5 Paleri, Prabhakaran, Coast Guards of the World and Emerging Maritime concerns and situations. The talk came against the backdrop of Threats, Tokyo, Ocean Policy Research Foundation, 2009. tensions between Japan and China over maritime disputes and 6 C e n t r a l I n t e l l i g e n c e A g e n c y , T h e W o r l d F a c t B o o k , also as a prologue to the annual summit talk between the two cia.gov/library/publications/the-world-factbook/ geos/ja.html, accessed prime ministers scheduled on 15 November 2012 in Tokyo. 17 September 2012. Conclusions 7 Stay Away from Senkakau or Face Troops, Japan Tells China, The New India and Japan are decisive factors in the Asian balance of power. Indian Express, Kozhikode, 28 Jul 2012, p. 11. Cooperation between these two countries in maritime affairs can 8 Paleri, Prabhakaran, Role of the Coast Guard in the Maritime Security of India, safeguard the maritime terrain not only in a limited sense but also New Delhi: Knowledge World, 2nd ed., 2007, p. extending over the oceans on this side of the world. The socio- 9 H.E. Mr. Akitaka Saiki, India-Japan Partnership in a Resurgent Asia, cultural proximity between India and Japan that exists since Observer Research Foundation Discourse, Vol. 5, Issue. 12, November 2011. historical times is a catalyst. The pace has increased in recent p. 11. times with around all cooperative agreements and understanding. Both the countries should gain from this relationship economically as well as geostrategically. Maritime security is a complex affair, more when it has to be integrated with the elements of national security. The international cooperation can add some synergy into it, especially, when it is among countries, which are geopolitically compatible. The prognosis therefore is on all out effort by the two countries to forge a maritime alliance that can combat the challenges of maritime security keeping international politics and power games at bay and focusing on economic security by negotiating consensus on the balance of power in the region.

200 201 Regional Cooperation: A Solution for Maritime Security Concerns of India Regional Cooperation: A Solution for Maritime Security Concerns of India Introduction Post liberalization India set on a path of economic progress, S. S. Pendse though with hurdles is reflected in its increasing international trade, of which 90% is sea-borne. India, as estimated, may show a growth rate of 9% per annum and its GDP more than that of Japan Abstract by 2025, making it third largest economy. Presently India's Indian Ocean region is emerging as a hotspot of international conflicts. The imports and exports have reached $ 500 billion already and may Indian Ocean washes the shores of three continents that support 1/3 of well touch $ 2 trillion by 2020. This economic progress has also working population and ¾ of oil reserves. It is from this ocean passes the most made India a bigger consumer of hydrocarbon based fuels. Even strategic SLOC that carries 90% of India's foreign trade, 50% of worlds trade, with the proven reserves of 5.7 billion barrels, India still has to 66% of world oil trade, 33% of bulk cargo and 50% of container traffic. import 70% of its hydrocarbon fuel needs as the domestic The Post cold war has changed the socio-political-strategic thinking. Today consumption outweighs domestic production. A majority of economics dominates the strategic considerations. The majority of trade in the Indian Ocean is regional and is carried through the SLOC'S of Indian India's crude oil imports come from the Middle East, with mostly Ocean. Indian Ocean SLOC is an important economic link particularly in Saudi Arabia and Iran. This oil reaches through the SLOC of the access to Persian Gulf and Res Sea region which dominates the world oil Indian Ocean. It becomes therefore clear that it is in her own supplies. The SLOC's of Indian Ocean passes through some crucial choke interest that it has to protect its trade and provide security to its points. Any disruption in traffic through these choke points can have serious offshore oil installations. consequences and has raised maritime security concerns for many of the littoral countries of Indian Ocean. This is a major concern for countries like Lastly India is surrounded by many adversaries, who have been India, China and Japan which are often referred to as demand heartland. proven to use sea route to reach its shores to create arson. Even The region is also infested with a series of regional conflicts and politically with the estranged relations with China, the situation is quite unstable economies and a series of conflicting fundamental ideologies. This different. As quoted by Vice Admiral Chauhan, “A rather amusing has resulted in issues like sea-borne piracy, arms trafficking, narco-terrorism development in recent years is that China, which is “our biggest trading etc as well as a race to tap the mineral resources of the Indian Ocean. partner is also the areas of worry”. (Vice Admiral Chauhan, 2011). The main objective of the paper is to highlight the maritime security challenges that weigh heavily with special reference to India. These multiple dimensions and their impact on possible threat to Adding to the above is the acceleration of economic growth of India and the maritime security need are to be considered carefully. The China. This has resulted in a race to dominate the Indian Ocean by increasing actions towards providing maritime security have to be their naval presence. This is fuelled further by the traditional rivalry and prioritized accordingly. Maritime security is not the only concern distrust amongst them; thus, converting the Indian Ocean into an important of India. Other countries using the Indian Ocean SLOC's also have geo-strategic arena and raising serious issues relating to the maritime to be equally considered. Keeping in mind the complexities security. involved in maintaining the maritime security, it is apparent that Looking at the complexities of political and economic stability, as well as the it is not a job or responsibility of any one country. It is necessary expanse of Indian Ocean finding solutions for maritime security is a herculean that all the concerned countries need to come together to make a task. It is not and cannot be a job of a single political entity. The associations to build regional cooperation like IOC-ARC, ASEAN, etc. have often ignored the combined effort not only to protect their interests but also to gain issues of maritime security. It is, therefore, necessary to look into issues of larger economic interests and global peace. maritime security not only with regional cooperation but also looking at extra regional cooperation. If we hope to have peace, we must cooperate. It is only by cooperation that the challenges of maritime security can be addressed.

202 203 Regional Cooperation: A Solution for Maritime Security Concerns of India Regional Cooperation: A Solution for Maritime Security Concerns of India Introduction Post liberalization India set on a path of economic progress, S. S. Pendse though with hurdles is reflected in its increasing international trade, of which 90% is sea-borne. India, as estimated, may show a growth rate of 9% per annum and its GDP more than that of Japan Abstract by 2025, making it third largest economy. Presently India's Indian Ocean region is emerging as a hotspot of international conflicts. The imports and exports have reached $ 500 billion already and may Indian Ocean washes the shores of three continents that support 1/3 of well touch $ 2 trillion by 2020. This economic progress has also working population and ¾ of oil reserves. It is from this ocean passes the most made India a bigger consumer of hydrocarbon based fuels. Even strategic SLOC that carries 90% of India's foreign trade, 50% of worlds trade, with the proven reserves of 5.7 billion barrels, India still has to 66% of world oil trade, 33% of bulk cargo and 50% of container traffic. import 70% of its hydrocarbon fuel needs as the domestic The Post cold war has changed the socio-political-strategic thinking. Today consumption outweighs domestic production. A majority of economics dominates the strategic considerations. The majority of trade in the Indian Ocean is regional and is carried through the SLOC'S of Indian India's crude oil imports come from the Middle East, with mostly Ocean. Indian Ocean SLOC is an important economic link particularly in Saudi Arabia and Iran. This oil reaches through the SLOC of the access to Persian Gulf and Res Sea region which dominates the world oil Indian Ocean. It becomes therefore clear that it is in her own supplies. The SLOC's of Indian Ocean passes through some crucial choke interest that it has to protect its trade and provide security to its points. Any disruption in traffic through these choke points can have serious offshore oil installations. consequences and has raised maritime security concerns for many of the littoral countries of Indian Ocean. This is a major concern for countries like Lastly India is surrounded by many adversaries, who have been India, China and Japan which are often referred to as demand heartland. proven to use sea route to reach its shores to create arson. Even The region is also infested with a series of regional conflicts and politically with the estranged relations with China, the situation is quite unstable economies and a series of conflicting fundamental ideologies. This different. As quoted by Vice Admiral Chauhan, “A rather amusing has resulted in issues like sea-borne piracy, arms trafficking, narco-terrorism development in recent years is that China, which is “our biggest trading etc as well as a race to tap the mineral resources of the Indian Ocean. partner is also the areas of worry”. (Vice Admiral Chauhan, 2011). The main objective of the paper is to highlight the maritime security challenges that weigh heavily with special reference to India. These multiple dimensions and their impact on possible threat to Adding to the above is the acceleration of economic growth of India and the maritime security need are to be considered carefully. The China. This has resulted in a race to dominate the Indian Ocean by increasing actions towards providing maritime security have to be their naval presence. This is fuelled further by the traditional rivalry and prioritized accordingly. Maritime security is not the only concern distrust amongst them; thus, converting the Indian Ocean into an important of India. Other countries using the Indian Ocean SLOC's also have geo-strategic arena and raising serious issues relating to the maritime to be equally considered. Keeping in mind the complexities security. involved in maintaining the maritime security, it is apparent that Looking at the complexities of political and economic stability, as well as the it is not a job or responsibility of any one country. It is necessary expanse of Indian Ocean finding solutions for maritime security is a herculean that all the concerned countries need to come together to make a task. It is not and cannot be a job of a single political entity. The associations to build regional cooperation like IOC-ARC, ASEAN, etc. have often ignored the combined effort not only to protect their interests but also to gain issues of maritime security. It is, therefore, necessary to look into issues of larger economic interests and global peace. maritime security not only with regional cooperation but also looking at extra regional cooperation. If we hope to have peace, we must cooperate. It is only by cooperation that the challenges of maritime security can be addressed.

202 203 India and Japan Relations Regional Cooperation: A Solution for Maritime Security Concerns of India

Growing importance of the Indian Ocean The Problems The Indian Ocean gained prominence only after 1985. From 1985 The Indian Ocean region is a cradle of all major religions as to 1995 the international trade saw a sudden jump by 30% in cargo also kaleidoscope of isms, such as fundamentalism, tribalism, and particularly the oil traffic. The “Review of Maritime socialism, communism, talibanism as also adventurism with a Transport 2000” has stated that the world trade has been spectrum of political hues ranging from democracy, consistently increasing since 1999 with Asia having a substantial monarchy to dictatorship. (Roy). The maritime trade is share. The SLOC's of Indian Ocean began to gain prominence threatened by a wide range of military and non-military from 1990, when the forces of globalization sparked a process of issues. Threats like arms trafficking, narco-terrorism, sea- economic development resulting in an unprecedented borne terrorism, sea-piracy, protection of SLOC and on shore consumption of resources, particularly oil, which forms the key to and off shore mineral resources, coastal security etc pose a economic development. SLOC of Indian Ocean became an challenge to the countries in the IOR maritime area. important sea lane catering to half of the world's container cargo, This threat can culminate into major international events with one third of its bulk cargo and two third of its oil shipment. serious implications. One of the most important threats is of rising global terrorism; the terrorist outfits are directly or Fig 1: Sea-borne Traffic of the Indian Ocean indirectly supported by state and non-state actors changing the Ideas of direct armed conflicts, competition, rivalry etc. The terrorist groups may possibly (rather surely) use the sea, maritime terrorism, to launch any of their activities against humanity. Sea-borne piracy is yet another threat to SLCOS of Indian Ocean. The sea piracy is dominated by the Somalian pirates operating from Somalia who have managed to refine their operational capabilities over a period of time. Today they are capable of operating as far as 3500 kms away from their homeland. This is a serious concern. A nexus between the Source: Aspen Institute India. Policy Paper No1 terrorists, pirates and drug lords can pose a considerable threat to SLOC' of the Indian Ocean. The Indian Ocean caters to important supply chains of global The SLOC's passing through the Indian Ocean are crucial for trade and economies. The IOR SLOC's are dominated by oil trade, the world economies because of the fact that 2/3 of the global a far more important resource than any other, which drive the oil trade passes through them. These sea lanes connect oil rich modern economies. Protecting these supply chains passing Middle East, East Asia and Africa with Europe on which most through the Indian Ocean is becoming a priority for all the stake of oil and goods trade depends. This oil trade passes through holders and particularly for countries like Japan, China and Japan some narrow points that connect two major water bodies, and other emerging economies of Asia. which are referred to as the choke points. It is at these points the oil trade can be disrupted. The following table gives the list of these choke points.

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Oil is important for countries of South and Southeast Asia. Further the international sea lanes do not always fall under Most of the oil needs that passes through the SLOCs passes jurisdiction of territorial waters of a single political entity, but through the Indian Ocean and hence ensuring maritime falls largely in international waters, which in turn are security of the SLOCs becomes vital for all the economies, both bordered by many states, both friendly and hostile. As the exporters and importers as well. discussed earlier the Indian Ocean states are bordered by many a failed states and are heavily under the influence of Table1: Choke Points of the Indian Ocean complex array of religious fundamentalism and related forces, supported by many state and non-state actors. Further more Choke Points in the West Choke Points in the East the situation becomes more insidious and complicated in the 1 Strait of Hormuz: Connecting 1 Straits of Malacca light of traditional disbeliefs and strained relations with Persian gulf and gulf of Oman neighbours, political instability and rising economic priorities, 2 Mozambique Channel: International 2 Sunda Straits making the problem more economic rather than strategic. Shipping Lanes that pass to East of Madagascar Another classic example of a complex maritime matrix is that 3 Cape of Good Hope Route 3 Straits of Lombok in relation to those ships that carry out the international trade and ply in the international waters. Merchant ships are owned 4 Suez Canal Route: Connecting 4 Ombai Strait: Mediterranean and the Red Sea by one, built by another, registered by third, insured by fourth and fifth they are manned by crew from one or many other 5 Straits of Bab-el-Mandeb: Connecting the Red Sea to gulf of Aden nations, thus extending maritime interests extending beyond Source: Observer Research Foundation: Ideas and Action for Better India 2011 countries of maritime boundaries. The SLOC's of Indian Ocean is of great strategic interests to many Fig 2: Oil Flows, Major Chokepoints and Oil Transmitted at existing and rising economic and military powers. Any Major Strategic Locations, 2003 disruption of seaborne trade passing through Indian Ocean will have much wider implications worldwide. The bigger economic powers have made their presence felt in the IOR mainly as a deterrent to such forces, which pose a threat to global trade and international peace and maritime security. Oil is still dominating the international trade and is a key to economic development and is in the interest of many. There is potential for the SLOC's for unprecedented crisis, unimaginable in proportions that may have financial, environmental, and moral outcomes in terms of human misery and lives. It is necessary that the leaders of IOR should visualize such potential incidence and take proactive action also they will suffer because of the inefficient, ineffective and inadequate response. The question that arises here is what are the possible solutions to maintain and protect the maritime security of SLOC'S of the Indian Ocean.

206 207 India and Japan Relations Regional Cooperation: A Solution for Maritime Security Concerns of India

Solutions Unfortunately these mechanisms are fragmented and Searching of solution for maritime security is a very complex incomplete. (Cordner 2011). For example the GCC has affair. With each state trying to protect its own national interests, metamorphosed into jihad, cultural and international terrorism. it becomes necessary for it to protect its trade and particularly the Ethnic conflicts, famine, lack of effective governments in North sea-borne trade and the SLOC's through which their trade passes. Africa have prevented any significant movement towards the Protecting these SLOC's cannot be confined to one state. There is economic stability, further adding to the complexities. The also a need to have a basic understanding that it is not a job of one pertinent issues like the regional conflicts, traditional disbeliefs, or two states, but a job of many and for this cooperation amongst and religious factions contribute in their own ways. the states is the key. There is a need to build a strong sense that Maritime diplomacy is one major step that can contribute towards commonly held interests are threatened and are at risk, and are maritime security. The international Fleet review “Bridges of vulnerable and that only cooperative action among states will Friendship' with a theme “The world is a family, the seas make it help to protect them. It is essential to identify the threats, their so" was conducted in February 2012. It was attended by naval magnitude and possible mitigation options. chiefs of 16 nations and flag officers from 29 countries. This was To reach any effective measure to provide for maritime security it thus reflecting the future role of the Indian Navy as a stabilizing is necessary to understand; regional power, supported by Japan, USA, UK, France and Russia. What is meant by maritime security cooperation? Other measures that will help in maintaining maritime security Identify the extent of cooperation desired along with the can involve Confidence Building Measures (CBM), Conflict identification of the participants and that to what extent. Avoidance Measures (CAM), Trust Building Measures (TBM), Devise methods to make an effective use of regional Conflict Resolution Measures (CRM), Confidence Building and capabilities in a well-coordinated manner for the common S e c u r i t y M e a s u r e s ( B B S M ) a n d T e n s i o n R e d u c t i o n interests and Measures(TRM).(Roy 2011). Role and participation of extra regional powers. From the Initiatives by India towards confidence building measures point of regional cooperation, certain issues like recognition of include joint exercises with countries of Southeast Asia as well as threats, capabilities and capacities of regional powers, the Chinese People's Liberation Army and Navy (PLAN) in 2004. identification of and formulation of cooperative arrangements Other attempts include MILAN in the Bay of Bengal involving and mechanisms have to be addressed. countries of Bay of Bengal rim with an objective of achieving interoperability with ASEAN navies and promoting goodwill. It Mechanisms for cooperation need to be explored and developed. included navies of Myanmar, Vietnam, Thailand, Malaysia and The regional associations like those of SAARC (South Asian Australia. Such exercises provide a ground for a possible friendly Association for Regional Cooperation) or Indian Ocean Rim dialog, which becomes important in the present circumstances. Association for Regional Cooperation (IOC-ARC) could become Bilateral goodwill visits and cooperation on the training of the vehicles for achieving such cooperation along with GCC (Gulf personnel and hydrography etc have gone a long way in Cooperation Council). These associations focus primarily on developing trust and willingness of cooperation amongst the regional cooperation for economic development and do not participating countries. specifically discuss any security matters in a larger sense.

208 209 India and Japan Relations Regional Cooperation: A Solution for Maritime Security Concerns of India

A series of such bi-lateral networks if networked together can achieve maritime security. Such a strong force will be a major produce much better results that one desires. A continuous dialog deterrent in the long run. This needs a much wider outlook and with other members of the bi-lateral trading agreements will pave trust amongst the member states. way for increasing trust and understanding between all the Yet another model of cooperation is that of coast guard. The North members, which will help to reduce the cost of building Pacific Coast Guard Forum (NPCGF) and North Atlantic Coast cooperative relationships. Simply, increasing the bilateral Guard Forum (NACGF) both focus to foster multilateral relations will develop into a greater networked cooperation. This cooperation by sharing information on matters related to the will be probably the future. combined operations, exchange of information, illegal drug In the fall of 2005, Admiral Michael G. Mullen, the U.S. Navy's trafficking, maritime security, fisheries enforcement, and illegal Chief of Naval Operations, challenged the world's maritime migration. Other than this there are regular training sessions, nations to raise what he called a “thousand-ship navy” to provide dialogs and meetings of the experts to make the forums more and for the security of the maritime domain in the twenty-first more effective. As no single member plays a dominant role and century. Speaking at the Seventeenth International Seapower has structured shared interests each member remains self reliant Symposium at the Naval War College, in Newport, Rhode Island, and contributes towards achieving the objectives. As the missions Admiral Mullen candidly admitted to the assembled chiefs of do not lead to any confrontation the members willingly share the navy and their representatives from seventy-five countries that information. “the United States Navy cannot, by itself, preserve the freedom Information and intelligence sharing is yet another field that will and security of the entire maritime domain. It must count on contribute towards achieving this goal. The joint efforts will help assistance from like-minded nations interested in using the sea for to optimize the use of the existing resources of those who have lawful purposes and precluding its use for others that threaten and will add to those who lack the capabilities. national, regional, or global security. This navy was rather a figurative concept than a literal fleet comprised of a thousand Conclusions vessels. Navy chiefs from over thirty nations endorsed the Providing maritime security is a very complex affair particularly concept as a way for the sea services to coordinate to meet in the Indian Ocean region for the multiple causes discussed common maritime challenges. earlier. The fact remains that whatever might be the reasons the Since then the concept “Thousand Ship Navy” has broadened maritime security is a complex issue that cannot be undertaken or into a “Global Maritime Partnership” (GMP). This partnership is the responsibility of not only the regional powers but also of the involves combined use of naval forces, as well as the capabilities extra regional powers. It has to be understood that any effort at an of member states for cooperation of civilian, law enforcement and individual level towards protecting maritime security will regulatory agencies, industry and organizations that can help to ultimately result in increasing more suspicion and animosity improve collective responsibilities. This augments the making the matters more complex. This becomes important as capabilities of weaker nations with that of stronger nations to many of these Asian giants are already reeling under traditional address the common objectives. animosity and distrust and suspicion against each other. This has plagued the Asian giants for a long time. The Asian countries, A similar joint venture by the countries of the IOR can help the except probably China, do not have the resources and capabilities members to pool their resources thus reducing burden on enough to protect their SLOCs. individual states as well as enhancing every ones capabilities to

210 211 India and Japan Relations Regional Cooperation: A Solution for Maritime Security Concerns of India

The expanse of the Indian Ocean is huge and thus it will and is Lee Cordner, “Maritime Security in the Indian Ocean Region: Compelling next to impossible to handle such a complex and herculean task. It and Convergent Agendas,” Australian Journal of Maritime and Ocean Affairs 2, is only cooperation amongst the nations of the Indian Ocean no. 1 (2010), pp. 1627. Region that will ensure safety for their own economic progress. Cordner Lee: Progressing Maritime Security Cooperation in the Indian The joint efforts by the Indian Navy along with the capable navies Ocean, Naval War College Review, 2011 Vol 64 No 4 of the Indian Ocean Region could lead to SLOC patrols to ensure Premvir Das (Vice Admiral, Retd) Maritime Power, Key to India's Security free flow of traffic through the SLOC's. The countries will have to Intrests, Policy Paper No1, ASPEN Institute India. think beyond their ideas of state sovereignty. It is necessary to Ronald E. Ratcliff, “Building Partners' Capacity: The Thousand-Ship Navy,” address the problem with a multi layered approach, one has to Naval War College Review 60, no. 4 (Autumn 2007) p.49. remember any disruption of international trade passing through SLOC's of the Indian Ocean will have far reaching implications Roy Mihir (Vice Admiral, IN) Maritime Security in South West Asia, available at http:// www.iips.org/Roy-paper. and hence it is not only for India but for also other the economies of Indian Ocean region and also the world economies to come together to attain and sustain economic growth and world peace. Websites:

CIA World Factbook, https://www.cia.gov/cia/publications/factbook /geos/xo.html (Accessed August 2012). http://climateadaptation.tumblr.com/ (Accessed September 2012) http://people.hofstra.edu/jean-paul_rodrigue/downloads/CGQ_ strategicoil.pdf (Accessed September 2012) References http://www.iso.org/iso/home/standards/iso31000.htm Basrur Rajesh: Energy and Geopolitics in the Indian Ocean Region, RSIS Policy Paper Nov 2011,Rajratnam School of International Studies, Nanyang Technological University. Reports: Christian Bouchard and William Crumplin, “Neglected No Longer: The Indian Ocean in the Forefront of World Geopolitics and Global India's Maritime Security and Navy's Transformational Role by Vice Geostrategy,” Journal of the Indian Ocean Region 6, no. 1 (June 2010), pp. 4144. Admiral Pradeep Chauhan. Report by Abha Parekh, Kshitij Neelakantan, Radha Vishwanathan for Observer Research Foundation Mumbai, 2011. Ghosh P.K (Cdr, IN) Maritime Security Challenges in South Asia and the Indian Ocean: Response Strategies. Paper prepared , for Centre for Strategic Review of Maritime Transport 2011, UNTCAD. Untcad.org/en/Docs/rmt and International Studies-American-Pacific Sealanes Security Institute 2011_en.pdf Conference on Maritime Security in Asia. Honululu, Jan 2004. Hiranandani G.M (Vice Admiral IN)(retd) Transition to Guardianship: The Indian Navy 1991-2000, International Organization for Standardization ISO31000:2009- Risk Management: Principles and guidelines.

212 213 India and Japan Relations Regional Cooperation: A Solution for Maritime Security Concerns of India

212 213 Mapping India and Japan Maritime Cooperation in the 21st Century Mapping India and Japan Maritime Cooperation in the 21st Century Japan and India have historical ties dating back to the period when Buddhism inroad into Japan from India via the Korean Praful Adagale Peninsula. “India's look-East Policy” was designed to reinvigorate its ties with the Southeast Asian and East Asian countries.1 This was in fact the turning point to being all the regional players in building regional cooperation amongst each Abstract other. Although the relationship took a pause as an aftermath of India and Japan has entered a new era of diplomatic relationship at its 60th India's nuclear test in 1998, the relationship soon acquired a anniversary with a vision to form a 'Strategic and Global Partnership'. Historically, Buddhism acted as link between the two countries. Japan is “strategic orientation” when Prime Minister Junichiro Koizumi amongst India's top five trading partners with a potential to reach US$14 and Manmohan Singh who for the first time in their joint billion by 2012. Though Japan and India are geographically distinct, it is statement confirmed that “The global partnership between India imperative for both the countries to expand its strategic partnership in the and Japan reflects a broad convergence of their long-term maritime domain. Convergence of interest lies in dependency on energy and political, economic and strategic interests, aspirations, objectives food supplies which indirectly makes the Sea Line of Control (SLOC) more and concerns. India and Japan view each other as partners that significant in the 21st century. This is also vital in the interest of National Security for both nations to secure and safeguard the SLOC which is critical have responsibility for, and are capable of, responding to global for this economic sustenance. The recent nuclear disaster pointed out to and regional challenges in keeping with their global partnership. Japan's energy security via sea routes. It needs to import 84% of the energy A strong, prosperous and dynamic India is, therefore, in the requirement from abroad. India's 78% energy needs are met through sea- interest of Japan and vice versa” (MEA India, 2005a).2 In February borne imports. Both the countries major concern remains securing its sea 2001, Japan participated in the International Fleet Review in lanes of communication (SLOC) which are vital for the transport of goods, Mumbai, which was followed by the visit of a Japan Maritime Self especially the import of Oil and Natural Gas. Similarly, Japan's National Security Strategy aims to protect and secure the (SLOC) in the straits of Defence Force (JMSDF) squadron to the southern Indian city of Malacca, Gulf of Aden and other strategic chock points. This paper will Chennai later in the year in May 2001. It was during Japanese highlight the significance of the SLOC and convergence of interest of both the Prime Minister Yoshiro Mori's landmark visit to India in August countries to manage the threats. Addressing China as a factor in this paper 2000 that the foundation was laid for a "Global Partnership in the will assist in understanding the India and Japan maritime cooperation more 21st Century".3 India has traditionally been present and has clearly. Lastly, the paper will examine the area of interest in the maritime navigated the Indian Ocean Region (IOR) to influence other domain in mapping India and Japan maritime cooperation in the 21st century. countries in Southeast Asia and beyond. Similarly regions like South China Sea have now become critically important for many nations, including Japan and India. As noted scholar, Robert Kaplan notes 'East Asia, or more precisely western Pacific, is quickly becoming the world's new centre of naval activity'. Introduction Ensuring to preserve its energy and security needs in the 21st “Whoever controls the Indian Ocean dominates Asia. This ocean is the century it is imperative for Japan as a maritime nation to sustain key to the seven seas in the twenty-first century, the destiny of the world close maritime cooperation with major rising regional power as will be decided in these waters.” India in the IOR. The IOR remains the major transit route for trade transport and military perspective, for all maritime regional Rear Admiral Alfred Thayer Mahan, US 18 January 2004 powers.

214 215 Mapping India and Japan Maritime Cooperation in the 21st Century Mapping India and Japan Maritime Cooperation in the 21st Century Japan and India have historical ties dating back to the period when Buddhism inroad into Japan from India via the Korean Praful Adagale Peninsula. “India's look-East Policy” was designed to reinvigorate its ties with the Southeast Asian and East Asian countries.1 This was in fact the turning point to being all the regional players in building regional cooperation amongst each Abstract other. Although the relationship took a pause as an aftermath of India and Japan has entered a new era of diplomatic relationship at its 60th India's nuclear test in 1998, the relationship soon acquired a anniversary with a vision to form a 'Strategic and Global Partnership'. Historically, Buddhism acted as link between the two countries. Japan is “strategic orientation” when Prime Minister Junichiro Koizumi amongst India's top five trading partners with a potential to reach US$14 and Manmohan Singh who for the first time in their joint billion by 2012. Though Japan and India are geographically distinct, it is statement confirmed that “The global partnership between India imperative for both the countries to expand its strategic partnership in the and Japan reflects a broad convergence of their long-term maritime domain. Convergence of interest lies in dependency on energy and political, economic and strategic interests, aspirations, objectives food supplies which indirectly makes the Sea Line of Control (SLOC) more and concerns. India and Japan view each other as partners that significant in the 21st century. This is also vital in the interest of National Security for both nations to secure and safeguard the SLOC which is critical have responsibility for, and are capable of, responding to global for this economic sustenance. The recent nuclear disaster pointed out to and regional challenges in keeping with their global partnership. Japan's energy security via sea routes. It needs to import 84% of the energy A strong, prosperous and dynamic India is, therefore, in the requirement from abroad. India's 78% energy needs are met through sea- interest of Japan and vice versa” (MEA India, 2005a).2 In February borne imports. Both the countries major concern remains securing its sea 2001, Japan participated in the International Fleet Review in lanes of communication (SLOC) which are vital for the transport of goods, Mumbai, which was followed by the visit of a Japan Maritime Self especially the import of Oil and Natural Gas. Similarly, Japan's National Security Strategy aims to protect and secure the (SLOC) in the straits of Defence Force (JMSDF) squadron to the southern Indian city of Malacca, Gulf of Aden and other strategic chock points. This paper will Chennai later in the year in May 2001. It was during Japanese highlight the significance of the SLOC and convergence of interest of both the Prime Minister Yoshiro Mori's landmark visit to India in August countries to manage the threats. Addressing China as a factor in this paper 2000 that the foundation was laid for a "Global Partnership in the will assist in understanding the India and Japan maritime cooperation more 21st Century".3 India has traditionally been present and has clearly. Lastly, the paper will examine the area of interest in the maritime navigated the Indian Ocean Region (IOR) to influence other domain in mapping India and Japan maritime cooperation in the 21st century. countries in Southeast Asia and beyond. Similarly regions like South China Sea have now become critically important for many nations, including Japan and India. As noted scholar, Robert Kaplan notes 'East Asia, or more precisely western Pacific, is quickly becoming the world's new centre of naval activity'. Introduction Ensuring to preserve its energy and security needs in the 21st “Whoever controls the Indian Ocean dominates Asia. This ocean is the century it is imperative for Japan as a maritime nation to sustain key to the seven seas in the twenty-first century, the destiny of the world close maritime cooperation with major rising regional power as will be decided in these waters.” India in the IOR. The IOR remains the major transit route for trade transport and military perspective, for all maritime regional Rear Admiral Alfred Thayer Mahan, US 18 January 2004 powers.

214 215 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

Similarly, Japans' vital interest in the security of sea routes at the meet its growing population. Similarly it is also important for same time is beginning to converge with those of India. Japan, an Japan's national security interest to protect its economic security island state with immense natural 'adversities', is excessively by maintaining and building a close relationship with India with a import-dependent for its energy and food supplies. Given that the common strategic objective. The major source of economic 92 per cent of its oil imports are sourced from West Asia and security for Japan comes from the trade by the sea route. With the Africa (88 per cent and 4 per cent, respectively), the international region from East Asia to Southeast Asia including the Indian shipping routes transiting the Indian Ocean are critical for its Ocean and the Middle East, form the most important trade link economic sustenance.4 The another factor responsible for both the called the Sea Line of Control (SLOC). nations to build close proximity in maritime domain is due to the However, considering cooperation in maritime domain between threat impending to the Sea Lines of Communication (SLOC) any two nations makes the concept of Maritime security more which forms the arteries for crucial transit of cargo from East Asia elusive. These factors range from issues of freedom of navigation, to Middle East countries. Securing safe passage through the safety at sea, naturally occurring hazardous phenomena, SLOC is a major task for the maritime security forces of both the including tsunamis and under-sea volcanoes, piracy and armed nations from the threat arising due to the interest of the non-state robbery, smuggling in its various forms, including humans, to actors as pirates, terrorist attacks and disasters that might come in matter of pollution and the irresponsible extraction of valuable the form of man caused or natural disasters in the 21st century. resources.7 There is a great deal of convergence of strategic India and Japans' Maritime Cooperation interests between the two nations in controlling these activities The rise of Asia in the 21st century has its roots linked to the and maintaining its presence in the Asian Pacific Region. As ancient maritime power built on the distinctive maritime economies of both the countries are heavily dependent on import geography, and its advantages due to its glorious economic of oil from the Persian Gulf, its dependence on SLOC in the IOR growth and prosperity.5 The Asia- Pacific region is becoming a and the Middle East makes its vital for both the nations' naval sphere of competition and cooperation for all regional maritime forces to identify further areas of cooperation. India has part powers to secure and safeguard their peace time operations at proved its stand when the Indian navy and the coast guard gained high seas. Growing in potency and the ambition to dominate the more prominence in the Japanese eyes when they rescued the region are two major players as India and Japan who are taking Japanese vessel MV Alondra Raindow, hijacked by pirates from the 8 the lead, while keeping in mind their limits and advantages in the South China Sea, in November 1999. This projected India's region. Japan's advantage over its technological edge and defence selfless role in safeguarding the shipping vessels of other nations industrial base attracts India's booming IT & technological needs and projected its objective and vision for international to be met in the defence sector. Japan has always been a maritime cooperation to challenge piracy in IOR region in the near future. power in East Asia at the end of the 19th century. India and The Joint Declaration of April 2005, therefore, underlined the Japan's maritime presence in the Indian Ocean Region and South importance of security dialogue and cooperation in identifying East Asia means that the pursuit of sea power isn't a political the Eight-fold Initiative for Strengthening Japan-India Global 6 choice, but a strategic imperative to safeguard and deploy their Strategic Partnership.9 Among these initiatives it also recognized naval forces for crucial economic interests. Japan's reliance on the importance of ensuring the safety and security of energy shipping and maritime trade to fuel its industrial might international maritime traffic and resolved to engage in annual coincides with that of India's dependence of energy security to Japan Coast Guard-Indian Coast Guard talks. Besides, joint

216 217 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

216 217 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century exercises against piracy as well as cooperation, through the means imperative for both the countries to identify naval areas of of information sharing of technical assistance is envisaged. Japan convergence in the Asian Pacific region. Natural disasters and and India are also part of the Regional Cooperation Agreement on man caused disasters will undoubtedly be a major challenge for Combating Piracy and Armed Robbery against Ships in Asia the navies to be prepared for increasing their maritime and early (ReCAAP). Another such initiative was in the year 2005, when warning and monitoring capabilities to tackle future challenges in India became a member of the East Asian Summit (EAS) mainly the maritime domain. Bilateral cooperation in defence and due to the initiative taken by Japan. As net-importers of fossil security will be another area of collaboration to maintain peace fuels, India and Japan have a vital interest in the protection of sea- and stability in the region. Although Japan is conducting lanes along the Hormuz-Malacca-Sea of Japan axis. cooperation and support activities in the IOR region, 'Operation The five-nation Malabar 2007 naval exercises were an important Enduring Freedom (OEF)'acted as a bridge between the two first step to this end. They allowed for direct contact between the countries and provided the baseline for security cooperation in Indian Navy and JMSDF in an operational capacity. The exercises ensuring regional stability. However, Japanese constitution prohibits the right of collective self defence, to conduct joint included 25 vessels from the United States, India, Japan, 12 Australia, and Singapore, and focused on non-conventional operations with countries other than US. These are some policy maritime operations including anti-piracy operations, search and reforms possible to cooperate bilaterally with India. rescue, humanitarian assistance, disaster relief, and Similarly, India and Japan's Economic and Military Interest in the counterterrorism.10 Incidentally, the exercises also included anti- IOR cannot be overlooked in examining the cooperation between submarine operations, maritime interdiction, and aerial combat the two countries. The maritime trade play an important role for exercises as part of this major exercise. Besides the United States energy security in accelerating the global market maritime trade and Australia, India is the third country with which Japan has a even during the economic crisis. Focusing on the Japan's Overseas strategic partnership. India conducted naval exercises in the Development Assistance (ODA) to India it has various areas at South China Sea in 2000, while Japan has stretched its sea-lane centre of attention for the development of infrastructure, mainly defence well beyond the stipulated 1,000 miles towards the in the areas of power and transportation; agricultural and rural Arabian Sea.11 It is equally essential for both the countries to work development; environment protection; health care; and rail together to ensure the safety and security of maritime traffic network to metro trains in India.13 Japan has recently committed through joint exercises against piracy, as the first Bi-lateral to an amount of yen 132,645 billion (Rs 7802.17 crore) for the maritime exercise between the two named 'JIMEX 12' took place second phase of financial year 2011 loan to Japan International off Tokyo. Joint exercises between the two countries can help to Cooperation Agency (JICA) to fund four projects in India.14 This prevent and control transnational crime, terrorism, piracy at sea would include building of internal infrastructure of India. The and can help to maintain peace and stability in the Indian Ocean high dependence of Japan on the Middle East for its oil imports is region and create a major drift to the strategic partnership in the symbolized by the fact that nearly 90 percent of Japan's oil comes 21st century. from the Middle East. Overall, Japan's dependence rate on The major areas of future cooperation between both the countries imports for its energy represents 96 percent compared to those of will build up a strong naval defence relationship towards the 21st the United States and Britain, 35 percent and 27 percent century. Considering the growth in the maritime trade industry respectively. and the significance of the SLOC for both the nations it is

218 219 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century exercises against piracy as well as cooperation, through the means imperative for both the countries to identify naval areas of of information sharing of technical assistance is envisaged. Japan convergence in the Asian Pacific region. Natural disasters and and India are also part of the Regional Cooperation Agreement on man caused disasters will undoubtedly be a major challenge for Combating Piracy and Armed Robbery against Ships in Asia the navies to be prepared for increasing their maritime and early (ReCAAP). Another such initiative was in the year 2005, when warning and monitoring capabilities to tackle future challenges in India became a member of the East Asian Summit (EAS) mainly the maritime domain. Bilateral cooperation in defence and due to the initiative taken by Japan. As net-importers of fossil security will be another area of collaboration to maintain peace fuels, India and Japan have a vital interest in the protection of sea- and stability in the region. Although Japan is conducting lanes along the Hormuz-Malacca-Sea of Japan axis. cooperation and support activities in the IOR region, 'Operation The five-nation Malabar 2007 naval exercises were an important Enduring Freedom (OEF)'acted as a bridge between the two first step to this end. They allowed for direct contact between the countries and provided the baseline for security cooperation in Indian Navy and JMSDF in an operational capacity. The exercises ensuring regional stability. However, Japanese constitution prohibits the right of collective self defence, to conduct joint included 25 vessels from the United States, India, Japan, 12 Australia, and Singapore, and focused on non-conventional operations with countries other than US. These are some policy maritime operations including anti-piracy operations, search and reforms possible to cooperate bilaterally with India. rescue, humanitarian assistance, disaster relief, and Similarly, India and Japan's Economic and Military Interest in the counterterrorism.10 Incidentally, the exercises also included anti- IOR cannot be overlooked in examining the cooperation between submarine operations, maritime interdiction, and aerial combat the two countries. The maritime trade play an important role for exercises as part of this major exercise. Besides the United States energy security in accelerating the global market maritime trade and Australia, India is the third country with which Japan has a even during the economic crisis. Focusing on the Japan's Overseas strategic partnership. India conducted naval exercises in the Development Assistance (ODA) to India it has various areas at South China Sea in 2000, while Japan has stretched its sea-lane centre of attention for the development of infrastructure, mainly defence well beyond the stipulated 1,000 miles towards the in the areas of power and transportation; agricultural and rural Arabian Sea.11 It is equally essential for both the countries to work development; environment protection; health care; and rail together to ensure the safety and security of maritime traffic network to metro trains in India.13 Japan has recently committed through joint exercises against piracy, as the first Bi-lateral to an amount of yen 132,645 billion (Rs 7802.17 crore) for the maritime exercise between the two named 'JIMEX 12' took place second phase of financial year 2011 loan to Japan International off Tokyo. Joint exercises between the two countries can help to Cooperation Agency (JICA) to fund four projects in India.14 This prevent and control transnational crime, terrorism, piracy at sea would include building of internal infrastructure of India. The and can help to maintain peace and stability in the Indian Ocean high dependence of Japan on the Middle East for its oil imports is region and create a major drift to the strategic partnership in the symbolized by the fact that nearly 90 percent of Japan's oil comes 21st century. from the Middle East. Overall, Japan's dependence rate on The major areas of future cooperation between both the countries imports for its energy represents 96 percent compared to those of will build up a strong naval defence relationship towards the 21st the United States and Britain, 35 percent and 27 percent century. Considering the growth in the maritime trade industry respectively. and the significance of the SLOC for both the nations it is

218 219 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

To sum up, Japan is the developed country most dependent on In terms of economic aspect, 97 per cent of India's trade by volume imported energy resources, mostly from MENA (Middle East and is sea-borne. Further, more than 70 per cent of its energy needs North Africa). The current crisis has exacerbated this are met through sea-borne imports. vulnerability. Indeed, with the gradual closure of nuclear plants, the value of Japan's imports of LNG (Liquefied natural gas), crude This proportion is expected to grow to 85 per cent by 2025. The oil and petroleum products increased respectively by 37.5 significance of SLOC varies from economic to political and percent, 21.3 percent and 39.5 percent. India and Japan military perceptive. From the strategic thinkers it has a holistic cooperation in maritime domain certainly will aid to foster newer perspective to secure the SLOC for safe transit of ships from the areas of import and export sector. Both the countries energy adversaries as well from disasters as expressed by a strategic requirement proves strategic interest in the IOR region and needs thinker, Vijay Sakhuja. The importance of the SLOC lies in the more push from both the political elites to understand its future hands of each nations maritime forces. The SLOC is vial for dependency that they relay on these strategic sea highways called various perspectives. For the nations as in case of India the IOR the SLOC. The next part will look at how SLOC is a significant forms an important region for the SLOC and maritime chock strategic asset for both the countries to meet the maritime and points. The Figure one below shows the significance of the SLOC security domain. and its geostrategic location to the littoral states. It also shows the oil shipping lanes and the String of pearls of China along the Significance of Sea Lines of Communication (SLOC) SLOC. The SLOC forms the most crucial sea highways in the maritime Fig. 1 (The Sea lines of communication) trade. The SLOC comprises of the umbilical cord of a state's economy and the arteries of a region's economic health.15 The Security of the Sea Lines of Communication (SLOC) is a primary role of any navy. 'SLOC-security' has always had a military connotation in naval doctrines, with the focus on controlling the maritime 'choke points'.16 The Sea lines of communication is not a new discovery in the maritime domain, however, its importance has gained much distinction due to its economic and military dimension. The Asia Pacific roughly has two significant sea lines of communication, one passing through the South China Sea to the Indian Ocean and the Middle East, the other passing through the East China Sea and the Sea of Japan to the Pacific Ocean and the Pacific coast of the US and Canada. Japan and India rely on the Similarly, the Southeast Asian choke points of the Malacca, Sunda sea lines of communication for energy security and economic and Lombok Straits affect the economic vitality of the Asia-Pacific growth. Both the countries have a shared interest in guaranteeing region. The proximity of IOR lies half way between the Strait of the free transit of energy and trade between the Suez Canal and Hormoz and the Strait of Malacca by its geographic location. the Western Pacific. Japan's trust towards Indian Navy to secure Looking at it pragmatically is the Indian Peninsula dominating the sea lanes in the IOR is vital towards securing Japan's energy the SLOC from the Persian Gulf before they round off south of security.17 Dundra Head in Sri Lanka. Further, this SLOC passes close to the

220 221 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

Indian islands of Andaman and Nicobar before entering the becomes more paramount due to the rich maritime resources Malacca Strait. For Japan 75 per cent of Japanese oil imports pass available in close proximity to the SLOC. Major underwater through the Strait of Hormuz.18 cables are vital as the telecommunication to broadband services pass adjacent to the SLOC. This makes the SLOC more For a long Japan has been interested in securing sea lines of strategically accessible for both the nations' long term trade and communication (SLOC), in order to maintain its economic and security concerns. Significance of SLOC brings the two dynamic military development. Japan's new constitutional prohibition on players to realise their potential and capabilities in fostering using force to settle international disputes provided a suitable special partnership to overcome threats to the SLOC in the 21st framework for a palatable maritime strategy based on sea lane century. defence. Even though the current strategy enables it to defend SLOCs to a distance of 1,000 nautical miles (nm) from Japanese The Threats to Sea Lines of Communication (SLOC) land, this extends no further than Taiwan in the southwest The significance of SLOC in the maritime domain itself makes it 19 direction. The security of the Southeast Asian straits, more vulnerable to various forms of threats pertaining to its particularly the Straits of Malacca, is critical to Japan, since 80 per safety and security. The concept of security in the context of SLOC cent of its energy resources pass through it. India too has immense means different due to various dimensions linked to it. Applied to stakes in these waterways since more than half of its trade moves the SLOC, it means the safety of navigation free from obstruction, east; similarly the western Pacific is of primary importance for interruption, threats of war, or a combination of these elements. Japan's security. The freedom of the seas principle today is set out With the increase in the world' merchant shipping, marine in UNCLOS (United Nations Convention on the Law of the Sea) in exploration and exploitation, and the maritime interests of many 1982, which came into force in November 1994. However, states have made the security requirements a greater concern for UNCLOS does not resolve all issues and many problems exist. the regional players in the Asian-Pacific region. From But ''Counterbalancing the adoption of distended national communication to broadband services are interlinked via jurisdiction toward the seas, the UNCLOS established three underwater cables that pass close through the SLOC in Asian- important regimes in securing the freedom of navigation, namely, Pacific region which forms another source of threat to the 'innocent passage' through territorial waters, 'transit passage' international community.21 through international straits, and 'archipelagic sea-lanes passage' t The threats to the SLOC can be divided into three levels as hrough archipelagos,'' regional, interregional and extra regional in order to understand the intensity of the threats in more detail. At regional level the The traditional route convenient for Japans' maritime trade conflict might occur in the political and military policies adopted passes by Malacca Strait to South China Sea towards Bashi Strait by the littoral states. However, this might involve the regional and then to Japan which is around 6,200 nautical miles. Large and inter regional states' intervention for settlement of disputes. Crude Carriers like the Ultra Large Crude carriers take the route The threats come in the form of safety in navigation and freedom via Lombok Strait, then transit through the waters of the of movement of goods in the littoral waters due to the number, Indonesian and Filipino Islands. For the survival and war speed and size and type of vessels passing through the straits endurance of Japan, three major SLOC are vital like the SLOC which may result in collision and grounding of vessels and that from South West Asia, South East Asia and some part of Oceania may have an indirect implication on the world maritime trade.22 20 via Malacca or Lombak Strait. The significance of SLOC The Figure two below shows the threats to the SLOC in the Asian-

222 223 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

Fig. 2 Threats to SLOC in the Asian-Pacific region. the “Golden Triangle,” notorious for its illegal drug production. Sea mines are the cheapest form of maritime warfare. They can lay siege to both military and civil vessels and aircraft mines and can also the choke points. As all these states are in the Asian region , it is natural that narco-terrorism is a major security concern for littoral states like India, which has IOR region as an emergence of transit point for a majority of the drugs that emanate from these two areas.26 The threats of terrorist attacks as occurred on USS Cole and MV Limburg have necessitated enhanced reconnaissance, surveillance and naval patrolling. The persistence of sea piracy, presence of terrorist groups capable of conducting maritime terrorism in the region, and other illegal activities such as drug Pacific region. smuggling, gunrunning and human trafficking in Southeast Asian waters all these expose the vulnerabilities of the sea lanes The threat common to all the above mentioned three levels are: 27 the threat from piracy and armed robbery at Sea constitutes 33%23 that would have severe consequences for the global economy. In and that is the most concerned security challenges across the order to overcome these threats, it is equally important for both SLOC. As the common security challenges categorized by the India and Japan to identify the nexus and build institutional 'Risk Intelligence' enlists War/Armed conflict also that accounts mechanism. The threat also emerges from the development of for 19% as the countries in the region are experiencing varying Chinese port and infrastructure in the IOR region and the South degrees of involvement in armed conflict. The threat from China Sea which directly or indirectly concerns India and Japan's terrorist attack is about 31% , 56% are threatened by the endemic maritime security. problems of illicit trafficking of arms, narcotics under Maritime The transport of radioactive wastes from Europe to Japan28 Trafficking, (Drugs/Weapons/People),39% is due to Political through the Asian Pacific region is another threat to SLOC Risk or Internal Instability and 53% due to the recent disputes security. Three shipments of radioactive wastes have taken place between Japan and China on islands leading to Islands' to date since 1992. The ongoing naval build-up by regional sovereignty disputes and overlapping maritime claims constitute countries would be another threat to SLOC security. In order to another major threat to regional SLOC security.24 assure sea-lane security many countries in the region, including a The increase in piracy attacks across the Malacca and Singapore number of medium and small states, are engaging in defence Straits to South China Sea continues to expand, where as build-ups and maritime capabilities are at the forefront of these Southeast Asia and Southwest Asia comprise the two top opium defence acquisition programs. Japan, South Korea and China are and heroin producing regions in the world.25 Considering the enhancing their sea-lane defence capacity and countries astride geo-political setup of the Indian Ocean region, Iran and Pakistan the sea-lanes are also expanding their own naval force. However, form a major portion of the drug-infested “Golden Crescent,” China strongly opposes the enlargement of Japan's military role while Myanmar (Burma) and Thailand constitute the majority of

224 225 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

224 225 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century in the Asia Pacific. Moreover, India is an important element in shipbuilding industry has shown a trend of rapid development in Japan's strategy towards China. ship owning industry in the year 2010.32 Similarly, China's new China as a factor in the India-Japan Maritime facilities at the Yulin naval base at Sanya on Hainan Island is capable of hosting aircraft carrier groups. Its several nuclear Cooperation submarines and amphibious assault ships have added a new The maritime sphere of influence cannot be inclusive without dimension to the Asia-pacific security conundrum. From the considering China's role in the Asian Pacific region. The economic Indian and Japanese perspectives, the deployment of the Type interest and its economic growth and industrialization in China 094 Jin class and the Type 093 Shang lass attack submarines earn more credibility due to its major transport through the constitute a meaningful deterrence and limits Indian and 29 maritime trade. China has been able to concentrate more on the Japanese strategic choices.33 development and infrastructural setup in the South China Sea and in the IOR region by paying more attention to the importance Japan is the second rival to china. Japan has developed a potent of the guarantee of SLOC security. China's thrust to fill its anti-missile defence systems and missile capabilities and is growing demands in oil and natural gas similar to that of India engaged in building, in collaboration with the US, the theatre Missile defence (TMD) shield. The TMD is a threat to China's and Japan makes it an equal and more competitive player in the 34 maritime trade and security. The importance of energy to the regional security and stability. China's unresolved Maritime "demand heartland" (India, China and Japan) is extensive. These dispute over the Senkaku Island with Japan also enforcing its countries view SLOCs as their very lifelines. However, both India place in the South China Sea. China's concerns about India and and Japan have apprehensions about China's role in the maritime Japan also arise from their close relationship with the United domain although it abides by various conventions for safety and States and its assistance and support to include both the nations in freedom of navigation at sea. India and Japan have concerns the diplomatic and maritime issues. China takes every issue as its about China's rise however, they are also anxious about North top priority in the international relations. The disruption of Korea's relationship with China and Pakistan in the defence and SLOCs in the South China Sea after the Mischief Reef incident has maritime sector. concerned the world community over the security of SLOC, whereas China has fulfilled its duty of guaranteeing freedom of China is also concerned about the expanding maritime power and navigation for foreign ships and air routes through and over the profile of other Asian powers including India and Japan and the international passage of the South China Sea according to United States that has superior maritime technological and international law”.35 Reports suggests that China after completing operational capabilities in the region and considers itself as the the first stage of a strategy to strengthen its naval presence near “resident power” in Asia. Ensuring security and transport of the Senkaku Islands will embark on its “second stage strategy” goods via sea, China is building a US$7 billion pipeline across during the period 2010 to 2020 and would seek to establish control Malaysia, so as to save just 400 miles of the journey through the 30 of waters within the “second island chain” that links Japan's Malacca Strait past Singapore and up the east coast of Malaysia. Ogasawara island chain, Guam and Indonesia. In the third and This projects China's need for energy security in the 21st century “final stage” from 2020 to 2040 China envisages to put an end to and reduces its dependency on other partners. China's reliance on the US's domination over the Pacific Ocean and the Indian imports is projected to intensify further reaching 66 per cent in Ocean.36 2015 and 70 per cent in 2020.31 China and Korean Republic coastal In order to balance the power equations in the region Japan is

226 227 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century in the Asia Pacific. Moreover, India is an important element in shipbuilding industry has shown a trend of rapid development in Japan's strategy towards China. ship owning industry in the year 2010.32 Similarly, China's new China as a factor in the India-Japan Maritime facilities at the Yulin naval base at Sanya on Hainan Island is capable of hosting aircraft carrier groups. Its several nuclear Cooperation submarines and amphibious assault ships have added a new The maritime sphere of influence cannot be inclusive without dimension to the Asia-pacific security conundrum. From the considering China's role in the Asian Pacific region. The economic Indian and Japanese perspectives, the deployment of the Type interest and its economic growth and industrialization in China 094 Jin class and the Type 093 Shang lass attack submarines earn more credibility due to its major transport through the constitute a meaningful deterrence and limits Indian and 29 maritime trade. China has been able to concentrate more on the Japanese strategic choices.33 development and infrastructural setup in the South China Sea and in the IOR region by paying more attention to the importance Japan is the second rival to china. Japan has developed a potent of the guarantee of SLOC security. China's thrust to fill its anti-missile defence systems and missile capabilities and is growing demands in oil and natural gas similar to that of India engaged in building, in collaboration with the US, the theatre Missile defence (TMD) shield. The TMD is a threat to China's and Japan makes it an equal and more competitive player in the 34 maritime trade and security. The importance of energy to the regional security and stability. China's unresolved Maritime "demand heartland" (India, China and Japan) is extensive. These dispute over the Senkaku Island with Japan also enforcing its countries view SLOCs as their very lifelines. However, both India place in the South China Sea. China's concerns about India and and Japan have apprehensions about China's role in the maritime Japan also arise from their close relationship with the United domain although it abides by various conventions for safety and States and its assistance and support to include both the nations in freedom of navigation at sea. India and Japan have concerns the diplomatic and maritime issues. China takes every issue as its about China's rise however, they are also anxious about North top priority in the international relations. The disruption of Korea's relationship with China and Pakistan in the defence and SLOCs in the South China Sea after the Mischief Reef incident has maritime sector. concerned the world community over the security of SLOC, whereas China has fulfilled its duty of guaranteeing freedom of China is also concerned about the expanding maritime power and navigation for foreign ships and air routes through and over the profile of other Asian powers including India and Japan and the international passage of the South China Sea according to United States that has superior maritime technological and international law”.35 Reports suggests that China after completing operational capabilities in the region and considers itself as the the first stage of a strategy to strengthen its naval presence near “resident power” in Asia. Ensuring security and transport of the Senkaku Islands will embark on its “second stage strategy” goods via sea, China is building a US$7 billion pipeline across during the period 2010 to 2020 and would seek to establish control Malaysia, so as to save just 400 miles of the journey through the 30 of waters within the “second island chain” that links Japan's Malacca Strait past Singapore and up the east coast of Malaysia. Ogasawara island chain, Guam and Indonesia. In the third and This projects China's need for energy security in the 21st century “final stage” from 2020 to 2040 China envisages to put an end to and reduces its dependency on other partners. China's reliance on the US's domination over the Pacific Ocean and the Indian imports is projected to intensify further reaching 66 per cent in Ocean.36 2015 and 70 per cent in 2020.31 China and Korean Republic coastal In order to balance the power equations in the region Japan is

226 227 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century increasingly turning to India as a counterweight to China, Considering the geostrategic significance of the IOR region it is encouraging Indian participation in the East Asian Summit and imperative for the Indian naval forces to expand its operation moving forward on security and nuclear cooperation talks. India within its foreign policy framework and devise a maritime offers Japan a security hedge against China (particularly given strategy and build more ships to safeguard its maritime resources common Japanese and Indian interest in the maritime domain), and protect the coast line, for which some part of Official an economic hedge against overdependence on the Chinese Development Assistance (ODA) received from Japan must be market. Tokyo is well aware of the strategic importance of India provided in the defence development sector. An agreement in and the threat from China. These are the views as per the strategic such framework will enhance the scope for the strategic thinkers of India in the maritime security. engagement to take place between the two countries. Conclusion Indian Coast Guard must learn from Japan Maritime Security Mapping India and Japan Maritime cooperation will be the most Agency (the Japanese Coast Guard) that has developed its crucial factor keeping in mind the strategic importance of the international activities particularly in pirating issues. The coast Asian-pacific region in the 21st century. India and japan strategic guard and maritime enforcement agencies of Cambodia, partnership will be true strategic in enhancing its maritime Indonesia, Malaysia, the Philippines and Vietnam are among the security cooperation. However, addressing of the three major major recipients of Japanese financial assistance for improving challenges by Japan at present is difficult. The difficulties are the their anti-piracy capabilities which include the construction of debt-to-GDP ratio, secondly, the failure of the Fukushima Daiichi patrol vessels, the enhancement of port security facilities, the nuclear plant and lastly the political leadership within Japan modernisation of communication systems and the strengthening 37 where India must find alternatives to assist its economic needs. of port and coast guard forces. The competitiveness is not in For India, also, the security of sea traffic through the Malacca securing the region or the territorial waters, but it's imperative for Strait is vital from an economic point of view. Japan is considered the maritime powers to secure its trade routes and balance its to be one of the major maritime countries of the Asian Pacific economic and military presence by various means. The region. Taking advantage of the strategic partnership India must significance of and threats to SLOC will remain a common open more doors of opportunity in the IOR region to build concern and will form a string of cooperation between India and economic and maritime relations. Mapping vital areas of Japan in the 21st century. However, the SLOC should be viewed cooperation in maritime domain itself lays open the vast from a holistic perspective by the regional and super powers as a opportunities and wealth of resources that the Oceans provide to multilateral maritime security interest, as it provides the most the littoral states and it is high time especially for India to step its decisive demonstration of how a nation's maritime security maritime presence more comprehensively and favourably to interests extend beyond its own waters. Similarly, Japan's invite other regional players in the region. Several opportunities initiative for “ocean governance” is aimed at securing maritime from securing the fishing resources, seabed resources and the order by internationally cooperating and comprehensively 38 maritime environment, in which environmental problems have a tackling the maritime security issues. Initiatives taken within complicated aspect, can be utilized closely by both the nations. the framework of the UNCLOS between the two in controlling piracy and maritime terrorism will be beneficial and acceptable to For Japan it must understand the importance of the strategic the international community as well. Both the nations are also partnership with India and make its policies flexible enough to part of the Regional Cooperation Agreement on Combating build strategic engagement with India in the near future.

228 229 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century increasingly turning to India as a counterweight to China, Considering the geostrategic significance of the IOR region it is encouraging Indian participation in the East Asian Summit and imperative for the Indian naval forces to expand its operation moving forward on security and nuclear cooperation talks. India within its foreign policy framework and devise a maritime offers Japan a security hedge against China (particularly given strategy and build more ships to safeguard its maritime resources common Japanese and Indian interest in the maritime domain), and protect the coast line, for which some part of Official an economic hedge against overdependence on the Chinese Development Assistance (ODA) received from Japan must be market. Tokyo is well aware of the strategic importance of India provided in the defence development sector. An agreement in and the threat from China. These are the views as per the strategic such framework will enhance the scope for the strategic thinkers of India in the maritime security. engagement to take place between the two countries. Conclusion Indian Coast Guard must learn from Japan Maritime Security Mapping India and Japan Maritime cooperation will be the most Agency (the Japanese Coast Guard) that has developed its crucial factor keeping in mind the strategic importance of the international activities particularly in pirating issues. The coast Asian-pacific region in the 21st century. India and japan strategic guard and maritime enforcement agencies of Cambodia, partnership will be true strategic in enhancing its maritime Indonesia, Malaysia, the Philippines and Vietnam are among the security cooperation. However, addressing of the three major major recipients of Japanese financial assistance for improving challenges by Japan at present is difficult. The difficulties are the their anti-piracy capabilities which include the construction of debt-to-GDP ratio, secondly, the failure of the Fukushima Daiichi patrol vessels, the enhancement of port security facilities, the nuclear plant and lastly the political leadership within Japan modernisation of communication systems and the strengthening 37 where India must find alternatives to assist its economic needs. of port and coast guard forces. The competitiveness is not in For India, also, the security of sea traffic through the Malacca securing the region or the territorial waters, but it's imperative for Strait is vital from an economic point of view. Japan is considered the maritime powers to secure its trade routes and balance its to be one of the major maritime countries of the Asian Pacific economic and military presence by various means. The region. Taking advantage of the strategic partnership India must significance of and threats to SLOC will remain a common open more doors of opportunity in the IOR region to build concern and will form a string of cooperation between India and economic and maritime relations. Mapping vital areas of Japan in the 21st century. However, the SLOC should be viewed cooperation in maritime domain itself lays open the vast from a holistic perspective by the regional and super powers as a opportunities and wealth of resources that the Oceans provide to multilateral maritime security interest, as it provides the most the littoral states and it is high time especially for India to step its decisive demonstration of how a nation's maritime security maritime presence more comprehensively and favourably to interests extend beyond its own waters. Similarly, Japan's invite other regional players in the region. Several opportunities initiative for “ocean governance” is aimed at securing maritime from securing the fishing resources, seabed resources and the order by internationally cooperating and comprehensively 38 maritime environment, in which environmental problems have a tackling the maritime security issues. Initiatives taken within complicated aspect, can be utilized closely by both the nations. the framework of the UNCLOS between the two in controlling piracy and maritime terrorism will be beneficial and acceptable to For Japan it must understand the importance of the strategic the international community as well. Both the nations are also partnership with India and make its policies flexible enough to part of the Regional Cooperation Agreement on Combating build strategic engagement with India in the near future.

228 229 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

Piracy and Armed Robbery against Ships in Asia (ReCAAP). “India and Japan desire a multipolar Asia and multipolar India and Japan naval forces must collaboratively get involved in world.”42 Both the nations must work towards aspiring for the combating piracy and learn the capabilities and combating same while including China as well by way of institutional techniques from each other. India's initiatives after 26/11 have building to safeguard the security of SLOC and combating piracy. focused its attention towards the maritime domain from mere There is something more akin to Robert Kaplan's view that the economic to military and security perspective. IOR will become the site of commercial and military rivalries.43 In Both the countries must balance between the bilateral and this instance both the nations must aspire to work towards multilateral cooperation as India must take advantage of the making IOR a zone of peace and no conflict. Lastly, it is indeed strategic partnership and develop collaborative mechanism to good to quote the old saying: "the sea unites while the land divides.” enhance the capability of the naval forces by deployment of Significance of Oceans will certainly bring the regional players coastal radar station and for surveillance and monitoring together to search for newer areas of cooperation vital in the capabilities in which Japanese expertise are appreciated and they interest of both the economic and military means suitable to the have better equipment. Learning new capabilities in anti- countries which is the need of the hour in the 21st century. India's submarine operations and anti-mine setups from Japan will be vital in the interest of Indian maritime forces. Similarly, it also needs to improve its Air defense capabilities,39 where India must offer support. Joint Amphibious operations between the two will be newer areas of exercise in the regional sphere. Japan's indigenous production and technological skills in the field of network centric warfare and electronic warfare are also an area for scope in terms of the naval cooperation to tackle the threats References related to piracy, trafficking, and maritime terrorism-a global 1 threat for both the nations to confront in the 21st century. Borah, Rupakjyoti. 'Japan-India Maritime Cooperation in the Asia-Pacific Region: Prospects And Problems', available at http://www2.jiia.or.jp/pdf In terms of other initiatives, Tokyo acceded to the Proliferation /fellow_report/120315-rupakjyoti_borah.pdf 40 Security Initiative (PSI), an effort to halt the proliferation of 2 Ministry Of External Affairs, Government of India Report, 2005. weapons-related technology at sea, aloft, and ashore. A “core” participant in the PSI, Japan has taken part in a series of highly 3 n,1 visible exercises held across the globe. However, it must realise 4 Khurana, Gurpreet. “Security of Sea Lines: Prospects for India-Japan India's strategic intent and make India a core member in the Cooperation”. Strategic Analysis. 31:1 (2007), p.139-153 also available at forum. Both the countries must take advantage of the United http://dx.doi.org/10.1080/09700160701355485

States that serves as a common link in cooperation on Ballistic 5 41 Sakhuja, Vijay. Asian Maritime Power in the 21st Century Strategic Transactions Missile Defence, and develop its naval capabilities for defensive China, India and Southeast Asia. Singapore. Institute of Southeast Asian purpose. Comprehending to what Brahama Chellaney, a noted Studies, 2011, p.282-284

Strategic thinker, referred to as the burgeoning relationship 6 Patalano, Alessio, Japan: Britain of the Far East? Published on January 18, between India and Japan as a significant milestone in building 2011 also available athttp://thediplomat.com/2011/01/18/japan-britain- “Asian power equilibrium.” However, he also opines that only of-the-far-east/

230 231 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

7 Klein, Natalie, Mossop, Joanna, Rothwell, D, Donald.Maritime Security: 20 Dalchoong, Kim. “Resource, Maritime Transport and SLOC Security in the International Law and Policy Perspectives from Australia and New Zealand. New Asia-Pacific Region”. Institute of East and West Studies Seoul. (1988),p.174 is York. Routledge, 2010,p.157 also available at http://www.slocgroup.org/pubs/SLOC5.pdf

8 Panda, Rajaram. “India and Japan: Exploring Strategic Potentials”. in Focus 21 Sakhuja, Vijay. “Indian Ocean and the Safety of Sea Lines of is available online at http://idsa.in/system/files/jds_4_4_rpanda.pdf Communication”. Strategic Analysis, 25:5, (2001),p.689-702 also available at http://dx.doi.org/10.1080/09700160108458989 9 Ibid. 22 n,18 10 Tellies J. Ashley, Tanner Travis, and Keough Jessica (Eds), Strategic Asia 2011-2012, Asia Respond to its Rising Powers: China and India. United States of 23 Pandya, A, Amit, Burns ,R Herbert, Kobayashi, Junko, ' Maritime America, National Bureau of Asian Research, 2011. Commerce and Security: The Indian Ocean', (2011),p.99 is also available at

11 http://www.stimson.org/images/uploads/research-pdfs/Section_3_- Sakhuja, Vijay. Asian Maritime Power in the 21st Century Strategic _Maritime_Commerce_and_Security_The_Indian_Ocean.pdf Transactions China, India and Southeast Asia. Singapore, Institute of Southeast Asian Studies, 2011, p.282-284 24 AON Political Risk Services, CIA World Fact Book, IMB, SIPRI, Risk

12 Intelligence, is available at http://www.stimson.org/images/uploads/ Sisodia,S.Naidu,G. India-Japan Relations : Partnership for Peace and Security in research-pdfs/Section_3_-_Maritime_Commerce_and_Security_The Asia. New Delhi. Promilla & Co., & Institute of Defence Studies and Analysis, _Indian_Ocean.pdf 2006,p.11 25 13 Sakhuja, Vijay. “Indian Ocean and the Safety of Sea Lines of Rajamohan, P, Rahut Dil Bahadur, Jacob T, Jabin. “Changing Paradigm of Communication”. Strategic Analysis, 25:5, (2001),p.689-702 also available at India- Japan Relations: Opportunities and Challenges”. Indian Council for http://dx.doi.org/10.1080/09700160108458989 Research on International Economic Relations. 212.(2008) 26 14 Ghosh, P, K. 'Maritime Security Challenges in South Asia and the Indian 'Japan commits to Rs 7802 crore ODA loan to India Net Indian News Ocean: Response Strategies ', A paper prepared for the Centre for Strategic and Network', New Delhi, September 28, 2012 available online at International Studies Maritime Security in Asia. (2004), Honolulu, Hawaii is http://netindian.in/news/2012/09/28/00021708/japan-commits-rs-7802- also available online at http://community.middlebury.edu crore-oda-loan-india /~scs/docs/ghosh,%20maritime%20security%20challenges%20in%20SAsi 15 Sakhuja, Vijay. “Indian Ocean and the Safety of Sea Lines of a%20&%20Indian%20Ocean.pdf Communication”. Strategic Analysis, 25:5, (2001),p.689-702 also available at 27 Sakhuja, Vijay. Asian Maritime Power in the 21st Century Strategic http://dx.doi.org/10.1080/09700160108458989 Transactions China, India and Southeast Asia. Singapore, Institute of Southeast 16 Khurana, Gurpreet. “Security of Sea Lines: Prospects for India-Japan Asian Studies, 2011 p.282-284 Cooperation”. Strategic Analysis. 31:1 (2007), p.139-153 also available at 28 Guoxing, Ji. “SLOC Security in the Asia Pacific”. Center for Asia-Pacific for http://dx.doi.org/10.1080/09700160701355485 Security Studies, Honolulu, Hawaii,(2000) 17 Tellies J. Ashley, Tanner Travis, and Keough Jessica (Eds), Strategic Asia 29 n,27 2011-2012, Asia Respond to its Rising Powers: China and India. United States of America, National Bureau of Asian Research, 2011. 30 Menon, Raja. 'Maritime Interests of US, India and Japan', is also available at http://csis.org/files/media/csis/pubs/090201_bsa_menon.pdf 18 n,14 31 19 'Review of Maritime Transport', Report of United Nations available online Khurana, Gurpreet, “Security of Sea Lines: Prospects for India-Japan at http://unctad.org/en/Docs/rmt2011_en.pdf Cooperation”, Strategic Analysis. 31:1 (2007), p.139-153 also available at http://dx.doi.org/10.1080/09700160701355485

232 233 st India and Japan Relations Mapping India and Japan Maritime Cooperation in the 21 Century

232 233 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the 32 Guoxing, Ji. “SLOC Security in the Asia Pacific”. Center for Asia-Pacific for Asia-Pacific and India-Japan Cooperation Security Studies, Honolulu, Hawaii,(2000)

33 Sakhuja, Vijay. Asian Maritime Power in the 21st Century Strategic Pranav Kumar Transactions China, India and Southeast Asia. Singapore, Institute of Southeast Asian Studies, 2011, p.282-284

34 Ibid. Abstract 35 n,31 In the wake of the end of the ideologically loaded Cold War the geoeconomics and the geopolitics have been intrinsically linked with. Now it is very difficult to decouple the 36 Khan, Shamshad, Ahmad. “Indo- Japan Strategic Cooperation: Issues, economic interests of a nation from that of the hard core security. The globalized Expectations and Challenges”. Slavic Research Center (SRC). 2011 is available world has a profound impact on every state as each and every state has been pushing online at http://www.isn.ethz.ch/isn/Digital-Library/ Publications hard to get access to resources, raw materials, and markets. The maritime /Detail/?ots591=0c54e3b3-1e9c-be1e-2c24-a6a8c 7060233 &lng=en&id= transportation of goods and commodities is an essential component of the 132641 contemporary world's transnational and international interactions. The global trade in terms of value and volume has been snowballing in leaps and bounds and it is 37 Rao, P, V. “Indian Ocean Maritime Security Cooperation: The Employment needless to mention that a majority of global trade routes pass through the Sea Lanes of Navies and other Maritime Forces”. Journal of the Indian Ocean Region. of Communication (SLOCs). So it is in the case of global flow of communication also. Routledge,6:1, (2010),pp.129-137 The Asia-Pacific has emerged as the focus of global geopolitical, geo-economic and 38 Akiyama, Masahiro. 'Prospect for Change in the maritime security geo-strategic importance. During the last one decade or so, India and Japan have situation in Asia and the role of Japan, IIPS International Conference, (2001). emerged as strategic partners as their role in stabilizing security environment in the

39 Asia-Pacific region has been well accepted. The transition from being a mere political Dalchoong, Kim. “Resource, Maritime Transport and SLOC Security in the partner to strategic partner has been conspicuous since the visit of Japanese Prime Asia-Pacific Region”. Institute of East and West Studies Seoul. (1988),p.174 is Minister Mori Yoshiro to India in August 2000.1 The two democracies' role becomes also available at http://www.slocgroup.org/pubs/SLOC5.pdf very important in evolving any sort of reliable mechanism to secure and protect the 40 Yoshihara, Toshi & Holmes, R, James. “Japan's Emerging Maritime SLOCs in Asia-pacific. Strategy: Out of Sync or Out of Reach?”, Comparative Strategy.(2008) 27:1, In 2007 the then Prime Minister Shinzo Abe in his speech during his visit to India p.27-43 is available online at http://dx.doi.org/10.1080/01495930701839654 emphasized the common interests between New Delhi and Tokyo in the Hormuz- Malacca critical sea lanes. 41 Naidu, G. V. C. “Ballistic Missile Defence: Perspectives on India-Japan Cooperation”, Strategic Analysis.(2007),31:1, 155-177 can be viewed online Both India and Japan, at bilateral and multilateral levels have taken a number of http://dx.doi.org/10.1080/09700160701355493 initiatives to secure SLOCs. For instance: Anti-piracy patrols in Malacca both on the sea and in air like MALSINDO, the Regional Cooperation Agreement on Combating 42 Khan, Shamshad, Ahmad. “Indo- Japan Strategic Cooperation: Issues, Piracy and Armed Robbery (ReCAAP) or the Tokyo Agreement of November 11, Expectations and Challenges”. Slavic Research Center (SRC). 2011 is available 2004. In order to evolve any reliable mechanism to secure SLOCs, a lot more has to be o n l i n e a t h t t p : / / w w w . i s n . e t h z . c h / i s n / D i g i t a l - done. Library/Publications/Detail/?ots591=0c54e3b3-1e9c-be1e-2c24- Geography plays an important role in the economic activities of a country in general a6a8c7060233&lng=en&id=132641 and trade relationship in particular. It is now a well established fact that the sea

43 routes of trade account for a majority of trades by any country. The profound Winner, C, Andrew. 'India's Contemporary Security Challenges'. influence of this sea commerce upon the wealth and strength of the countries in the Washington, D.C, p.111 available at http://www.wilsoncenter.org/sites post-Cold War period has been closely linked with the protection of its SLOCs and the /default/files/ASIA_100423_IndiaSecurityFINAL.pdf effectiveness of its navy. As Mahan narrates, 'the necessity of a navy, in the restricted sense of the word, springs from the existence of peaceful shipping'2 Sea

234 235 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the 32 Guoxing, Ji. “SLOC Security in the Asia Pacific”. Center for Asia-Pacific for Asia-Pacific and India-Japan Cooperation Security Studies, Honolulu, Hawaii,(2000)

33 Sakhuja, Vijay. Asian Maritime Power in the 21st Century Strategic Pranav Kumar Transactions China, India and Southeast Asia. Singapore, Institute of Southeast Asian Studies, 2011, p.282-284

234 235 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation power protected vital commercial flows when other, more peaceful, methods had 3 by the economic interactions has increased the cost of war for a failed. India and Japan can be termed as major countries that can play a stabilizing role in the Indian Ocean and Western Pacific Ocean respectively. nation-state. The Waltzian, or even Kaplanian, “International System” is increasingly being replaced by Geo-economic The paper makes an attempt to deal with the importance of the Asia-Pacific Region form trade and commerce perspectives. The purpose is to better understand the interdependent 'World System', a system that has been patterns of SLOCs in the region. This paper can be grouped into the following characterized in increasing value, volume and diversity of Trade. categories: What is the importance of the Western Pacific for India? Similarly, it tries For the interdependent 'World System' SLOCs are very similar to to understand what is the importance of the Indian Ocean from Japan's perspective? that of circulatory and nervous subsystems of a human body. The paper will analyse the piracy in the sea lanes. Lastly an attempt has been made to SLOCs are channels through which goods, energy, and to the understand the cooperation between India and Japan in this regard. Accordingly, the key research objective of the paper is: To explore the challenges that the SLOCs of the some extant people are transported from one state to another. Sea region has been confronting with. Line/Lanes of Communication (SLOC) is a term describing the Keywords: Asia-Pacific, Indian Ocean, Pacific Ocean, Sea Lanes of primary maritime routes between ports. In maritime and Communications (SLOCs), Geopolitical, Geo-economic, Geo-strategic. economic parlance, it should be the shortest distance and should be economical and should allow the timely delivery of cargo. It is in vital interest of international (Transnational) system to secure and protect it Diagram 1: Trend of Sea-Borne Trade (in MMT) Introduction In the wake of the end of the ideologically loaded Cold War, the geoeconomics and the geopolitics have been intrinsically linked with. Now it is very difficult to decouple economic interests of a nation from that of the hard core security. The globalized world has a profound impact on every state as each and every state has been pushing hard to get access to resources, raw materials, and markets. The maritime transportation of goods and commodities is an essential component of the contemporary world's transnational and international interactions. The global trade in terms of value and volume has been snowballing in leaps and Source: Collated on the basis the Maritime Report, 2012 bounds and it is needless to mention that the majority of global trade routes pass through Sea Lanes of Communications The total sea-borne trade volume has doubled during the last 20 (SLOCs). So it is in the case of global flow of communication also. years (see Diagram 1). Even though oil and gas account for more Growing Importance of the Sea Lanes of than one-quarter of the global sea-borne trade, during the last two decades the sea-borne trade basket has been becoming more Communication diversified. The cooperation, competition and interaction among the nation- states have become more viable, visible and intense during the post-Cold War period. The “complex interdependence” guided

236 237 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation power protected vital commercial flows when other, more peaceful, methods had 3 by the economic interactions has increased the cost of war for a failed. India and Japan can be termed as major countries that can play a stabilizing role in the Indian Ocean and Western Pacific Ocean respectively. nation-state. The Waltzian, or even Kaplanian, “International System” is increasingly being replaced by Geo-economic The paper makes an attempt to deal with the importance of the Asia-Pacific Region form trade and commerce perspectives. The purpose is to better understand the interdependent 'World System', a system that has been patterns of SLOCs in the region. This paper can be grouped into the following characterized in increasing value, volume and diversity of Trade. categories: What is the importance of the Western Pacific for India? Similarly, it tries For the interdependent 'World System' SLOCs are very similar to to understand what is the importance of the Indian Ocean from Japan's perspective? that of circulatory and nervous subsystems of a human body. The paper will analyse the piracy in the sea lanes. Lastly an attempt has been made to SLOCs are channels through which goods, energy, and to the understand the cooperation between India and Japan in this regard. Accordingly, the key research objective of the paper is: To explore the challenges that the SLOCs of the some extant people are transported from one state to another. Sea region has been confronting with. Line/Lanes of Communication (SLOC) is a term describing the Keywords: Asia-Pacific, Indian Ocean, Pacific Ocean, Sea Lanes of primary maritime routes between ports. In maritime and Communications (SLOCs), Geopolitical, Geo-economic, Geo-strategic. economic parlance, it should be the shortest distance and should be economical and should allow the timely delivery of cargo. It is in vital interest of international (Transnational) system to secure and protect it Diagram 1: Trend of Sea-Borne Trade (in MMT) Introduction In the wake of the end of the ideologically loaded Cold War, the geoeconomics and the geopolitics have been intrinsically linked with. Now it is very difficult to decouple economic interests of a nation from that of the hard core security. The globalized world has a profound impact on every state as each and every state has been pushing hard to get access to resources, raw materials, and markets. The maritime transportation of goods and commodities is an essential component of the contemporary world's transnational and international interactions. The global trade in terms of value and volume has been snowballing in leaps and Source: Collated on the basis the Maritime Report, 2012 bounds and it is needless to mention that the majority of global trade routes pass through Sea Lanes of Communications The total sea-borne trade volume has doubled during the last 20 (SLOCs). So it is in the case of global flow of communication also. years (see Diagram 1). Even though oil and gas account for more Growing Importance of the Sea Lanes of than one-quarter of the global sea-borne trade, during the last two decades the sea-borne trade basket has been becoming more Communication diversified. The cooperation, competition and interaction among the nation- states have become more viable, visible and intense during the post-Cold War period. The “complex interdependence” guided

236 237 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation

Emergence of Asia-Pacific as an Economic Hub and the Diagram 2: Growth in the volume of Merchandise Sea Export Sea Lanes of Communication (SLOC) Now it has been widely accepted that Asia-Pacific has become a new geopolitical and geo-economics center of gravity. In this paper, the northern Indian Ocean and the western Pacific Ocean have been given emphasis. If recent trends are any indication, trans- Atlantic trade is being replaced by intra-Asia-Pacific trade. Asia's share of global merchandise trade has doubled since 1973, to just over 30 percent. After surpassing Germany and the USA, now China has become the single largest exporter in the World.4 Apparently, the shift is attributed to the location of three of the World's largest economies China, India and Japan in the region. Source: Collated on the basis of the Maritime Report, 2012 According to a study by the National Intelligence Council of the United States, the combined GDPs of China, India and Japan will Diagram 3: Growth in the volume of Merchandise Sea Import surpass those of the United States and the European Union (EU), reaching $19.8 trillion (China), $14 trillion (India), and $11.6 trillion (Japan).5 By 2050, according to Goldman Sachs projection, the situation will become even more astonishing when the three Asian GDPs combined will add up to slightly more than twice the United States GDP and about four times that of Russia, the United Kingdom, Germany, France, and Italy combined.6 Apart from the three Asian economic giants, countries like Indonesia and regional groupings like ASEAN can also be a major economic growth pole in the region. Experts emphasize that over the next decade or so, Indonesia may revert to a high growth of 6 percent to Source: Collated on the basis of the Maritime Report, 2012 7 percent, which, along with an expected population increase from 226 million to around 250 million, would make it one of the The rise of China and India as economic powers and their largest developing economies.7 growing trading relationship with Africa, Latin America and the Middle East have an obvious bearing on the global trade and Diagrams 2 and 3 show that the growth of the sea-borne transportation patterns. The Northern Indian Ocean and the merchandise export and import have been more astonishing in Western Pacific are evolving as important maritime regions Asia- Pacific than that of the trans-Atlantic geo-economic region. through which major trade routes pass. The Strait of Malacca, a 600 miles long passage, is the main corridor between the Indian Ocean and the South China Sea. There are several other straits of strategic importance in the region such as the Singapore Strait, the Sunda Strait, the Lombok Strait

238 239 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation

238 239 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation and Makassar in Southeast Asia. Other important SLOCs in the possibility of opening of the Northern Sea Route (NSR). Even Northeast Asia are the Straits of Tsushima, Tsugaru, Osumi, and before this, T.A. Taracouzio's Soviets in the Arctic prospects of the Soya (La Perouse). These straits are the major shipping routes in opening of the NSR was well articulated. But recently owing to the Asia Pacific. debates about the geopolitical implication of climatic change and opening of the NSR has hogged the limelight of international Importance of the West Pacific for India community. Russia is tipped to become a major beneficiary in case Changing Trade Destinations: During the last decade while of opening of the NSR. Japan, with Asia's largest flagged India's export grew fivefold, its import registered a seven fold merchant fleet, have also been trying to become a stakeholder in increase. While during 2000-01, India's export and import were the newly opened Northern Sea Route (NSR)11 that passes US$ 44.6 billion and US$ 50.5 billion respectively, it reached to through the Arctic Ocean. Even then Japan will remain US$251.1 billion and US$369.8 billion respectively during 2010- 8 dependent on the Asia-Pacific sea trade routes for majority of its 11. As far as, India's trade destination is concerned, the share of trade requirement in the near future. The NSR is a contested Asia and the ASEAN in total trade increased from 33.3 per cent waterway with Russia claiming sovereignty over it which during the financial year 2000-1 to 57.3 per cent during the first conflicts with the official US and EU position that it passes half of 2011-12, while that of Europe and America fell from 42.5 through international straits.12 However, Chinese academic per cent to 30.8 per cent respectively. While the top 15 countries analysts have suggested that China could consider contesting still hold a share of around 60 per cent trade during the financial Russian and Canadian sovereignty over, respectively, the years 2010-11 and 2011-12 , the list of the top 15 trading partner 13 Northern Sea Route and the North-West Passage. countries has changed over the years. The significant changes are the entry of Indonesia, Korea, Iran, and Nigeria in the new list in India is a resource hungry country. The pace with which India's the place of Italy, Malaysia, France, and Australia. An interesting economy is growing; it will require new resource bases abroad. development regarding the direction of India's trade is that the The NSR is going to become vital for India's interest in the long USA which was in the first position in 2007-8 has been relegated to run. India can get benefited from the potential resource bases and the third position during the subsequent years, with the UAE the industrial products from Russia. Russia has been facing becoming India's largest trading partner, followed by China.9 On unfavorable demographic conditions for the last two decades the basis of the data related to the financial year 2011-2012, among including shrinking population because of the increasing death 14 India's 15 biggest trading partners, China (9.27 percent), rate and the decreasing birth rate. Singapore (3.62 percent), Hong Kong (3.15 percent), Indonesia Since the early 1990s, Russia's population declined at a nearly 0.5 (2.79 percent), Japan (2.15), Korea (2.14 percent) are from the percent annual rate since the early 1990s.15 Although the Russian 10 Western Pacific Region. The six countries account for more than economy has recovered from the critical situation of the early 23 percent of India's trade and the share is going to increase in the 1990s, its manufacturing sectors' growth has been par below the future as well. anticipated.16 The exportable items (oil, gas, and fertilizer) would Future Trade Routes -- the Northern Sea Route: The be going to be the focus areas of Russian economy and 17 development and discussion about a freight-carrying sea route investment. In the longer run the demographic transition in along the northern coast of Russia (Siberia) are not new. Russia would also lead to a shrinking internal demand. Constantine Krypton in his well-articulated book, The Northern Apparently, Russia would also be exploring new markets to sell Sea Route and the Economy of the Soviet North (1956), explores the its industrial products and the unexploited natural resources

240 241 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation and Makassar in Southeast Asia. Other important SLOCs in the possibility of opening of the Northern Sea Route (NSR). Even Northeast Asia are the Straits of Tsushima, Tsugaru, Osumi, and before this, T.A. Taracouzio's Soviets in the Arctic prospects of the Soya (La Perouse). These straits are the major shipping routes in opening of the NSR was well articulated. But recently owing to the Asia Pacific. debates about the geopolitical implication of climatic change and opening of the NSR has hogged the limelight of international Importance of the West Pacific for India community. Russia is tipped to become a major beneficiary in case Changing Trade Destinations: During the last decade while of opening of the NSR. Japan, with Asia's largest flagged India's export grew fivefold, its import registered a seven fold merchant fleet, have also been trying to become a stakeholder in increase. While during 2000-01, India's export and import were the newly opened Northern Sea Route (NSR)11 that passes US$ 44.6 billion and US$ 50.5 billion respectively, it reached to through the Arctic Ocean. Even then Japan will remain US$251.1 billion and US$369.8 billion respectively during 2010- 8 dependent on the Asia-Pacific sea trade routes for majority of its 11. As far as, India's trade destination is concerned, the share of trade requirement in the near future. The NSR is a contested Asia and the ASEAN in total trade increased from 33.3 per cent waterway with Russia claiming sovereignty over it which during the financial year 2000-1 to 57.3 per cent during the first conflicts with the official US and EU position that it passes half of 2011-12, while that of Europe and America fell from 42.5 through international straits.12 However, Chinese academic per cent to 30.8 per cent respectively. While the top 15 countries analysts have suggested that China could consider contesting still hold a share of around 60 per cent trade during the financial Russian and Canadian sovereignty over, respectively, the years 2010-11 and 2011-12 , the list of the top 15 trading partner 13 Northern Sea Route and the North-West Passage. countries has changed over the years. The significant changes are the entry of Indonesia, Korea, Iran, and Nigeria in the new list in India is a resource hungry country. The pace with which India's the place of Italy, Malaysia, France, and Australia. An interesting economy is growing; it will require new resource bases abroad. development regarding the direction of India's trade is that the The NSR is going to become vital for India's interest in the long USA which was in the first position in 2007-8 has been relegated to run. India can get benefited from the potential resource bases and the third position during the subsequent years, with the UAE the industrial products from Russia. Russia has been facing becoming India's largest trading partner, followed by China.9 On unfavorable demographic conditions for the last two decades the basis of the data related to the financial year 2011-2012, among including shrinking population because of the increasing death 14 India's 15 biggest trading partners, China (9.27 percent), rate and the decreasing birth rate. Singapore (3.62 percent), Hong Kong (3.15 percent), Indonesia Since the early 1990s, Russia's population declined at a nearly 0.5 (2.79 percent), Japan (2.15), Korea (2.14 percent) are from the percent annual rate since the early 1990s.15 Although the Russian 10 Western Pacific Region. The six countries account for more than economy has recovered from the critical situation of the early 23 percent of India's trade and the share is going to increase in the 1990s, its manufacturing sectors' growth has been par below the future as well. anticipated.16 The exportable items (oil, gas, and fertilizer) would Future Trade Routes -- the Northern Sea Route: The be going to be the focus areas of Russian economy and 17 development and discussion about a freight-carrying sea route investment. In the longer run the demographic transition in along the northern coast of Russia (Siberia) are not new. Russia would also lead to a shrinking internal demand. Constantine Krypton in his well-articulated book, The Northern Apparently, Russia would also be exploring new markets to sell Sea Route and the Economy of the Soviet North (1956), explores the its industrial products and the unexploited natural resources

240 241 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation located mainly in its northern part. India, apart from China, is protect its ''maritime security and economic developments. 25 going to be a potential market for the Russian industrial products In this respect, Chinese aircraft carrier, the Shi Lang, which is a and natural resources. reconstruction of the 32,000-ton Soviet carrier Varyag, underwent Because of the opening of the SLOCs in the Arctic Ocean, Russia sea trials from August 10-14, 2011. China is expected to construct a has started exporting industrial products like fertilizer to other 50,000-60,000 ton carrier by 2015 and a nuclear powered carrier by countries like Canada and Thailand. For the first time in 2007 the 2020. 26 Russia shipment on the Kapitan Sviridov carrying fertilizer from Since around 2010, the SCS has become linked with the wider the Russian port Murmansk reached the Canadian port of strategic issues relating to China's naval strategy and America's Churchill.18 Similarly, a Russian supertanker, the “Vladimir forward presence in the area. Tikhonov”, carrying 120 tonnes of gas condensate, reached the destination port in Thailand directly through Bering Strait instead China became the second largest oil consumer after the United of using the traditional route via the Suez Canal. States in 2009. It is likely that its consumption may double by 2030, which would make it the world's largest oil consumer. China's Offensive Maritime Strategy Hence, due to its rising energy demand China is seeking new After being considered a continental power, China has started sources for oil. In 2010, it imported 52 percent of its oil from the showing its maritime power in the West Pacific. China's redefined Middle East, and Saudi Arabia and Angola. Altogether it maritime interest can be understood by its conception of “seas accounted for 66 percent of its oil imports. China has been 19 territory” (yaiyang guotuguan). The conception got a definite diversifying its energy supplies to reduce this dependence on the shape after China defined the strategic maritime frontiers on the imported oil and it has sought to increase the offshore production basis of the concept of the three “island chains” that grew out of around the Pearl River basin and the SCS. 27 the former Central Military Commission (CMC) with Vice- Chairman Admiral Liu Huaqing's 1988 instruction to the PLAN Northern India Ocean and Japan to establish a long-term development plan.20 The People's The Northern Indian Ocean SLOCs, joining the choke points of Liberation Army and Navy's (PLAN) strategic document gives the Strait of Hormuz and the Strait of Malacca, account for special emphasis to the “first island chain” .21 and the “second approximately one-third of the international trade and half of the island chain” 22 that cover both the South China Sea (SCS) and the world's oil transportation. The Strait of Malacca that links the East China Sea (ECS). The SCS and ECS have been now projected Indian and the Pacific Oceans is a vital lifeline for Japan's by China as its own backyards. Until 1970s, China's maritime international trade. As a country which imports nearly 90 percent ambitions were limited to the protection of its coastlines. But after of its crude oil from the Middle East, most of Japan's oil cargo from 28 that, China started expanding its maritime sphere of influence. the Middle East is transported through the Strait of Malacca. In The PLAN sent submarines into the SCS and beyond. In early addition, to it, Japan is an important trading partner for many 29 1977 the submarine 252 performed a long voyage of more than Arab countries. 3000 nautical miles in the Pacific Ocean. 23 The same year it also 24 Maritime Challenge: Threats to SLOCS and Piracy sent the submarine 296 into the SCS for carrying out diving tests. According to the Journal of the Indian Ocean Region, more than China's Chief Navy Admiral Wu Shengli declared in April 2009 80 percent of the world's seaborne trade in oil transits through the that China would establish a ''maritime defense system'' to Indian Ocean choke points, with 40 percent passing through the

242 243 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation located mainly in its northern part. India, apart from China, is protect its ''maritime security and economic developments. 25 going to be a potential market for the Russian industrial products In this respect, Chinese aircraft carrier, the Shi Lang, which is a and natural resources. reconstruction of the 32,000-ton Soviet carrier Varyag, underwent Because of the opening of the SLOCs in the Arctic Ocean, Russia sea trials from August 10-14, 2011. China is expected to construct a has started exporting industrial products like fertilizer to other 50,000-60,000 ton carrier by 2015 and a nuclear powered carrier by countries like Canada and Thailand. For the first time in 2007 the 2020. 26 Russia shipment on the Kapitan Sviridov carrying fertilizer from Since around 2010, the SCS has become linked with the wider the Russian port Murmansk reached the Canadian port of strategic issues relating to China's naval strategy and America's Churchill.18 Similarly, a Russian supertanker, the “Vladimir forward presence in the area. Tikhonov”, carrying 120 tonnes of gas condensate, reached the destination port in Thailand directly through Bering Strait instead China became the second largest oil consumer after the United of using the traditional route via the Suez Canal. States in 2009. It is likely that its consumption may double by 2030, which would make it the world's largest oil consumer. China's Offensive Maritime Strategy Hence, due to its rising energy demand China is seeking new After being considered a continental power, China has started sources for oil. In 2010, it imported 52 percent of its oil from the showing its maritime power in the West Pacific. China's redefined Middle East, and Saudi Arabia and Angola. Altogether it maritime interest can be understood by its conception of “seas accounted for 66 percent of its oil imports. China has been 19 territory” (yaiyang guotuguan). The conception got a definite diversifying its energy supplies to reduce this dependence on the shape after China defined the strategic maritime frontiers on the imported oil and it has sought to increase the offshore production basis of the concept of the three “island chains” that grew out of around the Pearl River basin and the SCS. 27 the former Central Military Commission (CMC) with Vice- Chairman Admiral Liu Huaqing's 1988 instruction to the PLAN Northern India Ocean and Japan to establish a long-term development plan.20 The People's The Northern Indian Ocean SLOCs, joining the choke points of Liberation Army and Navy's (PLAN) strategic document gives the Strait of Hormuz and the Strait of Malacca, account for special emphasis to the “first island chain” .21 and the “second approximately one-third of the international trade and half of the island chain” 22 that cover both the South China Sea (SCS) and the world's oil transportation. The Strait of Malacca that links the East China Sea (ECS). The SCS and ECS have been now projected Indian and the Pacific Oceans is a vital lifeline for Japan's by China as its own backyards. Until 1970s, China's maritime international trade. As a country which imports nearly 90 percent ambitions were limited to the protection of its coastlines. But after of its crude oil from the Middle East, most of Japan's oil cargo from 28 that, China started expanding its maritime sphere of influence. the Middle East is transported through the Strait of Malacca. In The PLAN sent submarines into the SCS and beyond. In early addition, to it, Japan is an important trading partner for many 29 1977 the submarine 252 performed a long voyage of more than Arab countries. 3000 nautical miles in the Pacific Ocean. 23 The same year it also 24 Maritime Challenge: Threats to SLOCS and Piracy sent the submarine 296 into the SCS for carrying out diving tests. According to the Journal of the Indian Ocean Region, more than China's Chief Navy Admiral Wu Shengli declared in April 2009 80 percent of the world's seaborne trade in oil transits through the that China would establish a ''maritime defense system'' to Indian Ocean choke points, with 40 percent passing through the

242 243 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation

Strait of Hormuz (Gulf of Oman and the Persian Gulf), 35 percent Combating Piracy and Armed Robbery (ReCAAP) and the Tokyo through the Strait of Malacca (Malaysia and Indonesia) and 8 Agreement of November 11, 2004. Both the countries are also percent through the Bab el-Mandab Strait (Yemen, Djibouti, tackling the organized crimes on the sea such as trafficking in Somalia, Eritrea and Red Sea to the Gulf of Aden). Any disruption illegal migration, arms and drugs. from terrorism, piracy, natural disaster or war could have 30 Scope of Cooperation devastating effects on these countries. However, the SLOCs in the region have been prone to plethora of traditional and non- India and Japan's strategic interests converge on the issue of traditional security Threats. According to International Maritime securing SLOCs. The issue has been given special emphasis in the Bureau (IMB) data for the years 2000 to 2005, the total number of security dialogue between New Delhi and Tokyo because the 31 economies of both countries are heavily dependent on the sea- piracy attacks in these straits ranged from 26 to 64 per year. based transport and the supply of oil from the Persian Gulf. In this The International Maritime Bureau's Piracy Center noted 2010 as regard India's central location in the Indian Ocean overlooking the worst year on record for piracy in the Indian Ocean. one of the important trading routes joining vital choke points of According to it, 49 out of the total of 53 ships hijacked worldwide the Malacca strait and Strait of Hormuz is very important. India's during that year, were in this region. Out of 1,181 crew members 32 location makes it strategically very important for Japan. taken hostage in 2010, 1,016 were taken in the Indian Ocean. To ensure its energy security, Japan has interests in combating piracy India-Japan relationship received an impetus ongoing to the visit in the Indian Ocean. As of now various navies are conducting of Prime Minister Yoshihiko Noda to India in December 2011. His anti-piracy operations either independently or under the multi- visit was seen as part of the Japanese “Arc of Freedom and national mechanism of European Union led Shared Awareness Prosperity” strategy. The visit was significant because it included and Deconfliction (SHADE). plans for joint naval exercises in the Indian Ocean. 35 Somalia has been termed as a pirate's paradise. The Cape Indian navy has played and can play important role in protecting Guardafui is ideally located to control ships coming from or going in Japanese ships that have been targets of attacks by pirates. 36 to the Red Sea. 33 In the recent years Japan also experienced the “India is actually situated at an important place on the sea lanes of pirate's attacks. For instance, in 2008, Somali pirates armed with the communication which links Japan with the West Asia. So, I rocket-propelled grenades attacked the Takayama, a 150,000- cannot overlook the geo-political significance of the location of tonne oil tanker. It was rescued by the German navy. Although India,” Japanese foreign Minister Koichiro Gemba argued LTTE's impact in the Bay of Bengal has decreased, the break-away during his recent visit to India during the later part of April, 2012. groups may become a potent threat in the years to come. 37 During the same visit the sixth round of strategic dialogue Similarly, according to Gerard Ong-Webb, owing to factors such between the two nation states was held in Delhi and a joint naval as busy SLOCs, topography, low level of governance at sea, exercise off the coast of Japan in June was agreed upon. endemic corruption, and presence of organized criminal groups Subsequently Japan and India hold bilateral exercises as well as the SCS is becoming one of the most piracy-prone regions of the "pass-ex" maneuvers. 38 Thus India and Japan are evolving as World. 34 As stated at the beginning of the paper both India and partners to protect SLOCs in the Asia-Pacific. Japan have taken a number of initiatives to secure SLOCs. For instance: Anti-piracy patrols in Malacca both on the sea and in air like MALSINDO, the Regional Cooperation Agreement on

244 245 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation

References 14. Julie DaVanzo, Clifford A. Grammich, Clifford Anthony Grammich, Dire Demographics: Population Trends in Russia, Issue 1273, Rand 1. Ministry of Foreign Affairs of Japan, “Japan-India Summit Meeting Corporation, 01-Sep-2001, pp.3-4. ( S u m m a r y ) , ” A u g u s t 2 3 , 2 0 0 0 , < h t t p : / / w w w - mofa.mofa.go.jp/region/asia-paci/pmv0008/india_s.html>, as cited in 15. Int'l Business Publications, Russia Business Law Handbook 2011, p. 36. Madhuchanda Ghosh, “India and Japan's Growing Synergy: From a 16. Ibid Political to a Strategic Focus,” Asian Survey, Vol. 48, Issue 2, Pp. 282302. 17. Ibid 2. A. T. Mahan, The Influence of Sea Power upon History, 1660-1783, Project Gutenberg eBook, release date 26 Nov. 2004 (first pub. 1890), p. 29 18. accessed on November 5, 2012. 3. Margaret Blunden, “Geopolitics and the Northern Sea Route,” International 19. Yao, “Evolution of Military Doctrine of the Chinese PLA from 1985 to Affairs, Vol. 88 (1)(2012), p.117. 1995” as cited in David L. Shambaugh, Modernizing China's Military: Progress, Problems, and Prospects, University of California Press, 2004, p.67. 4. Kym Anderson and Anna Strutt, “Asia's Changing Role in World Trade: Prospects for South-South Trade Growth to 2030,” ADB Economics Working 20. David L. Shambaugh, Modernizing China's Military: Progress, Problems, and Paper Series, No. 264, Asia Development Bank, Manila, p.1 Prospects, University of California Press, 2004, p.67. 5. National Intelligence Council, Global Trends 2015: A Dialogue about the 21. The first island chain has been accepted as the current limit of PLAN Future with Non- government Experts (Washington D.C.: National operation and is formed by Japan and its northern and southern Intelligence Council Publication, 2000), pp. 34 38 as cited in Joshua H. Ho, archipelago, see Toshi Yoshihara, James R. Holmes, Asia Looks Seaward: “The Security Of Sea Lanes In Southeast Asia, Asian Survey,” Vol. 46, No. 4 Power and Maritime Strategy, Greenwood Publishing Group, 2008, p.102. (July/August 2006), p.559. 22. The second island chain, which was envisioned as being future PLAN 6. Dominic Wilson and Roopa Purushothaman, “Dreaming with BRICs: The operations, runs from Japanese archipelago south through the Bonins, the Path to 2050,” Goldman Sachs Global Economics Paper, no. 99, _ Marianas, the Carolines, and Indonesia. See Toshi Yoshihara, James R. http://www.gs.com/insight/research/reports/ 99.pdf _ , October 1, Holmes, Asia Looks Seaward: Power and Maritime Strategy, Greenwood 2003, p. 4., as cited in Joshua H. Ho, “The Security Of Sea Lanes In Publishing Group, 2008, p.102. Southeast Asia, Asian Survey,” Vol. 46, No. 4 (July/August 2006), p.559. 23. Toshi Yoshihara, James R. Holmes, Asia Looks Seaward: Power and Maritime 7. Joshua H. Ho, “The Security of Sea Lanes in Southeast Asia, Asian Survey,” Strategy, Greenwood Publishing Group, 2008, p.101. Vol. 46, No. 4 (July/August 2006), p.559. 24. Ibid 8. Government of India, Economic Survey 2011-12, p. 152 25. Cui Xiaohuo and Peng Kuang, ''Navy chief lists key objectives,'' China 9. Ibid, 162 Daily, April 16, 2009, http://www.chinadaily.com.cn/cndy/2009- 04/16/content_7681478.htm; also see ''China planning huge navy 10. Compiled on the basis of table 7.1, ibid 163 u p g r a d e , ' ' c h a n n e l n e w s a s i a . c o m , A p r i l 1 6 , 2 0 0 9 , 11. Margaret Blunden, Geopolitics and the Northern Sea Route, International http://www.channelnewsasia.com/stories/afp_asiapaciﬁc/view/42273 Affairs , Vol. 88 (1) (2012), pp.115129 5/1/.html. 12. Ibid 26. Kenji Minemura, ''China's 1st aircraft carrier sets sail for sea tests,'' Asahi Shimbun, August 10, 2011, http://ajw.asahi.com/article/asia/china/ 13. David Curtis Wright, 'The Panda Bear readies to meet the Polar Bear: China AJ201108105890; and Sam LaGrone, ''China reveals aircraft carrier debates and formulates foreign policy towards Arctic affairs', Canadian ambitions,'' Jane's Navy International, December 23, 2010, Defence and Foreign Affairs Institute, Calgary, March 2011 as cited in http://www.janes.com/products/janes/defence-security-report. Margret, p.119. aspx?id=1065926372.

246 247 India and Japan Relations Securing Sea Lanes of Communication (SLOCs) in the Asia-Pacific and India-Japan Cooperation

246 247 India and Japan Relations India-Japan Naval Cooperation in the 27. U.S. Energy Information Administration, ''China,'' May 2011, Indo-Pacific Region http://205.254.135.7/ countries/cab.cfm?ﬁps=CH; and ''BP Energy O u t l o o k 2 0 3 0 , ' ' J a n u a r y 2 0 1 1 , http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_en V. Srilatha glish/reports_and_publications/statistical_energy_review_2011/STAGI NG/local_assets/pdf/2030_energy_outlook_booklet.pdf. 28. Speech by Parliamentary Vice-Minister for Foreign Affairs Masahiko Indo-Pacific is the new reality of the Asian Security Architecture. Shibayama at the Symposium on the Arab-Japan Week 2009 on March 3, The former Japanese Prime Minister Mr. Shinzo Abe had initiated 2009, < http://www.mofa.go.jp/region/middle_e/speech0903.html> the idea of the confluence of the Indian and Pacific Oceans when accessed Novemeber 11, 2012 he spoke at the Indian Parliament in August 2007.1In a speech at 29. Ministry of Foreign Affairs, Japan, Japan-Arab Relations: Opening Door to a Honolulu in October 2010, Secretary of State, Hillary Clinton used New Era, Tokyo, MoFA, 2007, accessed Novemeber 11, 2012. integrated theatre. She spoke about how the US was “expanding 30. Sergei DeSilva Ranasinghe, “Why the Indian Ocean Matters”, The our work with the Indian navy in the Pacific because we Diplomat Magazine for the Asia Pacific, March 02, 2011. understand how important the Indo-Pacific basin is to global 31. Annual International Chamber of Commerce International Maritime trade and commerce.” This is an explicit and significant reflection Bureau Piracy Reports, 200005, as cited in Peter Lehr, “Introduction” in of the growing strategic convergence between the two countries Peter Lehr, Violence at Sea: Piracy in the Age of Global Terrorism, Routledge, with respect to the region. Over the past year, the term “Indo- 2072007, p.x. Pacific” has also gained currency in strategic discourse in India. 32. Bruno de Paiva, “Japan: National Involvement in the Indian Ocean From being a geopolitical perspective it has came to represent the Region”, Future Directions International Publications, Australia, 29 July inclusion of the Western Pacific within the range of India's 2011. security interests.2 33. Peter Lehr, “Introduction” in Peter Lehr, Violence at Sea: Piracy in the Age of Global Terrorism, Routledge, 2002-2007. India's “Look East policy” has graduated 34. Ibid to an “Engage East 35. http://globalspin.blogs.time.com/2011/12/30/india-japan-talks-a-post- policy”. The growing american partnership/#ixzzliZsgU0So component of India's 36. Madhuchanda Ghosh, “India and Japan's Growing Synergy: From a external economic Political to a Strategic Focus,” Asian Survey, Vol. 48, Issue 2, Pp. 287. r e l a t i o n s w i t h 37. Times News Network, “India and Japan agree to boost maritime, cyber ASEAN, China and security,” accessed on growing density of maritime traffic through the Indian Ocean and November 10, 2012 the Western Pacific littoral. It has created a seamless stretch of 38. Indrani Bagchi, “Japan looks for security alliance with India,” ocean space linking the Indian and the Pacific Oceans reflecting < h t t p : / / a r t i c l e s . t i m e s o f i n d i a . i n d i a t i m e s . c o m / 2 0 1 2 - 1 1 - the concept of the Asia-Pacific, which has so far excluded India in 05/india/34926149_1_naval-exercises-maritime-self-defence-force- the picture. As India's regional and global profile increases, it has diaoyu-islands> accessed on November 10, 2012.

248 249 India and Japan Relations India-Japan Naval Cooperation in the 27. U.S. Energy Information Administration, ''China,'' May 2011, Indo-Pacific Region http://205.254.135.7/ countries/cab.cfm?ﬁps=CH; and ''BP Energy O u t l o o k 2 0 3 0 , ' ' J a n u a r y 2 0 1 1 , http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_en V. Srilatha glish/reports_and_publications/statistical_energy_review_2011/STAGI NG/local_assets/pdf/2030_energy_outlook_booklet.pdf. 28. Speech by Parliamentary Vice-Minister for Foreign Affairs Masahiko Indo-Pacific is the new reality of the Asian Security Architecture. Shibayama at the Symposium on the Arab-Japan Week 2009 on March 3, The former Japanese Prime Minister Mr. Shinzo Abe had initiated 2009, < http://www.mofa.go.jp/region/middle_e/speech0903.html> the idea of the confluence of the Indian and Pacific Oceans when accessed Novemeber 11, 2012 he spoke at the Indian Parliament in August 2007.1In a speech at 29. Ministry of Foreign Affairs, Japan, Japan-Arab Relations: Opening Door to a Honolulu in October 2010, Secretary of State, Hillary Clinton used New Era, Tokyo, MoFA, 2007, accessed Novemeber 11, 2012. integrated theatre. She spoke about how the US was “expanding 30. Sergei DeSilva Ranasinghe, “Why the Indian Ocean Matters”, The our work with the Indian navy in the Pacific because we Diplomat Magazine for the Asia Pacific, March 02, 2011. understand how important the Indo-Pacific basin is to global 31. Annual International Chamber of Commerce International Maritime trade and commerce.” This is an explicit and significant reflection Bureau Piracy Reports, 200005, as cited in Peter Lehr, “Introduction” in of the growing strategic convergence between the two countries Peter Lehr, Violence at Sea: Piracy in the Age of Global Terrorism, Routledge, with respect to the region. Over the past year, the term “Indo- 2072007, p.x. Pacific” has also gained currency in strategic discourse in India. 32. Bruno de Paiva, “Japan: National Involvement in the Indian Ocean From being a geopolitical perspective it has came to represent the Region”, Future Directions International Publications, Australia, 29 July inclusion of the Western Pacific within the range of India's 2011. security interests.2 33. Peter Lehr, “Introduction” in Peter Lehr, Violence at Sea: Piracy in the Age of Global Terrorism, Routledge, 2002-2007. India's “Look East policy” has graduated 34. Ibid to an “Engage East 35. http://globalspin.blogs.time.com/2011/12/30/india-japan-talks-a-post- policy”. The growing american partnership/#ixzzliZsgU0So component of India's 36. Madhuchanda Ghosh, “India and Japan's Growing Synergy: From a external economic Political to a Strategic Focus,” Asian Survey, Vol. 48, Issue 2, Pp. 287. r e l a t i o n s w i t h 37. Times News Network, “India and Japan agree to boost maritime, cyber ASEAN, China and security,” accessed on growing density of maritime traffic through the Indian Ocean and November 10, 2012 the Western Pacific littoral. It has created a seamless stretch of 38. Indrani Bagchi, “Japan looks for security alliance with India,” ocean space linking the Indian and the Pacific Oceans reflecting < h t t p : / / a r t i c l e s . t i m e s o f i n d i a . i n d i a t i m e s . c o m / 2 0 1 2 - 1 1 - the concept of the Asia-Pacific, which has so far excluded India in 05/india/34926149_1_naval-exercises-maritime-self-defence-force- the picture. As India's regional and global profile increases, it has diaoyu-islands> accessed on November 10, 2012.

248 249 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region become inevitable to gravitate towards the centre of this and its aspiring role in the world have reflected in its naval and expanded geopolitical and geo-economic space. Thus the concept government policy formulations, such as The Strategic Defence of an Indo-Pacific theatre of security and strategic relations fits Review: The Maritime Dimension - A Naval Vision (May 1998), The neatly into this evolving trend. 3 Indian Maritime Doctrine (April 2004), the Indian Navy's Vision Statement (May 2006), Roadmap to Transformation (October 2006) As India's exports and imports account for nearly 40 per cent of its and Freedom to Use the Seas: India's Maritime Military Strategy GDP, the government has been deploying ships of the Indian (IMMS) (September 2007) and the revised Indian Maritime Navy in the Eastbound long-range deployments. Keeping in with Doctrine[2009].6 India's 'Look East' policy, it has been strengthening the military ties with the countries of this strategically important region According to the Indian Ministry of Defence [MOD] .Building maritime coalitions, developing special regional interoperability is one of India's important objectives in engaging relationships and establishing interoperability with other naval the East Asian navies. That India and Japan are natural partners in forces - big and small have to occupy the top agenda of India's the Indo-Pacific has long been an abstract proposition. It has now defence diplomacy in the Indo-Pacific. Despite the fact that a reasonable chance of realization as maritime security emerged China's core maritime preoccupations are in the Western as the central theme of their proposed political cooperation. The Pacificreunifying Taiwan, defending Chinese territorial claims, intensifying cooperation with the Japanese navy, one of the and constraining American naval dominance, Indian Ocean has strongest in the world, could give a boost to India' maritime become pivotal in China's maritime strategy as it imports a large diplomacy in Asia and the alignment can have some important portion of its energy and mineral resources through the Indian results in the region and certainly in any power transition Ocean generating deep concerns in India. The South China Sea is involving the United States and China particularly geo strategically important, as it is critical to global Japan Naval Engagements shipping routes and as it has enormous potential oil and natural gas reserves. It is also marked by territorial disputes in relation to For Japan, a maritime strategy based on constant access to sea the law of the sea, the freedom of military navigation and the routes is a matter of national security. It's a lesson the country rivalry for securing energy. For an effective Indian strategy in the learned the hard way in the second half of the Pacific War, when South China Sea to secure India's expanding interests, special the US submarine campaign against its shipping crippled its war relationships with the key regional states and a greater machine and brought the nation to the brink of economic collapse. coordination with the other naval powers have become very Before the war, Japan had built up its fleet with the intention of 4 annihilating peer competitors on the high seas as a way of significant. shielding the country's ambitions first on the Asian mainland and Despite the fact that India's main interest is in securing its primacy later in the Greater East Asia Co-prosperity Sphere.The in the Indian Ocean littoral, Indian navy has been making Washington Naval Treaty of 1922 allowed Japan to build three frequent forays into the Western Pacific. With both the countries' large battleships to every five built by Britain or the United States. maritime interests overlapping, China and India are building up This was more than either Italy or France but the Japanese Navy their naval capabilities and stepping on each other's toes in the was unhappy with the agreement and was determined to Indo-Pacific; but neither of them is in a position to supplant the compensate for these low numbers by producing the world's United States as the dominant maritime power in both the most powerful fighting ships.7 This decision provoked an 5 oceans. . India's naval aspirations in the Indian Ocean region escalation in the building of large battleships. This was especially

250 251 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region become inevitable to gravitate towards the centre of this and its aspiring role in the world have reflected in its naval and expanded geopolitical and geo-economic space. Thus the concept government policy formulations, such as The Strategic Defence of an Indo-Pacific theatre of security and strategic relations fits Review: The Maritime Dimension - A Naval Vision (May 1998), The neatly into this evolving trend. 3 Indian Maritime Doctrine (April 2004), the Indian Navy's Vision Statement (May 2006), Roadmap to Transformation (October 2006) As India's exports and imports account for nearly 40 per cent of its and Freedom to Use the Seas: India's Maritime Military Strategy GDP, the government has been deploying ships of the Indian (IMMS) (September 2007) and the revised Indian Maritime Navy in the Eastbound long-range deployments. Keeping in with Doctrine[2009].6 India's 'Look East' policy, it has been strengthening the military ties with the countries of this strategically important region According to the Indian Ministry of Defence [MOD] .Building maritime coalitions, developing special regional interoperability is one of India's important objectives in engaging relationships and establishing interoperability with other naval the East Asian navies. That India and Japan are natural partners in forces - big and small have to occupy the top agenda of India's the Indo-Pacific has long been an abstract proposition. It has now defence diplomacy in the Indo-Pacific. Despite the fact that a reasonable chance of realization as maritime security emerged China's core maritime preoccupations are in the Western as the central theme of their proposed political cooperation. The Pacificreunifying Taiwan, defending Chinese territorial claims, intensifying cooperation with the Japanese navy, one of the and constraining American naval dominance, Indian Ocean has strongest in the world, could give a boost to India' maritime become pivotal in China's maritime strategy as it imports a large diplomacy in Asia and the alignment can have some important portion of its energy and mineral resources through the Indian results in the region and certainly in any power transition Ocean generating deep concerns in India. The South China Sea is involving the United States and China particularly geo strategically important, as it is critical to global Japan Naval Engagements shipping routes and as it has enormous potential oil and natural gas reserves. It is also marked by territorial disputes in relation to For Japan, a maritime strategy based on constant access to sea the law of the sea, the freedom of military navigation and the routes is a matter of national security. It's a lesson the country rivalry for securing energy. For an effective Indian strategy in the learned the hard way in the second half of the Pacific War, when South China Sea to secure India's expanding interests, special the US submarine campaign against its shipping crippled its war relationships with the key regional states and a greater machine and brought the nation to the brink of economic collapse. coordination with the other naval powers have become very Before the war, Japan had built up its fleet with the intention of 4 annihilating peer competitors on the high seas as a way of significant. shielding the country's ambitions first on the Asian mainland and Despite the fact that India's main interest is in securing its primacy later in the Greater East Asia Co-prosperity Sphere.The in the Indian Ocean littoral, Indian navy has been making Washington Naval Treaty of 1922 allowed Japan to build three frequent forays into the Western Pacific. With both the countries' large battleships to every five built by Britain or the United States. maritime interests overlapping, China and India are building up This was more than either Italy or France but the Japanese Navy their naval capabilities and stepping on each other's toes in the was unhappy with the agreement and was determined to Indo-Pacific; but neither of them is in a position to supplant the compensate for these low numbers by producing the world's United States as the dominant maritime power in both the most powerful fighting ships.7 This decision provoked an 5 oceans. . India's naval aspirations in the Indian Ocean region escalation in the building of large battleships. This was especially

250 251 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region true of the United States which considered Japan a threat to its and prosperity. As Japan ranks sixth in the size of territorial power in the Pacific. By 1941 Japan had the third largest navy in water and EEZ in the world, Japan's post-war navythe Japan the world after the US Navy and the Royal Navy and in the field of Maritime Self-Defence Force (JMSDF)made sure that the service naval aviation it was considered to be the best in the world. It had would be the primary tool for tackling structural vulnerabilities ten large aircraft carriers with specially-built aircraft and highly and defending economic activity. Japan's new constitution trained crews. The Japanese Navy also had 12 battleships, 100 prohibited using force to settle international disputes but destroyers, 18 heavy cruisers and 18 light cruisers. provided a suitable framework for a palatable maritime strategy 9 At the outbreak of the Second World War the Japanese Navy was based on sea lane defence. Throughout the 1990s, it has in a disadvantage by not possessing an operational radar. Other restricted itself to organizing regional initiatives to combat piracy problems included the breaking of the Japanese codes by the US in the Southeast Asian waters. The South East Asian countries Navy and the Japanese dependence on imported oil. Although were skeptical of the militarized JMSDF and preferred Japan the Japanese Navy backed up by the Japanese Air Force won a Coast Guard [JCG] as a less controversial vehicle to provide great victory at Pearl Harbor, it suffered a crushing defeat at training, equipment, and funding. JCG achieved considerable Midway in June 1942. A lack of raw materials was meant that the success by providing aid and conducting joint exercises with shipyards were unable to replace the ships being sunk. The major littoral states, including Brunei, India, Indonesia, Malaysia, Japanese were outnumbered by the US Navy's active submarine Singapore and Thailand. operations. Then virtually its operations came to an end in 1944. Japan's inevitable dependence on natural resources overseas, Leyte Gulf 1 was the largest naval engagement in history. It was a especially petroleum in the Middle East, has made the security of decisive victory for the Allies with the Japanese Navy losing four sea lane of communications [SLOCs] crucial for the state's future. carriers, three battleships and ten cruisers. This comprehensive The SLOCs for Japan stretch from the East China Sea through the defeat virtually ended the Japanese sea power. The last serious Indian Ocean to the Persian Gulf. With the Japanese constitution action took place off Okinawa when a 700 plane kamikaze raid on restricting the use of Japan's military forces outside its territorial 6th April, 1945, sank and damaged 13 US destroyers. The giant water, Japan has had to seek non-military ways to secure the battleship, Yamato, lacking sufficient fuel for a return journey, was SLOCs. Japan followed two ways:: the provision of ODA for also sent out on a suicide mission and was sunk on 7th May 1945.8 countries along the SLOCs and the use of U.S. military forces 10 During the post Second World War period Japan had become according to the terms of the Japan-U.S. alliance. Post 9/11 there dependent on the international maritime trade for its recovery has been a historical shift in Japan's geopolitical vision and practices on the Indian Ocean and it began participating in 1 The Battle of Leyte Gulf, also known as the "Second Battle of the Philippine Sea", international activities to secure the SLOCs. Prodded by the U.S, was the largest World War II naval battle. It took place in waters near the Japan's forces have increased their presence overseas taking part Philippine islands of Leyte, Samar, and Luzon, from October 23 to October 26, 1944, and was fought between US 3rd and 7th fleets and the Japanese Imperial in peacekeeping operations and providing support functions, Navy. In order to interdict the Allied invasion of Leyte, the Imperial Japanese such as refueling for coalition ships since the Iraq war in the Navy mobilized nearly all of its remaining major war ships and attacked the Indian Ocean region. As of May 2004, thirtysix Japanese naval American forces, The Allied victory secured the beachhead on Leyte and opened vessels had completed deployment in the Arabian Sea in support the door for the liberation of the Philippines. This in turn cut off the Japanese from of the US-led Operation Enduring Freedom and Operation Iraqi their conquered territories in Southeast Asia, greatly reducing the flow of supplies and resources to the home islands. freedom. While the MSDF has two to three ships constantly

252 253 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region true of the United States which considered Japan a threat to its and prosperity. As Japan ranks sixth in the size of territorial power in the Pacific. By 1941 Japan had the third largest navy in water and EEZ in the world, Japan's post-war navythe Japan the world after the US Navy and the Royal Navy and in the field of Maritime Self-Defence Force (JMSDF)made sure that the service naval aviation it was considered to be the best in the world. It had would be the primary tool for tackling structural vulnerabilities ten large aircraft carriers with specially-built aircraft and highly and defending economic activity. Japan's new constitution trained crews. The Japanese Navy also had 12 battleships, 100 prohibited using force to settle international disputes but destroyers, 18 heavy cruisers and 18 light cruisers. provided a suitable framework for a palatable maritime strategy 9 At the outbreak of the Second World War the Japanese Navy was based on sea lane defence. Throughout the 1990s, it has in a disadvantage by not possessing an operational radar. Other restricted itself to organizing regional initiatives to combat piracy problems included the breaking of the Japanese codes by the US in the Southeast Asian waters. The South East Asian countries Navy and the Japanese dependence on imported oil. Although were skeptical of the militarized JMSDF and preferred Japan the Japanese Navy backed up by the Japanese Air Force won a Coast Guard [JCG] as a less controversial vehicle to provide great victory at Pearl Harbor, it suffered a crushing defeat at training, equipment, and funding. JCG achieved considerable Midway in June 1942. A lack of raw materials was meant that the success by providing aid and conducting joint exercises with shipyards were unable to replace the ships being sunk. The major littoral states, including Brunei, India, Indonesia, Malaysia, Japanese were outnumbered by the US Navy's active submarine Singapore and Thailand. operations. Then virtually its operations came to an end in 1944. Japan's inevitable dependence on natural resources overseas, Leyte Gulf 1 was the largest naval engagement in history. It was a especially petroleum in the Middle East, has made the security of decisive victory for the Allies with the Japanese Navy losing four sea lane of communications [SLOCs] crucial for the state's future. carriers, three battleships and ten cruisers. This comprehensive The SLOCs for Japan stretch from the East China Sea through the defeat virtually ended the Japanese sea power. The last serious Indian Ocean to the Persian Gulf. With the Japanese constitution action took place off Okinawa when a 700 plane kamikaze raid on restricting the use of Japan's military forces outside its territorial 6th April, 1945, sank and damaged 13 US destroyers. The giant water, Japan has had to seek non-military ways to secure the battleship, Yamato, lacking sufficient fuel for a return journey, was SLOCs. Japan followed two ways:: the provision of ODA for also sent out on a suicide mission and was sunk on 7th May 1945.8 countries along the SLOCs and the use of U.S. military forces 10 During the post Second World War period Japan had become according to the terms of the Japan-U.S. alliance. Post 9/11 there dependent on the international maritime trade for its recovery has been a historical shift in Japan's geopolitical vision and practices on the Indian Ocean and it began participating in 1 The Battle of Leyte Gulf, also known as the "Second Battle of the Philippine Sea", international activities to secure the SLOCs. Prodded by the U.S, was the largest World War II naval battle. It took place in waters near the Japan's forces have increased their presence overseas taking part Philippine islands of Leyte, Samar, and Luzon, from October 23 to October 26, 1944, and was fought between US 3rd and 7th fleets and the Japanese Imperial in peacekeeping operations and providing support functions, Navy. In order to interdict the Allied invasion of Leyte, the Imperial Japanese such as refueling for coalition ships since the Iraq war in the Navy mobilized nearly all of its remaining major war ships and attacked the Indian Ocean region. As of May 2004, thirtysix Japanese naval American forces, The Allied victory secured the beachhead on Leyte and opened vessels had completed deployment in the Arabian Sea in support the door for the liberation of the Philippines. This in turn cut off the Japanese from of the US-led Operation Enduring Freedom and Operation Iraqi their conquered territories in Southeast Asia, greatly reducing the flow of supplies and resources to the home islands. freedom. While the MSDF has two to three ships constantly

252 253 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region present in some parts of the East China Sea, its P-3C surveillance zone (EEZ) of 4.5m square km (2.8m square miles).12 These islands planes make a daily round of the entire East China Sea unlike a become crucial for further claim on the EEZ from the present 200 few years ago when ships were sent in only for emergencies. nautical miles to 350 nautical miles in the region . China's ascendance not only eclipsed Japanese influence in the Japan on its part has stretched out its area of defence to 4,000 East Asia and beyond but in August 2010, China overtook Japan nautical miles through the Malacca Strait into the Arabian Sea. as the world's second largest economy. The following month, The prospects of India-Japan maritime cooperation improved bilateral relations plummeted after the Japanese Coast Guard with the hijacking of a Japanese ship, M.V. Alondra Rainbow in arrested the crew of a Chinese fishing trawler that had rammed its 2 1999. The incident has been a turning point in the Indo-Japan vessel in an altercation near the disputed Senkaku/Diaoyu naval relations, as the Indian Coast guard successfully islands [map Senakaku/Diaoyu] China reacted by withholding intercepted the pirates with precision. Both the coast guards have exports of rare earth metals that were essential to Japanese been conducting joint exercises every year since 2000 and they are manufacturing industry until Japan released the Chinese crew. conducted alternately in India and Japan. The anti-piracy This exchange sent a clear signal that thereafter China would use 11 operation has become the cornerstone of the bilateral drill. The its economic might to uphold its territorial claims. China and joint exercises on the Coast Guards are code named as `Sahyog- Japan increasingly competing for natural resources have never Kaijin'. While Indian word Sahyog means `cooperation,' the agreed on a maritime border and also the dispute over the Japanese word Kaijin means `God of the Seas.' Thus the exercises ownership of Senkaku islands continued. The islands controlled of the coastguards intensified cooperation between the two by Japan are claimed by China and Taiwan. Although the two countries in maritime safety, maritime security through search nations have, by some estimates, roughly the same length of and rescue operationsand protection of marine environment.13 coastline, Japan, an archipelago, claims an exclusive economic Regular meetings are conducted by the heads of the two Coast Guards and the heads visit each other every year. The major breakthrough was ushered in with the exchange of A Memorandum on Cooperation between the Coast Guards during Japanese Commandant Ishikawa's visit to India in November 2006. With regard to the cooperation of the navies, both Japan and Indian warships have visited each other's ports and participated in the International Fleet Reviews regularly. In 1995 and in 2000, Indian warships visited Tokyo and Sasebo respectively in response to an earlier visit of the Japanese naval ships in 1995.Indian Navy has provided naval assistance to a Japanese vessel for search and rescue in the Indian Ocean south of Sri 2 The Senkaku/Diaoyuare a group of tiny islets and rock outcroppings near Lanka. In January 2000 Japanese Navy and the Indian Navy ships Taiwan, which are administered by Japan. The US/Japan Alliance is the carried out a naval exercise off Mumbai and later these two cornerstone of American engagement in the Asian region, and obliges the US to respond to any attack on Japan or its territory. And the US has made clear that its navies joined the Vietnamese Navy for a tri-lateral exercise in 14 obligation would cover the Senkaku/Diaoyu Islands. South China Sea. The Indian Navy sent warships, tankers and

254 255 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region present in some parts of the East China Sea, its P-3C surveillance zone (EEZ) of 4.5m square km (2.8m square miles).12 These islands planes make a daily round of the entire East China Sea unlike a become crucial for further claim on the EEZ from the present 200 few years ago when ships were sent in only for emergencies. nautical miles to 350 nautical miles in the region . China's ascendance not only eclipsed Japanese influence in the Japan on its part has stretched out its area of defence to 4,000 East Asia and beyond but in August 2010, China overtook Japan nautical miles through the Malacca Strait into the Arabian Sea. as the world's second largest economy. The following month, The prospects of India-Japan maritime cooperation improved bilateral relations plummeted after the Japanese Coast Guard with the hijacking of a Japanese ship, M.V. Alondra Rainbow in arrested the crew of a Chinese fishing trawler that had rammed its 2 1999. The incident has been a turning point in the Indo-Japan vessel in an altercation near the disputed Senkaku/Diaoyu naval relations, as the Indian Coast guard successfully islands [map Senakaku/Diaoyu] China reacted by withholding intercepted the pirates with precision. Both the coast guards have exports of rare earth metals that were essential to Japanese been conducting joint exercises every year since 2000 and they are manufacturing industry until Japan released the Chinese crew. conducted alternately in India and Japan. The anti-piracy This exchange sent a clear signal that thereafter China would use 11 operation has become the cornerstone of the bilateral drill. The its economic might to uphold its territorial claims. China and joint exercises on the Coast Guards are code named as `Sahyog- Japan increasingly competing for natural resources have never Kaijin'. While Indian word Sahyog means `cooperation,' the agreed on a maritime border and also the dispute over the Japanese word Kaijin means `God of the Seas.' Thus the exercises ownership of Senkaku islands continued. The islands controlled of the coastguards intensified cooperation between the two by Japan are claimed by China and Taiwan. Although the two countries in maritime safety, maritime security through search nations have, by some estimates, roughly the same length of and rescue operationsand protection of marine environment.13 coastline, Japan, an archipelago, claims an exclusive economic Regular meetings are conducted by the heads of the two Coast Guards and the heads visit each other every year. The major breakthrough was ushered in with the exchange of A Memorandum on Cooperation between the Coast Guards during Japanese Commandant Ishikawa's visit to India in November 2006. With regard to the cooperation of the navies, both Japan and Indian warships have visited each other's ports and participated in the International Fleet Reviews regularly. In 1995 and in 2000, Indian warships visited Tokyo and Sasebo respectively in response to an earlier visit of the Japanese naval ships in 1995.Indian Navy has provided naval assistance to a Japanese vessel for search and rescue in the Indian Ocean south of Sri 2 The Senkaku/Diaoyuare a group of tiny islets and rock outcroppings near Lanka. In January 2000 Japanese Navy and the Indian Navy ships Taiwan, which are administered by Japan. The US/Japan Alliance is the carried out a naval exercise off Mumbai and later these two cornerstone of American engagement in the Asian region, and obliges the US to respond to any attack on Japan or its territory. And the US has made clear that its navies joined the Vietnamese Navy for a tri-lateral exercise in 14 obligation would cover the Senkaku/Diaoyu Islands. South China Sea. The Indian Navy sent warships, tankers and

254 255 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region submarines to Japan, South Korea, Indonesia and Vietnam for (FENC) off Port Blair on the Andaman Islands, which is at the bilateral exercises and as gestures of good will Indian Navy also entrance of the Strait of Malacca and in close proximity to conducted unilateral exercises in the South China Sea in 2000, Myanmar's Coco Islands where China allegedly has signals which is a location of maritime disputes between several ASEAN intelligence (SIGINT) station. A large number of unilateral, countries and China over the Spartly islands .According to a 1992 bilateral and multilateral initiatives in combating maritime Chinese law, the South China Sea is considered to be a Chinese threats have been initiated by the regional countries.Japan territory. China believes that one-third of its presumed oil and gas initiated Regional Cooperation Agreement on Combating Piracy resources are in the South China Sea, and 70 percent of those are and Armed Robbery Against Ships [ReCAAP] to promote in deep waters.15 In this light, unilateral exercises by the Indian multilateral anti-piracy cooperation along with the ASEAN, Navy involving several warships, a submarine and a maritime Japan, India, China, Sri Lanka and Bangladesh.18 To counter reconnaissance aircraft were meant to assert India's prowess and China's growing naval presence in the South China Sea and to establish freedom of navigation in the area claimed by China. Indian Ocean and ensure safety of energy sea lines, India and India was able to denote to its Southeast Asian neighbors and Japan in May 2006 announced measures to step up bilateral Japan that it could challenge China's claims and could embark on defence cooperation. to project itself as a counterweight to China. According to National Defence Programme Guidelines 2011, In January 2005, Japan undertook its largest postwar military Japan's relations with Russia and China are considered deployment when the JSDF units were sent to Indonesia in unpredictable where as India is seen as a stable and reliable long- response to the devastating tsunami disaster. Approximately term partner.19After the United States and the ASEAN, which 1,000 personnel and a relief task force that included three ships, provide the traditional parameters of Japanese interests, the five helicopters, and two C-130 transport aircraft were guidelines state that Japan must increase its cooperation with India dispatched. The Strait of Malacca has become crucial as half of that share the common interest of enhancing the security of China's imported oil and 95% of the oil shipped to Japan, South maritime navigation from Africa to the Middle East to East Asia. Korea and Taiwan pass through it. In order to protect its energy India, on its part, hopes to secure access to defence platforms and interest China has been developing port facilities in Pakistan technologies that Japan has developed on priority, such as [Gwadar] , Bangladesh (Chittagong), Sri Lanka (Hambantota) maritime patrol, air defenses, ballistic missile responses, and Myanmar (Sittwe, Coco, Hianggyi, Khaukphyu, Mergui and transportation and command communications. In keeping with ZadetkyiKyun). As these strategic geographies overlap a large the new focus, several high-level defence exchanges have taken proportion of the South China Sea covering the Arabian sea, these place between India and Japan since the middle of 2010. Thus the developments are viewed by India and Japan as part of China's cooperation includes holding goodwill exercises between the “string of pearls”,16 a strategy of economic and military Indian Navy and JMSDF; inviting officials of the other side to encroachment into the South and Central Asia.17 Both India and witness designated military activities; holding meetings between Japan have taken a strategic initiative to assert greater influence in their defence ministers at regular intervals; use of opportunities at the Asia-Pacific region and Indian Ocean region as an area of regional and multilateral meetings; Defence Policy Dialogue at mutual interest between the two naval forces to cooperate against the defence secretary-level from time to time; Regular piracy, search and rescue in sea and in securing energy lanes. comprehensive security dialogue and military-to-military talks;incentives to the JMSDF for participating in programmes The Indian navy established a Far Eastern Naval Command

256 257 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region submarines to Japan, South Korea, Indonesia and Vietnam for (FENC) off Port Blair on the Andaman Islands, which is at the bilateral exercises and as gestures of good will Indian Navy also entrance of the Strait of Malacca and in close proximity to conducted unilateral exercises in the South China Sea in 2000, Myanmar's Coco Islands where China allegedly has signals which is a location of maritime disputes between several ASEAN intelligence (SIGINT) station. A large number of unilateral, countries and China over the Spartly islands .According to a 1992 bilateral and multilateral initiatives in combating maritime Chinese law, the South China Sea is considered to be a Chinese threats have been initiated by the regional countries.Japan territory. China believes that one-third of its presumed oil and gas initiated Regional Cooperation Agreement on Combating Piracy resources are in the South China Sea, and 70 percent of those are and Armed Robbery Against Ships [ReCAAP] to promote in deep waters.15 In this light, unilateral exercises by the Indian multilateral anti-piracy cooperation along with the ASEAN, Navy involving several warships, a submarine and a maritime Japan, India, China, Sri Lanka and Bangladesh.18 To counter reconnaissance aircraft were meant to assert India's prowess and China's growing naval presence in the South China Sea and to establish freedom of navigation in the area claimed by China. Indian Ocean and ensure safety of energy sea lines, India and India was able to denote to its Southeast Asian neighbors and Japan in May 2006 announced measures to step up bilateral Japan that it could challenge China's claims and could embark on defence cooperation. to project itself as a counterweight to China. According to National Defence Programme Guidelines 2011, In January 2005, Japan undertook its largest postwar military Japan's relations with Russia and China are considered deployment when the JSDF units were sent to Indonesia in unpredictable where as India is seen as a stable and reliable long- response to the devastating tsunami disaster. Approximately term partner.19After the United States and the ASEAN, which 1,000 personnel and a relief task force that included three ships, provide the traditional parameters of Japanese interests, the five helicopters, and two C-130 transport aircraft were guidelines state that Japan must increase its cooperation with India dispatched. The Strait of Malacca has become crucial as half of that share the common interest of enhancing the security of China's imported oil and 95% of the oil shipped to Japan, South maritime navigation from Africa to the Middle East to East Asia. Korea and Taiwan pass through it. In order to protect its energy India, on its part, hopes to secure access to defence platforms and interest China has been developing port facilities in Pakistan technologies that Japan has developed on priority, such as [Gwadar] , Bangladesh (Chittagong), Sri Lanka (Hambantota) maritime patrol, air defenses, ballistic missile responses, and Myanmar (Sittwe, Coco, Hianggyi, Khaukphyu, Mergui and transportation and command communications. In keeping with ZadetkyiKyun). As these strategic geographies overlap a large the new focus, several high-level defence exchanges have taken proportion of the South China Sea covering the Arabian sea, these place between India and Japan since the middle of 2010. Thus the developments are viewed by India and Japan as part of China's cooperation includes holding goodwill exercises between the “string of pearls”,16 a strategy of economic and military Indian Navy and JMSDF; inviting officials of the other side to encroachment into the South and Central Asia.17 Both India and witness designated military activities; holding meetings between Japan have taken a strategic initiative to assert greater influence in their defence ministers at regular intervals; use of opportunities at the Asia-Pacific region and Indian Ocean region as an area of regional and multilateral meetings; Defence Policy Dialogue at mutual interest between the two naval forces to cooperate against the defence secretary-level from time to time; Regular piracy, search and rescue in sea and in securing energy lanes. comprehensive security dialogue and military-to-military talks;incentives to the JMSDF for participating in programmes The Indian navy established a Far Eastern Naval Command

256 257 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region conducted by India's National Defence College. 20 Korea, Malaysia, Mongolia, Singapore, Thailand and India, excluding China. During this period Japan has shown For Japan, cooperating with Indian navy is of least risk as it considerable interests with the Indian Navy in the protection of provides a valuable chance to train in the Indian Ocean region the sea lanes of communications. whereas training and exercises elsewhere in the East Asia would raise uncomfortable issues as many countries still have the In the Tri-Service 2007 US Maritime Strategy, A Cooperative lingering memories of Japan's wartime aggression21. Japan has Strategy for 21st Century Seapower, the Uniformed Service Chiefs also geared up to give transit facilities in the Pacific Ocean to announced that the sea services would shift their centre of gravity Indian naval warships, in return of the similar facilities to its coast from the Atlantic and the Pacific3 to the Pacific and the Indian guard service in the Indian Ocean. The first Indo Japan naval oceans. The Malabar exercise assumed a higher profile in 2007 exercises was conducted in 2007 near Okinawa island just for a when Singapore, Japan and Australia joined the manoeuvres in day .In August 2008, three Japanese ships JDS Kashima, JDS the Bay of Bengal. The former Japanese Prime Minister Abe was Asagiri and JDS Umigiri visited Indian waters and the navies one of the most vocal supports of the four-way forum, a model participated in Pasex, a preliminary exercise.22 “Regional Core Group” that was formed in the aftermath of the 2004 Indian Ocean tsunami model. This multilateral naval drill Malabar Exercises Malabar-2007-2 [Sep 4-9] involving the navies of India, the US, India realizing the US naval preponderance and the altered Japan, Australia and Singapore, was strategically significant as power paradigm, chose naval cooperation as the best and the location stretched from Visakhapatnam on the eastern inescapable strategic option. One of the conditions of naval seaboard to the Andaman and Nicobar Islands that guard the cooperation is proximity of interests as no Navy can cooperate approaches to the Strait of Malacca. The joint exercise for the first every time, everywhere and with every Nation. Thus naval time featured over 20,000 personnel, twenty eight ships, 150 cooperation, whether bilateral or multilateral, comprises a wide aircrafts, and 3 aircraft carriers.23 The countries noted that China variety of activities differing in scale, complexity and sensitivity. had been developing port facilities in Pakistan [Gwadar] , Though Indo-US bilateral Naval exercises, Malabar, were Bangladesh (Chittagong), Sri Lanka (Hambantota) and Myanmar envisaged in 1992,it was 9/11 terrorist attacks on the US, that led ( S i t t w e , C o c o , H i a n g g y i , K h a u k p h y u , M e r g u i a n d to acknowledge India's inevitable strategic position in the Indian ZadetkyiKyun). These strategic geographies overlap covering a Ocean. The US Maritime Strategy reaffirms that the US Navy will large proportion of the South China Sea to Arabian Sea. These remain a two-ocean navy as it has been since the Congress developments are viewed by India and Japan as part of China's approved the Two-Ocean Navy Act in 1940 [in anticipation of a “string of pearls”, a naval strategy. The exercises emphasized the two-front war against Germany and Japan]. In April 2002, when value of making such multinational exercise for both high-level the Indian and the US naval ships undertook the joint escort war fighting and future humanitarian responses also.24 duties in the Malacca Straits , Indian Naval presence was positively acknowledged by the South East Asian countries According to the US Navy, the aim of the exercises was to .Indian Navy was involved by the Bush administration in the 'strengthen the stability of the Pacific Region.' India, argued that multilateral naval exercise 'Team Challenge” held in Philippines in the exercises were simply a learning opportunity for the Indian 2002.This Multilateral Planning Augmentation Team [MPAT] Navy as the emphasis would be on anti-submarine warfare, included observers from Australia, Brunei, Indonesia, Japan, 3 Theatres of World War II and the Cold War.

258 259 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region conducted by India's National Defence College. 20 Korea, Malaysia, Mongolia, Singapore, Thailand and India, excluding China. During this period Japan has shown For Japan, cooperating with Indian navy is of least risk as it considerable interests with the Indian Navy in the protection of provides a valuable chance to train in the Indian Ocean region the sea lanes of communications. whereas training and exercises elsewhere in the East Asia would raise uncomfortable issues as many countries still have the In the Tri-Service 2007 US Maritime Strategy, A Cooperative lingering memories of Japan's wartime aggression21. Japan has Strategy for 21st Century Seapower, the Uniformed Service Chiefs also geared up to give transit facilities in the Pacific Ocean to announced that the sea services would shift their centre of gravity Indian naval warships, in return of the similar facilities to its coast from the Atlantic and the Pacific3 to the Pacific and the Indian guard service in the Indian Ocean. The first Indo Japan naval oceans. The Malabar exercise assumed a higher profile in 2007 exercises was conducted in 2007 near Okinawa island just for a when Singapore, Japan and Australia joined the manoeuvres in day .In August 2008, three Japanese ships JDS Kashima, JDS the Bay of Bengal. The former Japanese Prime Minister Abe was Asagiri and JDS Umigiri visited Indian waters and the navies one of the most vocal supports of the four-way forum, a model participated in Pasex, a preliminary exercise.22 “Regional Core Group” that was formed in the aftermath of the 2004 Indian Ocean tsunami model. This multilateral naval drill Malabar Exercises Malabar-2007-2 [Sep 4-9] involving the navies of India, the US, India realizing the US naval preponderance and the altered Japan, Australia and Singapore, was strategically significant as power paradigm, chose naval cooperation as the best and the location stretched from Visakhapatnam on the eastern inescapable strategic option. One of the conditions of naval seaboard to the Andaman and Nicobar Islands that guard the cooperation is proximity of interests as no Navy can cooperate approaches to the Strait of Malacca. The joint exercise for the first every time, everywhere and with every Nation. Thus naval time featured over 20,000 personnel, twenty eight ships, 150 cooperation, whether bilateral or multilateral, comprises a wide aircrafts, and 3 aircraft carriers.23 The countries noted that China variety of activities differing in scale, complexity and sensitivity. had been developing port facilities in Pakistan [Gwadar] , Though Indo-US bilateral Naval exercises, Malabar, were Bangladesh (Chittagong), Sri Lanka (Hambantota) and Myanmar envisaged in 1992,it was 9/11 terrorist attacks on the US, that led ( S i t t w e , C o c o , H i a n g g y i , K h a u k p h y u , M e r g u i a n d to acknowledge India's inevitable strategic position in the Indian ZadetkyiKyun). These strategic geographies overlap covering a Ocean. The US Maritime Strategy reaffirms that the US Navy will large proportion of the South China Sea to Arabian Sea. These remain a two-ocean navy as it has been since the Congress developments are viewed by India and Japan as part of China's approved the Two-Ocean Navy Act in 1940 [in anticipation of a “string of pearls”, a naval strategy. The exercises emphasized the two-front war against Germany and Japan]. In April 2002, when value of making such multinational exercise for both high-level the Indian and the US naval ships undertook the joint escort war fighting and future humanitarian responses also.24 duties in the Malacca Straits , Indian Naval presence was positively acknowledged by the South East Asian countries According to the US Navy, the aim of the exercises was to .Indian Navy was involved by the Bush administration in the 'strengthen the stability of the Pacific Region.' India, argued that multilateral naval exercise 'Team Challenge” held in Philippines in the exercises were simply a learning opportunity for the Indian 2002.This Multilateral Planning Augmentation Team [MPAT] Navy as the emphasis would be on anti-submarine warfare, included observers from Australia, Brunei, Indonesia, Japan, 3 Theatres of World War II and the Cold War.

258 259 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region surface warfare, air defence, live-fire gunnery training, and visit, the US and India, Japan being unable to attend as originally board, search and seizure (VBSS) operations. China which was planned due the disasters (natural and nuclear) that had struck it notably absent in the relief operations following the tsunami in 2011. Malabar 2011 took place in the western Pacific, east of the in2004, viewed the grouping might form an “Asian NATO” in Luzon Strait, and involved the American Seventh Fleet flagship the Bay of Bengal, to contain the presence and role of its naval USS Blue Ridge as well as five powerful Indian warships. It power in the region.25 Thus China has strongly reacted to the generated a Chinese media comment on Malabar 2011 being an coming-together of these five countries as a beginning of a loose “anti-China military block.”28 anti-China naval barrier in the Indian Ocean region and issued Pacific Shield demarches to all five participating countries. Following China's Japan acceded to U.S initiated Proliferation Security Initiative protest, India and US refrained from inviting a third country for 5 joint exercises held in 2008 and 2009.The US 2010 Quadrennial (PSI) in 2003 in support of other aspects of the global war on Defense Review prophesied that the US military would be terror (GWOT). As a core participant in the PSI, Japan has taken 'increasingly challenged in securing and maintaining access to the part as observer in a series of highly visible exercises held across the globe. Japan on its part conducted its first PSI exercise, “Team global commons and must also be prepared for operations in 29 unfamiliar conditions and environments.' 26 Samurai 04” in October 2004. Nearly 22 countries participated. Japan also participated in the first Southeast Asian PSI conducted The United States sought trilateral arrangements with Japan and in Singapore's in August 2005. MSDF dispatched a destroyer, two India in view of the significant strategic benefits of partnering P-3C surveillance aircraft, and two helicopters. The second PSI- with India. Although the three nations have not held a formal related maritime exercise, Pacific Shield 07 , hosted by Japan had meeting, in May 2007 a “2+2” meeting joint statement was issued more number of participant countries that included active and the US and the Japanese foreign and defense ministers participation of six countries Australia, France, New Zealand, affirmed that the shared strategic objective was of “continuing to Singapore, the United Kingdom, and the United States, while 34 build upon partnerships with India to advance areas of common countries sent observers including ten countries from the Asia- 27 interests and increase cooperation”. The navies of the three Pacific region. The countries such as India and Malaysia have countries for the first time participated in the trilateral exercises reservations regarding the PSI as China has been developing port 4 named Triplex 07 with joint naval drills in the Pacific off Japan's facilities in Pakistan [Gwadar], Bangladesh (Chittagong), Sri east coast in April 2007 as part of Malabar exercises. India-US Lanka (Hambantota) and Myanmar (Sittwe, Coco, Hianggyi, Malabar naval exercises involving the Japanese navy in 2007, 2009, Khaukphyu, Mergui and ZadetkyiKyun). As these strategic and 2010; were conducted in the western Pacific waters near the geographies overlap covering a large proportion of the South “forward defense perimeter” (US) or “first island chain” (China). China Sea to Arabian sea these developments are viewed by India The Malabar 2011 exercise remained a bilateral exercise between and Japan as part of China's “string of pearls”, a naval strategy, while China, Indonesia, and South Korea declined to 30 4 The exercise featured two U.S. destroyers, four Japanese escort vessels, and participate. Japan also hosted a Pacific Shield in 2007 to make an three Indian warships and focused on cooperation in the event of a major natural disaster. The various aircraft also took part in training in variety of warfare areas and included both personnel exchanges and professional discussions. The 5 The Proliferation Security Initiative (PSI) aims to seize shipments of weapons of exercise was followed by a "goodwill visit" to Japan by some top-line Indian Navy mass destruction (WMD) and missile-related equipment and technologies" by vessel sea or air

260 261 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region surface warfare, air defence, live-fire gunnery training, and visit, the US and India, Japan being unable to attend as originally board, search and seizure (VBSS) operations. China which was planned due the disasters (natural and nuclear) that had struck it notably absent in the relief operations following the tsunami in 2011. Malabar 2011 took place in the western Pacific, east of the in2004, viewed the grouping might form an “Asian NATO” in Luzon Strait, and involved the American Seventh Fleet flagship the Bay of Bengal, to contain the presence and role of its naval USS Blue Ridge as well as five powerful Indian warships. It power in the region.25 Thus China has strongly reacted to the generated a Chinese media comment on Malabar 2011 being an coming-together of these five countries as a beginning of a loose “anti-China military block.”28 anti-China naval barrier in the Indian Ocean region and issued Pacific Shield demarches to all five participating countries. Following China's Japan acceded to U.S initiated Proliferation Security Initiative protest, India and US refrained from inviting a third country for 5 joint exercises held in 2008 and 2009.The US 2010 Quadrennial (PSI) in 2003 in support of other aspects of the global war on Defense Review prophesied that the US military would be terror (GWOT). As a core participant in the PSI, Japan has taken 'increasingly challenged in securing and maintaining access to the part as observer in a series of highly visible exercises held across the globe. Japan on its part conducted its first PSI exercise, “Team global commons and must also be prepared for operations in 29 unfamiliar conditions and environments.' 26 Samurai 04” in October 2004. Nearly 22 countries participated. Japan also participated in the first Southeast Asian PSI conducted The United States sought trilateral arrangements with Japan and in Singapore's in August 2005. MSDF dispatched a destroyer, two India in view of the significant strategic benefits of partnering P-3C surveillance aircraft, and two helicopters. The second PSI- with India. Although the three nations have not held a formal related maritime exercise, Pacific Shield 07 , hosted by Japan had meeting, in May 2007 a “2+2” meeting joint statement was issued more number of participant countries that included active and the US and the Japanese foreign and defense ministers participation of six countries Australia, France, New Zealand, affirmed that the shared strategic objective was of “continuing to Singapore, the United Kingdom, and the United States, while 34 build upon partnerships with India to advance areas of common countries sent observers including ten countries from the Asia- 27 interests and increase cooperation”. The navies of the three Pacific region. The countries such as India and Malaysia have countries for the first time participated in the trilateral exercises reservations regarding the PSI as China has been developing port 4 named Triplex 07 with joint naval drills in the Pacific off Japan's facilities in Pakistan [Gwadar], Bangladesh (Chittagong), Sri east coast in April 2007 as part of Malabar exercises. India-US Lanka (Hambantota) and Myanmar (Sittwe, Coco, Hianggyi, Malabar naval exercises involving the Japanese navy in 2007, 2009, Khaukphyu, Mergui and ZadetkyiKyun). As these strategic and 2010; were conducted in the western Pacific waters near the geographies overlap covering a large proportion of the South “forward defense perimeter” (US) or “first island chain” (China). China Sea to Arabian sea these developments are viewed by India The Malabar 2011 exercise remained a bilateral exercise between and Japan as part of China's “string of pearls”, a naval strategy, while China, Indonesia, and South Korea declined to 30 4 The exercise featured two U.S. destroyers, four Japanese escort vessels, and participate. Japan also hosted a Pacific Shield in 2007 to make an three Indian warships and focused on cooperation in the event of a major natural disaster. The various aircraft also took part in training in variety of warfare areas and included both personnel exchanges and professional discussions. The 5 The Proliferation Security Initiative (PSI) aims to seize shipments of weapons of exercise was followed by a "goodwill visit" to Japan by some top-line Indian Navy mass destruction (WMD) and missile-related equipment and technologies" by vessel sea or air

260 261 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region opportunity for the Asia-Pacific countries to deepen their the naval contingent also traveled to the HaiPhong port in understanding of the purpose and efforts of the PSI. The Pacific Vietnam. On completion of the exercise, the ships visited Beijing, Shield 12 is the first Air Interdiction Exercise whereas the China and Port Kelang, Malaysia and participated in the passage previous two Exercises were both Maritime Interdiction exercises with the respective Navies that included Humanitarian Exercises. These exercises help in enhancing the capabilities and Aid & Disaster Relief (HADR) operations and Visit, Board, Search interoperability of Japan with other Asia Pacific countries. and Seizure (VBSS) drills. 32 India-Japan Annual Bilateral Naval Exercise The joint exercise comes in the wake of recent decision by ONGC The joining together of India and Japan for an annual bilateral Videsh to stop drilling in one of the offshore blocks it had naval exercise marks a significant advance in the maritime acquired from Vietnam. The move was speculated in the Indian cooperation between the two nations as until now. Japan's Coast media as India's "retreat" from the South China Sea and the Guard participated in the bilateral exchanges with the Indian Chinese media complimented India's wisdom in "pulling out" of Coast Guard. Japan has so far preferred multilateral maritime the South China Sea which added to the impression of India's 33 engagements with other nations along with the United States. deference to China's sensitivities. But India's joint naval exercise Given the widespread concerns in China and among other with Japan sends the message to the region that India's interest in neighbours about its past militarism, Japan had been hesitant to the waters of the East Asia is enduring and its naval presence in persue the independent naval diplomacy in Asia's waters. With the Western Pacific is here to stay. The special relationships with the first Bi-lateral maritime exercise between India and Japan the key regional states and the greater coordination with the other 'JIMEX 12' (Japan India Maritime Exercise), Japan shed its naval powers are critical for an effective Indian strategy in the political inhibitions marking an important step forward. The South China sea. India made it a point to reassure China that India exercise was held between 09-12 June, 2012 off Tokyo with JMSDF harbours no hostile designs against China in the Western Pacific. participating with two destroyers one maritime patrol aircraft The ships that took part in the Tokyo exercises stopped in at and a helicopter. Four ships of the Eastern Fleet of the Indian Shanghai on their way back to India, the first naval visit by Indian 34 Navy participated namely INS Rana, INS Shivalik, INS Karmukh ships to China in six years. and INS Shakti. The four ships entered Tokyo on 05 June 12 after visiting Singapore, Vietnam, Philippines and Republic of Korea. These Ships were also on a sustained operational deployment to the South China Sea and North West Pacific. The three day stay in Tokyo coincides with the commemoration of 60 years of diplomatic relations between India and Japan.31 The Indian Ships' two-month long deployment from the of end May 2012 enabled the Navy to Navy cooperation with the numerous navies across the region and it also demonstrated the Indian Navy's operational reach. Besides the exercise with Japan, one part of the Indian naval contingent showed up at the Subic Bay in the Philippines amidst the mounting naval tensions between Manila and Beijing in the South China Sea. Two ships of

262 263 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region opportunity for the Asia-Pacific countries to deepen their the naval contingent also traveled to the HaiPhong port in understanding of the purpose and efforts of the PSI. The Pacific Vietnam. On completion of the exercise, the ships visited Beijing, Shield 12 is the first Air Interdiction Exercise whereas the China and Port Kelang, Malaysia and participated in the passage previous two Exercises were both Maritime Interdiction exercises with the respective Navies that included Humanitarian Exercises. These exercises help in enhancing the capabilities and Aid & Disaster Relief (HADR) operations and Visit, Board, Search interoperability of Japan with other Asia Pacific countries. and Seizure (VBSS) drills. 32 India-Japan Annual Bilateral Naval Exercise The joint exercise comes in the wake of recent decision by ONGC The joining together of India and Japan for an annual bilateral Videsh to stop drilling in one of the offshore blocks it had naval exercise marks a significant advance in the maritime acquired from Vietnam. The move was speculated in the Indian cooperation between the two nations as until now. Japan's Coast media as India's "retreat" from the South China Sea and the Guard participated in the bilateral exchanges with the Indian Chinese media complimented India's wisdom in "pulling out" of Coast Guard. Japan has so far preferred multilateral maritime the South China Sea which added to the impression of India's 33 engagements with other nations along with the United States. deference to China's sensitivities. But India's joint naval exercise Given the widespread concerns in China and among other with Japan sends the message to the region that India's interest in neighbours about its past militarism, Japan had been hesitant to the waters of the East Asia is enduring and its naval presence in persue the independent naval diplomacy in Asia's waters. With the Western Pacific is here to stay. The special relationships with the first Bi-lateral maritime exercise between India and Japan the key regional states and the greater coordination with the other 'JIMEX 12' (Japan India Maritime Exercise), Japan shed its naval powers are critical for an effective Indian strategy in the political inhibitions marking an important step forward. The South China sea. India made it a point to reassure China that India exercise was held between 09-12 June, 2012 off Tokyo with JMSDF harbours no hostile designs against China in the Western Pacific. participating with two destroyers one maritime patrol aircraft The ships that took part in the Tokyo exercises stopped in at and a helicopter. Four ships of the Eastern Fleet of the Indian Shanghai on their way back to India, the first naval visit by Indian 34 Navy participated namely INS Rana, INS Shivalik, INS Karmukh ships to China in six years. and INS Shakti. The four ships entered Tokyo on 05 June 12 after visiting Singapore, Vietnam, Philippines and Republic of Korea. These Ships were also on a sustained operational deployment to the South China Sea and North West Pacific. The three day stay in Tokyo coincides with the commemoration of 60 years of diplomatic relations between India and Japan.31 The Indian Ships' two-month long deployment from the of end May 2012 enabled the Navy to Navy cooperation with the numerous navies across the region and it also demonstrated the Indian Navy's operational reach. Besides the exercise with Japan, one part of the Indian naval contingent showed up at the Subic Bay in the Philippines amidst the mounting naval tensions between Manila and Beijing in the South China Sea. Two ships of

262 263 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region

Rimpac Exercises from countries that Japan had occupied or invaded during the RIMPAC, the Rim of the Pacific Exercise, is the largest and most World War II, including South Korea, Malaysia, the Philippines, comprehensive maritime warfare exercise in the world, held and Indonesia . South Korea, in particular, has rebuffed military biennially during June and July of even-numbered years in overtures by Tokyo, scrapping plans earlier this year for a joint Honolulu, Hawaii. It is hosted and administered by the United intelligence-sharing pact. Tensions also rose between South States Navy's Pacific Fleet, the Asia-Pacific nations are routinely Korea and Japan over a longtime territorial spat that resulted in invited to participate in them as a means of improving the South Korea suspending military-exchange program. Even in coordination, cooperation, and interoperability of Pacific naval Japan, grass-root opposition to the U.S. military presence has forces. The series which began way back in 1971 has grown in size strained bilateral security ties, and slowed American plans to every year since then. The exercise is designed to enhance the realign its bases and deploy the state of the art 36 regional stability and encourage cultural understanding and equipment. .Moreover, Beijing is wary of the increasing strategic maximize the training opportunities and to promote the Pacific engagement of the U.S. in the region. The ships, subs, and aircraft maritime relationships. participating in RIMPAC not only developed their skills for anti- submarine warfare, but also developed the relationships The 23rd exercise in the biennial RIMPAC series, 2012 version necessary to communicate effectively in an anti-submarine involved 22 nations, more than 40 ships and submarines and context. Chinese submarines have played games with American more than 200 aircraft that operated in and around the Hawaiian carriers that bear uncanny resemblances to the exercises Islands. The U.S. led the 25,000-troop, 22-nation maritime exercise 37 undertaken at RIMPAC. Ensuring the security of Japan's from June 27 to Aug.3 including India, 6 nations joined the territorial waters and exclusive economic zonesan eye out for exercise for the first time, making it the largest ever. For the first Chinese ships, and foreign ships in general, in the East China Sea, time during RIMPAC, the exercise featured a humanitarian US and Japan are considering building a permanent joint exercise assistance/disaster relief event that facilitated training and facility on the American-controlled Pacific islands around Guam. certification for expeditionary forces for responding to foreign In September, troops from Japan's Ground Self Defense Force disasters as a crisis response adaptive force package. Also joined U.S. Marines on Guam and nearby Tinian Island to conduct conducted were three SINKEXS, multi-force military operations their first joint drills for defending remote islands, a strategy on urban terrain for training in live-fire exercises, surface-to-air Japan recently began and emphasized amid the escalating island engagements, air-to-air missile engagements, surface-to-surface 38 tensions with China. engagements, amphibious assaults, vessel boardings, explosive ordnance disposal, diving, salvage operations, conducted air-to- Conclusion air refueling and mine clearance operations. Other scheduled There is a broad political consensus in Japan and India on the exercises include ship-sinking operations, torpedo training, and importance of India-Japan co-operation to strengthen maritime experiments with new seaborne vessel designs.35 security in the west of the Indian Ocean and infighting the Somali While China was not invited, Japanese naval commander served pirates and securing the sea lanes. India-Japan naval co-operation as second in command, the highest rank ever given to a Japanese for maritime security in the Malacca Strait area is limited because officer in the four decades since the drill was launched. This of the lingering memories in the region of the Japanese occupation symbolizes Japan's progressively expanding military clout, as the during the Second World War. Even though wary of the Chinese U.S. counters the China's rise. Japan commanded naval officers assertiveness , there are still reservations over the Japanese ships

264 265 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region

264 265 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region playing an active role in patrolling but no such reservations about References the Indian ships . Prominently mentioned is the India Japan Joint Declaration which a common pledge to safeguard the vulnerable 1. Syam Saran, “Mapping the Indo-Pacific ”, The Indian Express. 29 October 2011; PriyaChacko “India and the Indo-Pacific:An Emerging sea lines of communications. India and Japan have parallel but Regional Vision” ,Indo-Pacific Governance Research Centre,Policy not shared concerns over China's military modernization. The Brief,Issue 5 November 2012; Rory Medcalf “A Term Whose Time Has eastward focus that has been a cornerstone of India's foreign Come: The Indo-Pacific” , The Diplomat, December 4, policy post-Cold War has become part of the broader effort to 2012,http://thediplomat.com/flashpoints-blog/2012/12/04/a-term- assert itself on the world scene. As such India evolved from being whose-time-has-come-the-indo-pacific a regional power in the South Asia to an actor in the Asia-Pacific. 2. See, for example, Hillary Clinton, ''America's Pacific Century,'' Foreign India's joint naval exercise with Japan sends a strong message that P o l i c y , N o v e m b e r 2 0 1 1 , India's interest in the waters of East Asia is enduring and its naval ttp://www.foreignpolicy.com/articles/2011/10/11/americas_pacific presence in the Western Pacific is here to stay. It is in India's and _century; Gregory R. Copley, ''The Indian Ocean: Dynamic Theater for Japan's interest to avert an asymmetrical power transition in the the 21stCentury,'' Defense & Foreign Affairs and Strategic Policy 36, no. 12 region. India could play a significant role as a balancer between (2008): pp. 1114, 17; PriyaChacko “India and the Indo-Pacific:An Emerging Regional Vision” ,Indo-Pacific Governance Research the power of the United States and its allies on the one hand and Centre,Policy Brief,Issue 5 November 2012 China on the other to deter China from mounting a costly bid for regional hegemony, as more and more countries in the Indo- 3. see Pan 'IOR' Operations Demonstrate Reach of India's Maritime Pacific are caught in a common dilemma: a national economy Diplomacy, IDR News Network, Issue Net Edition, 12 Jun , 2012http://www.indiandefencereview.com/news/indian-navys-pan- that is increasingly tied with China's and security interests ior-operations-demonstrate-reach-of-indias-maritime-diplomacy/; oriented away from China.The unilateral actions of China Gregory R. Copley, ''The Indian Ocean: Dynamic Theater for the successful or not, would increase instability throughout the Asia- 21stCentury,'' Defense & Foreign Affairs and Strategic Policy 36, no. 12 Pacific region and could hinder India's growth. As maritime (2008): pp. 1114, 17; relations are crucial in the Indo-Pacific region, India-Japan naval 4. Denny Roy, “South China Sea: Not Just About 'Free Navigation,” Asia relations can play a crucial role in securing maritime interest , Pacific Bulletin, August 14, 2012, http://www.eastwestcenter. economic development, transition and stability of the region o r g / p u b l i c a t i o n s / s o u t h - c h i n a - s e a - n o t - j u s t - a b o u t - f r e e - navigation.;Brahma Chellaney, “Build Japan-India Naval Ties”, Japan Times Dec. 28, 2011 http://Www.Japantimes.Co.Jp/Text /Eo20111228bc.Html, Sourabh Gupta “Japan-India Joint Security Declaration: Towards an Asia-wide Security Architecture?” Japan Focus , November 10, 2008

5. David Scott , “India's Drive for a Blue Water Navy ” Journal of Military and Strategic Studies , vol10 Issue 2 Winter 2007-2008 .; walter C. Ladwigi iii “”' Delhi's Pacific Ambition: Naval Power, “Look East,” and India's Emerging Influence in the Asia-Pacific, Asian Security, vol. 5, no. 2, 2009, pp. 87113.

266 267 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region playing an active role in patrolling but no such reservations about References the Indian ships . Prominently mentioned is the India Japan Joint Declaration which a common pledge to safeguard the vulnerable 1. Syam Saran, “Mapping the Indo-Pacific ”, The Indian Express. 29 October 2011; PriyaChacko “India and the Indo-Pacific:An Emerging sea lines of communications. India and Japan have parallel but Regional Vision” ,Indo-Pacific Governance Research Centre,Policy not shared concerns over China's military modernization. The Brief,Issue 5 November 2012; Rory Medcalf “A Term Whose Time Has eastward focus that has been a cornerstone of India's foreign Come: The Indo-Pacific” , The Diplomat, December 4, policy post-Cold War has become part of the broader effort to 2012,http://thediplomat.com/flashpoints-blog/2012/12/04/a-term- assert itself on the world scene. As such India evolved from being whose-time-has-come-the-indo-pacific a regional power in the South Asia to an actor in the Asia-Pacific. 2. See, for example, Hillary Clinton, ''America's Pacific Century,'' Foreign India's joint naval exercise with Japan sends a strong message that P o l i c y , N o v e m b e r 2 0 1 1 , India's interest in the waters of East Asia is enduring and its naval ttp://www.foreignpolicy.com/articles/2011/10/11/americas_pacific presence in the Western Pacific is here to stay. It is in India's and _century; Gregory R. Copley, ''The Indian Ocean: Dynamic Theater for Japan's interest to avert an asymmetrical power transition in the the 21stCentury,'' Defense & Foreign Affairs and Strategic Policy 36, no. 12 region. India could play a significant role as a balancer between (2008): pp. 1114, 17; PriyaChacko “India and the Indo-Pacific:An Emerging Regional Vision” ,Indo-Pacific Governance Research the power of the United States and its allies on the one hand and Centre,Policy Brief,Issue 5 November 2012 China on the other to deter China from mounting a costly bid for regional hegemony, as more and more countries in the Indo- 3. see Pan 'IOR' Operations Demonstrate Reach of India's Maritime Pacific are caught in a common dilemma: a national economy Diplomacy, IDR News Network, Issue Net Edition, 12 Jun , 2012http://www.indiandefencereview.com/news/indian-navys-pan- that is increasingly tied with China's and security interests ior-operations-demonstrate-reach-of-indias-maritime-diplomacy/; oriented away from China.The unilateral actions of China Gregory R. Copley, ''The Indian Ocean: Dynamic Theater for the successful or not, would increase instability throughout the Asia- 21stCentury,'' Defense & Foreign Affairs and Strategic Policy 36, no. 12 Pacific region and could hinder India's growth. As maritime (2008): pp. 1114, 17; relations are crucial in the Indo-Pacific region, India-Japan naval 4. Denny Roy, “South China Sea: Not Just About 'Free Navigation,” Asia relations can play a crucial role in securing maritime interest , Pacific Bulletin, August 14, 2012, http://www.eastwestcenter. economic development, transition and stability of the region o r g / p u b l i c a t i o n s / s o u t h - c h i n a - s e a - n o t - j u s t - a b o u t - f r e e - navigation.;Brahma Chellaney, “Build Japan-India Naval Ties”, Japan Times Dec. 28, 2011 http://Www.Japantimes.Co.Jp/Text /Eo20111228bc.Html, Sourabh Gupta “Japan-India Joint Security Declaration: Towards an Asia-wide Security Architecture?” Japan Focus , November 10, 2008

266 267 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region

6. C. Raja Mohan,The Diplomat , November 05, 2012The New Triangular 16. also see GurpreetS.Khurana “China's 'String of Pearls'in the Indian D i p l o m a c y : I n d i a , C h i n a a n d A m e r i c a a t Ocean and its Security Implications”,Strategic Analysis , vol 32, issue 1 , Seahttp://thediplomat.com/2012/11/05/the-new-triangular- January 2008., Robert D. Kaplan, “The Geography of Chinese Power: diplomacy-india-china-and-america-on-the-high-seas/?all=true How Far Can Beijing Reach on Land and at Sea?”, Foreign Affairs, May/June 2010,p 34. 7. http://www.spartacus.schoolnet.co.uk/2WWnavyJ.htm. 17. Ramachandran, Sudha, “China Moves into India's Back Yard,” Asia 8. http://militaryhistory.about.com/od/worldwari1/p/leytegulf.htm; Times Online, March. 13, 2007; also see Andrew S. Erickson ,“The Battle of Leyte Gulf.http://historywarsweapons.com/battle-of-leyte- Growth of China's Navy :Implications for Indian Ocean Security”, gulf/ Strategic Analysis , vol 32 issue 4 , July 2008

9. see Naoko Sajima and KyochiTahikawa, Japanese Sea Power: A Maritime 18. John F. Bradford, "Japanese Anti-Piracy Initiatives in Southeast Asia: Nation's Struggle for Identity, Sea Power Centre-Australia, 2009 .; B. Policy Formulation and the Coastal State Responses," Contemporary Raman “Maritime Security concerns of Japan & Prospects of India- Southeast Asia, Institute of Southeast Asian Studies, Singapore. Vol. 26 Japan Co-Operation” South Asia Analysis Group , paper no. 3361, 18 Aug No. 3, December 2004. pp.480-505[6] Ronald Montaperto, "Thinking 2009. Globally, Acting Regionally," Comparative Connections., Pacific Forum CSIS. October-December 2004. http://csis.org/pacfor/cc/0404Q 10. see also Bhubhindar Singh Japan's Security Identity : From a Peace State to an International State, Routledge, 2012. 19. YoreeKoh, Japan Sharpens Rhetoric on China, Calling It 'Assertive' for First T i m e , W a l l S t r e e t J o u r n a l , A u g u s t 3 , 2 0 1 1 , 11. Tina Burrett “Tensions With China Reveal Japanese Politics To Be On The

268 269 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region

24. “Personal Relationships Key to Malabar,” U.S. Navy press release, 34. AartiBetigeri “As China Eyes Indian Ocean, Japan and India Pair Up on September 7, 2007.; NitinGokhaleIndia's Quiet Counter-China D e f e n s e ” , J u l y 2 7 , 2 0 1 2 . StrategyMarch 16, 2011, http://thediplomat.com/2011/03/16/india% http://india.blogs.nytimes.com/2012/07/27/as-china-eyes-indian- E2%80%99s-quiet-counter-china-strategy-2/?all=true.;Nitin Gokhale ocean-japan-and-india-pair-up-on-defense/; Valencia, Mark. “Joining “The Indian Navy's Big Ambitions”, The Diplomat ,May 10, 2012. Up With Japan to Patrol Asian Waters.” 28 April 2000 International Herald Tribune 25. U.S.-Japan-India Report, Center for Strategic and International Studies, August 16, 2007. 35. “RIMPAC 2012 concludes”; http://www.navy.mil/submit/display. asp? story_id=68817; Richard_Dudley “RIMPAC 2012 Naval Forces 26. Harsh V. Pant, “Indian Ocean: Ruling the Waves,” International Relations Roaming in the Pacific “,http://defense-update.com/20120706_rimpac- Security Network, 5 August 2009, www.isn.ethz.ch/ 2012-naval-forces-roaming-in-the-pacific.htmlc.

27. Emma Chanlett-Avery “Emerging Trends in the Security Architecture in 36. ibid Asia: Bilateral and Multilateral Ties Among the United States, Japan, Australia, and India” CRS Report for Congress, January 7, 2008. 37. Robert Farley “Should China Fear RIMPAC?”,August 8, 2012http://thediplomat.com/flashpoints-blog/2012/08/08/should- 28. David Scott “The “Indo-Pacific”New Regional Formulations and New china-fear-rimpac/ Maritime Frameworks for US-India Strategic Convergence, Asia Pacific Review 19. February 2012 . 38. Yuka Hayashi “Japan Regional Security Role Expands Despite constraints :Commander's Rise Shows Japan's Growing Security Role,” 29. Ministry of Foreign Affairs, The Proliferation Security Initiative (PSI) The Wall Street Journal , September,13 2012, http/Japan's%20 Maritime Interdiction Exercise "Team Samurai 04" (Overview and Regional%20Security%20Role%20Expands%20Despite%20Constraints E v a l u a t i o n ) , O c t o b e r 2 8 , 2 0 0 4 . %20-%20WSJ.com.htm. w w w . m o f a . g o . j p / p o l i c y / u n / d i s a r m a m e n t / a r m s /psi/overview0410.html., also see “Proliferation Security “Initiative Exercise Hosted by Japan Shows Growing Interest in Asia But No Sea Change in Key Outsider States”.http://www.wmdinsights.com /I21/I21_EA1_ProliferationSecurity, WMD Insights, December 2007 - January 2008 Issue; B.Raman “India-Japan Thin Edge Of The Wedge” 22 August 2007, www.outlookindia.com/web.aspx?date=8/22/2007.

30. ibid Yuka Hayashi Japan Regional Security Role Expands Despite constraints :Commander's Rise Shows Japan's Growing Security Role, T h e W a l l S t r e e t J o u r n a l , S e p t e m b e r , 1 3 2 0 1 2 , httpJapan's%20Regional%20Security%20Role%20Expands%20Despite %20Constraints%20-%20WSJ.com.htm.

31. Joseph Poprzeczny “Asia-pacific Region Japan Set to Expand its Naval Capabilities” News Weekly, June 13, 2009.

32. C. Raja Mohan , “Japanese Navy” , The Indian Express, 13 June 2012 ;also seeRajeev Sharma “China and India Jostle in Indian Ocean” , Global Times , 18 october 2012.

33. ibid

270 271 India and Japan Relations India-Japan Naval Cooperation in the Indo-Pacific Region

31. Joseph Poprzeczny “Asia-pacific Region Japan Set to Expand its Naval Capabilities” News Weekly, June 13, 2009.

32. C. Raja Mohan , “Japanese Navy” , The Indian Express, 13 June 2012 ;also seeRajeev Sharma “China and India Jostle in Indian Ocean” , Global Times , 18 october 2012.

33. ibid

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