Modi’s Visit to Japan

Prime Minister Narendra Modi 5-day visit to Japan spanning two cities is closely watched internationally for its larger geopolitical and strategic implications on the Asian continent. Japan, the trusted ally of the US is keen to forge closer ties with the third largest economy of purchasing power parity India to stall the territorial ambitions of China. Besides their strategic interests, the leaders of both the nations, Modi and Shinzo Abe share a good chemistry and analysts expect the meeting to be a resounding success. Both have the reputation of conservative nationalists and confronted with formidable task of ushering their grappling economies into new horizons.

Indo- Japan friendship is rooted in strong spiritual affinity, cultural and civilization ties. India’s contact with Japan is dated back to 725 AD when an Indian monk BodhiSena performed the consecration of Lord Buddha statue at Todaiji temple in Nara, Japan. Over a period of times both nations share a unique relationship. Mutual respect towards each other has been manifested in the form of generous exchanges of sentiments and they stood for each other during times of need. As a testimony to its friendship Japan helped to bail out India during the financial crisis in 1991. The beginning of 21^st century witnessed a major boost in bilateral engagement when Prime Minister Yoshiro Mori on his path breaking visit to India initiated Global Japan- Indo Partnership. It gave the much needed impetus to the bilateral engagement. Further, with the signing of Joint agreement in 2006, Global Partnership has graduated into a Global and Strategic Partnership with provision for annual Prime Ministerial summits. India is the only country; Japan holds regular summits alternatively in Delhi and Tokyo. The Comprehensive Economic Partnership Agreement (CEPA) of 2011 registered an unprecedented progress on the issues of economic and strategic engagement which included the vast swathes of defence and security.

Enhanced military ties, deeper strategic engagement, business investments, assistance in developing smart cities and nuclear issues are big on Modi’s agenda. Modi’s visit to Japan is closely monitored in light of his scheduled meeting with other big leaders, Barack Obama and Chinese Premier Xi Jinping in the later part of September. The interaction assumes greater significance due to the emboldened expansionist streak of China, its repeated incursions across the LAC and territorial claims over the uninhabited Senkaku Islands in Japan.

Japan is the fourth largest FDI investor in India and its investment has increased six fold over a period of 7 years. Japanese Official Development Assistance (ODA) has been instrumental in conceptualising and executing the Delhi Metro Project. Other major projects on anvil are the Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor with 8 new industrial townships and the Chennai-Bengaluru Industrial Corridor. Japan accounts for 2.3% share of India’s global trade India doesn’t account for more than 1.1% of Japan’s global trade.

Indian policy makers are concerned about the dubious aspirations of China to expand its presence in Indian Ocean region and in fostering ties with our neighbours. In pursuit for better defence cooperation, India and Japan held series of joint naval exercises. During the current visit, India is keen on obtaining amphibious US-2 aircrafts from Japan to halt the assertive China. Modi’s electoral promise of bullet trains for India is also high on agenda.

In the context of rapidly changing geopolitical architecture of emerging Asia Indo-Japan relationship is crucial. Besides the attempts to lure Japanese investments into the $85 billion market, India has been pushing for a civil nuclear agreement as lines 2008 pact with US to import nuclear fuel and technology without forgoing its military nuclear program. Japan having been nuked vouched for disarmament and non proliferation. Hence it has strong reservations about signing any nuclear deal with India. Japan signed nuclear pacts with Vietnam, Jordan and Turkey. But India is in possession of nuclear weapons and hasn’t signed NPT. Japan wants explicit guarantees on no nuclear tests and intrusive inspections of the nuclear units to be sure that spent fuel is not being diverted for military purposes.

Currently the capacity of nuclear power plants in India is 4780 Mega Watts or 2% of total power capacity. Due to its burgeoning energy needs India aims to increase nuclear capacity to 63,000 MW by 2030.  Though Japan may be reluctant to ink a nuclear pact with India, it has its own share of reasons to comply with the nuclear agreement. Firstly-enhanced bilateral ties between these nations can help in confronting the resurgent China. Second, this deal can kick-start the Japanese nuclear business shut down following the anti-nuclear backlash of Fukushima disaster. Third, with Chinese entering the nuclear market with their own range of 1000 KW turbines opportunities for Japan have declined. Indian nuclear program may not receive major setback if Japan declines since South Korea, US, France and Russia are very keen to work with India. An agreement on civil nuclear deal can take the relationship to a new high.

Indeed both nations can gain significantly from economic complementarities like the Japan’s surplus capital can finds its way into the 1.2billion strong Indian markets. While Japan is master of hardware India has upper hand in software. India’s energy needs and infrastructure can be meted by Japanese expertise. Apart from strengthening defence and strategic ties, the bilateral engagement on long term can be a monumental amalgamation of two rich heritages.

 

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