As expected, Japan said ‘No’ to India’s plea to sign the crucial nuclear cooperation deal bereft of Non Proliferation Treaty compliance, despite New Delhi’s repeated assurances that it would be for peaceful energy plants. Barring the nuclear deal, Japan was more than willing to compensate on economic front with huge promises of ODA or aid, coupled with boosting FDI to $35 billion, including supplying and manufacturing of bullet trains in India.
Otherwise, with a wary eye on Asia’s biggest economy China, both Japan and India, Asia’s second and third biggest economies, on Monday vowed to work towards restraining the “expansionism” in Asia. Japanese Prime Minister Shinzo Abe said, “From this day on, Prime Minister Modi and I will work hand-in-hand to dramatically strengthen relations in every field and elevate ties to a special, strategic global partnership.”
It means progress on other defence-related issues like joint exercises and sophisticated defence supplies, besides extending a helping hand whenever possible. Here, Japan may negotiate to sell its amphibious aircraft sale to Indian Navy, first time in its 50-year history of Peace constitution.
Modi is one of three people that Abe follows on Twitter, and both believe in nationalist politics. Modi had tweeted in Japanese before embarking on his Japan trip. Setting aside protocol, Abe hugged Modi sending signals of warmth and friendship. In return, Modi thundered before the Japanese and Indian business executives: “How the 21st century will be — depends on how strong and progressive India-Japan ties are.”
One reason why Japan should be happy with Modi’s visit was that he targeted China’s expansionist moves referring to them as “18th-century expansionist ways of some countries that encroach upon the seas and territories of others.” Japan is visibly upset with China over the Senkaku islands’ row and recurrent feuds over the wartime past.
On FDI front, Japan said it would chalk out a plan to invest 3.5 trillion yen ($35 billion, or Rs.210,000 crore) in public and private investment including ODA (Overseas Development Assistance or aid) to India in five years. Currently, India accounts for merely 1.2 % of Japan’s total foreign direct investments.
Hopes of striking a nuclear energy deal will have to wait for another decade with wary Japan, anyway.
|Factsheet: India – Japan Summit 2014|
Indian Prime Minister Narendra Modi is on an official visit to Japan from 30 August – 3 September 2014. He held the Annual Summit meeting with Prime Minister Shinzo Abe on Monday, Sept. 1, 2014 and both the Prime Ministers issued a Joint Statement.
Here are some concrete projects at a glance to see how the bilateral relations between Asia’s second and third biigest economies are evolving:
1. The Japanese side announced the launch of a feasibility study by the Japan International Cooperation Agency (JICA) of a project for setting up of a 10 MW canal-top grid connected solar photovoltaic (PV) power plant in Gujarat as a model for next generation infrastructure.
2. The Indian side appreciated Japanese yen loan pledges of 50 billion yen (approximately 500 million US dollars) for the Public-Private Partnership Infrastructure Financing Project to the India Infrastructure Finance Company Limited (IIFCL), and of around 15.6 billion yen (approximately 156 million US dollars) for the Guwahati Sewerage Project in Assam.
3. Both sides emphasized that the Delhi-Mumbai Industrial Corridor (DMIC) Project should result in a new era of industrial infrastructure development with the creation of new generation Smart Community projects across six states in India.
4. Both sides acknowledged that in addition to new manufacturing hubs, the DMIC Project will envisage the development of infrastructure linkages like power plants, assured water supply, high capacity urban transportation and logistics facilities as well as important interventions like skill development programme for providing employment opportunities to youth.
5. Both sides welcomed the progress made in the development of industrial cities at Dholera in Gujarat and Shendra-Bidkin in Maharashtra, and integrated industrial townships at Greater Noida in Uttar Pradesh and Vikram Udyogpuri near Ujjain in Madhya Pradesh.
6. Both sides expressed their expectation for introducing Japanese technologies and expanding Japanese investment in Mass Rapid Transit Systems (MRTS) with the possibility of adopting the most suitable financing scheme. Both sides directed the respective relevant authorities to start a feasibility study by JICA on a potential yen loan project for the MRTS between Gurgaon and Bawal in Haryana.
7. Welcoming the progress achieved in the Smart Community projects, viz. the Logistics Data Bank project, the Mega Solar Power project at Neemrana and the Seawater Desalination project at Dahej, both sides instructed their officials to accelerate the implementation of these Smart Community projects. The Indian side assured to resolve the outstanding issues regarding the Seawater Desalination project at Dahej, including tariff, water quality parameters, water sales, etc. Both sides hoped that these projects will demonstrate the uniqueness of cutting-edge Japanese technology in India.
8. Welcoming the rapid progress made in the Chennai-Bengaluru Industrial Corridor (CBIC), including the finalisation of the perspective plan and the designation of three cities, viz. Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka, as potential industrial nodes, both sides instructed their officials to expeditiously finalise the Master Plan and the Development Plan of the three cities by the end of March 2015. Prime Minister Modi directed relevant authorities to ensure the timely development of the infrastructure stipulated in Tamil Nadu Investment Promotion Programme (TNIPP), such as road development and, power and water supply. The Japanese side welcomed it.
9. Taking into account the positive effects of the TNIPP on India’s business environment improvement and infrastructure development, both sides shared the view that a similar programme may be extended to the state of Karnataka.
10. Both sides welcomed the signing of a Framework of Cooperation between the Ministry of Road Transport and Highways, Government of India, and the Ministry of Land, Infrastructure, Transport and Tourism of Japan in the Roads and Road Transportation Sector.
11. The Indian side sought Japanese support in upgrading the ship-breaking yard at Alang Sosiya in Gujarat.
12. The Japanese side underlined Japan’s policy to promote people-centered investment with an emphasis on inclusiveness to have as many people as possible enjoy economic benefits of investment, enhanced social resilience to climate change, natural disasters, and capacity building. The Japanese side emphasized that promotion of such investment will lead to sustainable development. The Indian side welcomed this policy.
13. Both sides urged and supported the Asian Development Bank to enhance its capacity to address the region’s infrastructure and connectivity needs.
14. Both sides appreciated the report submitted by the Business Leaders’ Forum and welcomed the proposal of a visit to India of a high level economic mission organized by Nippon Keidanren.
15. Both sides welcomed Japan becoming the partner country of the 21st International Engineering & Technology Fair (IETF 2015) to be held in New Delhi and expressed their expectation that this would lead to expansion of trade and investment between the two countries.
Energy & Natural Resource
16. Both sides affirmed their intention to continue working together to further strengthen energy cooperation including energy efficiency, renewable energy and coal-fired generation technology field through the India-Japan Energy Dialogue.
17. Both sides welcomed the signing of a Memorandum of Understanding between the Ministry of New and Renewable Energy of India and the Japan Bank for International Cooperation (JBIC) in the field of new and renewable energy.
18. Both sides welcomed enhanced cooperation in construction of highly efficient and environment-friendly coal-fired power plants and progress on cooperation in Clean Coal Technologies (CCT) such as renovation and modernization of the plants and underscored the importance of cooperation in promoting these environment-friendly technologies in international fora.
19. Both sides welcomed the signing of the loan agreement between the State Bank of India and the Japan Bank for International Cooperation (JBIC) for the super-critical coal-fired power project in Meja in Uttar Pradesh and the launch of a feasibility study by JICA of a potential yen loan project for Barauni super critical thermal power plant in Bihar.
20. Both sides welcomed substantial agreement on the commercial contract between Indian Rare Earths Limited (IREL) and Toyota Tsusho Corporation (TTC) for the production of rare earths as a significant step in India-Japan Strategic and Global Partnership, and reiterated their strong will for the finalisation of the commercial contract as well as the commencement of commercial production at the earliest.
21. Both sides welcomed progress of cooperative efforts in energy efficiency improvement, including steel, cement, and mechanical tools in India. Both sides applauded the MOU signed in August 2014 for the model project by New Energy and Industrial Technology Development Organization (NEDO) for energy management system in telecommunication towers. Both sides applauded progress of discussion on business cooperation in renewable energy after the first India-Japan Public-Private Round Table for Renewable Energy held in India in January 2014.
22. Both sides welcomed the technology exhibition and business matching activities being held by NEDO in India in September 2014.
23. Both sides welcomed progress in renewal of iron ore trade arrangement in 2015. Both sides recognized the importance of further cooperation regarding technologies and investments in iron and steel industry in India.
Agriculture and Food
24. Recognizing the importance of agricultural development and establishing food-related infrastructure in India, both sides welcomed Japanese initiative to establish food value chain through Public-Private Partnership by introducing advanced irrigation systems and farming machines, and supporting the food industrial parks and cold chains development projects implemented by Indian government.
25. Both sides welcomed the issuance of the interim report of the Mumbai-Ahmedabad High-Speed Railway, and expressed hope that the joint feasibility study will be completed by July 2015.
26. Both sides acknowledged continuing cooperation on upgrading the speed of passenger trains on the existing route to Semi-High Speed Railway system.
27. The Indian side appreciated the important role of Japanese ODA for various Metro and other urban transport projects in India. Both sides decided to cooperate on the Ahmedabad Metro Rail Project. Both sides decided to explore ways to enhance participation by Indian and Japanese industries in appropriate infrastructure projects in India including metro and other urban infrastructure projects. Both sides affirmed the importance of continuing ODA assistance for future Metro projects in a mutually beneficial manner.
28. Both sides fully understand the importance of the enhancement of the bilateral relationship in the field of civil aviation, which would contribute to promotion of mutual exchange, and decided to strengthen cooperation including the acceleration of Preparatory Survey for New Dholera International Airport Development Project.
29. Acknowledging the effort of ongoing planning for establishment of advanced skill development centers, both sides affirmed the importance of skill development as an important tool for promotion of skills and capacity enhancement of the local youth in the industrial corridors being developed in India and appreciated support of The Overseas Human Resources and Industry Development Association (HIDA) in their efforts to promote skill development in the DMIC Project.
30. Both sides highly appreciated the achievements of the Champions of Societal Manufacturing (CSM) Project as a valuable Japanese contribution to the development of the manufacturing sector in India. The Indian side welcomed Japan’s intention to launch a new sub-project named Village Buddha, which aims at leadership development for self-help groups in rural areas, taking into account the important role played by women in such groups.
Information and Communications Technology (ICT)
31. Both sides welcomed further progress in ICT cooperation through activities of the Joint Working Group under India-Japan ICT Comprehensive Cooperation Framework between the Ministry of Communications and Information Technology of India and the Ministry of Internal Affairs and Communications of Japan.
32. Both sides expressed satisfaction with the launch of concrete joint projects, such as Green ICT and Cyber Security Cooperation based on agreement of the first Joint Working Group in February 2014, and reaffirmed to enhance cooperation in the field of ICT.
Disaster Risk Reduction
33. The Indian side welcomed Japan’s hosting the Third UN World Conference on Disaster Risk Reduction in Sendai in March 2015. Both sides affirmed active participation in and close cooperation for the conference in order to adopt the succeeding framework of the Hyogo Framework for Action 2005-2015.
Regional Connectivity and Cooperation
34. Both sides welcomed the study by JICA on regional connectivity between North-East India and the neighboring countries, and instructed respective related authorities to proceed to realizing Japan`s ODA in transport infrastructure projects in the region. Both sides also welcomed the signing of a Memorandum of Understanding between Export-Import Bank of India and JBIC for enhancing infrastructure development collaboration between India and neighboring countries and promoting cross border business activities.
35. Both sides decided to strengthen cooperation in the field of connectivity and socio-economic development in Northeast India. The Japanese side announced a survey by JICA to identify possible cooperation including road connectivity projects in Northeast states of India. The Indian side appreciated assistance by Japan to Northeast India, including a number of projects in the field of forest resource management as well as those currently under feasibility studies by JICA such as a potential yen loan project for water supply improvement in Imphal, Manipur.
Cooperation in Africa
36. Both sides expressed their commitment to strengthening their cooperation on Africa, including that for promoting business activities by Indian and Japanese investors in Africa. Both sides confirmed the importance of the next round of India-Japan Dialogue on Africa.
37. Both sides directed the Joint Working Group to accelerate progress in the discussions and preparations for a road map for the development of the Indian aircraft industry through US-2 amphibian aircraft cooperation including the transfer of the aircraft and its technology to India.
38. The Indian side expressed its intention to strengthen defence equipment and technology cooperation and conveyed its interests in this regard. Both sides decided to discuss further to identify future areas of cooperation, taking into consideration specific interests.
39. Both sides welcomed the Dialogue between the Director General of Indian Coast Guard and the Commandant of Japan Coast Guard and the joint exercise between Indian and Japanese Coast Guards conducted off the coast of Kochi in January 2014. Both sides expressed their desire to further promote bilateral and multilateral cooperation on maritime issues and decided to hold the next bilateral dialogue in Tokyo and joint exercise off the coast of Haneda between Indian and Japanese Coast Guards in October 2014.
Science & Technology
40. Both sides welcomed the developing researchers’ network through the alumni association organized by Indian researchers who have research experience in Japan under fellowship programme of the Japan Society for the Promotion of Science (JSPS).
41. The Indian side welcomed Japanese side’s intention to invite young Indian researchers and students to Japan through JSPS Fellowship Program and Japan-Asia Youth Exchange Program in Science.
42. Both sides welcomed the signing of the Letter of Intent between the Ministry of Earth Sciences of India and the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) to launch new cooperation in the field of ocean and earth science & technology, which includes ocean observation, climate variability, and geophysical studies in the Indian Ocean and deep sea technologies.
43. Recognizing the successful operation of the Indian Beam Line at High-Energy Accelerator Research Organization (KEK) at Tsukuba as a flagship cooperative activity, both sides announced their decision to take forward this collaboration in structural materials science area to the second phase for the study of advanced materials.
44. Both sides decided to pursue further cooperation in the field of space through approaches such as Asia-Pacific Regional Space Agency Forum (APRSAF) and expressed their expectation that Japan Aerospace Exploration Agency (JAXA) and Indian Space Research Organization (ISRO) would work together to further strengthen its cooperation.
45. Both sides welcomed the signing of a Memorandum of Cooperation between the Ministry of Health and Family Welfare of India and the Ministry of Health, Labour and Welfare of Japan in the field of healthcare.
46. Both sides also expressed their expectation to enhance development of medical devices which meet Indian needs through new initiative of joint research and development on medical devices of All India Institute of Medical Sciences (AIIMS) and Osaka University.
47. Both sides also noted with satisfaction the recent progress of the promotion of business under cooperative framework between Japanese company and Indian hospital in terms of establishment of advanced cancer diagnosis and treatment center in India.
Humanities and Social Science Cooperation
48. Both sides welcomed that the signing of two memoranda between the Japan Society for the Promotion of Science (JSPS) and the Indian Council of Historical Research (ICHR), and between JSPS and the Indian Council of Social Science Research (ICSSR).
49. Both sides expressed satisfaction with the ongoing plan of exchange of approximately 1300 youth between the two countries under JENESYS 2.0 program.
50. The Indian side welcomed the Japanese initiative to support Japanese universities’ educational collaboration with Indian Universities, and engagements including dispatching coordinators to India.
51. Both sides emphasized the importance of cooperation in tourism and welcomed current efforts of promotional activities through Tourism Expos to encourage their citizens to travel to each other`s country.
52. Both sides decided to continue efforts to revise the Memorandum on Simplifying Visa Procedures between the Government of the Republic of India and the Government of Japan which would further enhance people-to-people exchanges in business and tourism area. The Japanese side welcomed the decision by India to grant residence permits to Japanese nationals holding employment visas and their dependants, co-terminus with their visas.
53. Indian side welcomed the expansion of Japan Overseas Cooperation Volunteer (JOCV) including the decision by the Government of Japan to dispatch a JOCV in the field of nursing to the state of Mizoram as the first JOCV in Northeast India.
54. The Japanese side welcomed a Festival of India in Japan which has been scheduled in two phases from October 3 – 31, 2014 and March – May 2015. The events in the festival would include 17 dance programmes covering 13 cities of Japan, the Buddha Mahotsava of Central Institute of Himalayan Studies, the Buddha Charica Exhibition by Nava Nalanda Mahavihara, Buddhist Art Exhibition by Indian Museum, Kolkata, an International Buddhist Conference by the International Buddhist Confederation, a Food Festival by Ministry of Tourism, a Film Festival by Ministry of Information & Broadcasting, a Literary Festival by Sahitya Akademy, folk dance performances by the Zonal Cultural Centres, and exhibitions covering the areas of yoga, information technology and space.
55. The Japanese side briefed the Indian side about the international symposium on women, the World Assembly for Women in Tokyo (WAW! Tokyo 2014) to be held in September 2014.
56. Both sides welcomed the Programme on Empowerment for Women Leaders in India to be held in November 2014 in Tokyo by HIDA.