The recent visit of Prime Minister of Japan, Shinzo Abe, to India promised to write a new chapter in India-Japan relations. Though Abe had to face domestic political turmoil soon after his return to Japan, leading to his resignation from office, the initiative undertaken in the foreign policy front is on a sound footing and India-Japan relations should be seen in such a perspective. Indeed, the blossoming relationship in all fronts, economic, political, and cultural, is being watched in awe in capitals of other countries in Asia and the world.

Yasuo Fukuda succeeded Shinzo Abe. Though it is too early to envision how India-Japan bilateral relations will travel under the Prime Minister of Fukuda, the basic tenet of the relationship will continue to remain strong. Abe may have failed in handling domestic affairs of Japan, which led him to demit office, but his foreign policy agenda remained unblemished. India-Japan bilateral relations have already been examined by scholars and analysts under previous prime ministers and need not be repeated here. What is necessary to be examined is the dynamics of Japan’s domestic politics impinging on making of Japan’s foreign and foreign economic policies.

What are the reasons why India and Japan should forge closer ties? Both are vibrant democracies and share fundamental values. Their economic relationships are showing sign of bearing mutual benefits. Both share security concerns. Stability in Central Asia and the Middle East, access to energy, secure trade and sea lanes, and stable relations among all East Asian nations are issues of common concerns. China is an issue that propels nations to discuss and ‘contain’ the perceived adventurism. Any India-Japan dialogue in opposition to China will be pregnant with counterproductive results. Greater cooperation among nations bilaterally and at multilateral foras is the route for complimentary international relationship in the modern era.

Abe’s visit to India contributed to a great measure to the development of a road map that will put meat and bones of the strategic partnership announced during Indian Prime Minister Manmohan Singh’s visit to Tokyo in December 2006. Both countries are now seeking real progress in sculpting closer and mutually satisfying economic relationship. Indian statistics put Japan’s trade with India at about US$6.5 billion in 2006, just 4 percent of Japan’s trade with China. Japanese investment in India has doubled from US$254.7 million in 2005 to US$515.5 million in 2006, and both countries expect dramatic increases.

The two countries hope to conclude a comprehensive economic treaty by the year-end and that is expected to lead to US$5 billion investments in five years and push trade to US$20 billion by the end of this decade. Though both countries maintain high ambitions, a great deal of time is consumed during planning stage. What is needed is top-level political push and Abe’s visit gave as such.

Japanese attention is concentrated, and with valid reasons, on infrastructure development. During his visit, Abe was pressed to back a US$90 billion, 2,800 km freight corridor that will link major cities in India. And both sides see this project as a “catalyst” for a genuine strategic partnership. Other deals are expected in a range of business sectors and a new India-Japan business leader forum, inaugurated during Abe’s visit, should provide direction and momentum to the business relationship. Japanese businesses are eager to tap a new and expanding market as well as find a second investment site as they embrace a “China plus one” investment strategy.

The political dimension of the partnership is more challenging. Nuclear issue is the most sensitive in Japan since the end of World War II. The biggest obstacle has been Japanese opposition to India’s nuclear weapons program. The US decision to proceed with a civilian nuclear agreement with India has had a sobering effect. At the moment, Japan is “carefully considering” the agreement’s effects on the non-proliferation regime. The nuclear question takes on greater significance as the two countries work together to find clean and sustainable sources of energy. In India, it is perceived that to sustain a 9 percent growth rate, a revitalised nuclear energy sector is a must. The two leaders’ joint statement noted that they “shared the view that nuclear energy can play an important role as a safe, sustainable and non-polluting source of energy”.

Alignment of Democracies

Another pillar of Abe’s diplomacy was his call for an alignment of democracies. A cornerstone of this effort was the four-way dialogue among Japan, the United Sates India and Australia. Indeed, the backbone of this idea has been the sharing the basic values such as freedom, democracy and human rights. However, all these four countries must bear in mind and trade extremely carefully that this quadrilateral framework must not be perceived as ‘containing’ China.

India, Japan and the United States have already held naval exercises to promote cooperation on sea-lane security. The recent Malabar exercise, if not handled carefully, may give room for escalating tension. A truly responsible and forward-looking foreign policy should recognize the shared interests of India and Japan without antagonizing another key state in the region.

(Dr Rajaram Panda, a specialist on Japan, works as the Chief Programme Officer at The Japan Foundation, New Delhi. Views expressed are personal.)