20/05/2024
The India-Japan economic relationship has significantly expanded, focusing on trade, investment, infrastructure, and the digital economy. As leading Asian economies, India and Japan share a strong alignment in development cooperation, particularly through triangular collaborations with Bangladesh. Their partnership supports regional connectivity and value chain integration, notably through the "Act East Policy" and the "India-Japan Act East Forum." These efforts extend to multilateral initiatives such as the Indo-Pacific Economic Framework (IPEF) and the Quadrilateral Security Dialogue (QUAD), promoting inclusive and sustainable development. Both nations aim to redefine growth beyond GDP, emphasising well-being and the upliftment of the Global South, in line with the vision outlined in the New Delhi G-20 leadership declaration for socio-economic progress.
This growing synergy was the focal point of the two-day International Conference on "Bay of Bengal and India-Japan Economic Relations," organised by the Research and Information System for Developing Countries (RIS) in collaboration with the Maulana Abul Kalam Azad Institute of Asian Studies (MAKAIAS), National Digital Library of India (NDLI), The Bengal Chamber of Commerce and Industry (BCC&I), and the Kolkata Society for Asian Studies (KSAS). The conference, which concluded on March 12, 2024, explored these themes in depth, highlighting the robust cooperation between India and Japan and its impact on regional and global development.
Diplomats, scholars, practitioners, and industry experts from India, Japan, and Bangladesh, shared diverse perspectives on India-Japan relations and the emerging trilateral partnership with Bangladesh. Ambassador Sujan Chinoy, Director General of MP-IDSA; Professor Sachin Chaturvedi, Director General of RIS; Mr. Koichi Nakagawa, Consul-General of Japan in Kolkata; Mr. Gourangalal Das, Joint Secretary, East Asia Division, Ministry of External Affairs; Ambassador Sibi George; Ambassador Krishna Srinivasan; Mr. Nikhilesh Giri, Consul General of India in Osaka; and Dr. Ashok Chawla, Advisor, MEA. were among the key figures who deliberated in this conference.
Here are the key takeaways from the conference:
Historical bond and potential of India-Japan relations
The conference underscored the robust historical bond between India and Japan and emphasised the immense potential for further cooperation, particularly in critical and emerging technologies.
India and Japan's partnership is crucial in addressing common challenges, such as territorial disputes with China, and both nations are working towards enhancing their economic, security, and cultural ties.
The emerging trilateral partnership between India, Japan, and Bangladesh
The emerging trilateral partnership between India, Japan, and Bangladesh was highlighted as a key driver for the development of India’s Northeast. This collaboration aims to deepen economic integration and create industrial value chains linking India's Eastern and Northeastern regions with Bangladesh.
The India-Japan Act East Forum was identified as a key platform for facilitating comprehensive engagement between India and Japan, particularly in the context of trilateral cooperation with Bangladesh.
Investments in trade and infrastructure development in India
Japan's ambitious plans for industrial value chains and significant investment in infrastructure development in India, particularly in the Northeastern region, were key discussion points. The establishment of industrial townships and collaboration on defence, technology, and resilient supply chains were identified as crucial areas for economic resurgence.
The implementation of the Comprehensive Economic Partnership Agreement (CEPA) and the potential for further collaboration in trade and investment were highlighted. Japan's position as India’s fifth-largest foreign investor, with a focus on automobile, infrastructure, and telecom sectors, and the opportunities in semiconductor technology and digital transformation were discussed.
The conference stressed the importance of regional development in the Bay of Bengal region, with a focus on fostering new regionalism through enhanced integration and financial investments. Establishing ports through Indo-Japanese collaboration and agreements on port usage between India and Bangladesh were noted as key initiatives for economic development.
Technology and innovation
The sessions on industrial policy and science, technology, and innovation emphasised the importance of technological cooperation, particularly in semiconductor manufacturing and technological innovations like drones. Four key strategies for semiconductor cooperation were identified, including policy dialogue, inter-governmental cooperation, enterprise collaboration, and the establishment of a semiconductor coordinator.
Cultural exchange
Historical and cultural ties between India and Japan, dating back to the 6th century, were highlighted. The importance of grassroots engagement, cultural exchange programs, and tourism in fostering closer ties between the two nations was emphasised. Efforts to increase the number of Japanese residents in India and promote the learning of the Japanese language were also discussed.
Multilateral cooperation
The importance of multilateral cooperation spanning government-to-government, government-to-business, and business-public intellectual realms was emphasized. Addressing shared concerns like climate change and human security through enhanced cooperation between governments, businesses, and public intellectuals was seen as crucial for future collaboration.
Mr. Ambarish Dasgupta, Senior Partner at Intueri Consulting LLP (intueriglobal.com), also participated in the special panel session on "Japan-India Partnership in the Changing Global Order". The session highlighted the partnership's significance in addressing common challenges like territorial disputes with China and discussed the progress made through multiple meetings between India and Japan in 2022-2023, focusing on peace, stability, joint military exercises, maritime security, and cybercrime. Key priorities for the partnership include infrastructural projects such as the Mumbai-Ahmedabad High-Speed Rail Corridor, advancements in Information and Communication Technology, clean energy initiatives, cultural exchange, and tourism. The session also emphasised the importance of overcoming past conflicts, including diverging perceptions of strategic threats, through initiatives like the Comprehensive Economic Partnership Agreement (CEPA) and joint military exercises to enhance economic, security, and cultural ties amidst evolving global dynamics.