India Welcomes Japan Easing Defence Export Curbs

Syllabus: GS2/IR

Context

• As Japan relaxed restrictions on its arms exports, India welcomed the move and said that both sides have committed to “increase practical cooperation in the interest of their national security”.

About

• Japan relaxed decades-old restrictions on its arms exports, and this is seen as a major departure from the pacifism that has characterised its post-World War II defence policy. 
  • Earlier restrictions limit arms exports to just five categories – rescue, transport, warning, surveillance and minesweeping.
  • This means Japan can now sell lethal weapons to the 17 countries with which it has defence agreements, including the US and the UK.
• The ongoing review aims to allow transfers under tighter but more flexible conditions, particularly to trusted partners.
• India and Japan cooperate bilaterally and multilaterally at the strategic defence and security landscape, including at the Quad grouping.
• Significance:
  • This assumes significance at a time when both India and Japan are facing the challenge of a belligerent China in the Indo-Pacific neighbourhood.
  • The shift is expected to open avenues for co-development of defence platforms, supply chain integration and technology sharing, areas of growing interest for India.

Brief on India-Japan Relations

• Establishment of Relations: After WWII, India opted for a separate Peace Treaty with Japan, signed in 1952, marking the start of formal diplomatic relations.
• Growth in Bilateral Ties: India-Japan bilateral relations were elevated to Global Partnership in 2000, Strategic and Global Partnership in 2006, and Special Strategic and Global Partnership in 2014.
• Strategic Synergy: India’s Act East Policy and Indo-Pacific Oceans Initiative (IPOI) align closely with Japan’s Free and Open Indo-Pacific (FOIP) policy. 
• Collaboration on Global Initiatives: Japan and India cooperate in initiatives like the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), and Leadership Group for Industry Transition (LeadIT).
  • Both countries work together in multilateral frameworks like the Japan-Australia-India-U.S. Quad and the India-Japan-Australia Supply Chain Resilience Initiative (SCRI).
• Defence and Security: Joint Declaration on Security Cooperation (2008), Defence Cooperation and Exchanges MoU (2014), Information Protection Agreement (2015), Reciprocal Provision of Supplies and Services Agreement (2020), and co-development of the UNICORN naval mast (2024).
  • Exercises: Malabar (with the US and Australia), Milan (multilateral naval), JIMEX (bilateral maritime), Dharma Guardian (Army), and Coast Guard cooperation are held regularly. 
  • 2024-25 saw the participation of service chiefs in India and Japan, strengthening interoperability.
• Bilateral Trade: Bilateral trade reached $22.8 billion in 2023-24.
  • Imports from Japan continue to outweigh exports. India’s main exports are chemicals, vehicles, aluminium, and seafood; imports include machinery, steel, copper, and reactors.
• Investment: Japan is India’s fifth-largest source of FDI, with $43.2 billion cumulative investment up to 2024.
  • Japan has consistently ranked India as the most promising long-term investment destination.
• Space Collaboration: ISRO and JAXA collaborate in X-ray astronomy, satellite navigation, lunar exploration, and the Asia Pacific Regional Space Agency Forum (APRSAF).
  • In 2016, they signed a Memorandum of Cooperation (MoC) for peaceful space exploration and use.
• Emerging Focus Areas: Digital cooperation (semiconductors, startups), clean energy, supply chain resilience, industrial competitiveness, and skill development.
• Development and Infrastructure Cooperation: Japan has been India’s largest ODA donor since 1958, supporting critical infrastructure and human development projects.
  • ODA disbursement stood at about JPY 580 billion ($4.5 billion) in 2023-24.
  • The flagship Mumbai-Ahmedabad High Speed Rail is the flagship project symbolising advanced technology transfer and skill development. 
• Tourism: 2023-24 was celebrated as the Year of Tourism Exchange, with the theme “Connecting Himalayas with Mount Fuji”.
• Diaspora: About 54,000 Indians live in Japan, mainly IT professionals and engineers. 

Areas of Concern

• Trade Imbalance: There is a significant trade imbalance, with Japan exporting more to India than India exports to Japan, creating a need for better reciprocal trade.
• Geopolitical Tensions: Regional security issues, such as China’s influence in the Indo-Pacific, pose challenges for India-Japan relations, requiring careful diplomatic balancing.
• Cultural and Language Barriers: Despite strong ties, differences in language, culture, and business practices pose challenges to deeper integration.
• Limited People-to-People Exchanges: The scale of people-to-people interactions is still limited, impacting deeper mutual understanding.
• Infrastructure Constraints: Despite improvements, some areas in India still lack the infrastructure necessary to support large-scale Japanese investments effectively.
• Different Economic Priorities: India’s focus on rapid economic growth may sometimes contrast with Japan’s emphasis on sustainable development and technology.

Way Ahead

• Enhance Trade and Investment: Focus on reducing the trade imbalance by increasing Indian exports to Japan and encouraging Japanese investment in India’s manufacturing and technology sectors.
• Boost People-to-People Connections: Increase cultural exchanges, tourism, and educational collaborations to deepen mutual understanding.
• Technology and Innovation Partnership: Leverage Japan’s expertise in technology and India’s growing digital sector to collaborate in AI, robotics, renewable energy, and space exploration.
• Address Environmental Concerns: Increase cooperation on environmental sustainability, climate change, and disaster resilience to support both countries’ green energy goals.

Source: IE