India and Japan share a 70-year long history of bilateral ties that has only strengthened their commitment towards working together for a peaceful, stable and prosperous world. Maintaining the goal to realize these shared objectives, the two nations resolved to further advance the India-Japan Special Strategic and Global Partnership. Robust bilateral investment and trade flows through diversified, resilient, transparent, open and secure global supply chains provide for economic security and prosperity of both the nations. Today, Japan is a key partner in India’s economic transformation.
During his first visit to India in March 2022, Prime Minister of Japan, H.E. Mr. Kishida Fumio and Shri Narendra Modi, Hon’ble PM of India met at the 14th India Japan Annual Summit. The two leaders also attended the India Japan Economic Forum organised by CII in association with Japan External Trade Organization (JETRO) and Keidanren, under the aegis of the India-Japan Business Leaders Forum (IJBLF) with the support of Department for Promotion of Industry and Internal Trade (DPIIT), India and Ministry of Economy, Trade, and Industry (METI), Japan.
Highlights of the Joint Statement signed by the Prime Ministers of India and Japan:
- Amidst reaffirming their Special Strategic and Global Partnership, India and Japan reviewed and strengthened the bilateral cooperation in diverse areas, as well as exchanged views on regional and global issues to bolster ties for peace, stability and prosperity in the Indo-Pacific region and beyond. This will indeed open a new chapter in the partnership and deepen their bilateral ties.
- The two Prime Ministers reiterated that India and Japan would continue to contribute to global efforts to combat COVID-19 and welcomed the progress made under the Quad Vaccine Partnership to enhance equitable access to safe and effective vaccines in the Indo-Pacific, helping invigorate the economy and beyond.
- Building on the outcome of COP26, the heads of state recognized the importance and imminence of tackling climate change and shared the importance of various pathways for energy transitions and innovation to achieve global net-zero emission. Ensuring cooperation towards sustainable economic growth and energy security and addressing climate change, the launch of the India-Japan Clean Energy Partnership (CEP) was a welcome move. This partnership will lead to clean growth by boosting job creation, innovation and investments.
- Given Japan’s emphasis on technology development, as part of its expanding defence budget, collaboration on cybersecurity, unmanned ground vehicle and robotics is underway. Further, stressing the importance of promoting trade and investment between the two countries, they encouraged further review of the implementation of the Comprehensive Economic Partnership Agreement (CEPA) through existing mechanisms.
- The two Prime Ministers expressed their shared intention to realize US$42 billion (JPY 5 trillion) of public and private investment and financing from Japan to India in the next five years, to finance projects of mutual interest. They also agreed to work together towards reliable, resilient and efficient supply chains in the region.
- There was also a reaffirmation that they would work together for the commencement of operations of the Mumbai Ahmedabad High Speed Rail (MAHSR) at the earliest possible timing. Japan’s cooperation on the MAHSR and various Metro projects in India was highly appreciated.
- The India-Japan digital partnership has opened up scope for increased collaboration on digital projects and opportunities for Indian IT professionals, as well as partnerships in the areas of AI, IoT and other emerging technologies.
- The India-Japan fund of funds has already invested close to US$ 10 billion in India, and this is most likely to increase further.
Major Announcements / Outcomes
- Prime Minister Kishida announced a US$ 42 billion (JPY 5 trillion) investment in India over the next five years to finance public and private projects of mutual interest.
- Six agreements were signed covering the domains of cybersecurity, infrastructure development, decentralized domestic wastewater management and sustainable urban development.
- The continuing Japanese ODA support through their yen loan programmes to support development in India is significant. Japan is the largest bilateral donor to India, with donations ranging between US$ 3.5 billion to US$ 4 billion, annually.
- There was also an agreement for seven loans from Japan International Cooperation Agency (JICA) worth US$ 2.7 billion for projects in connectivity, water supply and sewerage, healthcare, and biodiversity conservation across India.
- There was also an amendment to India Japan CEPA which allows the fish surimi product of India with the non-originating additive to be considered as an originating good of India.
CII has long standing relations with businesses and institutions in Japan and is the secretariat for the India-Japan Business Leaders Forum. Through a range of business interactions, CII works on ensuring more collaboration and cooperation for supporting trade and investment among others.