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13th annual India - Japan summit.

  • Category
    World Affairs
  • Published
    12th Nov, 2018

During the 13th India-Japan summit, on his visit to Japan, PM Narendra Modi engaged with Shinzo Abe on a range of issues including defence and regional security.

Issue

Context:

During the 13th India-Japan summit, on his visit to Japan, PM Narendra Modi engaged with Shinzo Abe on a range of issues including defence and regional security.

About:

The prominent outcomes of the summit are:

  • Currency Swap Agreement: A $ 75 billion Currency Swap Agreement which will allow the central banks of both the countries to exchange local currencies. In contrast, Japan has such an agreement in place with China as well, but only for $ 30 billion.
  • 2+2 dialogue: Initiation of a new Foreign and Defence Ministerial Dialogue, termed ‘2+2’, was announced to further strengthen the bilateral dialogue mechanism between the two countries.
  • Acquisition and Cross-servicing Agreement: Beginning of negotiations on an Acquisition and Cross-servicing Agreement, (on the lines of LEMOA between India and USA). This will be a logistics-sharing pact, which will allow both countries to share defence capabilities and supplies including fuel and ammunition.
  • Investment commitment: of 320 billion yen by Japanese companies in India.

 Background

India-Japan Relations: India has the institutional mechanism of an annual bilateral summit with only two countries – Japan and Russia. Besides, PM Modi chose Japan as the first country to visit after being elected as the prime minister. Inter alia, this is an indicator of the upswing in the India-Japan relationship in recent times.

After the Pokhran nuclear tests in 1998, Japan imposed strict sanctions against India. However, India came up with its nuclear doctrine emphasizing a ‘no first use’ policy and maintaining only a minimum nuclear deterrent. This along with changing geopolitical dynamics, especially the rise of a belligerent China led Japan to lift the sanctions in 2001. Since then, regular prime ministerial exchanges have been held and resulted into various landmark agreements and initiatives, such as:

  • A defence cooperation agreement was signed in 2006
  • India became the first non-NPT country with which Japan signed a civilian nuclear agreement and also supported India’s inclusion in NSG.
  • In 2011, Comprehensive Economic Partnership Agreement (CEPA) was signed to facilitate growth in bilateral trade.
  • In 2016, ‘Visa on arrival’ was extended by India to Japanese citizens.
  • Japan continues to provide soft loans and investments in critical infrastructure projects of India like Delhi-Mumbai Industrial Corridor, Mumbai-Ahmedabad bullet train service, metro projects , etc.
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