Indo-Japan Relations

[ajtr]

A yen for Japan​

The prime minister Manmohan Singh's visit to Japan later this month will mark an important step forward in our engagement with East Asia. This is his third trip to Japan in four years and it underlines the growing salience of relations with Japan in Indian foreign policy. The centrepiece of this visit will be the signing of the Comprehensive Economic Partnership Agreement (CEPA). The agreement is aimed at significantly enhancing levels of investment and trade. These have substantially increased in the last four years, but the numbers remain low and earlier projections have proved rather optimistic.
The conclusion of the Economic Partnership Agreement between India and South Korea earlier this year has given fillip to the negotiations between Tokyo and New Delhi. Japanese manufacturers are keen to level the playing field with their South Korean competitors. Last year, India and Japan concluded agreements for an ambitious $77 billion Delhi-Mumbai industrial corridor project. The corridor spanning six states is projected as a global manufacturing and trading hub — one that will foster closer economic and commercial relations between the two countries. Other areas of emerging cooperation include renewable energy and ecologically sustainable urban spaces.
The state of the two economies — one a massive economy in prolonged stagnation with an ageing workforce, and the other a swiftly growing economy with a projected youth "bulge" — is propelling much of this forward. But the wider political and strategic context needs to be noted as well. Indeed, the relationship with Japan highlights the tightening nexus between India's economic and foreign policies.
For much of the last six decades, the political and economic relationship between India and Japan was rather crimped. Japan's alliance with the United States precluded the possibility of meaningful ties with a non-aligned India. This was clear almost from the outset. Jawaharlal Nehru refused to sign the San Francisco Treaty of 1951 which officially ended the state of hostilities between Japan and the Allied powers. The Indian government held that certain provisions of the treaty, such as continued presence of American troops and US trusteeship over Ryukyu and Bonin Islands, limited Japanese sovereignty and independence. Although New Delhi signed a separate peace treaty with Tokyo the next year, Washington believed that India sought to detach Japan from its ties with the US. In consequence, relations between India and Japan never really took off during the Cold War. During these years, Japan focused on economic development led by exports while India opted for import substitution policies. Until the joint venture between Maruti Udyog Limited and Suzuki Motor Corporation in 1982, Japanese industry had practically no presence in India.
The implosion of the Soviet Union and the opening up of India's economy cleared the ground for better relations. But the Indian nuclear tests of 1998 incited a strong response from Japan. Tokyo suspended economic aid and assistance for three years, and put on hold political contacts as well. The rapid strides taken in bilateral relations during the last decade stemmed from two related factors. First, the transformation of Indo-US relations led Japan to reconsider the state of its ties with India. Further, the rise of China prompted Tokyo to regard India in a more benign light.
The growing economic and political muscle of China presents a tricky challenge for Japan. China has been the favoured destination of Japanese investment and exports. But deepening economic relations have not always worked in Japan's strategic interests. Consider two recent examples. In early September, the Japanese arrested the personnel of a Chinese fisher trawler for allegedly ramming into their coast guard vessel near the disputed Daioyu/Senkaku Islands in East China Sea. Beijing demanded the immediate release of detainees. When the Japanese dug their heels in, the Chinese responded by quietly placing an embargo on exports of rare earth minerals to Japan — minerals that are essential for production of key electronic components. Doing so openly would be a violation of World Trade Organisation rules, but Tokyo got the message and duly released the detainees. Around the same time, the Japanese were also worried by the surge in China's purchases of Japanese bonds. These strengthened the Yen and could undercut Japanese exports. As the Japanese finance minister noted, China's "intentions" needed to be probed.
In dealing with China, Japan is seeking to diversify and strengthen its portfolio of economic and political relationships. From this standpoint, India seems an increasingly attractive partner. India, too, sees better ties with Japan as important both in its own terms and in increasing India's room for manoeuvre in Asia. The two countries announced a strategic and global partnership in December 2006. This was upgraded last year to include closer security cooperation and military exchanges. Negotiations for civilian nuclear cooperation are also underway. New Delhi's interest here is obvious, but Japan's position is still evolving. Tokyo did not object to the waiver to India by the Nuclear Supplier's Group and the Japanese nuclear industry is keen on entering the Indian market. Yet Japan's historical legacy as a victim of nuclear weapons makes nuclear commerce with non-NPT signatories like India politically difficult. An agreement seems unlikely to be ready in time for Dr Singh's visit.
Apart from Japan, Dr Singh will also be visiting Malaysia and Vietnam. The latter is hosting the ASEAN-India summit. The focus in all places will be on economic issues particularly trade and connectivity. Yet the mood music will be provided by China's seemingly increased assertiveness — be it in the Pacific or the South China Sea. As the smaller Asian powers grow edgy about China's capabilities and intentions, New Delhi will have to craft a nuanced approach. The incipient changes afford more scope for India to participate in and shape the security architecture in Asia. These will have an influence on our bilateral relations with China. At the very least, China will begin to see India as more than a subcontinental player. But we must not over-estimate these pay-offs. For China will remain a lot more important to Japan and other East Asian powers in the years ahead.
Srinath Raghavan is a Senior Fellow at the Centre for Policy Research, New Delhi

 

[roma]

south koreans are better ship builders, Japanese don't have any real defense industry so this cooperation will not amount to much.

LF man, correct me but i think mitsubishi corporation has been building some real class fighter bombers since at least the 1980's ? quite frankly i think it's one heck of a co-operative agreement that both countries ( especially India ) need

 

[Patriot]

The Hindu : News : India-Japan nuclear talks inconclusive

India and Japan ended the second round of talks on a civil nuclear agreement on Saturday with both sides stating their positions and deciding to hold another round in the future. The dates for the next round of talks would be fixed through diplomatic channels, said diplomatic sources.

While Japan wanted India's commitment not to conduct nuclear tests must be reflected in the proposed civil nuclear agreement, India maintained that its unilateral moratorium was stated unequivocally during the process that ended its isolation from global civil nuclear commerce, the sources said.

They said Japan was keen that India demonstrated some sort of commitment to signing the Comprehensive Test Ban Treaty (CTBT) which it has described as a building block to ratifying the Nuclear Non-Proliferation Treaty (NPT).

 

[anoop_mig25]

The Hindu : News : India-Japan nuclear talks inconclusive

India and Japan ended the second round of talks on a civil nuclear agreement on Saturday with both sides stating their positions and deciding to hold another round in the future. The dates for the next round of talks would be fixed through diplomatic channels, said diplomatic sources.

While Japan wanted India's commitment not to conduct nuclear tests must be reflected in the proposed civil nuclear agreement, India maintained that its unilateral moratorium was stated unequivocally during the process that ended its isolation from global civil nuclear commerce, the sources said.

They said Japan was keen that India demonstrated some sort of commitment to signing the Comprehensive Test Ban Treaty (CTBT) which it has described as a building block to ratifying the Nuclear Non-Proliferation Treaty (NPT).

what a joke this japanse men are. really having can`t they see writing on wall. this people doesn`t realize that in their backyard chines had emerged strongest and they do not have means to protect them self. instead of lecturing india they must start preparation of nuclear bomb. but they are still stuck in in cold-war days

 

[ajtr]

what a joke this japanse men are. really having can`t they see writing on wall. this people doesn`t realize that in their backyard chines had emerged strongest and they do not have means to protect them self. instead of lecturing india they must start preparation of nuclear bomb. but they are still stuck in in cold-war days

They can afford to lecture india until USA and NATO is protecting their back under its nuclear umbrella.

 

[LETHALFORCE]

LF man, correct me but i think mitsubishi corporation has been building some real class fighter bombers since at least the 1980's ? quite frankly i think it's one heck of a co-operative agreement that both countries ( especially India ) need

They have been building but being a lackeye of USA they will never export it. Let's not mistake Japan for being a completely independent country they are more or less slaves of USA and they can take little to no independent decisions with USA ok. People forget Japan lost ww2 and their economic development hides this fact but everything Japan has today is completely from USA and the Marshall plan that rebuild their nation after being the first and only country to have atomic weapons used against them.

 

[ajtr]

Can Prime Minister Singh push through a Nuclear Deal with Japan?​

Rajaram Panda

October 21, 2010
Prime Minister Manmohan Singh undertakes a three-nation week-long visit to Japan, Vietnam, and Malaysia from 24 October. At a time when the security environment in the East Asian region has become more volatile than ever before, Prime Minister Singh's visit to Japan assumes greater importance. There is an element of optimism in both countries and both expect benefits to accrue from Singh's visit.

Relations between India and Japan are warming up. So is the case between India and Vietnam. Apart from convergence of interests in the defence and security realms, the economic component is also being strengthened. Greater integration and engagement in diverse fields would also give a fillip to India's 'Look East' policy.

Three issues are going to dominate Singh's talks with his Japanese counterpart: civil nuclear cooperation, enhancing trade ties with possible conclusion of the Comprehensive Economic Cooperation Agreement (CEPA) that has been pending for quite some time, and reforms of the United Nations.

Of these three issues, what is of utmost importance for India is the crucial civil nuclear agreement. Unfortunately, it will not be ready when Singh arrives in Tokyo. As is well known, the nuclear issue is an extremely sensitive one in Japan. Previous LDP governments could never dare raise the issue of a civil nuclear agreement with India. The DPJ government saw some merit in such an initiative and started negotiations, notwithstanding the fact that it will be a perilous journey.

Japan's policy has been to not enter into any such deal with countries that are not signatories to the nuclear non-proliferation treaty (NPT) and Comprehensive Test Ban Treaty (CTBT). India's policy has been consistent that both the NPT and CTBT are discriminatory treaties, which tend to divide the world into nuclear-haves and have-nots. India's record on non-proliferation is impeccable and it adheres to a voluntary moratorium on nuclear testing. Still, Japan does not seem to be fully convinced.

The new Indian nuclear liability bill is another sore point for Japan, where the perception is that it would deter Japanese nuclear suppliers after the deal goes through. American companies are already raising concerns about a provision in the law that makes suppliers liable in case of a nuclear accident. A second clause in the law that leaves companies liable to be prosecuted under other Indian laws is also giving them jitters.

The law caps nuclear reactor operator liability in the country at roughly $320 million and permits lawsuits against suppliers of nuclear materials, services and technology. The outside world feels that such a law goes against international norms. But as Foreign Minister S.M. Krishna explained, "India wants to provide a level playing field to all those who want to do nuclear business with India." India has argued that its nuclear liability law does not conflict with the atomic liability rules established by the Convention of Supplementary Compensation for Nuclear Damage. Even some US atomic firms involved in advancing the 2008 Indo-US nuclear trade deal expect India to join the CSC. India retains an open mind on the matter.

Japan's demand is however more stringent. Japan demands that the agreement should have a provision for cessation of nuclear cooperation if India tests another nuclear device. India will have to find another word that will address and assuage Japan's concern, if the latter brings some element of flexibility to the table.

There seems to be a resolve in the leadership of both countries to reduce disagreements and sort out differences over nuclear proliferation and testing limitations. The internal political dynamics of Japan would suggest that the conservative LDP would have no major objection if the DPJ were to go ahead and fructify the negotiations. It may be remembered that many top DPJ leaders at the helm of decision making were formerly from the LDP and therefore there exists some commonality of views. Though the Social Democrats and the Communists are opposed to such a deal with India, and though the DPJ lost elections to the Upper House a few months ago, the DPJ still holds a majority in the more powerful Lower House and can afford to venture upon a bold initiative. Yet, in view of the sensitive nature of the issue and immense domestic pressure, Japan wants explicit provisions to call off the deal should India conduct another nuclear test. Also, officials in the Ministry of Foreign Affairs in Kasumegaseki are unwilling to take a positive stand and loosen their bureaucratic stranglehold.

Representatives from both countries met in New Delhi on 8-9 October to thrash out some key differences ahead of Singh's visit to Tokyo. Though not much headway could be made, the intent became demonstrably clear. A civil cooperation deal would permit Japan to sell its advanced atomic energy equipment and associated technology to India.

The positive aspect of the DPJ's stance is that it has relaxed its earlier rigid position and is no longer demanding that India join the NPT as a pre-condition for the nuclear pact. What it wants is a "strict guarantee" that India would not deviate from its commitment to non-proliferation. Japan wants a condition to be put in the deal that would debar India from another atomic test in the future.

A nuclear pact between the two countries would facilitate India's nuclear commerce with France and the US. Both French nuclear major Areva and the US group led by General Electric have sought to sell nuclear reactors to India, but Japanese parts are necessary for this. Japan Steel Works produces reactor vessels used by both companies, and General Electric receives many components from Hitachi Ltd. for its reactor work.

The CEPA with South Korea which took effect on 1 January 2010 and the immediate result of a 70 per cent increase in trade volume between the two countries in the first half of 2010, and India starting negotiations with South Korea on a possible civil nuclear pact have put Japan on notice. Japan fears that it might lose the Indian market to South Korea eventually. Even the India-Japan CEPA is hanging fire after a dozen rounds of negotiations with no breakthrough in sight.

Japan's nuclear power industry is big business at home. In recent times, it is aspiring to extend its reach overseas. Japan's three big nuclear technology companies – Toshiba, Hitachi and Mitsubishi Heavy Industries – have built most of the nuclear plants that supply Japan with a quarter of its power. A consortium of six Japanese utilities and nuclear power developers has set up a working group in July 2010 to create a venture at winning orders to build nuclear power plants overseas. They were miffed at losing a nuclear power plant order from the United Arab Emirates to South Korean firms. They blame lack of state help for several recent setbacks including the loss of the right to build Vietnam's first nuclear plant to Russia's state-owned nuclear company.

Against this backdrop, the DPJ government took a bold initiative in June 2010 to start talks with India on a civil nuclear energy pact. If the pact comes through, it would pave the way for Japanese groups to sell nuclear reactors and technology to India. At a time when the Japanese economy is sluggish and global nuclear plant construction is likely to double by 2030 as per the International Energy Agency, reactor builders in Japan see great potential in exports. Therefore, both the nuclear power industry in Japan and Indian officials watch Singh's forthcoming visit to Japan with a lot of optimism.

 

[ajtr]

Story of missed opportunities as PM goes to Japan​

Prime Minister Manmohan Singh would soon be embarking on an East Asian journey that will take him to Japan, Malaysia and Vietnam, but it is the visit to Tokyo on October 24-26 that is pregnant with a sense of missed opportunities.

With Naoto Kan's government obsessed with its current China travails and still struggling to right its economic and political relationship with the United States, relations with India have taken a back seat.

This has also allowed New Delhi to slip the leash on several key projects, including a proposed nuclear agreement, embarking upon a second wave of economic reform and moving with greater speed on the Delhi-Mumbai Industrial Corridor.

The centerpiece of the PM's visit is a long-awaited Comprehensive Economic Partnership Agreement that has been through several fits and starts, including bureaucratic obduracy in Delhi.

Even in its final form, which Business Standard has seen, there remains a significant lack of transparency, with 'all service sectors' still blanketed under national treatment clauses.Nevertheless, the CEPA, covering trade in goods as well as investments and boosting the $11-billion (Rs 48,700 crore) annual two-way commerce, is expected to provide Indian goods with a foothold into the markets of East and Southeast Asia.

Indian concerns over processes and the sale of pharmaceutical drugs have been addressed, allowing for a 'WTO-plus' treatment to this sector.

But according to Srikant Kondapalli, professor in the Centre for East Asian Studies at Jawaharlal Nehru University, the biggest confidence-building measure between the two countries could be New Delhi's decision to pursue a second wave of economic reform, which includes allowing easier hire and fire, which Japanese business has long been pushing.

"Unless Delhi concedes on new economic reform, we won't see much Japanese activity in India.We have to realise that the Japanese want to invest large amounts of money in other countries because of the rising value of the yen at home. China, which attracts large Japanese investment, is in the eye of a storm in Japan these days. Some Japanese money has gone to Vietnam, but Vietnam is too small a country. If India plays its cards right, the Japanese could be at the forefront of a new wave of investment here," Kondapalli said.

The Delhi-Mumbai Industrial Corridor, the showpiece of the PM's visit to Japan in 2008 but languishing today because of land acquisition problems, is a classic case of the drifting relationship, although a set of 'smart' cities have been proposed around this north-west lifeline.Kondapalli pointed out that things were going well in several strategic areas such as maritime cooperation -- including defence exercises and protecting the sea lanes -- but if Delhi could open the retail sector and unleash labour reform, Japanese FDI could soon overtake the Koreans in India. The 2009 figure of $11 bn is only four per cent of Japan's trade with China.

Nuclear, visa issues

A major missed opportunity in the impending summit will be the absence of a nuclear accord, negotiations around which were beginning to capture the world's imagination because Japan is the only country in the world to have first-hand experience of the horrors of a nuclear attack and India is one the only three countries which continue to refuse to sign the Nuclear Non-Proliferation Treaty.

There were simply too many differences which kept both sides apart on this front. While Japan wanted an unequivocal statement by India that it would not conduct any more nuclear tests in the future -- on the lines of a commitment India had given the Nuclear Suppliers Group in 2008 -- Delhi demurred, saying it needed to keep its 'strategic autonomy' intact.

As if to make up for the lack of the eye-catching nuclear pact -- which was supposed to also supply crucial pieces in the Indo-US nuclear deal, because key US companies like Westinghouse Electric Company and General Electric are either partially or fully owned by Toshiba Corp and Hitachi, respectively, and Japanese permission was supposed to complete the last mile of the 123 Agreement --- officials will sign in the presence of the two PMs, a visa agreement that will let Japanese workers in India live and work for three years at a time.

Clearly, the visa agreement is not in the same league as a prospective nuclear deal, but it will have to do.It is believed that Prime Minister Manmohan Singh had to personally push the pact over the head of recalcitrant bureaucrats in the home ministry, who questioned the need for having a three-year work visa.

It was explained to the ministry, government sources said, that a work visa for Japan was 'quite different' from a work visa for Chinese workers, many of whom had allegedly taken jobs meant for local labour.

The visa agreement is expected to benefit only about 400-500 Japanese nationals who currently work in India, mostly with car companies (many thousands more are expected when the 1,483-km Delhi-Mumbai Industrial Corridor takes off, the first phase of which will be ready by 2018) -- but it is expected to compensate the daily humiliation that foreign nationals are subject to by the Foreigners Regional Registration Office (FRRO), Japanese sources said.

"The kind of red tape, delays and even humiliation by the FRRO that we have to put up with are to be seen to be believed," a Japanese businessman, who sought anonymity, told this journalist, adding that the proposed enhancement by one year of a work visa was 'a great thing'.

Besides, both premiers will also sign on a document on biodiversity issues which could provide a major input to the climate change imbroglio dividing the world, signal the intention to conclude a social security pact for workers in both countries, as well as promise to create a level-playing field for health care workers, including nurses.The reluctance to exercise political will -- from a missing nuclear accord to unclear parameters around CEPA -- seems to be common both in Delhi and in Tokyo.

Back in Japan, Prime Minister Naoto Kan is being accused of passing the buck on promoting the India-Japan relationship, with Kan's critics pointing to his reluctance to push the proposed nuclear deal.

In fact, the Japanese media is full of commentary on how the real power behind the throne is chief cabinet secretary Yoshito Senkoku, the 'go-to guy' on all major issues.

From calming the Sino-Japan spat on the Chinese fishing trawler -- Senkoku is believed to have spoken to Chinese state councillor Dai Bingguo, a major power in the Chinese communist party, whom India knows well -- to deciding the seating arrangements of all those attending the banquet in honour of Prime Minister Manmohan Singh on October 25, Senkoku is being touted as the man for all seasons in Tokyo today.

Meanwhile, a top business delegation led by Reliance's Mukesh Ambani, has agreed to (it is still unclear if Ratan Tata will go) accompany the PM to Tokyo, but it is still unclear whether the outcome is worth the effort.

 

[ajtr]

Why Japan tilted towards India​

The Manmohan Singh government gives pride of place in its foreign policy to countries with the ways and means to transform India. The leader of the pack today, in a typically understated fashion, is Japan. The story goes back to the late 1990s. Japan had invested hundreds of billions of dollars in China and had contributed hugely to the rise of the Middle Kingdom. But it wasn't earning much gratitude for it. The Chinese Communist Party, whose legitimacy partly arises from fighting the Japanese invasion before the second world war, became more nationalistic as China became stronger.
Japan, facing an ageing workforce and in need of a new overseas manufacturing hub, considered Vietnam (too small), Indonesia (too seismic) and India. India's problem was its shoddy infrastructure and seeming inability to do anything about it. As a Japanese diplomat said then, "We decided to shift our aid programme to infrastructure rather than poverty alleviation." One consequence was the Delhi Metro.

Post-Cold War uncertainty helped feed a new conservative Japanese politics that manifested itself in the election of prime ministers like Junichiro Koizumi, Shinzo Abe and Taro Aso. Each of them saw India as a potential player in a Pacific Great Game in which hedging against China was pretty much the only rule.

Three things changed the game. One, Chinese bellicosity and Japanese economic decline helped seal a political consensus in Tokyo that for reasons either strategic or economic, India was an essential part of Japan's foreign partnering. Thus, when the present Democratic Party of Japan came to power, virtually their first action was to kick off the industrial corridor. They were soft on China, but their economic growth strategy had a huge India component. This helped reassure New Delhi as well. Indian officials often fretted about Japan's short-lived governments.

Two, closer relations between India and the US helped Japan get the confidence to raise the stakes. Thus was born the Delhi-Mumbai Industrial Corridor, a $90 billion whopper that, when completed, will give India a state-of-the-art manufacturing and exporting base. When Indian officials talk about Indo-Japan relations being transformational, they are talking about this sort of thing.

Three, India Inc knocked the kimonos off Japan Inc by winning Alfred Deming Prizes. Demings are given for quality manufacturing. Over the past decade, unknown Indian auto-component firms began beating competitors, including Japan. In the past 10 years, India has won more Demings than any other country other than Japan itself. Corporate Japan was convinced: India had proven it wasn't just another grimy face.

After muddling around at about Rs 2,000 crore a year, Japan firms invested a hefty Rs 9,000 crore in 2007. Recent polls show that 70 per cent of Japanese firms say India is their preferred investment destination. Today, an average of 100 Japanese firms are moving here every year. As the comfort level rose, mergers and acquisitions such as Daiichi-Sankyo's $4.6 billion purchase of Ranbaxy, India's largest pharma company, too place. The economic relationship is now a fixture. The soon-to-be-completed free-trade agreement will put in place the last missing piece: the drawing of India into the global supply chains of Japanese manufacturers.

Today, the circle is complete. Japan's initial strategic interest manifested itself in the creation of an economic bond. That bond is now so large that it is giving birth to an independent strategic policy.

Last year, India and Japan signed a bilateral defence framework. A former Japanese official noted, "Japan has only two other comparable agreements, with the US and Australia. And the Australian one is hazier than the one we have with you." The final culmination of this will be an Indo-Japanese nuclear deal. Both sides know this will be a tough baby to deliver, but both capitals have a political consensus that this is a marriage made in the hard realities of earth.

 

[Iamanidiot]

the japanese aren't harping about a relationship with us.Read Asahi Shimbun or Yomiuri Shimbun

 

[SHASH2K2]

PM invites Japanese firms to invest in infrastructure projects


Observing that infrastructure deficit was posing a major constraint to India's growth, Prime Minister Manmohan Singh today said an outlay of over USD one trillion was envisaged for infrastructure projects during the next 5-year plan beginning 2012 and invited Japanese firms to play a greater role in


this endeavour.
Singh said his government was determined to continue the economic reforms to create a favourable investment environment and facilitate higher capital inflows and push the reform of both direct and indirect taxes with the aim of unifying indirect taxes into a single Goods and Services Tax in due course.

Addressing a business luncheon attended by top business leaders from India and Japan, he noted that India's growth, which fell to 6.5 per cent in 2008-09 because of the global economic recession, recovered to 7.4 per cent in 2009-10 and is projected to be 8.5 per cent in 2010-11.

He hoped that India will return to 9 per cent growth in 2011-12. "I am confident that strong fundamentals of the Indian economy will enable us to achieve our objective of double-digit growth in the coming decades," Singh said.

Underlining that he was not underestimating "many challenges" that are faced in achieving such high level of growth, he said "we need to close the infrastructure deficit, especially in the power, transport and communication sectors.

"This is a major constraint on our development and we will give high priority to infrastructure development in the years ahead." Singh said that India's investment needs will be at least USD one trillion, part of which will come from within but "we expect Japanese companies to also provide their support."

He said during India's next five-year plan from 2012 to 2017 "we envisage financial outlays of over one trillion US dollars on infrastructure projects." Private investment will play a large role in achieving this target, Singh said, while asking Japanese companies to play a much greater role in development of India's economy.

From India, Mukesh Ambani, Reliance Industries Chairman and Managing Director; Sunil Bharti Mittal, Bharti CMD; Fortis Chairman Malvinder Singh; and HDFC Chairman Deepak Parekh were among those present at the luncheon.

 

[SHASH2K2]

Looks like its an trip by Economist Manmohan singh. He will try his level best to attract maximum investment from Japan.

 

[ajtr]

Manmohan says won't "force" n-deal issue on Japan​

With Japan playing hard ball in the negotiations on the civil nuclear deal, Prime Minister Manmohan Singh on Monday said he would not "force" it on Tokyo as he recognises its sensitivity on the subject.

However, Dr. Singh, who is here on a two-day visit, said he would like Japanese firms to participate in expansion of India's nuclear industry.

"We would hope that Japan will be India's partner in expansion of its civil nuclear industry for peaceful purposes. But I do recognise the sensitivity of the subject in Japan and will not therefore force the issue," he told a business luncheon meeting here.

Dr. Singh made the comments while responding to a question about the next steps after the completion of a Comprehensive Economic Partnership Agreement (CEPA) between the two countries.

His comments come in the backdrop of Japan insisting that the proposed agreement on a civil nuclear deal should have a provision under which the cooperation would be called off if India were to test a nuclear weapon.

The two countries have already held two rounds of negotiations on the proposed agreement and the Indian side has indicated that this condition could be accommodated through proper wording in the pact.

Japan is the only country to have faced a nuclear attack and is immensely sensitive to the issue, particularly considering that India is not an NPT signatory.

Observing that with India's rapid economic growth, the demand for energy has been rising rapidly, Dr. Singh told the business leaders that cooperation between the two countries in this area will "enable Japanese companies to participate in India's ambitious nuclear energy programme."

The Prime Minister said Japan, as a global leader in energy efficient technologies, can play a significant role in helping India meet its energy needs in an environmentally-friendly manner.

"We seek Japanese technology and investment in conventional as well as new and renewable energy," he said at the business luncheon hosted by Nippon Keidanren here.

After the Nuclear Suppliers Group gave a one-time waiver to India to conduct trade in peaceful atomic field in 2008, India has already signed civil nuclear agreements with eight countries -- the US, France, Russia, Canada, Kazakhstan, Argentina, Namibia and Mongolia.

Japan was among the countries which supported the waiver for India despite having reservations over India not joining NPT.

Japanese companies are keen to participate in India's expanding nuclear industry which is expected to be worth several billion dollars in the next few years.

Ahead of his visit here, the Prime Minister said India offers huge opportunities in the nuclear sector and Japanese companies should become "partners," given their advanced capabilities in this area.

Dr. Singh said the proposed pact would be a win-win proposition for both the countries besides helping in the global efforts to combat climate change.

"Developing countries like India seek new energy sources to sustain high rates of economic growth. We see nuclear energy as a vital component of our global energy mix," Dr. Singh told some Japanese journalists in Delhi ahead of his visit here.

He said India was aware of the advanced capabilities of Japanese firms in the nuclear field and the important role they play in the global supply chain.

Referring to the proposed nuclear agreement with Japan, he expressed confidence that it would be completed but made it clear that there are no deadlines for concluding these negotiations.

When pointed out that Japan was putting the condition that it will annul the nuclear cooperation if India goes for a nuclear test and whether it was agreeable to India, Dr. Singh refused to comment on specific details as the negotiations are still underway.

He, however, said both countries would benefit from an agreement that provides a long-term and stable basis of cooperation in the peaceful uses of nuclear energy.

This, he said, will contribute towards India's energy security requirements and will also help in the global efforts to combat climate change.

 

[Neil]

nice going India.....everyone knows thats its not India forcing japan....but US and france...even if japan refuses US and france will do anything to get those billions of dollars

 

[ajtr]

PM urges Japan to be part of India's growth story​

Apart from the two expected economic accords between New Delhi and Tokyo -- the Comprehensive Economic Partnership Agreement and the easing of issuance of visas to Japanese visiting India -- no major trade or investment announcement has yet been made during Prime Minister Manmohan Singh's visit to Japan.

Negotiations on the Comprehensive Economic Partnership Agreement were initiated four years ago in the backdrop of India's strong belief that the two Asian majors must work together to create a business environment conducive to much greater two-way trade and investment flows.

Earlier, the prime minister addressed a business luncheon hosted by Nippon Keidanren in Tokyo on Monday.

The prime minister said that while many nations shook from stem to stern due to the economic recession which was the worst crisis since the Great Depression of the 1930s, India was relatively less affected.
True, given the severity of the crisis, it was inevitable that India too would be affected; its economy slowed down from the 9 per cent growth rate it had achieved in the four years before the crisis of 2008 to 6.5 per cent in 2008-09.

However, New Delhi responded with concerted measures to revive and sustain economic growth through a range of fiscal and monetary policies, the prime minister told the leaders of industry.

"I am happy to report that as a result our growth recovered to 7.4 per cent in 2009-10 and is now projected to be 8.5 per cent in the current fiscal year that is 2010-11. It is my expectation that we will return to a 9 per cent growth path in 2011-12," he said.

Given the robustness of the Indian economy, the prime minister said that it makes eminent sense in investing in the country.

FDI and mergers and acquisitions

During the time that the negotiations were on to get the CEPA ready, Japanese foreign direct investment in India grew substantially.

"Much of this (FDI) has been due to mergers and acquisitions," Dr Singh said on Monday while addressing top Japanese and Indian industry captains.

The prime minister said that greater Japanese participation in the Indian industry through FDI was very welcome, so that new capacities are created in India in its manufacturing and infrastructure sectors and allows for freer flow of high-end technologies.

During the last three years India has received cumulative FDI worth over $100 billion. And although there has been a slowdown in recent months, the prime minister said: "I see that as being temporary."
Infrastructure

India's infrastructure deficit poses a major constraint on manufacturing growth and can adversely impact FDI flows.

During India's next Five-Year Plan from 2012 to 2017, India envisages financial outlays of over $1 trillion on infrastructure projects.

Private investment will play a large role in achieving this target and India welcomes a much greater role by Japanese industry in the development of economic infrastructure in India, the prime minister said.

Dwelling on the mega Delhi-Mumbai Industrial Corridor project, the prime minister said that Japan is the partner of choice for the project that covers a length of over 1,480 km across six Indian states.

The DMIC project has the potential to become the hub of India's new bilateral economic engagement in the area of manufacturing. Some of the notified investment regions are almost the size of Singapore in terms of their area.

"We welcome in particular the involvement of Japanese companies in the development of 'smart communities' in the DMIC area," the prime minister said.
Information technology

Also, during the time the CEPA was being negotiated, Japanese business doubled its presence in India.

Globally, India has been a tremendous success in the field of information technology and its prowess in the services sector and the knowledge economy are well recognised and documented.

Many an American and European company has tasted big success and drawn major benefits through collaboration with Indian IT companies.

The prime minister expects that Japanese companies too will "take advantage of these opportunities to enhance their efficiency and competitiveness through expanded partnerships with India's IT sector".
Pharmaceuticals

The CEPA will also create newer opportunities for India's pharmaceutical industry in the Japanese market, helping to meet Japan's growing demand for high quality and relatively inexpensive generic medicines, the prime minister said.
Energy

With India's brisk economic growth, the demand for energy has been rising rapidly. Japan, as a global leader in energy-efficient technologies, can play a significant role in helping India meet its voracious energy needs in an environmentally friendly manner.

India, said the prime minister, seeks Japanese technology and investment in conventional as well as new and renewable energy.

He said that "nuclear energy can provide our growing economy with a clean and efficient source of power. Cooperation in this area will enable Japanese companies to participate in India's ambitious nuclear energy programme."

Economic power shifting towards Asia

Dr Singh said that the weight of global economic power is shifting inexorably towards Asia, and irrespective of the current slowdown, Japan will remain Asia's most advanced industrialised nation for decades to come. He said that it will also continue to exert considerable influence on the global economy.

India is participating fully in the rising tide of economic expansion in Asia. The prime minister said that it is his hope that India and Japan will continue to work together for the creation of a broader Asian Economic Community.

"Japan must be an important partner in India's economic development and transformation. Together we can contribute to global stability, prosperity and development," he said.

"I sense a new enthusiasm and a vibrancy that gives me reason to believe that my long-held vision will be realised. I invite you to repose your faith in India," the prime minister urged Japanese business leaders.

"I assure you that we will spare no effort to make Japanese business welcome. Together, we can ensure the long term prosperity of our two peoples for the greater benefit of countries in our region and the world," he reiterated.

"I am confident that the strong fundamentals of the Indian economy will enable us to achieve our objective of double-digit growth in the coming years," he said.

India is determined to continue the process of economic reforms that will create a favourable investment environment and facilitate higher investment flows, Dr Singh asserted.

Praise for Japan

Japan has always been viewed with great admiration by the people of India, the prime minister said.

"The government and the people of India deeply appreciate the generous assistance which Japan has provided to us for building economic and social infrastructure."

India has been the largest recipient of Japanese Official Development Assistance since 2003. The Delhi Metro project has been followed by ODA assistance for other Metro projects in Kolkata, Bengaluru and Chennai.

The Dedicated Freight Corridor project between Delhi and Mumbai, launched with Japanese ODA support, is designed to transform India's freight logistics.

The prime minister is on a three-nation tour to Japan, Malaysia and Vietnam that ends on October 30.

 

[ajtr]

India skirts Tokyo's China trap​

RADHIKA RAMASESHAN
Tokyo, Oct. 25: India conveyed to Japan today that it was unwilling to take sides in its ongoing tension with China and emphasised that it was "essential to engage China in close, open and productive dialogue".

The "threat" Japan's facing from China over the past few months reportedly figured high in a bilateral meeting Prime Minister Manmohan Singh had with the Japanese Prime Minister, Naoto Kan this evening.

They also discussed the pending civil nuclear cooperation deal and the Comprehensive Economic Partnership Agreement (Cepa) that awaits inking after the conclusion of negotiations.

The word from the Japanese side was that Kan — facing domestic flak for reportedly letting China have an "upper hand" — was "anxious" when Singh came calling.

"So anxious he was that he departed from protocol and stood near the elevator to receive the Indian PM. In normal circumstances, he would have remained in his official chamber," a source said.

Foreign secretary Nirupama Rao, who was asked in a media briefing about the discussion the two had on China, said: "They did refer to the relations each country has with China and how important these relations are from the strategic point of view. The Japanese PM was interested in knowing from our PM on the development of our relationship with China and how the relations have grown." She did not say what Singh said, the sense that came through in her answer was that both sides had outstanding issues awaiting resolution with China.

But the answer lay in drawing the country in a "peaceful and engaging" way. "India has boundary issues to resolve with China, Japan has maritime issues. We have a well-functioning system to discuss these issues in a peaceful and engaging way," said Rao.

Asked whether India would allow itself to be used as a "counter-power" against China, given how Beijing was "creating problems" for other countries in the region, Rao said: "You have to look at India, Japan and China as the largest economies of Asia. India and Japan are democracies. India and Japan have China as their neighbour. It is a reality, a fact of life. Both countries have to develop an in-depth relationship with China as times go by."

She emphasised that India wished to see the "peaceful rise of China". "To attain that vision, drawing China into more productive dialogues is the only way forward," Rao added.

Rao quashed speculation that Singh and Kan's decision to explore the possibility of bilateral cooperation in the development, re-cycling and re-use of rare earths and metals in research and development of their substitutes was a direct challenge to China since it also figures high on its geo-political agenda. The decision was part of their joint statement.

Replying to a related question, she said, "This is an Indian-Japanese centric process. Since 1952, India and Japan are working on rare earth and looking at long-term cooperation on the issue. If you are looking for drama, theatre, no, this is a very need-based, functional thing. There is a very high degree of trust between our two democracies and this is the ambience in which such cooperation is being done."

 

[ajtr]

India to export rare earths to Japan​

TOKYO: The increased tension between Japan and China seems to have opened a new business opportunity for India. With China announcing its plans to drastically prune its export quotas of rare earths to Japan, Prime Minister Manmohan SIngh has offered to supply the commodity to Japan.

Mr Singh himself has said that China's recent restrictions on exports of rare earths should be an added incentive for many countries which have a potential to produce the commodity.

A joint statement issued after the talks between Mr Singh and Mr Ken indicated cooperation between the two countries in the rare earths area. "Recognising the importance of rare earths and rare metals for future industries, the two prime ministers decided to explore the possibility of bilateral cooperation in development, recycling and re-use of rare earths and rare metals and in research and development of their industrial substitutes," the joint statement noted.

Foreign secretary Nirupama Rao, who later briefed the media, said that joint ventures could be established to tap Indian potential in rare earths. In the event of the two sides striking a deal, the biggest beneficiary would be the Kerala-based state-run Indian Rare Earths. New Delhi has suspended exports since 2004 following the closure of a mine on Orissa on environmental grounds. The production of rare earths is expected to begin soon at its plant in Kerala's Chavara.

Japan is currently involved in negotiations with China for easing restrictions. But with strategic and political relations between the two nations now strained, the possibility of Beijing heeding Tokyo's call is rated slim.

The two sides are expected to raise the issue when the leaders of the two countries meet at Hanoi for the Asean summit. India's offer is certain to be encouraging for Japan as rare earths is critical for the production of high technology products.

China had recently announced its intention to cut export quota by 40% from the 2009 levels. Chinese experts had recently told the media that there was no reason for selling rare earths, "which is as precious as gold", at the price of radish. They have also been maintaining that the resource will run out in 10 to 15 years if it did not place any restrictions.

Japan has been sourcing 90% of the rare earths required from China. China accounts for more than 90% of the world's rare earths output. In an address at a business luncheon organised by Nippon Keidanren, Mr Singh said India and Japan are natural partners because of their shared values of freedom democracy, respect for rule of law and free market economy. It was seen as Mr Singh's way of saying that business can be conducted hassle free with India rather than others.

Mr Singh told Japan's business leaders that the Comprehensive Economic Partnership Agreement between the two countries will create new opportunities for India's pharma industry in the Japanese market.

"This will help to meet Japan's growing demand for high quality and relatively inexpensive generic drugs."

 

[ejazr]

India agrees to supply of rare earths for Japan

TOKYO — Tokyo said Tuesday that India has agreed to provide a stable supply of rare earth minerals to Japan as the high-tech economy looks to diversify sources after a spat with key provider China.

India's Prime Minister Manmohan Singh, who wound up his three-day visit to Japan on Tuesday, made the pledge during talks with the Japanese side on Monday, industry minister Akihiro Ohata said at a news conference.

"Prime Minister Singh told us that he will cooperate in long-term supply of rare earth minerals," Ohata said, according to a trade ministry official.

On Monday, Singh met Prime Minister Naoto Kan, Ohata and other Japanese officials and agreed to broadly cooperate in rare earth deals.

In a statement, the premiers "decided to explore the possibility of bilateral cooperation in development, recycling and re-use of rare earths and rare metals and in research and development of their industrial substitutes."

On Sunday, Ohata met China's commerce minister in Tokyo and urged Beijing to normalise rare earth exports after Japan said shipments were blocked during a diplomatic row sparked by the arrest of a Chinese trawlerman in disputed waters.

Japan's stockpile of rare earth minerals, used in the manufacture of high-tech goods, could be exhausted by March or April without fresh imports from China, officials have said.

China, which controls more than 95 percent of the global market, has repeatedly denied it curbed exports in retaliation over the dispute, but all 31 Japanese companies handling the minerals have reported disruption to shipments.

Japanese Foreign Minister Seiji Maehara said Tuesday that he wants to raise the issue if he meets his Chinese counterpart on the sidelines of a 16-nation Asian summit in Vietnam later this week.

 

[ejazr]

Japan, India must deepen security, economic ties - Japanese daily editorial

India, a major power in South Asia, is not only a promising market with a fast-developing economy but also a country that shares concerns with Japan over China's military expansion.

Tokyo should strategically enhance its partnership with India in both economic and security fields.

Indian Prime Minister Manmohan Singh visited Japan this week and agreed with Prime Minister Naoto Kan to establish a ministerial-level economic dialogue between the two countries.

Japan has been holding similar ministerial talks with China. But the aftermath of a Chinese fishing vessel's collision with Japan Coast Guard patrol boats off the Senkaku Islands in September has revealed that China, under the single-party regime of the Chinese Communist Party, does not hesitate to use high-handed diplomatic measures over economic and personnel exchanges to push its political demands.

By contrast, India is a democratic country and shares similar values with Japan, such as the rule of law. It does not present the political risks that China does. Besides, India has a population of 1.2 billion, the second largest after China, and maintains a high economic growth rate of 9 percent annually.

===

Economic enhancement

Enhancement of Japan's economic partnership with India will alleviate the nation's economic dependence on China.

In their summit talks, Kan and Singh also agreed that Japan will help India increase production of rare earths, which are indispensable in manufacturing many high-tech products. India's output of rare earths is far behind China's but is still the second largest in the world.

We think Japan's cooperation agreement with India in this field is very timely because it is an urgent task for Japan to redress the current situation, in which the nation is totally dependent on China for its imports of rare earths.

The two leaders also officially endorsed an economic partnership agreement and promised each other to put it into effect as soon as possible.

With the agreement, India's tariffs on imports of Japanese auto parts and steel would be abolished within 10 years. This would enable Japanese companies manufacturing products in India to drastically reduce the costs of procuring parts from Japan.

The agreement also will simplify procedures for Japanese businesspeople to obtain visas for brief visits or longer stays in India. It will surely help expand business opportunities for Japan in the country.

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Security cooperation

Security cooperation between the two countries is significant, too. Japan faces a direct threat from China's maritime expansion in the East China Sea, while India is exposed to a similar threat in the Indian Ocean.

Japan and India should actively utilize vice-ministerial talks between their foreign and defense ministries, which were established at the end of last year, to discuss common strategy regarding China, such as measures to ensure the safety of sea lanes.

The two countries also need to seek partnerships with the United States, and then with the Southeast Asian countries that stand at the forefront of friction with China. To realize this goal, Japan and India, regional powers in Asia, must further deepen bilateral relations.

 

[SHASH2K2]

Japan N-deal on fast track as PM holds Tokyo talks

Japan PM Naoto Kan says Tokyo "fully trusts India's commitment on holding to its moratorium on testing nuclear weapons" -- a departure from its past insistence that India sign CTBT India and China, both wary of China's growing might, seek to dispel the impression that India is built up as a counterweight Comprehensive Economic Partnership Agreement a `tool' to transform Indo-Japan economic and trade ties India simplifies visas for Japanese businessmen (while tightening them for the Chinese); visas for Indian tourists, businessmen and families of Indians living in Japan easier
India moved swift ly to quell any misinterpretation that the Indo-Japan civilian nuclear agreement had been put on the backburner after Prime Minister Manmohan Singh, in answer to a question from a prominent Japanese businessman, had earlier on Monday seemed to signal that he would not push the pace for a conclusion of that agreement.

Instead, after back-toback engagements which saw Dr Singh interact with the Japanese business community as well as the entire gamut of the Japanese political leadership, the joint declaration released at the conclusion of talks between the two leaders clearly set out a timeframe for the next round of discussions on the civilian nuclear agreement.

"The two Prime Ministers reaffirmed that cooperation in this sector will open up new opportunities for further developing the IndiaJapan strategic and global partnership. They encouraged their negotiators to arrive at a mutually satisfactory agreement for civil nuclear cooperation at an early date."

Foreign secretary Nirupama Rao also clarified that after two rounds of "very successful talks", the dates for the next round had now been set for the third week of November. "There is a zest and a momentum on both sides, it has not slowed down, it has not been derailed. Negotiations are delicate and complex.
But the political resolve has been very clearly enunciated by both nations," she said.

Dr Singh, while addressing Nippon Keidanren, sig nalled to the Japanese chamber of commerce and industry, which has been eager to invest in energystarved India but is being held back by a government in Tokyo wary of the domestic reaction, indicated that the onus to push this forward rested with Japan.
He said: "I hope Japan will participate in the Indian civil nuclear industry for peaceful purposes. But I recognise the sensitivities of Japan, and I will not push the issue."

Sources also said that in a marked departure from its insistence in the past that India must sign the Comprehensive Test Ban Treaty before talks can move forward -an enunciation of which continues to find a mention in the joint statement -Japanese Prime Minister Naoto Kan told Dr Singh that his nation "fully trusts India's commitment on holding to its moratorium on testing nuclear weapons."

India has repeatedly held to its position, reiterated in the joint declaration, that it is committed to a "unilateral and voluntary moratorium on nuclear explosive testing."