Japan - India Relations

Diplomatic ties between India and Japan were established in 1952 with the signing of the Peace Treaty post World War II.

The two countries have several institutional dialogue mechanisms, including a 2+2 Dialogue at the Foreign and Defence Secretaries level, which are held regularly, at senior official and functional levels to exchange views on bilateral issues as well as regional and international cooperation. 

In 2016, Japan announced its Country Assistance Policy providing Official Development Assistance (ODA) to build India’s critical infrastructure, and to address social and environmental issues caused by rapid growth. 

In a special gesture, India announced “visa on arrival” scheme for all Japanese travellers, including for business purposes, from March 1, 2016.

A Comprehensive Economic Partnership was concluded between India and Japan in 2011 to accelerate economic and commercial relations between the two countries.

Prime Minister Shri Narendra Modi’s visit, for the 13th Annual Summit, to Japan on 28-29 October 2018 provided further impetus to bilateral ties. MOC on Healthcare and Wellness, Postal services, Environmental cooperation, and Food Processing Sector were among the 32 MoUs/Agreements signed during the Annual Summit.

An “India-Japan Digital Partnership” (I-JDP) was launched during the visit of Prime Minister Shri Narendra Modi to Japan in October 2018, furthering existing areas of cooperation as well as new initiatives within the scope of cooperation in S&T/ICT, focusing more on “Digital ICT Technologies”. This also incorporates setting up “Start-up Hub” between India and Japan.

PM led cabinet has approved for the signing of a memorandum of understanding (MoU) between textiles committee, India, and M/s Nissenken Quality Evaluation Centre, Japan, for improving quality and testing of Indian textiles and clothing for the Japanese market and facilitate Indian exports to meet the requirements of Japanese importers.

A Reciprocal Provision of Supplies and Services was signed between the Armed Forces of India and the Self-Defense Forces of Japan to establish the enabling framework of the activities under the agreement. The activities include the reciprocal provision of supplies and services, and bilateral training activities, United Nations Peacekeeping Operations, Humanitarian International Relief and other mutually agreed activities.

The Government of India and Government of Japan signed a Memorandum of Cooperation in January 2021 on a Basic Framework for Partnership for Proper Operation of the System Pertaining to "Specified Skilled Worker". Read more for details

The Trade and Industry Ministers of India, Japan and Australia, formally launched the Supply Chain Resilience Initiative (SCRI) on 27th April 2021 to enhance the resilience of supply chains in the Indo-Pacific Region and to develop dependable sources of supply and to attract investment.

On 10th of December 2019, Hon’ble Minister of Commerce and Industry, Mr. Piyush Goyal, and Hon’ble Minister of Economy, Trade and Industry (METI), Mr. Hiroshi Kajiyama, decided to launch “India-Japan Industrial Competitiveness Partnership (IJICP)”. Under the IJICP, MoCI and METI will jointly work toward enhancing India’s industrial competitiveness through discussion in areas such as development and utilization of industrial zones to promote foreign direct investment, lowering cost of logistics, and facilitating smooth governmental procedures. They will also identify challenges of specific industrial sectors and the means to mitigate these challenges.

Japan is the 5th largest investor in the Indian economy with cumulative FDI inflows of $36 Bn during April 2000 and March 2022, contributing nearly 6.28% to India’s total FDI inflows during the same period. Currently, over 1455 Japanese companies are operating in India.

India’s total trade with Japan has increased to $15.3 Bn in 2020-2021 with exports valued at $4.4 Bn and imports $10.9 Bn, making Japan India’s 13th largest trade partner

India’s imports from Japan showed a growth of almost 73% in a span of 13 years reaching $10.9 Bn in 2020-2021 from $6.3 Bn in 2007-2008. Key imports from Japan include nuclear reactors, electrical machinery and equipment, copper, plastic, inorganic chemicals, rare earth metals, compounds of precious metals.

India’s exports showed a growth of 14.2% in a span of 13 years reaching $4.4Bn in 2020-2021 from $3.85Bn in 2007-2008. Key exports to Japan include mineral fuels & mineral oils, organic chemicals, fish & other aquatic invertebrates, and natural or cultured pearls.

As the 5th largest investor, Japan has contributed over $ 36.2 Billion in cumulative investments since 2000, especially in key sectors such as automobiles, Electronics System Design & Manufacturing (ESDM), Medical Devices, Consumer goods, Textiles, Food processing and Chemicals.

India Showcased Investment Opportunities For Japanese Firms in different emerging sectors including ICT, renewable energy, electric vehicles, drones, robotics and textiles

Indian Railways Finance Corp (IRFC) is set to raise $1.1 bn through a yen-denominated syndicated offshore loan, three people familiar with the matter 

India and Japan have had strong cultural ties for centuries due to the spread of Buddhism through East Asia; Japanese Buddhism continues to play a major role in Japanese society resulting in a strong shared identity between Indian and Japanese people.

Initial cultural relations between India and Japan post World War II were initiated in 1949 by the Indian Prime Minister Jawaharlal Nehru, who donated an Indian elephant to the Ueno Zoo in Tokyo.

The 1952 Peace Treaty between India and Japan was followed by a Cultural Agreement signed in 1956 between the two countries.

The Cultural Agreement established a system of cultural exchange between Japan and India through scientific, artistic, and educational endeavours; the agreement also created two Indian-Japanese Mixed Commissions, which govern overall cultural exchange policy.

More recent examples of cultural exchange between both countries include the creation of The Vivekananda Cultural Centre in Tokyo in September 2009 and the series of events organized by the Embassy and Consulate General, centered around the 3^rd International Day of Yoga in June 2017.
 

Japan and India have forged Asia’s fastest growing relationship which is not only limited to trade but also expands to cross-cultural exchange, with over 9,000+ Japanese Nationals residing in India and over 39,000+ Indian Nationals residing in Japan as of 2020.