India and Japan: The Rising Sum
by Satish Tandon, September 2005
The history of bilateral relations between India and Japan goes back at least one millennium and several centuries when Buddhism crossed the Himalayas to enter China, and from there on to Japan. Whenever you talk to a Japanese he will instantly acknowledge this fact. At the same time, in the minds of Indians, there is more respect for Japan and the Japanese than for any other country. There is no troublesome baggage from the past, no unresolved issues, and no negatives in this relationship. It is therefore surprising that the good relations between the two countries have not matured to a natural higher level of solidarity and cooperation. My impression is that this is going to happen now.
The Japanese foreign policy after the Second War was rather skewed towards the United States. In Asia, Japan worked to develop relations with its immediate neighbors--China, South Korea, Philippines and Indonesia, countries which bore the brunt of Japanese aggression during the Second War--when it was not too preoccupied with the highly unpredictable North Koreans. India, on the other hand, had its own security concerns in relation to Pakistan and China. This threat on two fronts pushed the country in the arms of the Soviet Union, a country which continues to occupy the four Northern islands off the coast of Hokkaido. At the same time, India's position as a leader of the non-aligned bloc did not fit well with the Japanese world view colored as it was by its strong emotional and security relationship with the United States. All of this has now changed, or is changing fast.
Japanese diplomacy was driven by its dependence on the United States for its security, by its intention (mostly genuine) to be seen as fulfilling all its obligations under the United Nations especially in relation to the promotion of peace and development assistance, and by economic considerations. While the first factor has remained largely unchanged i.e., North Korea continues to pose a threat, the other two factors (as they relate to India) have changed. This means there is a possibility that the Japanese Foreign Office will reevaluate its foreign policy objectives vis-à-vis India and realize that a greater emphasis needs to be given to strengthening relations with India.
The second foreign policy consideration (relations with the UN) mentioned above has changed. After years of cooperating with the United Nations and behaving as a model member state, sponsoring and inviting UN organizations to set up offices in Japan, and paying the second highest annual contribution to the United Nations budget, Japan is now disappointed.
For years Japan has wanted to be a member of the United Nations Security Council in keeping with its status as the world's second largest economy and a respectable member of the community of nations. India harbored similar ambitions but on different grounds. They therefore got together along with Germany and Brazil to coordinate their efforts and lobby support among the 200 or so member states of the United Nations. Political considerations and deep divisions within the UN member states have now ensured that the aspirations of the G4 (Group of Four) will not be met any time soon. While this is a setback and a serious disappointment for all four countries, it nevertheless has strengthened relations among the group like never before. India is now much closer to Japan and Germany than it ever was. It seems Japanese too feel likewise.
India's rapidly growing economy has created a 300 million-strong middle class which is almost three times the size of Japan's population. This is a huge market for any country to ignore and the Japanese are aware of this. Maruti Udyog produces more cars in a year in India than its parent company Suzuki does in Japan. Recent Japanese collaborations in other areas such as the construction and operation of the Delhi Metro, highways, and other projects have been hugely successful. In addition to the manufacturing sector, Indo-Japanese collaboration in other areas too promises huge benefits to both countries. It is not difficult to see, for instance, that the combination of Japanese skills in hardware design and manufacture along with their expertise in animation and game software, and Indian skills in software development and systems engineering would give serious competition to world-class conglomerates from the Unites States and Europe. Similarly, the current boom in the Indian stock market presents great opportunities for Japanese investors who hardly get any returns from their domestic financial sector.
The recent landslide election victory of Koizumi and his Liberal Democratic Party on the issue of postal privatization and the moderate recovery of the Japanese economy and stock market means that the Japanese businesses will be looking for opportunities to reduce costs, to invest, and to tap new markets. They will find India a good destination for their money, manufacturing, products and services, and Indians their sincere friends and admirers.