Indian Prime Minister Manmohan Singh?s visit to the Hokkaido G8 Summit risks being upstaged by idle domestic politicking about the (obvious) desirability of the prospective Indo-US nuclear deal. But the PM has anyway taken this opportunity to apprise the US president Bush about his government?s resolve to approach the International Atomic Energy Agency (IAEA) soon, and proceed thence to the final stages of the Indo-US Deal. One crucial aspect of that is that India?s move is in line with the way of thinking within the G8. That at least is plain from an (already circulated) draft of the post-Summit statement, saying that existing G8 countries would assist in ensuring that entrants to the nuclear club meet conditionalities. The G8 would do so by ensuring the implementation of ?safeguards?, ?nuclear safety? and ?nuclear security?. This so-called ?3S? package will form firm foundations for transparency and promote confidence in the sustainable development of nuclear energy.
But, just as important has been Singh?s resolve to further India?s bilateral relations with Japan. He is, in fact, presciently following up on the existing framework of Indo-Japanese partnership, but with the ?new Asian era? in mind. And it is the latter which has imparted a strategic orientation to what is already a synergistic framework?one with strong foundations within the April 29, 2005 New Delhi document on the ?Eightfold Initiative for Strengthening Japan-India Global Partnership?. One cannot overestimate the salience of the principles and agreements embodied in such a framework. They include closer political and economic coordination on bilateral, regional, multilateral and global issues, unreserved economic engagement, enhanced defence relations, stepped-up cooperation in technology?plus deeper cultural and educational ties.
Even the underlying philosophy was spelt out in a joint statement circulated in December 2006 during Singh?s visit to Japan at the invitation of Shinzo Abe, the then PM. Entitled ?Towards Japan-India Strategic and Global Partnership?, it stresses ideals like harnessing complementarities, promoting intrinsic strengths and uniting in order to address regional and global challenges. The joint statement even lays down how, apart from at summits, the two heads of government might snatch discussion-time for themselves ?on the sidelines of multilateral events?. (The current G8 has been a perfect instance of the latter).
Coming to brass tacks, trade between the two was worth $7.5 billion in 2007, but the CII has long estimated that it would be able to double in the next two years. It says that the figure could be $15 billion by 2010. Indeed, it is instructive to see that bilateral trade has more than doubled since 2002-03. But an official study also admits that the trade balance?which currently favours Japan?may narrow somewhat with the Comprehensive Economic Partnership Agreement (CEPA). It is thought that the latter will raise India?s exports.
But the CII has also warned that this jump in commerce is predicated on the completion of trade facilitation and elimination of non-tariff barriers. To that might be added what the Japanese (rightly) feel are abysmal roads and freight carriage systems. That is the best reason to see how, by helping India with ODI or investment in infrastructure, they are also helping themselves. The two sides even plan to discuss Japanese investment in the industrial corridor that has been planned between New Delhi and Mumbai.
Interest of that sort gave a fillip to the bilateral relationship. It was boosted in fiscal 2007-08 during which Japan earmarked 225 billion Yen (Rs 8,582 crore) for India to undertake nine new infrastructure projects. They include the Kolkata Metro Project, Phase-II of the Delhi Metro Project, the Hyderabad Outer Ring Road, Hogennakal water supply project, Tamil Nadu urban infrastructure project, Haryana transmission system project and UP forestry and poverty alleviation project. The Japanese government has also set aside funds for water supply and sewerage project in Goa, and the Maharashtra transmission system project.
In fact, in the May of this year New Delhi acknowledged it is negotiating with Japan for key infrastructure like a dedicated freight corridor, a Delhi-Mumbai Industrial Corridor, a Metro system for Chennai?apart from numerous other social and infrastructure investments spread over the current fiscal. Even on the investment front, Japan invested $1.49 billion in 2006-07 in India?or about three times more then the $514 million of the earlier fiscal. Finally, there is a need for greater agricultural exports to Japan.