INDIA JAPAN GOVERNMENT TO GOVERNMENT BUSINESS
1. In the year 2007, the Japanese Self-Defence Forces and the Indian Navy took part in a joint naval exercise in the Indian Ocean,
known as Malabar 2007. The year 2007 was declared India-Japan Friendship Year.
2. Japan-India Act East Forum
Embassy of Japan in India and Ministry of External Affairs (MEA) inaugurated “Japan-India Act East Forum”. Ambassador Kenji Hiramatsu
and Foreign Secretary S. Jaishankar attended the inauguration ceremony and first meeting of the Forum at MEA.
The Forum aims to expand the cooperation between Japan and India in the North Eastern Region (NER) to strengthen the relationship between
Japan and the NER, as well as that between Japan and India. In this regard, the Forum discusses cooperation in various fields and
promotes Japan’s cooperation in the NER.
The Forum is comprised of Embassy of Japan and other government-affiliated Japanese organizations based in New Delhi from Japan’s side;
MEA and other relevant government offices as well as State governments of the NER from India’s side.
The two governments signed the Memorandum of Cooperation on the establishment of “Act East Forum” when Japanese Prime Minister Shinzo
Abe visited Ahmadabad with a view to strengthening the existing framework, “Coordination Forum for Development of North Eastern Region”
which was jointly established.
Ambassador Hiramatsu, in his inaugural address emphasized that Japan places special focus on cooperation in the NER as the region is
located where Japan’s “Free and Open Indo-Pacific Strategy” and India’s “Act East Policy” converge and as the region is important in
terms of connectivity with South Asia, Southeast Asia and BIMSTEC countries.
Moreover, referring to historical ties between Japan and the NER, Ambassador Hiramatsu mentioned that Japan is happy to expand the
cooperation not only in hard infrastructure development, such as road network connectivity, electricity, water supply and sewage, but
also in cultural schemes like people-to-people exchange, Japanese language education and sports exchange; and in social and
environmental sustainability projects, such as afforestation and community empowerment.
At the Forum, participants discuss the areas of possible cooperation with Japan, such as connectivity road infrastructure, tourism,
electricity, people-to-people exchange and capacity development. Japanese side explained its efforts to support disaster management.
3. Japan for India’s North East
In August 2017, the two Countries announced the establishment of the Japan-India Coordination Forum (JICF) for Development of
North-Eastern Region, described by India as "a coordination forum to identify priority development areas of cooperation for development"
of northeast India.
Both the Prime Ministers welcomed the India-Japan cooperation on development of India’s North Eastern Region (NER) as a concrete symbol
of developing synergies between India’s Act East policy and Japan’s Free and Open Indo Pacific Strategy. In this context, they noted
with satisfaction the setting up of the India-Japan Act East Forum. They appreciated the cooperation between Japan and North Eastern
Region of India, ranging from key infrastructure such as road connectivity, electricity, water supply and sewage, to social and
environmental sustainability such as afforestation and community empowerment, as well as people-to-people exchanges including the "IRIS
Program” inviting youth from the NER to Japan.
4. India Japan 2016 Nuclear Deal
In November 2016, Indian Prime Minister Narendra Modi on a three-day visit to Japan signed a deal with his counterpart Shinzo Abe on
nuclear energy. This is the first time that Japan signed such deal with a non-signatory of Non-Proliferation Treaty. The deal gives
Japan the right to supply nuclear reactors, fuel and technology, to India.
5. Japan International Cooperation Agency (JICA) and DMRC
JICA had sanctioned a loan of Rs.6434.06crore for Delhi Metro's Phase – I project on an annual interest of 1.30-2.30 per cent. Phase –
I was completed in 2002 with a total completion cost of Rs.10, 571 Crores out of which 60 per cent was financed by JICA.
The total cost for Phase – II is approximately Rs.20, 000 Crores and JICA financed 49.19 per cent of this project. For DMRC's Phase –
II JICA has sanctioned a loan amount of Rs.9686.69 Crore on an annual interest of 1.20-1.40 per cent. The loan payback period for both
Phase – I and II is 30 years with a moratorium of 10 years. Hence, DMRC can pay back the loan for Phase – I by 2035 and for Phase – II
Japan decided to fund Delhi Metro's Phase III despite its commitment in the wake of the deadly earthquake and tsunami that rocked the
Country in 2011.
6. The MAHSR project
Japan sanctioned 100 billion yen as the first ODA loan for the MAHSR project. The construction of the HSR training institute in Vadodara
was also started. The commencement of the JICA technical cooperation program for the capacity development of the National High Speed
Rail Corporation was apprecated.
Prime Minister Narendra Modi appreciated the provision of ODA loan to the following projects, in addition to the Mumbai-Ahmedabad High
Speed Railway (MAHSR) Project and its related training institute:
- Project for upgradation of environmental management for ship recycling in Alang and Sosiya in Gujarat.
- North east road network connectivity improvement project.
- Kolkata east-west metro project.
- Gujarat investment promotion program.
7. DMIC Delhi Mumbai Industrial Corridor
A US $90 Bn. Delhi–Mumbai Industrial Corridor (DMIC) project was signed in 2006. The key agenda of the DMIC project involves the
development of nine industrial zones; a high-speed freight line; three ports; six airports; a six-lane intersection-free expressway;
and a 4,000-megawatt power plant. The project agreement is highly promising in the environment of the new manufacturing policy whereby
India is targeting to increase the share of manufacturing in GDP to 25 percent within a decade, potentially creating 100 million jobs.