BOTH INDIA and Japan are heavily energydeficient countries. Both rely on massive imports from the Gulf region and therefore it is in the interests of both to secure the sealanes leading from the Gulf to India and further beyond to the Pacific Ocean area. It would be natural if there is growing collaboration between the navies of the two countries as is happening now with joint naval exercises. Japan has lifted the ban on weapons exports. The joint declaration on security cooperation signed in 2008 led to a new stage in the Japan-India strategic and global partnership. However, what is still needed is the interoperability of weapons systems.
Japan is also stepping up its economic stake in India. A $15 billion currency swap arrangement has been agreed upon and Japan would also invest $4.5 billion in the dmic corridor as well as in Phase III of the Metro project. Japan is also willing to share its bullet train technology. Both countries have also entered into a comprehensive economic partnership agreement (CEPA) under which 90 per cent of bilateral trade is covered. India has agreed to step up export of rare earths to Japan.
Thus, as we enter into the New Year, fresh alignments seem to be emerging in Asia. The recent East Asia summit in Bali witnessed a striking development. On the issue of the South China Sea territorial dispute, almost all the countries including the US and India were united leaving China with the possible exceptions of Laos and Cambodia isolated. Chinas rise as a major military and economic power and its policy of flexing its muscles has induced most countries in southeast Asia to seek American security cover. It has also led them to come closer bilaterally. The recent trilateral meeting in Washington between India, Japan and the US had in the background the looming figure of China. How much forward movement, and at what pace the coming together of India and Japan, takes place would largely be determined by the policies China follows. For a rising superpower like China it must be galling to see that its only all-weather supporters in Asia are Pakistan and North Korea.
