Authors: Gitanjali Sinha Roy and Tridivesh Singh Maini
India-Japan relations have evolved over a long period of time. This relationship has seen many transitions at the bilateral level and due to greater cooperation, State Governments are also working with them. JICA has been playing a vital role in these cooperations.
Introduction
The India-Japan bilateral relationship is truly multi-faceted. The association between both countries can be traced to close historical and civilisational interlinkages. A more formal approach between them was seen in 1952 with the establishment of diplomatic relations. The relationship between India and Japan gradually developed in the domain of economic relations, with the economic reforms of 1991 giving a strong fillip to ties between both countries. Bilateral trade between both countries was estimated at $24 billion. In terms of FDI, Japan has invested $42 billion between April 2000 and March 2024.
Role of State governments in India-Japan ties
One of the important dimensions of the India-Japan relationship is the growing importance of state governments in the bilateral relationship. While current Indian PM Narendra Modi visited Japan as Chief Minister of Gujarat in 2012. In recent years, several CM’s have visited Japan. In 2016, then Haryana CM Manohar Lal Khattar visited Japan while in 2018, Bihar CM Nitish Kumar visited Japan. For long, Japanese investments have been concentrated in a few states; Haryana, Maharashtra, Telangana, Andhra Pradesh (AP), Karnataka but in recent years it has been trying to tap opportunities in other Indian states – especially in the Northeast. Only recently, Assam Chief Minister Himanta Biswa Sarma also visited Japan.
In a tweet, highlighted Assam’s economic achievements in recent years and the potential role of the North-Eastern state in strengthening ties between India and Japan the Assam CM said:
“I spoke to over 160 Japanese business leaders on Assam’s economic miracle and ease-of-doing business…. look forward to Assam playing a catalysing effect on the strong economic bond between India and Japan,”
Madhya Pradesh CM, Mohan Yadav is also embarking upon a visit to Japan beginning January 27, 2025.
Japanese prefectures and India-Japan ties
There has also been a growing trend of Japanese prefectures (the equivalent of Indian states) visiting India. In December 2024, Andhra Pradesh and Toyama renewed the Memorandum of Understanding (MoU) to strengthen bilateral relations and promote cooperation in several areas including; manufacturing, pharmaceuticals and digital innovation sectors. The MOU was signed between both sides during the visit of a delegation led by Toyama Governor Hachiro Nitta. During the visit of a delegation led by Kotaro Nagasaki, Governor of Yamanashi, MOUs were signed between the state of Uttar Pradesh (UP) and Yamanashi
JICA’s role in promoting Japan-India relations
Here, it would also be important to point out that the Japan International Cooperation Agency (JICA), the Japan Government’s overseas lending arm has been contributing and cooperating in several states where they have focused on the various types of development approach for the improvement of the standards of living of people. Quality infrastructure is another arena where JICA focuses on projects of railways, roadways, water sanitation, power, hospitals and conservation of the environment. Partnerships with JICA have led to important projects like the Delhi Metro and there are ongoing projects like the Dedicated Freight Corridor between Delhi and Mumbai and Mumbai-Ahmedabad High Speed Rail.
How JICA is investing in projects linked to India’s ‘Act East’ and Japan’s ‘Free and Open Indo Pacific’ policy. It would be pertinent to point out that in December 2017, India and Japan established the Act East Forum, which seeks to provide a platform for India-Japan collaboration under the rubric of India’s Act East Policy and Japan’s Vision of a Free and Open Indo-Pacific.
The efforts of JICA have ventured into deeper areas of cooperation through various regions of India like Northeast India. JICA has been actively working in Northeastern states of India like Sikkim, Meghalaya, Assam, Tripura and Nagaland and this effort is supported by the Japan India Act East Forum catering to India’s Act East Policy and Japan’s Free and Open Indo-Pacific. In recent years, both countries have been cooperating across the Bay of Bengal Region. In 2023, Bangladesh, Japan and India held a conclave in Agartala (Tripura, India) on 11-12 April to put in place connectivity initiatives to benefit from the geographical location of the Northeast. Then Japan PM, Fumio Kishida while mooting the idea of an industrial chain linking Northeastern India and Bangladesh during a speech delivered in New Delhi said:
“Viewing Bangladesh and other areas to the south as a single economic zone, we will promote the Bay of Bengal-Northeast India industrial value chain concept in cooperation with India and Bangladesh to foster the growth of the entire region,”
In conclusion, states are likely to play a crucial role in ties with Japan. Apart from FDI, it is important to bear in mind the role of India’s states in cooperation under the umbrella of the Free and Open Indo Pacific (FOIP). Another important trend is that Japan is beginning to show interest in states where it had not explored opportunities earlier.