Strategic dialouge Between india and japan
Co-operation in all Fields Except Civil Nuclear
- During the sixth Foreign Minister-level strategic dialogue, India and Japan to prepare a master plan for the industrial development of south India, especially areas around Chennai and Bangalore, and accelerate talks on export of rare earths to Japan. Another decision was to extend their dialogue to a code of conduct in outer space, cyber security and maritime issues, including security and freedom of navigation in the South China Sea. The talks also covered Japanese investment in high speed trains, the Delhi-Mumbai Industrial Corridor and the Dedicated Freight Corridor. While agreeing to step up interaction between the Coast Guards, India and Japan decided to hold their first-ever maritime exercises towards the middle of the year.
- Japan is interested in holding maritime exercises with India because of geo-political significance of location of India. It is situated on the sea lanes of communication which links Japan with the Middle East.]
- Both the leaders agreed to resume their dialogue on a civil nuclear agreement but the initial reaction from the principal interlocutors — Foreign Ministers S.M. Krishna and Koichiro Gemba — suggested that both sides were sticking to their earlier positions India insisting that its non-proliferation behaviour was impeccable enough to warrant the inking of the pact and Japan wanting India to comply with its promise of a ban on further nuclear testing made in the run-up to a clearance by the Nuclear Suppliers Group (NSG).
- A joint statement, after the Fifth Energy dialogue, mentioned in detail prospects of cooperation and ongoing projects in all segments but civil nuclear agreement.
- On civil nuclear agreement India says its clean non-proliferation record was good enough to restart civil nuclear talks, Japan feels that since India is not a signatory to the NPT, it should demonstrate its commitment to a ban on testing in words.
- Japanese companies have a virtual monopoly on supplying reactor vessels, a critical component of civil nuclear plants. Officials in the past said that without an India-Japan civil nuclear agreement, Japanese origin firms might not be able to supply components to French and American companies which had won orders to install nuclear plants in India.
- On the trade front, India has extended the validity of an earlier agreement to supply two million tonnes of iron ore per year. It will thus retain its foothold in the Japanese market despite supply disruptions due to court rulings and higher taxes. There is also domestic unease over exporting primary commodities that has led to India’s slipping from its position as the world’s top iron exporter to the third place.