11. The Japan-India Economic Partnership: A Politically Driven Process
- Author:
- Celine Pajon and Isabelle Saint-Mezard
- Publication Date:
- 09-2018
- Content Type:
- Policy Brief
- Institution:
- Institut français des relations internationales (IFRI)
- Abstract:
- In the last decade, the strengthening of the India-Japan strategic partnership has been primarily driven by geopolitical considerations, in an era of competing regional visions and influence. While bilateral relations have shown progress in terms of political values and interests, strategic convergence and military cooperation, their economic dimension has seemed to lag behind. While India has been one of the largest recipients of Japanese official development assistance (ODA) loans since 2003, it made up only 2.2% of Japan’s total overseas direct investment (ODI) flows in 2016. Moreover, the volume of bilateral trade has remained surprisingly modest. In other words, India and Japan still need to boost business links to give more substance to their bilateral partnership as well as support India’s robust and long-term development and economic growth, as Japan needs a strong democratic partner in Asia. The objective is highly political. Japan and India are eager to develop their partnership as a balancing act vis-à-vis China. If they are to fulfill their ambitious geopolitical visions, they also need to promote cooperation in third countries.
- Topic:
- Bilateral Relations, Infrastructure, Geopolitics, Economic Cooperation, and Economic Diplomacy
- Political Geography:
- Japan, India, and Asia