India and Japan Solidify Strategic Alliance at G7 Summit

The G7 Summit in Apulia, Italy, presented an opportunity for the leaders of the G7 countries to thrash out solutions to the problems affecting both the developed and the developing world. While India is not part of the G7, Prime Minister Narendra Modi was invited as part of the outreach of the G7. Alongside India, several other leaders from non-G7 countries were also invited. These included President Recep Tayyip Erdogan of Turkey, Crown Prince Mohammed bin Salman of Saudi Arabia, UAE President Sheikh Mohamed bin Zayed Al Nahyan, Brazilian President Luiz Inacio Lula da Silva, and Argentine President Javier Milei. 

For Modi, this trip was very significant. It came on the heels of his reelection as the PM for the third time after the victory of the BJP-led coalition in the Indian General Elections, which ended on June 1.

Reaffirming Cooperation

On the sidelines of this G7 Summit, Modi met his Japanese counterpart, Fumio Kishida. During their interaction, the two leaders stressed the importance of a free and open Indo-Pacific (FOIP). 

A press release from the Indian Press Information Bureau noted that PM Modi "affirmed that bilateral ties with Japan will continue to receive priority in his third term. The two leaders noted that the India-Japan Special Strategic and Global Partnership is in its 10th year and expressed satisfaction at the progress made in the relationship."

It is worth mentioning that India and Japan already have an annual summit at the prime minister level. For the summit in 2023, Kishida came to India. In a landmark speech made before the Indian Council of World Affairs, Prime Minister Kishida laid down the "four pillars of cooperation for FOIP." 

Challenges

However, there are certain areas where the G7 countries and India do not see eye to eye. This could create problems for India and the rest of the G7 countries.

These include the issue of Russia, as New Delhi has close ties with Moscow. A second area of divergence is that of Canada (a G7 country), with which India has had gradually deteriorating relations. This could become a sore thumb. 

Russia is India's biggest weapons supplier right now. Although India now purchases defense weaponry from a wide variety of sources, Russia still remains its biggest supplier.

Another challenge could be in the field of environment. India has not agreed to binding emissions cuts under the Paris Accords since it is a developing country. In this case, its stance is more similar to China, which is also not part of the G7.

Furthermore, cooperation in the field of defense technology transfer could also be tricky. Japan and India could not agree on the much-talked-about deal for India's purchase of ShinMaywa maritime reconnaissance aircraft.

Major Areas of Cooperation Between Japan and India

Nevertheless, India and Japan collaborate in several important areas, including the Mumbai-Ahmedabad High-Speed Rail project. Further collaboration includes the targeted ¥5 trillion JPY ($31 billion USD) worth of Japanese investment in India between 2022 and 2027 and the India-Japan Industrial Competitiveness Partnership. 

Japan-India cooperation is key, especially in the field of infrastructure, where India has been trying to make rapid strides. Besides, India has a huge population, especially in the cities. 

China has stolen a march over India and possibly over Japan, too, especially in the field of infrastructure. Therefore, now is the time for Japan and India to join hands. In addition, Japan has a lead in promoting green development initiatives. Since India faces huge environmental challenges too, Japan can be a preferred partner. 

Japan and India are also cooperating in Northeast India, which is very significant. No other foreign nations have been welcomed into this part of the country. In addition, Japan and India collaborate in the field of infrastructure in third countries like Sri Lanka.

The Road Ahead

India is also part of the Quad along with Japan, the United States, and Australia. There are many avenues for cooperation for these countries. With the US, too, India has been gradually improving relations. 

For the G7 countries, India is important from an economic point of view. During the 2023 Summit in Hiroshima, the G7 countries talked about de-risking from China. If that were to happen, India would be an important economic player as the fastest-growing major economy in the world. India is already the fifth-largest economy in the world and is poised to become the fourth-largest economy in the world by 2025, overtaking Japan.

Although Japan's biggest trading partner is China, things seem to be going very badly on the political front. Recently, there have been attacks on Japanese citizens in China, while companies like Nissan have been forced to shut factories in China. Hence, Japanese companies are branching out to ASEAN countries and India in a sign of the times.

India has been successful in driving a digital transformation, fostering a vibrant startup ecosystem, and leading initiatives in renewable energy, especially in the field of solar power. All these can help push the G7's agenda on economic growth, innovation, and climate action. As seen during the pandemic, India's capabilities in the pharmaceutical and vaccine production sectors can bolster global health security and pandemic preparedness.

The meeting between the Indian and Japanese prime ministers in Italy helped to add momentum to bilateral ties.

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Author: Rupakjyoti Borah
Dr Rupakjyoti Borah is a Senior Research Fellow with the Japan Forum for Strategic Studies. The views expressed here are personal.