Tuesday, June 16, 2009

INDO-JAPAN RELATION

India and Japan share a relation that has withstood testing times for a long period, latest being the Pokhran nuclear test after which there was a temporary cold phase in their bilateral relation.However the new millennium saw improvement of relation between these two countries with summit level talks and regular visit of dignitaries among the two nations.The situation shows signs of improvement with subsequent visits of the Premiers of both the nations.
India is the largest recipient of Japan's Official Development Assistance.Presently Japan occupies the third position in terms of FDI in India.Japan is the fifth largest trading partner of India and Indo-Japan trade volume has crossed $8 billion mark and the future looks promising in this regard.Japan has been one of the reasons behind phenomenal success of automobile and ancillary industries in India.Such level of cooperation is evident in political field as well with Japan collaborating with India for UN reforms in the recent past.
The recent visit of Indian PM Dr Manmohan Singh to Japan in October 2008 was a forward step towards better strategic ties among the nations.A landmark security pact was signed to bolster security cooperation.Though Japan remained non committal on Nuclear Supplier Group Waiver of India and no civilian nuclear agreement is on the cards,considering the size of India's market and her success as a democracy, Japan soon may reconsider its stance on nuclear cooperation with India.
However a landmark development between the two nations was the currency swap deal signed in June 2008, which will allow the two nations to swap yen and rupee against dollar up to a limit of $ 3 billion.
It must be said that there is still enough room for improvement of bilateral relation between the two and both the nations have to try harder to explore the possibilities of better cooperation and strategic ties.

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