Both Japan and India are two of the oldest civilizations of the world with a shared past dating back to the time of Buddha. After India achieved independence, its first Prime Minister Nehru looked upon Japan as a friendly nation in Asia that could be counted upon to help India rebuild its industrial and agricultural base. Later, Japan and India entered into a formal diplomatic relationship in 1952 and cooperated with each other on a number of areas. Japan, on her part, was a member nation of the Aid India Consortium and has assisted India generously through ODA (Official Development Assistance), especially since the rise of the Japanese economy in the 1960s.

Since 1986, Japan has been India’s largest donor. As per available statistics, out of the total economic aid of US$2.5 billion that India received in 1997, Japan accounted for US$1.2 billion. Similarly, FDI inflows to India from Japan stood at US$14.5 billion in 2001 whereas the number of Japanese firms which had set up factories in India was 176 in 2002.

In the statement, Indo-Japan System- Vision 2000, it was agreed that the major disincentive to foreign investment was the inadequacy of the infrastructure, such as power, roads, sports, and telecommunications. It was recommended that Japan should continue to provide support through Official Development Assistance to India for the development of infrastructure. Secondly, Japan, in cooperation with India, has taken up projects whose benefits could be shared by millions of its people. Delhi’s Mass Rapid Transit System, the Simhadri Thermal Power Station Project and the Polio Immunization Program can be cited as models of such cooperation.  Thirdly, Prime Minister Yoshiro Mori’s visit to Bangalore in October 2000 to tap and court India’s software professionals, opened up new vistas in increasing collaboration in computer IT sector between the two countries.

Similarly, India, and Japan have played active role in the maintenance and promotion of peace and prosperity in Asia and the world. Mutual lobbying by both India and Japan for getting seats as permanent members in the UN Security Council can be viewed in this light.

On the issue of nuclear proliferation, however, India and Japan have differing perspectives. In view of the painful experience of Japan being the only country in the world where nuclear bombs have been used to devastating effect, Japan has been overtly sensitive to any issues related to nuclear proliferation.

When India and Pakistan went for nuclear tests in May 1998, Japan imposed severe economic sanctions on India and accused it of flagrant violations of the spirit of nuclear disarmament. However, due to India’s proactive stance in the context of post 9/11 and its efforts in rebuilding Afghanistan, Japan lifted the economic sanctions imposed on India on 26 October 2001.

The spirit of constructive dialogue has continued in the defense and military sectors as well. In June 2001, George Fernandes, India’s Defense Minister, visited Japan and had extensive, wide ranging dialogue with Tsutomo Kamura, Japan’s Defense Minister. It was followed soon thereafter by the visit of Gen. S. Padmanabhan, India’s Chief of Army Staff, to Japan. As a result of these meetings, India and Japan agreed to begin a series of comprehensive security dialogues. In particular, joint naval exercises aimed at exchanging data and experience on search and rescue operations and anti-piracy programmes on the high seas took place in Chennai in May 2001 and in Tokyo in October 2002. Such defense related dialogues have continued with the visit of Japanese Foreign Minister, Yoriko Kawaguchi and cabinet minister and Director General of Defense Agencies of Japan, Shigeru Ishiba, to India in January 2003 and May 2003 respectively.

In the aftermath of the terrorist incidents of 11 September 2001, both India and Japan have come closer in various facets of security perimeter affecting Central and South Asia. India has actively supported anti-terrorist stand taken by Japan and has lauded Japan's decision to send SDF (Self-Defense Force) to the Arabian Sea and the Indian Ocean regions. While making a historic trip to Japan from 7 to 11 December 2001, India's Prime Minister Vajpayee and Japanese Prime Minister Koizumi, have hoped for the mismatch between the depth of cultural and spiritual relations and the inadequacy of economic and business relations between the two countries to be removed and have reiterated strong determination to forge a global partnership in all aspects of India-Japan relationship within the framework of convergence of interests. With the expected victory of Junichiro Koizumi led LDP government in the 9 November 2003 election for the lower house of the Japanese Diet, it is expected that the long held asymmetrical relationship between India and Japan is about to change and if it happens, it will be a win-win bonanza for both the countries and its peoples.