Strengthening of Japan-India Technological and Economic Relations Would Strengthen the Four Power Cooperation

December 28, 2009 (LPAC)—According to Indian analysts and strategists, the three-day (Dec. 27-29) visit of Japanese Prime Minister Yukio Hatoyama to India is of crucial importance, as it envisions furthering India's economic and technological relations with Japan and bringing Japan further into the Four Power cooperation arrangement presented by Lyndon LaRouche.

A success in speeding up the Japan-India bilateral relations will surely enhance the potential to stabilize the vast and populous Eurasian land-mass.

The key items on the agenda are civil nuclear cooperation and security-related agreements. Last August, when the Indian Premier Manmohan Singh visited Tokyo, cooperation in the civil nuclear sector was in the fore. At the time, Kazuo Kodama, Japan's Foreign Ministry spokesperson, told Indo-Asian News Service (IANS) that "Japan intends to actively participate in the civil nuclear program" of India. Addressing the press in New Delhi a day before Prime Minister Hatoyama's arrival, India's External Affairs Ministry spokesman Vishnu Prakash said: "Energy security is a very important area for us. Both sides agree that nuclear energy is a safe, non-polluting, and renewable source of energy. Both sides have exchanged views on nuclear energy policy and we will be happy to take the process forward."

Meanwhile, India's financial daily, Economic Times, in covering the Japanese premier's visit, pointed out that India has become the most-sought destination for foreign investment by Japanese companies, next to China.

According to a recent survey by the Japan Bank for International Cooperation covering 620 leading Japanese manufacturing companies, 278, or 58%, wanted to do business with India in the medium term, behind 74% for China. Japanese interest includes such sectors as automobiles, IT, infrastructure, steel, power and pharmaceuticals. Japanese companies invested only Rs3.82 billion in India in 2006-07. This rose to Rs33.86 billion in 2007-08 and then dipped to Rs18.89 billion in 2008-09. Up to this September, the FDI inflow from Japan has touched Rs38.57 billion, the highest ever in a year.

Besides money, Japan's advanced technologies are also flowing to India. Of the 8,000-plus foreign technology transfers so far approved by the Indian government, Japan accounts for 10.88%, with 879 approvals, in third position behind the U.S. and Germany.