Wednesday, 13 September 2017

India to finalise first defense purchase from Japan

By Aashi Sehrawat

Japanese Prime Minister, Shinzo Abe, is visiting India nearly two months after operationalisation of the historic Indo-Japan civil nuclear deal, which has added a new dimension to bilateral ties that could scarcely be imagined in the wake of the 2011 Fukushima tragedy.

Japan is now possibly India's closest strategic partner in the world, as both sides converge in their strategic and economic outlook. It will be in the field of defense and nuclear technologies that India and Japan hope to get to the next level. India is likely to finalise  the first defense purchases  from Japan, the US-2 amphibious plane that has been tossed around between the two governments for some years. Some element of "Make in India" may be introduced, but the two sides are looking at a future where joint development will be the key.

Japanese conglomerate Toshiba, which owns US-based Westinghouse, will have a major role when the US nuclear firm supplies technology for the set of six reactors in Andhra Pradesh following its bankruptcy. The finance for the project from the US Exim Bank remains intact and the initiative may kick-start only in 2018.

Countering China, India and Japan are teaming up to roll out big infrastructure and connectivity projects in Asian and African countries. The Asia-Africa growth corridor is slowly getting off the ground, and while it will never be as nimble as the Chinese OBOR, India and Japan are working on a different philosophy, involving more local interests and participation.

With the completion of the civil nuclear deal, India is looking at more collaboration with Japanese nuclear companies. The deal was finally signed between India and Japan in November 2016, and the Japanese parliament cleared it in June 2017.

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