Japan’s Economic Strategy in India: Issues and Prospects

The article is devoted to the characteristic features of Japan’s economic strategy in India. The transformation of the geopolitical and geoeconomic landscape has led to Japan’s increasing interest towards India which is now being the most desirable long-term destination for Japanese business. The significance of cooperation with India is determined by its potential of balancing the influence of China, the capacity of the domestic market, production conditions and geographical position, which opens up prospects for creating new value chains in the region of South and Southeast Asia, as well as accessing the markets of Africa and the Middle East. India is also an attractive in terms of human resources, primarily IT specialists. At the same time, economic advancement in India faces a number of problems, including underdeveloped transport and energy infrastructure, lack of transparency in the application of legislation, a confusing taxation system, etc. There are numerous issues that hinder economic cooperation, with trade relations being the "weak link", and some of the announced projects facing difficulties due to a number of economic and political factors. Tokyo's strategy is based on an "All Japan" approach that combines public funding and private investment. The strategic importance of India in the context of the implementation of the strategy of a Free and Open Indo-Pacific (FOIP) determines the high level of state involvement in the implementation of economic projects. Japan is a leading ODA donor for India and also one of the main investors in the Indian economy. It is investing to bring India up to the level of infrastructural equipment and technical development that meets the standards of Japanese business. One of the characteristic features of the Japanese strategy is the emphasis on the training of local specialists and managers, which will create the necessary conditions for the transfer of technology and the adoption of the Japanese management model.

Japan, India, Indo-Pacific region, infrastructure, economy, investment, partnership