Chapter 2
Resilient and Unwavering Regional Diplomacy
5 South Asia
(1) India
India is now the world's most populous country, with the fifth largest economy, and is increasingly strengthening its presence in the international community. In terms of its economy, India has been achieving steady economic growth through various economic initiatives, including “Make in India.” In diplomatic relations, India has been actively developing diplomacy, primarily in the Indo-Pacific region, under the “Act East” policy that it has laid down. In addition, as the G20 Presidency in 2023, India has been positioning itself as a voice for the “Global South” and is increasingly exerting influence in the international arena as a global power.
Japan and India are the two largest democratic countries in Asia, sharing common fundamental values as well as strategic interests. Under the “Japan-India Special Strategic and Global Partnership,” the two countries have broadly deepened cooperation in their economies, security, people-to-people exchanges, etc. Additionally, India is an important partner in realizing a “Free and Open Indo-Pacific (FOIP),” and multilateral cooperation, such as between Japan, Australia, India, and the U.S., is steadily progressing. The deepening of bilateral and multilateral cooperation between Japan, which faces the Pacific Ocean, and India, which is located in the center of the Indian Ocean, will greatly contribute to the peace and prosperity of the Indo-Pacific region. The Japan-India relationship is blessed with the greatest potential for development of any bilateral relationship in the world, and its importance is increasing as the uncertainty of the existing international order increases. India is also an indispensable player in building the economic order in the Indo-Pacific region, and in that sense, it is expected that India will return to the Regional Comprehensive Economic Partnership (RCEP) Agreement in the future.
In 2023, Japan and India had frequent high-level exchanges of views, including summit meetings. A Japan-India Foreign Ministers' Meeting was held in India in March on the occasion of the Japan-Australia-India-U.S. (Quad) Foreign Ministers' Meeting. In addition, during his visit to India in March, Prime Minister Kishida and Prime Minister Narendra Modi confirmed their commitment to discuss and work together on various issues in the international community as Japan and India serve as the G7 Presidency and the G20 Presidency, respectively. With regard to bilateral relations, the two leaders discussed the progress they had made so far and future cooperation in the fields of security, economic cooperation, and people-to-people exchanges. At the Japan-India Summit Meeting held during the G7 Hiroshima Summit in May, the two leaders shared a recognition on the importance of FOIP and confirmed that they would advance cooperation in various fields. In addition to the 15th Japan-India Foreign Ministers' Strategic Dialogue that was held in New Delhi in July, a Japan-India Summit Meeting was held at the G20 New Delhi Summit in September and a Japan-India Foreign Ministers' Meeting was held at the UN General Assembly in New York in September. Furthermore, a number of working-level discussions have been held between Japan and India, and in September, the 16th Joint Committee Meeting on Mumbai-Ahmedabad High-Speed Railway and the Fifth Japan-India Cyber Dialogue were held.
Japan-India Summit Meeting (March 20, Delhi, India; Photo: Cabinet Public Affairs Office)
(2) Pakistan
Pakistan is situated in a strategic location connecting Asia and the Middle East, and its political stability and economic development are essential for the stability and growth of the region. The country has a population of more than 200 million and approximately 65% of the total population is under 30 years old, which makes its economic potential high, although the government faces challenges in its fiscal situation and in overcoming low growth.
In terms of foreign relations, the India-Pakistan relationship has remained tense. Under the “All Weather Strategic Cooperative Partnership,” Pakistan's relationship with China has been enhanced in a wide range of fields, including the construction of an economic corridor between China and Pakistan (CPEC), which is an important constituent element of China's “Belt and Road” initiative. On the domestic political front, the coalition government led by Prime Minister Mian Muhammad Shehbaz Sharif dissolved the lower house of the National Assembly in August, and a caretaker government led by Prime Minister Anwaar-ul-Haq Kakar was formed to oversee elections. For the general election in February 2024, Japan dispatched an election observer mission led by Ambassador of Japan to Pakistan WADA Mitsuhiro.
As for relations with Japan, Foreign Minister Hayashi held a Japan-Pakistan Foreign Ministers' Meeting in July when Minister of Foreign Affairs Bilawal Bhutto Zardari visited Japan. At the meeting, Foreign Minister Hayashi welcomed Minister of Foreign Affairs Bhutto's visit to Japan, the first visit by a Pakistani Foreign Minister in four years, and the two ministers concurred to further develop the two countries' traditional friendship in all fields. Prior to this meeting, the 12th Japan-Pakistan Vice-Ministerial-level Political Consultation was held in June.
In recent years, Japan has provided grant aid to Pakistan, mainly in the fields of health, water and sanitation, education, and disaster prevention. In 2022, Japan provided emergency relief supplies and emergency grant aid as support for the flood damage that had occurred that year. In addition, at the International Conference on Climate Resilient Pakistan that was held in Geneva in January, Japan announced that it would provide approximately 77 million U.S. dollars in assistance, including in the areas of disaster prevention, health and medical care, and agriculture, and has been steadily implementing this aid.
(3) Bangladesh
Bangladesh, in which Muslims account for around 90% of the population, is located in the Bay of Bengal, at the intersection between India and ASEAN, and in recent years has been experiencing sustained and stable growth (economic growth rate of 7.1% in 2022). With a population of around 170 million people, Bangladesh has drawn attention as a production base with abundant high-quality labor and as a potential market with considerable infrastructure demand, and the number of Japanese affiliated companies developing business in the country has increased from 61 in 2005 to 302 in 2022. Securing a stable supply of electric power as well as infrastructure improvement remain challenges for foreign companies investing in the country, and Japan has also been supporting its development through the provision of yen loans and other means. Additionally, with the deterioration in peace and order in Rakhine State of Myanmar since August 2017, more than 700,000 displaced persons have flooded into Bangladesh (as of December 2023), but their return has not yet been realized. There are concerns that their prolonged displacement will put a growing burden on the host community and that local peace and order will deteriorate. In domestic affairs, the 12th general election was held in January 2024 and the Bangladesh Awami League, led by Prime Minister Sheikh Hasina, will continue to lead the government.
As for relations with Japan, Prime Minister Hasina made an Official Visit to Japan in April and then had a Summit Meeting with Prime Minister Kishida. On this occasion, the two leaders announced that they would elevate the bilateral relationship to a “Strategic Partnership.” Under this partnership, the two leaders also concurred on advancing cooperation in various fields, including the commencement of negotiations on the Agreement concerning the Transfer of Defense Equipment and Technology; strengthening security cooperation, including through the use of the “Official Security Assistance (OSA);” promoting joint studies on a possible Japan-Bangladesh Economic Partnership Agreement (EPA); strengthening cooperation under the “Industrial Value Chain” concept that connects the Bay of Bengal to the North Eastern region of India; the first bilateral friendship city affiliation agreement; and the resuming dispatches of Japan Overseas Cooperation Volunteers of JICA. In July, Japan-Bangladesh Foreign Ministers' Meeting was also held during the ASEAN-related Foreign Ministers' Meetings that were held in Indonesia. In addition to the 4th Japan-Bangladesh Foreign Secretary Level Consultation in February, Parliamentary Vice-Minister for Foreign Affairs TAKAGI Kei visited Bangladesh in May to attend the 6th Indian Ocean Conference and Parliamentary Vice-Minister for Foreign Affairs KOMURA Masahiro visited Bangladesh in October to attend the opening ceremony in Dhaka City for Hazrat Shahjalal International Airport's Terminal 3. In November, as one of the OSA's first fiscal year projects, there was also a signing and exchange of notes for the OSA grant aid on the provision of patrol boats (See the Special Feature on page 219).
Japan-Bangladesh Summit Meeting (April 26, Tokyo; Photo: Cabinet Public Affairs Office)
(4) Sri Lanka
Sri Lanka is situated in a strategic location on the sea lanes in the Indian Ocean, and its geopolitical importance is note-worthy. President Ranil Wickremesinghe, who was inaugurated in July 2022 after the resignation of the previous president following an economic crisis, has held discussions with the International Monetary Fund (IMF) to receive IMF assistance, and as a result, the Extended Fund Facility (EFF) with Sri Lanka was approved by the IMF Executive Board in March 2023, and the first contribution of approximately 330 million U.S. dollars was made. The Government of Sri Lanka is currently working on various reforms that are required by the EFF program. As for Sri Lanka's debt restructuring, an official creditor committee was launched in April under the co-chairmanship of Japan, France, and India. Since the first meeting in May, discussions have been held at various levels, and in November a basic agreement on debt restructuring was reached between the official creditor committee and the Government of Sri Lanka. On the economic front, Sri Lanka is gradually recovering from the 2022 economic crisis, and its inflation rate has fallen from 70% in September 2022 to 1.3% in September 2023.
In terms of relations with Japan, in February, State Minister for Foreign Affairs TAKEI Shunsuke attended the ceremony for the 75th Anniversary of Sri Lanka's Independence. Additionally, in May, President Wickremesinghe visited Japan and held a Summit Meeting with Prime Minister Kishida, where the two leaders confirmed the importance of transparent and fair debt restructuring. Furthermore, in July, Foreign Minister Hayashi visited Sri Lanka, and in October, Parliamentary Vice-Minister for Foreign Affairs Komura visited Sri Lanka to participate in the Indian Ocean Rim Association (IORA) Council of Ministers Meeting.
(5) Nepal
Nepal is an inland state in South Asia between the great powers of China and India, and has been moving forward as a democratic country since the promulgation of its new constitution in 2015. In domestic affairs, Prime Minister Pushpa Kamal Dahal assumed his post in December 2022 following the results of federal elections in November for the House of Representatives. Economically, Nepal is gradually recovering from the negative growth caused by the effects of COVID-19 pandemic, with an economic growth rate of 5.6% for 2021-2022, but escaping from low growth has remained a challenge.
As for Nepal's relationship with Japan, the two countries have traditionally built friendly relations through people-to-people exchanges such as mountaineering, and many Nepalese people live in Japan and are active in various fields. In April, the 4th Japan-Nepal Political Dialogue between the Ministries of Foreign Affairs was held. Japan has also been a major donor country to Nepal for many years, providing economic cooperation in a variety of fields, including the three priority areas of poverty reduction, disaster prevention and climate change countermeasures, and strengthening democratization. In particular, with regard to strengthening democracy in Nepal, where transition from a monarchy to a federal democracy took place in 2008, Japan has continued to provide support toward the consolidation of democratization and the strengthening of governance, such as by dispatching experts to assist in the improvement of legal system and the capacity of the media sector for peace building and promoting democratization, among others.
(6) Bhutan
Bhutan is a landlocked country located between China and India, and has close ties with Japan with a rich history of exchanges between the Japanese Imperial and Bhutanese Royal families. Bhutan sets Gross National Happiness (GNH) as a guideline of the administration and is working on the priority issues of reducing poverty, improving the quality of healthcare and education, gender equality, the preservation of the environment, culture and traditions, stabilization of the macroeconomy, etc., under the 12th Five-Year Plan (from July 2018 until June 2023). In domestic affairs, a general election for the lower house of Parliament was held in January 2024, in which the People's Democratic Party won, resulting in a change of government, and former Prime Minister Tshering Tobgay was then inaugurated for his second term as Prime Minister since 2014. In foreign affairs, Bhutan only has diplomatic relations with 54 countries, including Japan, the EU, and neighboring countries, and has close ties with India in areas such as national defense.
In its relations with Japan, Minister of the Environment NISHIMURA Akihiro visited Bhutan in July.
(7) The Maldives
Situated in a strategically important location on sea lanes, the Maldives is an important partner to Japan in realizing FOIP. The Maldives' primary industries are fishery and tourism, which account for about 30% of its GDP, and although it was affected by the spread of COVID-19, the country's per-capita GDP has reached the highest level in the South Asia region. Domestically, following the presidential election held in September, Mohamed Muizzu was inaugurated as President in November.
In terms of relations with Japan, in April, the 4th Round of Japan-Maldives Policy Dialogue was held, and in May, Minister of Foreign Affairs Abdulla Shahid visited Japan and had a Foreign Ministers' Meeting with Foreign Minister Hayashi. In July, Foreign Minister Hayashi visited the Maldives and met with Foreign Minister Shahid, and the two ministers concurred to develop the bilateral cooperation in wide-ranging fields. In September, an election observer mission led by State Minister for Foreign Affairs Takei visited the Maldives for the first round of the Maldives' presidential election. In November, Parliamentary Vice-Minister for Foreign Affairs Komura attended the Maldives' presidential inauguration as a Special Envoy of Prime Minister Kishida.
Parliamentary Vice-Minister for Foreign Affairs Komura pays a courtesy call to President Mohamed Muizzu as a Special Envoy of the Prime Minister of Japan (November 18, Maldives)