5 South Asia

(1) India

India is now the world's most populous country, with the fifth largest economy, and is strengthening its presence in the international community. In domestic affairs, the third Modi administration was inaugurated in June following the 18th general election for the lower house. In terms of its economy, India has been achieving steady economic growth through various economic initiatives, including “Make in India, Make for the World.” 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, India hosted the Voice of Global South Summit, 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 one of the greatest potentials 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 2024, Japan and India had frequent high-level exchanges of views, including summit meetings. In March, the 16th Japan-India Foreign Ministers' Strategic Dialogue was held in Japan. Immediately following India's general election for the lower house in June, a Japan-India Summit Meeting was held on the sidelines of the G7 Apulia Summit in Italy. In August, the Third Japan-India “2+2” Foreign and Defence Ministerial Meeting was convened in India, during which both sides discussed on cooperation to realize FOIP, on bilateral security and defense collaboration, and on regional and international issues, and concurred to continue working closely. In September, Prime Minister Kishida held a Japan-India Summit Meeting on the occasion of the Japan-Australia-India-U.S. (Quad) Leaders' Meeting in the U.S. In October, on the margins of the ASEAN-related Summit Meetings in Laos, Prime Minister Ishiba and Prime Minister Modi held a Japan-India Summit Meeting at which they confirmed their intention to further promote cooperation in the fields of the economy, security, and people-to-people exchanges. Moreover, various meetings at the working level were convened between the two countries. A Japan-India Bilateral Consultations on Disarmament and Non-Proliferation was held in April, and in November the inaugural Japan-India Dialogue on Economic Security, including Strategic Trade and Technology, was convened.

Japan-India Summit Meeting (October 10, Vientiane, Laos; Photo: Official Website of the Prime Minister of Japan and His Cabinet)

(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. Regarding domestic affairs, a general election was held in February, with major political parties including the Pakistan Muslim League-Nawaz (PML-N) agreeing to form a coalition, and PML-N leader Shahbaz Sharif becoming Prime Minister. 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.

In relations with Japan, In October, the 8th Japan-Pakistan High-Level Economic Policy Dialogue was held, during which both sides exchanged views on the Government of Pakistan's reform initiatives and key priorities, measures to promote Pakistan's export and investment, and economic cooperation. In recent years, Japan has provided grant aid to Pakistan, mainly in the fields of health, water and sanitation, education, and disaster prevention. Most recently, Japan has concentrated its support on social sectors closely linked to people's livelihoods, namely disaster prevention and climate change, health, education, and water and sewerage, where Japan's strengths are most applicable. In the field of disaster prevention, following the 2022 floods in Pakistan, Japan provided an additional 77 million U.S. dollars in assistance, and in November the two countries signed and exchanged Notes concerning a Flood Management Enhancement Project in the Indus River Basin. In the health sector, in December the two countries signed and exchanged Notes regarding a Project for the Recovery of Maternal and Child Health Equipment in Flood-Affected and Surrounding Areas.

(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 5.78% in 2023). 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. In domestic affairs, following the political upheaval in August, former Prime Minister Sheikh Hasina, who had led the government for over fifteen years, stepped down, and the Interim Government was formed under Chief Adviser Muhammad Yunus. Chief Adviser Yunus has pledged that, after implementing necessary reforms to state systems, a free, fair, and participatory election will be held at the earliest possible opportunity. Additionally, with the deterioration in peace and order in Rakhine State of Myanmar in August 2017, more than 750,000 displaced persons have flooded into Bangladesh, 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.

As for relations with Japan, under the “Strategic Partnership,” in March the two countries have decided to launch negotiations for the Japan-Bangladesh Economic Partnership Agreement (EPA), holding the first round of negotiations in May, the second round in November, and the third round in December. The number of Japanese affiliated companies operating in the country has increased from 61 in 2005 to 315 in 2023. 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, Parliamentary Vice-Minister for Foreign Affairs, HOSAKA Yasushi visited Bangladesh to attend the 30th anniversary of the International Conference on Population and Development (ICPD30) Global Dialogue in May, and the 5th Japan-Bangladesh Foreign Secretary Level Consultation was held in June.

Parliamentary Vice-Minister for Foreign Affairs HOSAKA Yasushi delivering remarks at the opening ceremony for the International Conference on Population and Development (ICPD30) Global Dialogue (May 15, Dhaka, Bangladesh)

(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. On the domestic front, the presidential election in September, Sri Lanka's first national election since the economic and political crisis of 2022, resulted in the victory of Anura Kumara Dissanayake, leader of the opposition coalition National People's Power (NPP) and chairman of the Janatha Vimukthi Peramuna (JVP), on a platform that included anti-corruption measures. In the subsequent parliamentary election in November, the NPP won 159 seats out of 225, more than two-thirds of the total, and secured a decisive victory. In the economic sphere, in July, the signing of a Memorandum of Understanding on debt restructuring was completed between Sri Lanka and the members of the creditor committee co-chaired by Japan, France, and India, and the Government of Sri Lanka's intention to swiftly conclude a bilateral agreement with Japan was confirmed in writing. In response, Japan resumed disbursements under existing yen-loan projects in Sri Lanka. In June, the International Monetary Fund provided a third tranche of approximately 330 million U.S. dollars under its Extended Fund Facility (EFF) for Sri Lanka. The Government of Sri Lanka continues to implement the various reforms required under the EFF programme. In its foreign policy, Sri Lanka fundamentally adheres to non-alignment and neutrality while placing importance on balanced diplomacy.

In relations with Japan, following on from 2023, 2024 also saw active visits by dignitaries: in May, Foreign Minister Kamikawa visited Sri Lanka, and in July, Foreign Minister M.U.M. Ali Sabry visited Japan, with a Japan-Sri Lanka Foreign Minister's Meeting being held on each occasion. In economic cooperation, development assistance with attention to inclusivity and vulnerability reduction have been prioritized, with improving livelihoods in conflict‐affected areas and addressing climate change and disaster prevention presenting ongoing challenges. In this context, in March, Japan and Sri Lanka signed and exchanged Notes on the Japanese Grant Aid for the “Economic and Social Development Plan,” including the provision of equipment to support women in the Northern Province and oil‐spill response equipment.

(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, who assumed his post in December 2022, maintained his government through coalition reshuffles, but in July the Communist Party of Nepal (Unified Marxist-Leninist) (UML) withdrew from the administration and announced plans to work with the largest opposition, the Nepali Congress Party (NC), to form a new government. Consequently, Prime Minister Dahal's third coalition collapsed, and party chair KP Sharma Oli (UML), backed by the UML, the NC, and other parties holding a majority in the House of Representatives, was appointed as Prime Minister. Economically, Nepal's growth rate from 2023 to 2024 remained at 2%, and escaping from low growth has remained a challenge. In foreign affairs, Nepal traditionally adheres to non‐alignment and neutrality, maintains strong economic and cultural ties with India, and also sustains good relations with China.

As for Nepal's relationship with Japan, the two countries have traditionally built friendly relations over many years through people-to-people exchanges such as mountaineering, and recently the number of Nepalese people studying Japanese has been increasing. As of 2024, over 200,000 Nepalese people reside in Japan and are active in various fields. In May, Foreign Minister Kamikawa visited Nepal for the first time in five years as Foreign Minister. 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 April, excavation was completed on the 2,688-meter Nagdhunga main Tunnel, the first mountain transportation tunnel in Nepal. Upon its opening in 2026, the tunnel is expected to streamline the region's transport network, accommodate rapidly growing traffic demand, shorten travel times, and enhance safety, thereby contributing to the social and economic development of the surrounding area.

(6) Bhutan

Bhutan is a landlocked country located between China and India. Guided by its Gross National Happiness (GNH)⁽²⁷⁾ framework, Bhutan's 13th Five-Year Plan (2024-2029) adopts a ten-year strategic roadmap aimed at transforming the economy into a high-income GNH model by 2034 and achieving a target GDP of 5 billion U.S. dollars by 2029. Under this plan, the Government of Bhutan is working to strengthen equitable, high-quality healthcare and education, safeguard sovereignty and territorial integrity, establish a trusted governance ecosystem, and accelerate economic growth. In domestic affairs, a general election for the lower house of Parliament was held in January, 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 56 countries, including Japan, the EU, and neighboring countries, and has close ties with India in areas such as national defense. Relations with Japan are marked by a rich history of exchanges between the Japanese Imperial Family and the Bhutanese Royal Family.

• (27) Gross National Happiness (GNH): A unique concept proposed by the Royal Government of Bhutan in contrast to Gross National Product (GNP). It reexamines an excessive focus on economic growth and development and emphasizes the importance of development that contributes to the happiness of the people, based on four pillars: (a) Economic growth and development, (b) Preservation of cultural heritage and promotion of traditional culture, (c) Conservation and sustainable use of a rich natural environment, (d) Good governance.

(7) The Maldives

Situated in a strategically important location on sea lanes, the Maldives is an important partner to Japan in realizing FOIP. On the domestic front, following the presidential election held in September 2023, President Mohamed Muizzu's administration took office in November 2023. In the parliamentary election conducted in April, the ruling People's National Congress (PNC) secured two‐thirds of the seats, thereby consolidating President Muizzu's governing mandate. Economically, 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. In foreign affairs, President Muizzu has pursued a policy of balanced diplomacy since taking office.

In terms of relations with Japan, 2023 saw reciprocal visits between the two countries' foreign ministers, and, at the Japan-Maldives Foreign Ministers' Meeting in July 2023, both sides concurred to advance bilateral cooperation across a wide range of fields. Given the Maldives' strategic location in the Indian Ocean, it provides a vital staging point for Japanese Self-Defense Force ships and aircraft operating overseas; in March, the destroyer JS Akebono made a port call in Malé. Additionally, in economic cooperation, in March Japan and the Maldives signed and exchanged notes for grant assistance aimed at strengthening maritime security, including the grant of one customs patrol craft.