Recommendations of the Indo-Japan Symposium
- Vision 2000 and Beyond -

February 10, 1997

Against the background of fundamental changes taking place in the world toward globalization, the economic liberalization process set in motion in India since 1991 has created opportunities for India and Japan to significantly expand and strengthen their relations in the economic, business, political, and cultural spheres. The burgeoning interest, spurred by India's economic liberalization, has led to a dramatic increase in Japanese direct investment to India. The impressive participation by Japanese companies in the IETF '97, the largest ever by any country in this trade fair, testifies to this interest and the expectations of the Japanese toward India becoming an important business partner.

Taking advantage of this significant occasion of Japan's participation in the IETF '97 as partner country, the Indo-Japan Symposium - Vision 2000 and Beyond - was organized jointly by the CII, ICRIER, Nihon Keizai Shimbun, Inc., and the Embassy of Japan, with the participation of eminent persons from various spheres in the two countries. The symposium was catalytic in fostering innovative ideas for charting a comprehensive India-Japan relationship toward the 21st century. Suggestions and recommendations, as made by the Indian and Japanese participants during the course of the discussions, are summarized as follows:

1. While appreciating the immense potential of the Indian economy and India's efforts toward economic liberalization, the participants urged India to further liberalize and open up its economy to promote free trade and investment regimes, so that foreign nationals can also effectively and fruitfully participate in the development efforts of India. The symposium also noted that the economic reforms underway in Japan are not only important for the health of the Japanese economy but also will have far-reaching benefits for the economies of the region, including India.
2. It was agreed that the major disincentive to foreign investment was the inadequacy of the infrastructure, such as power, roads, ports, and telecommunications. It was recommended that Japan should continue to provide support through official development assistance to India for the development of infrastructure. In view of the magnitude of the total investment required in this area, private-sector participation is deemed essential. Toward encouraging participation of the Japanese private-sector, India was urged to implement reforms in the related PSUs, both at the central and the state levels, under a time-bound program, and to offer further incentives for investment in this area. In this context, a concrete suggestion was made for creation of 20,000 MW capacity in electric energy through the joint efforts of India and Japan. Japan, for its part, was urged to review its facilities and mechanisms for development cooperation with a view to widening their scope for supporting private-sector investments in infrastructure.
3. The Government of India and business circles in India can gainfully draw useful lessons from the success stories of the East and Southeast Asian countries. The new business entrants from Japan likewise can learn from the successful joint ventures between Japanese and Indian companies. In this connection the successful cooperation exemplified by the Maruti-Suzuki venture holds useful lessons.
4. In view of the growing integration of the two countries in the Asia-Pacific region, which has become the world center of economic growth, their bilateral relationship should be viewed in the wider regional context. Greater integration of the Indian economy with the Asia-Pacific region would benefit not only India but also the Asia-Pacific economies. The member economies of the Asia-Pacific Economic Cooperation forum should seriously consider India joining that forum in the near future.
5. India, as a member of the South Asian Association for Regional Cooperation, and a full dialogue partner of the Post-Ministerial Conference of the Association of Southeast Asian Nations, can serve as an important link between these two regional frameworks. The linkage and cooperation in various areas between the two organizations would surely be beneficial to these organizations and their members, and this could become a good example of inter-regional as well as South-to-South cooperation. Japan, which has established a Japan Special Fund for SAARC, could play a useful supportive role in the process of activating cooperation among its member countries. Japan, in cooperation with the countries in this region, should take up, in a more concrete manner, projects whose benefits could be shared widely by the countries in the region.
6. The importance of political and cultural relations between the two countries was also stressed during the course of discussion, since they are essential to widening and deepening mutual understanding between both peoples and vital to sustainable friendly relations. In that connection, the importance of Indian students learning the Japanese language and their employment with business houses was considered extremely useful. Also, frequent visits by political leaders between the two countries were strongly recommended. It was noted that the Japan-India Parliamentarians' Friendship Association has recently been activated in Japan and that similar initiatives in India could strengthen Indo-Japanese cooperation.
7. Various suggestions were also made for the expansion of cultural and academic exchanges between the two countries. Existing exchange programs were considered too small and inadequate for countries like India and Japan. In this context significant expansion in personnel as well as budget provisions is deemed necessary. Establishment of an Indo-Japan Center in Delhi, with joint efforts of the two countries, was recommended to promote grass-roots exchanges. Tourism, being a free and effective channel for people-to-people contact, should be given greater attention and encouragement. Priority needs to be accorded to the upgrading and development of infrastructure at popular tourist places in India. Japan should strengthen the grass-roots grant assistance to nongovernmental organizations in India, which in addition to poverty alleviation, promote mutual understanding of the two countries at the ordinary-people level.
8. The preservation and restoration of cultural heritage sites is a collective responsibility of the human race. Japan has cooperated with India through ODA loan assistance and the UNESCO/Japanese Trust Fund for the preservation of cultural heritage sites in India, notably the Ajanta Ellora caves and the Sanchi group of monuments. Japan, which like other countries throughout Asia has enriched its culture over the centuries by absorbing from diverse sources, prominently from India among them, should continue its active cooperation in this field.
9. India and Japan, both advanced in science and technology, should further enhance cooperation in this area, which could be a significant driving force for economic development. Since the liberalization of the Indian economy, S&T cooperation at the private-sector level between the two countries has assumed greater importance and relevance. With a view to facilitating cooperation and ensuring the smooth transfer of technology, the two governments were urged to frame and introduce suitable policies and measures. Also, the importance of Japanese management systems and their transmission was emphasized.
10. India and Japan, as the two largest democracies in Asia, are expected to play an active role in the maintenance and promotion of peace and prosperity in Asia and the world. In order that the two countries meet such expectations, continuous dialogues and extensive cooperation on a bilateral basis, as well as at international forums, such as the United Nations, should be further activated. India's participation in the ASEAN Regional Forum since last year has paved the way for regional-level cooperation in this area. Discussions at nongovernment levels between specialists, decision-makers and academxics of the two countries on political and security issues, both regional as well as global, need to be encouraged with the hope that those will provide inputs useful to the two governments.
11. India and Japan need to cooperate with each other in tackling global issues, such as protection and conservation of the environment, poverty alleviation, control of international terrorism, checks on narcotics abuse, and control of HIV/AIDS. In addition to financial and technical cooperation, the two countries should exchange information, experience, knowledge, and expertise, which in turn can be gainfully shared with other countries in the region and the globe.
12. Finally it was agreed that the discussions in the symposium were extremely useful and that the recommendations of the symposium should be conveyed to the relevant authorities in the two countries for consideration and appropriate action. The participants also expressed the desire that this dialogue should be continued hereafter in an institutionalized manner so as to crystallize ideas and ways for promoting bilateral relations between India and Japan.