In his book, Towards a Beautiful Country, published in July 2006, Prime Minister Shinzo Abe has devoted three pages to Japan-India relations.1 Recognizing the enormous potential of emerging India, he states in the book that, “it is of crucial importance to Japan's national interest that we will further strengthen our ties with India” and that “it will not be surprising if in another ten years’ time, Japan-India relations overtake Japan-U.S. and Japan-China relations.” He further proposes that Japan and India, together with the United States and Australia, should hold a strategic dialogue to discuss how they can contribute and cooperate towards sharing universal values such as freedom and democracy with other countries. These ideas are reflected in Prime Minister Abe's first press conference after his inauguration, and in his policy speech in parliament. It is unprecedented for a Japanese prime minister to express such strong enthusiasm towards improving Japan's relationship with India, even before assuming office. His statement reflects Japan's growing interest and expectations towards India, which has taken major strides towards development in the recent years.

At the same time, there has been a rising interest in India as well, in consolidating the relationship with Japan. It is well known that Prime Minister Manmohan Singh himself, with his experience of receiving rapid and generous assistance from Japan while dealing with the 1991 financial crisis as the finance minister, is extremely passionate about strengthening India's ties with Japan. Moreover, with the new government led by Mr Abe, whom an Indian newspaper has described as an “Indophile”, Indians are now looking forward to a closer and deeper relationship with Japan.

The expectations have further heightened in light of the successful visit by the Indian Prime Minister Dr Manmohan Singh to Japan in December 2006. During this visit, the two leaders confirmed their commitment to establish a “strategic and global partnership” between the two countries, and agreed to strengthen their bilateral relationship in all areas including political, defence and security cooperation, comprehensive economic partnership, and people-to-people exchange.

These trends suggest that the Japan-India relationship may witness a sea change in the near future. This chapter aims to examine the process and background of this rapidly growing bilateral relationship, and will attempt to identify the issues that the two countries need to overcome in order to establish a true strategic partnership.