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  • Writer's pictureSanjay Trivedi

India-Japan to strengthen collaboration in Generics & Medical Devices


India-Japan Joint Statement during the visit of Prime Minister of Japan to India (September 14, 2017)

H.E. Shinzo Abe, Prime Minister of Japan is paying an official visit to India from 13 September to 14 September, 2017 at the invitation of H.E. Narendra Modi, Prime Minister of India. On 14 September, the two Prime Ministers held strategic discussions on a wide range of issues under the Special Strategic and Global Partnership between the two countries. The two Prime Ministers welcomed significant deepening of bilateral relations in the past three years and the growing convergence in the political, economic and strategic interests, based on the firm foundation of common values and traditions, as well as on an emerging consensus on contemporary issues of peace, security and development. They decided to work together to elevate their partnership to the next level to advance common strategic objectives at a time when the global community is faced with new challenges.

The two Prime Ministers affirmed strong commitment to their values-based partnership in achieving a free, open and prosperous Indo-Pacific region where sovereignty and international law are respected, and differences are resolved through dialogue, and where all countries, large or small, enjoy freedom of navigation and overflight, sustainable development, and a free, fair, and open trade and investment system.

The two Prime Ministers underlined that India and Japan could play a central role in safeguarding and strengthening such a rules-based order. To this end, they pledged to reinforce their efforts to:

  • align Japan’s Free and Open Indo-Pacific Strategy with India’s Act East Policy, including through enhancing maritime security cooperation, improving connectivity in the wider Indo-Pacific region, strengthening cooperation with ASEAN, and promoting discussions between strategists and experts of the two countries;

  • enhance defence and security cooperation and dialogues, including the MALABAR and other joint exercises, defence equipment and technology cooperation in such areas as surveillance and unmanned system technologies, and defence industry cooperation.

  • ensure partnerships for prosperity through the India-Japan Investment Promotion Partnership, speedy implementation of key infrastructure projects including the Mumbai Ahmedabad High Speed Railway (MAHSR), and advancing cooperation in the fields of energy, smart cities, information and communication technology, space, science and technology, bio-technology, pharmaceuticals and health.

  • strengthen people-to-people and cultural ties through enhanced Japanese language teaching in India and collaboration in the fields of tourism, civil aviation, higher education, women’s education, skills development and sports;

  • work together on global challenges such as proliferation of Weapons of Mass Destruction (WMDs), terrorism, space and cyber security, United Nations Security Council (UNSC) reform, climate change and environment;

  • strengthen trilateral cooperation frameworks with the United States, Australia and other countries.

Working Together for a Better Connected World The two Prime Ministers expressed their strong commitment to work together to enhance connectivity in India and with other countries in the Indo-Pacific region including Africa. They welcomed the deepening of their connectivity dialogue aimed at achieving concrete progress, and decided to further accelerate such an initiative.

The two Prime Ministers also underlined the importance of all countries ensuring the development and use of connectivity infrastructure in an open, transparent and non-exclusive manner based on international standards and responsible debt financing practices, while ensuring respect for sovereignty and territorial integrity, the rule of law, and the environment. They also reaffirmed the importance of “quality infrastructure” which, among others ensures alignment with local economic and development strategies, safety, resilience, social and environmental impacts, and job creation as well as capacity building for the local communities.

The two Prime Ministers also stressed the importance of the development of the smart islands to enhance regional connectivity and decided to further accelerate consultations to identify technologies, infrastructure and development strategies for the purpose.

Partnership for prosperity The two Prime Ministers welcomed the commencement of the project on the ground at the Sabarmati Station for the Mumbai-Ahmedabad High Speed Rail (MAHSR), which will be an important symbol of a new era marked by the 75th Anniversary of India’s Independence. Expressing satisfaction at the steady progress, they directed their teams to multiply their efforts for achieving the target schedule The two Prime Ministers welcomed the exchange of notes for 100 billion yen as the first ODA loan for the MAHSR project. They also witnessed commencement of the construction of the HSR training institute in Vadodara. They appreciated the commencement of the JICA technical cooperation program for the capacity development of the National High Speed Rail Corporation.

The two Prime Ministers committed to advancing “Make in India” and transfer of technology in HSR projects, and expressed optimism in this direction. They welcomed the series of business matching efforts to establish India-Japan cooperation, such as the prospective technology collaboration between Kawasaki and BHEL. Both sides will explore further strengthening of partnership in high speed railways. They also recognised that there is potential for further collaboration between India and Japan in the modernisation and expansion of the conventional railway system and the construction of metro rails in India. They also highlighted the importance of the safety of conventional railways, and appreciated the commencement of the JICA technical cooperation program by the dispatch of railways safety experts of Japan in August 2017,followed by a railway safety seminar and other programs.

Prime Minister Modi updated Prime Minister Abe about his Government’s efforts for the country’s economic and social development. Prime Minister Abe reiterated Japan’s strong support for the initiatives such as “Make in India”, “Digital India”, “Skill India”, “Smart City”, “Clean India,” and “Start-Up India”. Prime Minister Abe highly appreciated Prime Minister Modi’s economic reforms, especially the historic introduction of the Goods and Services Tax (GST), which facilitates ease of doing business and promotes market integration in India by realising a simple, efficient and nation-wide indirect tax system.

The two Prime Ministers welcomed the expansion of Japan’s Foreign Direct Investment in India under the “India-Japan Investment Promotion Partnership”, committed to by both sides in 2014. They shared the view that the India-Japan Roadmap for Investment Promotion will provide greater impetus to “Make in India” through investment promotion activities, expanding the scope of professional services and assistance provided by JETRO to Japanese Small and Medium-sized Enterprises (SMEs) operating in India, Review Mechanisms for Issue Resolution and Approvals, Single Window Clearance Procedures, Japan Industrial Townships and infrastructure development. Prime Minister Abe expressed appreciation for the facilitation provided by “Japan Plus”, and the coordination by the Core Group. They also welcomed the progress in the projects of the Western Dedicated Freight Corridor (DFC), through JICA, the Delhi-Mumbai Industrial Corridor (DMIC) including the DMIC Logistic Data Bank Project and expressed expectations of promoting industrial investment in DMIC cities. They welcomed the signing of “the Joint Statement on the Development of the New Capital City and Industrial Cooperation in Andhra Pradesh”. They also welcomed Japanese cooperation for smart city projects in Ahmedabad, Chennai as well as Varanasi.

The two Prime Ministers welcomed the signing of the Memorandum of Cooperation on the joint development of the “Japan and India Special Program for Make in India” in Mandal-Becharaj-Khoraj, Gujarat, as a regional development project driven by manufacturing cluster, and the plan to establish a JETRO’s Business Support Centre in its Ahmedabad office to promote Japanese SMEs investment in Gujarat.

The two Prime Ministers welcomed the start of the first four Japan-India Institutes for Manufacturing (JIMs) in the States of Gujarat, Karnataka, Rajasthan and Tamil Nadu in 2017,under the Manufacturing Skill Transfer Promotion Program, and looked forward to more JIMs. They also welcomed the commencement of the first Japanese Endowed Courses (JEC) in Andhra Pradesh from September 2017. They strongly hoped that this program will introduce Japanese manufacturing practices and accelerate training of future shop floor leaders and engineers.

The two Prime Ministers expressed the confidence that synergy between Japan’s advanced technology and India’s rich human resources can transform both countries into new centres of production in the global industrial network. They underscored the potential to further cooperate in human resources development and exchanges, including through utilising such frameworks as Japan’s “Innovative Asia” initiative and the Technical Intern Training Program(TITP). The two Prime Ministers noted with satisfaction the significant contribution of Japan’s ODA to the socio-economic development of India, especially the historically highest ever amount of ODA loan provided through JICA in the last two consecutive years. Prime Minister Abe expressed Japan’s intention to continue to support India’s efforts for social and industrial development including building key infrastructure projects.

Prime Minister Modi appreciated the provision of ODA loan to the following projects, in addition to the Mumbai-Ahmedabad High Speed Railway (MAHSR) Project and its related training institute:

  • Project for Upgradation of Environmental Management for Ship Recycling in Alang and Sosiya in Gujarat

  • North East Road Network Connectivity Improvement Project (Phase 2)

  • Kolkata East-West Metro Project (III)

  • Gujarat Investment Promotion Program

In this regard, the two Prime Ministers welcomed progress in the ODA projects in urban transportation sector such as the Delhi, Chennai, Mumbai, Bangalore, Kolkata and Ahmedabad Metro, the Mumbai Trans-Harbour Link Project, and the introduction of the Intelligence Transport System along with the Eastern Peripheral Highway in Delhi. The two Prime Ministers expressed satisfaction at the entry into force of the Agreement between the Government of the Republic of India and the Government of Japan for Cooperation in the Peaceful Uses of Nuclear Energy. They looked forward to a working group to strengthen bilateral cooperation in this field and reiterated their shared view that the Agreement reflects a new level of mutual confidence and strategic partnership in the cause of clean energy, economic development and a peaceful and secure world.

The two Prime Ministers recognised that access to reliable, clean and affordable energy is critical for the economic growth of both countries. In this regard, they decided to strengthen bilateral energy cooperation and welcomed the India-Japan Energy Partnership Initiative as well as early convening of 9th Energy dialogue. They appreciated Japan’s proposal for India-Japan Clean Energy and Energy Efficiency Cooperation Plan. They also welcomed the efforts to promote renewable energy, including the establishment of the International Solar Alliance (ISA), and the progress of New Energy and Industrial Technology Development Organization (NEDO)’s demonstration project such as a micro grid system using solar power in Neemrana. They looked forward to further acceleration of cooperation in areas of energy saving, energy efficiency and energy storage as well as manufacturing of eco-friendly vehicles including hybrid and electric vehicles.

In this regard, the two Prime Ministers welcomed the opening of the first lithium-ion battery factory in India by a joint venture of three Japanese companies – Suzuki, Toshiba and Denso as well as a new automotive factory this year. They decided to further promote public and private sector collaboration to make environmentally friendly and energy efficient technologies accessible and affordable to the general public, recognising that such investments facilitate India’s National Electric Mobility Mission Plan 2020 (NEMMP) and Faster Adoption of Manufacturing of Hybrid and Electric Vehicles (FAME) vision, and underlined the importance of support measures to promote eco-friendly vehicles including in terms of “Make in India” and transfer of technology.

The two Prime Ministers also stressed that sustainable ship industry is one of the key areas for sustainable growth of India, and reaffirmed their intention to achieve an early conclusion of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009. The two Prime Ministers recognised the important role of science and technology in dealing with both developmental and societal challenges, and underlined the importance of enhanced bilateral cooperation in such fields as IoT, ICT, marine science, biomedical sciences, genetics, stem cell technology, and heavy ion radiotherapy. In this regard, they welcomed the successful holding of the 9th India-Japan Joint Committee on Science and Technology Cooperation in January 2017 in Delhi.

The two Prime Ministers welcomed the progress made in the bilateral IT and IoT cooperation through the bilateral Joint Working Group on IT and Electronics, in particular by the signing of the Memorandum of Understanding (MoU) between the National Association of Software and Services Companies (NASSCOM) of India and IoT Acceleration Consortium (ITAC) of Japan.

The two Prime Ministers directed their respective sides to work closely to establish an India Japan Startup Hub, which will serve as a platform for promotion of information exchange, business collaboration and investments between the vibrant and innovative Startup ecosystems of two countries.

The two Prime Ministers noted with satisfaction the progress in the health sector and the joint efforts by their medical experts on medical device development. They also noted the opportunities for collaboration between Indian and Japanese pharmaceutical companies in light of the target regarding the quantitative share of generic medicines in Japan. The two Prime Ministers shared the importance of strengthening cooperation in the fields of agricultural and food related sectors. They welcomed Japan’s participation in World Food India 2017 as a partner country. The two Prime Ministers welcomed the efforts to develop cooperation in disaster prevention, response, recovery and reconstruction as envisaged in the Memorandum of Cooperation on disaster risk reduction between the Ministry of Home Affairs of the Government of India and the Cabinet Office of the Government of Japan . They underlined the importance of identifying and disseminating best practices to “build better” and thus reducing losses arising from infrastructure damage during natural disasters, as aimed by the international coalition proposed by Prime Minister Modi at the Asia Ministerial Conference on Disaster Risk Reduction(AMCDRR)-2016.

The two Prime Ministers recognised the importance of the empowerment of women to maximise their national potential, and decided to strengthen cooperation in this area, including through conferences such as the World Assembly for Women (WAW!). They welcomed the convening of the “Indo-Japan Consultation on ‘Women at Work and Changing Social Norms’” in Delhi in July 2017.

Expanding vistas of People-to-People Cooperation The two Prime Ministers renewed their commitment to strengthening human and cultural ties commensurate with their Special Strategic and Global Partnership.In this context, the two Prime Ministers welcomed a series of cultural events successfully held through the Year of India-Japan Friendly Exchanges in 2017.

The two Prime Ministers underlined the crucial role of the rules-based multilateral trading system, and enhancing free, fair, and open trade, for achieving sustainable growth and development. They committed to resist protectionism including unfair trade practices and underlined the need to remove trade-distorting measures. They reaffirmed their commitment to work together to implement the Bali and Nairobi Ministerial decisions and make the eleventh WTO Ministerial Conference a success. They also decided to steadily implement WTO’s Trade Facilitation Agreement. Recognising India as the largest democracy and a fast growing large economy in the Asia-Pacific region, and acknowledging India’s robust macro-economic stability and its efforts at financial reforms, Japan reaffirmed its support to India’s membership in the APEC. The two Prime Ministers decided to work towards liberalisation and facilitation of trade and investment in the Asia-Pacific region. They reaffirmed to cooperate towards conclusion of a modern, comprehensive, high quality and mutually beneficial Regional Comprehensive Economic Partnership (RCEP) Agreement, in order to achieve a balanced outcome. They reaffirmed their commitment to further strengthening cooperation and to working with partners to tackle excess capacity in steel. In this regard, they called for the removal of market-distorting subsidies and other types of support by governments and related entities. They also reaffirmed their commitment to developing concrete policy solutions at the Global Forum on Steel Excess Capacity by November 2017.

Conclusion Prime Minister Abe thanked the Government and the people of India for their warm hospitality and extended a cordial invitation to Prime Minister Modi to visit Japan at a mutually convenient time for the next annual summit meeting. Prime Minister Modi accepted the invitation with appreciation. Prime Minister of the Republic of India —- Prime Minister of Japan Signed at Gandhinagar, Gujarat on 14 September 2017.

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