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By:

Commodore S.L. Deshmukh

31 October 2024 at 3:00:19 am

A Diplomatic Detour

The Japanese Prime Minister’s decision to skip Assam is a setback for the Northeast, but not for the larger India-Japan partnership. India and Japan share one of Asia’s most understated yet enduring partnerships. Long before the relationship acquired strategic significance, it rested on the quiet foundations of culture and civilisation. Buddhism travelled from the Indian subcontinent to Japan over many centuries, leaving an imprint that still shapes Japanese society. In the modern era, that...

A Diplomatic Detour

The Japanese Prime Minister’s decision to skip Assam is a setback for the Northeast, but not for the larger India-Japan partnership. India and Japan share one of Asia’s most understated yet enduring partnerships. Long before the relationship acquired strategic significance, it rested on the quiet foundations of culture and civilisation. Buddhism travelled from the Indian subcontinent to Japan over many centuries, leaving an imprint that still shapes Japanese society. In the modern era, that cultural affinity has been reinforced by expanding economic ties, institutional cooperation and an increasingly convergent strategic outlook. Strong Bonds The architecture of this relationship is extensive. Organisations such as the Indo-Japanese Association have nurtured cultural and intellectual exchanges since the 1950s, while the Indo-Japanese Economic Cooperation Council has promoted investment, technology transfer and commercial collaboration. Diplomatic forums on both sides have steadily deepened mutual trust, reflecting a shared commitment to peace, stability and prosperity across the Indo-Pacific. Security cooperation has become an equally important pillar. A turning point came in 2008, when India and Japan signed their Joint Declaration on Security Cooperation during Prime Minister Manmohan Singh's visit to Tokyo. Since then, bilateral ties have expanded to include regular “2+2” ministerial dialogues, defence exchanges, coast guard cooperation and joint military exercises. The Acquisition and Cross-Servicing Agreement, which entered into force in 2021, has further strengthened operational cooperation between the Indian armed forces and Japan’s Self-Defence Forces. Together with their collaboration through the Quad, these initiatives underscore how the two democracies increasingly view each other as indispensable strategic partners. The diplomatic warmth between the two countries, however, predates the present geopolitical moment. One of the earliest symbols of goodwill came in 1949, when Prime Minister Jawaharlal Nehru gifted an Indian elephant to Tokyo’s Ueno Zoo. At a time when Japan was struggling to recover from the devastation of the Second World War, the gesture carried emotional significance far beyond diplomacy. Three years later, India signed one of the first post-war peace treaties with Japan, formally establishing diplomatic relations on April 28, 1952. India’s exports of iron ore contributed to Japan's post-war industrial recovery, while Japan gradually emerged as one of India's most dependable development partners. Prime Minister Nobusuke Kishi’s visit to India in 1957 marked another milestone, paving the way for decades of Japanese official development assistance. Today, that legacy is visible in projects ranging from metro rail systems to the Mumbai-Ahmedabad high-speed rail corridor, one of the largest Japanese-backed infrastructure investments overseas. Against this backdrop, the decision by Japanese Prime Minister Sanae Takaichi to cancel the Guwahati leg of her July 2026 India visit has understandably generated disappointment, particularly in Assam. The annual India-Japan summit will now be held entirely in New Delhi. Official explanations have cited parliamentary commitments in Tokyo and scheduling constraints. Diplomacy often leaves little room for certainty, and itinerary changes are not uncommon. Yet symbolism matters in international relations, especially when a region is striving to position itself as a gateway to Southeast Asia. Past Incidents This is not without precedent. In 2019, then Japanese Prime Minister Shinzo Abe was forced to cancel his visit to Assam amid protests over the Citizenship (Amendment) Act. That cancellation deprived the Northeast of an opportunity to showcase its growing strategic relevance within Japan’s vision of a free and open Indo-Pacific. It also served as a reminder that domestic political turbulence can sometimes carry unintended diplomatic costs. The latest cancellation comes at an equally delicate moment. Assam has spent years projecting itself as an emerging investment destination. Improved law and order, expanding infrastructure and greater connectivity have encouraged the state government to court foreign investors with unusual vigour. Preparations for the Japanese delegation reflected those ambitions. Guwahati witnessed beautification drives, road improvements and hospitality planning. Japanese officials reportedly spent weeks assessing the local ecosystem, infrastructure and investment climate ahead of the proposed visit. The economic stakes were hardly insignificant. Prime Minister Takaichi was expected to be accompanied by executives from more than 50 Japanese companies and organisations, including Suzuki Motor. Discussions were expected to cover industrial investment, energy resilience initiatives and financing mechanisms that could support infrastructure development in India and Southeast Asia. For Assam, hosting such a delegation would have provided a valuable opportunity to present itself not merely as a peripheral state but as a strategic hub connecting India to East and Southeast Asia. Assam Chief Minister Himanta Biswa Sarma has understandably expressed disappointment while indicating that the state would seek greater clarity from the Ministry of External Affairs. Such restraint is prudent. More importantly, one cancelled visit should not be mistaken for a weakening of Japanese interest in the Northeast. Indeed, there are indications that a high-level Japanese business delegation may still visit Assam separately. If that materialises, much of the economic momentum generated by the preparations could yet be preserved. The larger trajectory of India-Japan relations remains firmly positive, driven by strategic necessity as much as by historical goodwill. Both countries seek resilient supply chains, diversified manufacturing, secure maritime routes and greater stability across the Indo-Pacific. These interests transcend the calendar of summit diplomacy. For India, however, the episode offers a useful lesson. The Northeast has acquired unprecedented geopolitical significance as New Delhi's gateway to ASEAN and as an integral component of the Act East policy. Maximising that potential requires not only infrastructure and connectivity but also careful diplomatic management and political stability. Foreign investment is ultimately attracted by predictability as much as by opportunity. While a cancelled visit may disappoint, but it need not derail a partnership built patiently over seven decades. If both New Delhi and Dispur draw the right lessons, the next Japanese delegation may arrive not merely as honoured guests but as long-term partners in the economic transformation of India’s Northeast. (The author is a retired naval aviation officer and a defence and geopolitical analyst. Views personal.)

Indian Shipbuilding A Must Win Marathon

Shipbuilding

With a coastline of 7500 KM, it is hard to imagine, that for the first 20 years (1947-1967) India had no ‘shipping ministry’. In 1967 a Shipping ministry “coupled” with ROAD transport was established. Since then, this ministry has been on a name changing ride, not once, not twice but six times. In 2009 the “ROAD Transport and Highways” was de-coupled and ‘Shipping’ ministry was formed. Turning point came in 2015 with a clear maritime vision for 2030 and 2047. Ministry was re-christened, aptly to Ministry of “Ports, Shipping and Waterways” in 2020.


Why is Shipbuilding important for a country?

a. A Shipyard becomes an opportunity hub and like a queen bee requires the support of an industrial colony to manufacture machinery and equipment.

b. National Shipyards support fleet renewal needs of the Navy.

c. Contributes to national GDP, increases inflow of FOREX.


Korea shipbuilding is 8% of GDP. Japan’s automobile industry is 2.9% of GDP. India’s shipbuilding a meagre 0.000578% of GDP. In context, India’s pharmaceutical industry, ranked third largest in the world is 1.72% of India’s GDP.


International Shipbuilding Market

The market is estimated to reach around USD 200 billion by 2029, growing at a CAGR of 4.84%. While India is at bottom with 0.07% of world share, behind Philippines 1.5% and Vietnam 1%, however on the positive side, India has done well in taking care of its defence needs, with 37 of 39 Naval ships being built in India yards. Rear Admiral S Shrikhande researching on maritime as a Fellow at Wollongong University, Australia, says “Shipbuilding in India needs both, serious incentivisation and dogged determination and not harping on being a big ship breaking country. That Garden Reach shipyard has a $54 million order for merchant ships from a German owner, is a good sign.”


Were Shipyards of 20th century in Flight mode?

Prominent shipyards in India were built in the colonial period. Mazagon Dock 1774, Garden reach 1884, Hindustan shipyard 1941 to cater to British navy and merchant fleet needs. Cochin shipyard 1972, Adani Katupalli 2013, Reliance Naval and Engineering, Rajula Gujarat 1997 and others have limited capacity, hence a lot more work to do. Capt. Subhangshu Dutt (Singapore) a mariner and now a shipowner, says “GOI should hold hands in any collaboration till the marriage with the foreign entity is reasonably stable. He also suggests that “new shipbuilding sites should be given to existing successful shipyards since they have decades of experience and talent. Consortium of 3 or more parties may also be good idea”.


Shipbuilding GOLD

As per SPLASH report the demand for LCO2 carriers could reach 2,500 ships by 2050. As per other estimates, 40% of global fleet of ships could have wind propulsion by 2050. A surge in such vessels is due to an unparallel waves of decarbonization in the shipping industry. Demand for ships with ‘carbon neutral’ badges, such as Dual fuel, Wind assisted, Nuclear fuel ships, Hydrogen powered ships, Liquified CO2 (LCO2) carrier, is outstripping supply. A must in the ‘bucket list’ of every Shipyard. Pinning down a standard ROI in shipbuilding is not easy, but experts suggest it could range from 4% to 15% for the high demand ‘carbon neutral’ ships. While an LNG new build vessel could cost US$ 250 million upwards.


International collaboration

On China’s shipbuilding success story, Manoj Pandalanghat (Singapore) a mariner and ship owner believes that “China has around 50 active Shipyards. Each have a few large dry docks. In each dock two or more large vessels are built simultaneously. Thus, a single yard is able to roll out 2/3 vessels/month, 36 vessels/year and 50 shipyards roll out 1800 vessels/year”.


China could be a jaldi-5, but India needs a sturdy Mount Fiji. Besides technology, Japanese bring the most important hand baggage of soft-skills and culture, essential for success from keel laying to delivery. Maruti’s is a standing example.


Food for thought for New Delhi

a. Expertise: Hire Naval Architects and shipbuilding experts with current international experience.

b. Government assistance: Land, Financial support, subsidies and timebound clearances.

c. Monitoring: PMO should monitor the first 5 to 10 years till Shipbuilding takes-off on this long-haul flight to destination 2047.


India’s Shipbuilding is expected to grow to $237 billion by year 2047. On a back of the envelope calculations this works out to about 4% of India’s 2047 projected GDP of $ 5 trillion. While cars are driven on roads, however the Ministry of roads and transport has little to do with “Automobile manufacturing”. On a similar note, ‘Shipbuilding’ as an industry has little to do with Ports, Shipping and Waterways, thus it may be worthwhile to consider a separate ‘Ship-building’ wing in the Ministry of Ports, Shipping and Waterways headed by a dynamic cabinet rank minister. Since 2047 targets are stiff and an uphill task, so in all probabilities, the officials in Ministry of Ports, Shipping and Waterways are likely to push beneath the carpet, delays and failures of Shipbuilding with sweet success stories of “Ports, Shipping and Waterways” and if this does happen then India will not only miss the Shipbuilding bus of 21st century but a lot more from a national security and strategic perspective.


(The author is a Shipping and Marine consultant. Member Singapore Shipping Association and empaneled with IMO as a specialist consultant. Views personal.)

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