Question-1: Could you describe India’s strengths in areas of trade, investment and services? Is there any specific field in which you want to strengthen bilateral cooperation – for example, steel production or automobiles? Improvement in infrastructure is key for India’s economic growth. What will the Indian government do to attract Japanese investments?
Answer: In recent years, the policy framework relating to investment, taxation, foreign trade, finance, capital markets and regulatory systems has evolved to make Indian industry more productive and globally competitive. As a result, India’s share in the global flows of goods and services has grown steadily. Today, India offers a growing and vibrant market, young work force, and an attractive destination for foreign investors. New policies are enabling public-private partnership in the development of critical infrastructure like roads, ports, airports and power.
Japan is the major economic partner of India, and the economic and technological powerhouse of the world. Strengthening the bilateral economic partnership is central to India-Japan Strategic and Global Partnership established in 2006. It is heartening that India is now recognized as the best long-term investment destination by Japanese companies. We welcome Japanese investments in India. We have concluded negotiations on a Comprehensive Economic Partnership Agreement, which will boost our trade and economic ties manifold.
Our Government places the highest importance on improving the investment climate for foreign investors in India. We recognize the multiplier effects of improving infrastructure on the growth of Indian economy. We are upgrading our infrastructure for which the Japanese Government is extending valuable assistance through ODA. Japanese companies are partnering with India to build metro rail services in several cities. The Dedicated Freight Corridor Project as well as the Delhi-Mumbai Industrial Corridor Project will open up vast opportunities for Japanese businesses for mutually beneficial cooperation. I would encourage Japanese investors to come to India and become part of our ambitious development plAnswer.
Question-2: Economic reform and deregulation in India has slowed down noticeably during the last few years. Are you prepared to accelerate the process and go ahead with key reforms such as opening up multi-brand retail to FDI? Some Japanese companies, planning to set up factories, face difficulties in obtaining land and handling complicated tax system. They end up shelving their plAnswer and moving their investments elsewhere. What is government doing to remove such bottlenecks.
Answer: We are in the midst of a major socio-economic trAnswerformation. Our economy has grown at an average annual rate of over nine percent in the last few years. We have managed sustained growth despite the global economic slowdown. The Government of India is committed to economic reforms as the principal instrument of economic trAnswerformation and inclusive growth. There is an increasing appreciation that calibrated and sustained change is better than abrupt about turns. A number of steps have been taken to simplify the FDI regime. All regulations and guidelines have been consolidated into one comprehensive document, which is reviewed every six months. Government have also started stakeholder consultations on opening up additional sectors to greater inflow of FDI.
The policy framework relating to land, environment and resettlement and rehabilitation remains under constant review. We have formulated the National Rehabilitation and Resettlement Policy, 2007. The Government of India is committed to improve the efficiency of the tax system by eliminating distortions in the tax structure, introducing moderate levels of taxation, expanding the taxable base, promoting equity while enhancing revenues and simplifying taxation provisions. The new Direct Taxes Code has been unveiled with these objectives and is expected to come into effect shortly. Efforts are also underway to reform the indirect tax regime by introducing a country wide Goods and Services Tax, based on a consensus between the different stakeholders.
Question-3: How crucial is Japanese nuclear technology in furthering of India’s energy plAnswer? Regarding the civil nuclear negotiations, do you still believe that an agreement can be hammered out soon?
Answer: Developing countries like India seek new energy sources to sustain high rates of economic growth. We see nuclear energy as a vital component of our global energy mix. Our nuclear industry is poised for a major expAnswerion and there will be huge opportunities for the global nuclear industry to participate in the expAnswerion of India’s nuclear energy programme. We would like Japan to be our partner in this initiative. We are aware of the advanced capabilities of Japanese firms in this field and the important role they play in the global supply chain. We are negotiating an Agreement on the Peaceful Uses of Nuclear Energy with Japan. I am confident that we will be able to conclude an agreement which will be a win-win proposition for both of us. We have not laid down any deadline for concluding these negotiations.
Question-4: Japan is putting the condition that it will annul the nuclear cooperation if India goes for another nuclear test. Is India agreeable to this condition in the agreement? How does India rate its nuclear non-proliferation record? Can India sign NPT?
Answer: Since negotiations are continuing on the bilateral nuclear cooperation agreement, I do not wish to comment on specific details. Both countries would benefit from an agreement that provides a long-term and stable basis of cooperation in the peaceful uses of nuclear energy. This will contribute towards our energy security requirements and will also help in the global efforts to combat climate change.
India’s position on the NPT is well-known. India has an impeccable non-proliferation record which has been recognized by the international community. We are committed to maintaining our unilateral and voluntary moratorium on nuclear explosive testing. India has been steadfast in its support for global and non-discriminatory nuclear disarmament in a time-bound framework. We are ready to work with Japan and other like minded countries in realizing the vision of a nuclear weapon free world.
Question-5: In recent days, China has had frictions with Japan and other South East Asian countries. How do you see this situation and is there any impact on India? Many of Japanese people are worried by China’s aggressiveness and its territorial claims. China is also said to be building what is called “the String of Pearls” around India. Will India counter Chinese aggressiveness or accept it as a reasonable phenomenon?
Answer: The Asian region is witnessing an unprecedented period of sustained economic growth in recent years. Countries in the region are engaged in improving standards of living of their people, and overcoming the effects of the global economic downturn. We all are trying to respond and readjust to global trends towards multi-polarity and managing the regional environment in Asia in a manner which enhances peace, security and overall development of our societies. It is incumbent on all countries of the region to build cooperative partnerships and work towards an open and inclusive regional architecture. Inter-state relations must be based on the five principles of peaceful co-existence. It is in this context that we also approach our relations with China, with whom we have established a Strategic and Cooperative Partnership.
Question-6: India’s influence has been growing all over the world. Where does India see itself in the global political and economical arena in near future? And what do you expect from Japan in this endeavor? During Bush Administration, India had set up a mechanism of trilateral talks with China and Russia in an effort to break the uni-polar world order system. What kind of world order is India seeking ?
Answer: We seek a global order which is conducive to the rapid, sustainable and inclusive socio-economic development of India. India has been playing a constructive role in responding to changing global realities. We have been working with the likeminded countries to address the major challenges of our times such as poverty eradication, terrorism, food and energy security and climate change.
As major nations in Asia sharing common values of democracy, rule of law and shared interests of peace and prosperity in Asia, it is important for both India and Japan to work together at the bilateral, regional and global levels, including in the United Nations and G-20.
Question-7: What India’s strategy on UNSC reforms and to become a permanent member? Is there a time schedule and what are your expectations from G4? P5 countries do note want new members of UNSC to get a veto right. Is India agreeable?
Answer: The reform of the United Nations Security Council to reflect contemporary global realities is an integral part of the ongoing UN reform process. The proposal led by the G-4 countries for reform of the Security Council, including by expAnswerion of its permanent and non-permanent membership and improvement in its working methods, enjoys a high degree of support and acceptance among the UN members. Early reforms are of utmost importance to enhance the credibility and effectiveness of the Council.
Question-8: India has announced its target to reduce CO2 emissions by 20-25 percent 2050. China plAnswer to a reduction of 40-45 percent. Can India do better or would it be unrealistic? What other major cooperative initiatives are being taken to tackle climate change?
Answer: We have declared a voluntary target of bringing down, by 2020, the emissions intensity of our GDP by 20-25%, over the level in 2005. We take the challenge of Climate Change seriously and are ready to play our part based on the principles of common but differentiated responsibilities contained in the United Nations Framework Convention on Climate Change. We have put in place an ambitious National Action Plan on Climate Change. We are pursuing a multi-pronged strategy of mitigation. This includes ongoing plAnswer to enhance the share of renewables in our energy mix, with a target for solar power alone, of 20,000 MW of grid connected capacity by 2020. We are also pursuing a variety of measures in the power, construction, and trAnswerport sectors to increase our energy efficiency.
The national circumstances and development challenges differ among countries. A look at the per capita CO2 emissions will indicate that the situations of China and India are not comparable. 40% of our people lack access to commercial sources of energy. There are many steps that have to be taken concurrently as part of a global effort to address climate change, including adequate access to technology and financial resources.
Question-9: The war in Afghanistan is a grave challenge for USA, NATO and also for Japan. What can India contribute towards solution of the conflict? Do you endorse early withdrawal of US and NATO troops from Afghanistan? Would you like to deepen dialogue with Pakistan to improve bilateral ties and peace in Afghanistan?
Answer: Our links with Afghanistan are historical and civilisational, spanning several centuries. We have an interest in a stable, secure and peaceful Afghanistan, which can pursue its nation building efforts free from outside interference.
We welcome the role of the international community in supporting the development and reconstruction of Afghanistan. On our part, we have pledged more than USD 1.3 billion in assistance to Afghanistan. Our assistance is Afghan-led and Afghan owned and lays particular stress on capacity building and human resource development. It has been widely welcomed by common people across that country and we will continue with it.
Pakistan has an important contribution to make in Afghanistan by denying support and sanctuary to terrorist and extremist groups that are working against the interests of the Afghan people, and by allowing the people of Afghanistan to determine their destiny freely and independently.
Question-10:What more can be done by India and Japan, in addition to strengthening economic relations? India’s first moon mission Chandrayaan- I carried payloads for different countries. ISRO is now trying to commercialize its operations. Japan space programme is also similar. Is there any scope for bilateral cooperation here?
Answer. Besides deepening our trade and economic partnership, India and Japan are cooperating in several other areas. Space can certainly be one of them. In the field of education, Japan is assisting us in establishing the Indian Institute of Technology, Hyderabad. We would like to see more Indian students in Japanese Universities and greater thrust on people-to-people exchanges. This would serve as a bridge between our two countries and enhance mutual understanding. We have already embarked on a policy of visa-on-arrival for Japanese tourists, hoping to welcome many more of them to India. We wish to celebrate the 60th Anniversary of the establishment of our diplomatic relations in 2012 in a befitting manner.
New Delhi
October 24, 2010
