Compared to this, the Indian advantage was significant — our new economic buoyancy, a rapidly rising consumption class, and growing reservoir of talented engineers with software capabilities at competitive costs.

The suggestions for the future included an early conclusion of the India-Japan Economic Partnership Agreement, a continuation of Japanese Overseas Development Assistance with an improved blend of grant, technical assistance as well as steps towards greater regional cooperation. The role of India and Japan in the ASEAN + 6 (a Singapore expert preferred to call it 3 + 3) framework was considered critical.

Has economic cooperation between the two countries finally arrived? Are we at the cusp of change? During the 1990s, while India continued its market liberalisation, Japan got increasingly preoccupied in prolonged stagflation, which blunted the energies of its innovative enterprises.

Japan has successfully overcome the lost decade and a half to re-position itself as an engine of Asian economic growth. This synchronises with our own unprecedented economic buoyancy. This is a time to reinforce the mutuality of interest and opportunities.

There’s promise in providing incentive to investments that go beyond autos and auto ancillaries — for example, infrastructure, pharma, medical life-science research.

The chill created on the nuclear issue in an otherwise unbroken period of strong political ties and shared values is now behind us. So are the complaints by the Japanese companies. The issues pointed out by the Japanese represent our own priorities, particularly improving the cost and quality of infrastructure. One area where we have yet to focus is the resolution of disputes, enforcement of contracts, and improving the administration of justice.

... contd.