研究論文

India’s Act East Policy: Japan and Mongolia
Maqsooda Sarfi Shiotani
Komatsu University

Abstract: Indian Government’s foreign policy witnessed changes in the early 90’s with the
adoption of the open market economy as well as the Look East Policy. China’s increasing
investments in the North East and the South East Asia, as well as Africa pose a geostrategic
concern to India. Increased expansion of China’s foreign policy, including naval activities in
the Indian and Pacific Ocean, has driven India to foster economic and strategic relation withstates in the region. Shared concerns over the growing influence of China have incentivizedbilateral and regional cooperation between India and the states in the region. The case ofIndia’s relationship with Japan and Mongolia serve as useful example. India, Japan andMongolia are three countries that demonstrate a strong spiritual connection. The sharedcultural and religious ties in Buddhism have allowed the relationship to flourish. Japan andMongolia, both under the growing pressure of China, look to India as a new power to countervail Beijing. Between Japan and China, top-level diplomatic dialogue has frequently
been put on a hold and political ties have been disrupted over Senkakus islands and otherissues. Mongolia as well has its issues with China. After the collapse of Soviet Union,
Mongolia lost its security assurance from the Soviet bloc. In post Soviet Mongolia, North
East Asia has become a new regional identity to Mongolia in its political, economic andstrategic security. Mongolia has emerged as a part of India’s new Asian outreach, both
culturally as well as diplomatically. India is also concerned about China’s “One Belt, One
Road” initiative, where China seeks to build ports and other infrastructure around the Indian
Ocean, linking Asia with other parts of the world. This China’s naval expansion into
regional waters in the Indian Ocean is another concern of Indian government. Geostrategic
dimension engagement with Mongolia for India is necessary. If China continues its footprints around Indian border and ocean, India can play a geopolitical game in the backyard of
China as well. For that, India needs a strong partner in the shape of Japan. It is where Kautilya’s Raja Mandala policy works for India. To strengthen the relation with ASEAN countries, India on its Republic day 26th January 2018, invited the heads of these countries toparticipate in celebrations. The aim of this paper is to shed some light on the recent developments of these relations in the context of India’s Act East Policy.
Key words: India, Japan. Mongolia, ASEAN, Senkakus, Look East policy, Act East Policy,
North East, Kautilya─ 35 ─

Maqsooda Sarfi Shiotani

Introduction
The Arthashsastra, written by Kautilya, the mentor of Chandragupta Maurya in 2300 year ago, gave theidea of good governance. Particularly, the concept of foreign policy introduced by Kautilya, the Raja
Mandala, explained polices towards the states friendly and unfriendly to one’s country.
After the independence from the British rule, India’s first Prime Minister Jawaharlal Nehru, influenced by
the Kautilya thoughts on neighborhood, created the Non-Alignment Movement. During the Asian Relation
Conference in 1947, Nehru said, “There was a widespread urge and an awareness that the time had comefor us, peoples of Asia, to meet together, to hold together and to advance together. If you would know
India you have to go to Afghanistan and Western Asia, to Central Asia, to China and Japan and to thecountries of Southeast Asia. There you will find magnificent evidence of the vitality of India’s culture
which spread out and influenced vast numbers of people1）”.
Prime Minister Indira Gandhi with her understanding of geopolitical strategies acted best on Kautilya
policy by creating Bangladesh. In light of the collapse of Sovite-Union, in early 90’s, India’s mosttrusted friend and supporter at that time and the emergence of an unipolar world dominated by theUnited States, India had to re-think its foreign policy, and had to look for other options both regionallyand globally. In 1991, India adopted the open market economy. By doing so the then Finance Minister
Manmohan Singh tried to strengthen the economic and military relations with the ASEAN and othermajor powers.
The ASEAN was a promising area to have connection to promote its economic and strategic interests.
The ASEAN, constituted economically the most dynamic region, whereas India was desperate to obtainallies for its newly opened market economy. Thus, India could not ignore this region. As a result, India’s
Look East Policy was officially declared in 1994 by Narasima Rao, the then prime Minister of India in
his Singapore visit. He had stressed the point that India’s historical and cultural relations were very old
and strong and there was nothing new in India looking towards reinforcing cooperative linkages with its
eastern neighbors. He laid emphasis on building strong economic and security relationship between Indiaand its eastern neighbors.
However, after Narasima Rao, the newly appointed Prime Minister Atal Bihari Vajpayee besides
continuing the policies of his predecessors created a strong image of India by making India a nuclear
power. This negatively impacted the relationship India had maintained with the other countries, resulting
in economic constraints. To re-build the relationship, many steps were taken under the next Prime─ 36 ─

India’s Act East Policy: Japan and Mongolia

Minister Dr. Manmohan Singh, including civil nuclear cooperation with the US, the ASEAN free trade,border talks with China as well as establishing strong relations with Japan. The philosophy of Kautilya
was deeply embedded once again, as Prime Minister Dr. Manmohan Singh indicated, “whatever policy
we may lay down, the art of conducting the foreign affairs of a country lies in finding out what is mostadvantageous to the country.”
Like the successive Prime Ministers, Prime Minister Modi also followed the policies of Kautilya’s, buteven more so as he firmly committed to making India a leading power by creating harmonious relation
with its neighborhood. After taking the office in 2014, Prime Minister Modi has changed India’s foreign
policy from the “Look” East Policy to the “Act” East Policy, to further develop partnership especiallywith the ASEAN countries for the security and economic growth. During his four-year tenure in office,Prime Minister Modi has visited 53 countries both big and small, to improve India’s relations with thesecountries. Among such countries, Japan and Mongolia in particular have played important roles in the Act
East Policy, and their mutual needs for India in return have allowed economic and political growth ineach nation. The three countries’ strong ally is expected to continue going forward, with an aim to further
expand the cooperation not merely among themselves but also for the entire Southeast Asia and Indo-Pacific region.

1. India-Japan Relation Under Prime Minister Modi
a. Bringing safety to the Pacific region through defense and strategic cooperation
In 2014, Prime Minister Modi declared the Act East Policy at the 12th ASEAN India Summit and the 9th
East Asian Summit in Myanmar. The purpose was not merely economic but also security. Though China
as emerging power is a concern to the Modi government, China’s maritime dispute with many countries
play a favorable role for India in its interest to strengthen relations with them, with Japan being one suchcountry.

Japanese Prime Minister Shinzo Abe in his first premiership in 2006–2007, started the concept of quadrilateral security and emphasized about having strong relation with India. During his visit to India, Prime
Minister Abe spoke to the Indian parliament members and said, “‘The Discovery of India’, by which
I mean we have rediscovered India as a partner that shares the same values and interests and also asa friend that will work alongside us to enrich the seas of freedom and prosperity, which will be open
and transparent to all. By Japan and India coming together in this way, this "broader Asia" will evolve
into an immense network spanning the entirety of the Pacific Ocean, incorporating the United States ofAmerica and Australia. Open and transparent, this network will allow people, goods, capital, andknowledge to─ 37 ─

Maqsooda Sarfi Shiotani

flow freely.” Prime Minister Abe indicated that it is the responsibility of the two democracies, Japan andIndia as maritime states who’s vital interests in the security of sea, to pursue a policy of freedom andprosperity of the region. He stated, “Japan-India relationship is blessed with the largest potential fordevelopment of any bilateral relationship anywhere in the world. We are also in perfect agreement that ‘Astrong India is in the best interest of Japan, and a strong Japan is in the best interest of India. 2）’”The Abe quadrilateral initiative was renewed in 2017. The four maritime democracies, Japan, Australia,
India and United States had discussed again the importance of maritime security and regional peace under
the leadership of Prime Minister Abe in the ASEAN meeting of 2017. Today, in order to curb China’s
increasing influence on the region, Japan and India along with the United States, conduct regular naval
exercises in the Indian Ocean.

b. Technical and financial assistance for development projects
Prime Minister Modi has visited three times in 2014, 2016 and 2018, respectively, establishing a strong
personal relation. Prime Minister Modi is the first foreign political leader to be invited to a private houseof Prime Minister Abe in Japan, which was seen as an act of gratitude by the Japanese Prime Minister,
who had been welcomed by Prime Minister Modi in his home state Gujarat’s Ahmadabad city in Western
India last year. In 2017, Prime Minister Abe had visited Ahmadabad city to attend the inauguration ceremony of the construction of a new high-speed railway that will leverage the Japanese bullet train technology to link Ahmadabad to Mumbai. As seen by such friendly and strong relations shared by the two
leaders, under the leadership of Prime Minister Modi and Prime Minister Abe, more bilateral dialogues
have developed at all levels between the two nations to support each other on areas of geopoliticalconcern, while bolstering education and cultural exchange simultaneously.

Before traveling to Japan on 28 October 2018, Prime Minister Modi mentioned that his third visit toTokyo and meeting with Prime Minister Abe “will be an opportunity to review our ongoingcooperation and discuss ways for expanding [their] relationship for promoting peace, progress
and prosperity throughout the Indo-Pacific region and beyond.” Further he noted, “The India-Japan
partnership has been fundamentally transformed and it has been strengthened as a ‘special strategic andglobal partnership,’” Prime Minister Modi emphasized that 3） “[t]here are no negatives but only
opportunities in this relationship which are waiting to be seized.”
As such, key decisions were taken to further cooperation in investment and infrastructure between the twocountries. Before the formal talks in the 13th annual India-Japan Tokyo summit, the two leaders agreed tolaunch a two plus two meeting comprising of foreign and defense ministers, where a currency swap

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India’s Act East Policy: Japan and Mongolia

accord of 75 billion dollars and more than 300 billion Yen were resumed to finance India’s infrastructure
projects including the bullet train project. India decided in 2015 to adopt Japan’s Shinkansen (bullet train)system for its first, 500-km rapid railway linking Mumbai and Ahmedabad in western India. Roughly halfof the 300 billion yen loan will be used to fund this project. Similarly, in 2016, an agreement on cooperation in the peaceful use of Nuclear energy was concluded between Japan and India. Prime Minister
Modi stated this cooperation as a “manifestation of the significant deepening of [their] strategic partnership and [that their] shared objectives of realizing clean energy and sustainable development.”
Equally, Prime Minister Abe also hailed Japan-India ties as having “the largest potential for development
for any bilateral relationship anywhere in the world.” Over the recent years, Japan has been a big hand in
the growth story of India. From Bullet train to smart cities, Japan is fully involved in various aspects ofthese developments. Japan is the largest bilateral donor to India since 2007–2008. The new chapter ofrelationship under Prime Minister Modi and Prime Minister Abe has become much closer since 2015.
The “Make in India” policy of Prime Minister Modi has brought India many new projects from Japan,
those entailing technology transfer and local manufacturing. Not only the large corporates, but Japanese
small-scale companies are also entering in new sectors in India including real estate, defense, agrochemicals, infrastructure and construction. Consequently, the two biggest democratic countries have experienced rapid economic growth and development in their bilateral cooperation.
As a part of the Act East Policy, Japanese projects contributed in creating jobs for the Indian youth. To
boost these bilateral economic ties, ITI trained, blue-collar workers, care givers and nurses from India aresent to Japan for a period of three years to experience the on the job training program. Japan is seeking
man power from India and the Modi Government is welcoming this movement in a positive way. Japanese companies are reputed for being reliable and Indian side firmly believes that this trusted relationshipis a great learning opportunity for the Indian youth, especially in a long-term. For example, to help India
in implementing its Act East Policy, Japan is building high ways and bridges that help boost connectivity
and infrastructure in the Northeast region of India. As a supplementary part of this project, JICA experts
are also working on the ground level for sustainable agriculture in the Northeast region. To implement
these projects successfully, Indian agriculture division sent its personnel to Japan to receive training inmindset and competency building. To achieve positive behavioral changes in the habits and manners,
Japanese experts are training Indian people to learn the concept of overall cleanliness as well as work
ethics such as punctuality. As such, besides infrastructure projects in the Northeast region, various otherprojects such as the Clean Ganga project in Varanasi to the western fright Corridor, Japan is the biggest
contributor not merely financially, but also in competency building. The two countries have signed agree-─ 39 ─

Maqsooda Sarfi Shiotani

ments to seek skill development, as well as security and disaster management. A strong India means astrong Japan, and further corporation is for mutual benefits.
Furthermore, a joint statement released by Prime Minister Abe and Prime Minister Modi also called for
greater cooperation to promote entrepreneurship and research and development in high-tech fields such as
artificial intelligence, as well as joint efforts for infrastructure development in third-party countries inSoutheast Asia and Africa. The two leaders are expected to confirm their cooperation on the Abe-conceived “Free and Open Indo-Pacific Strategy,” a concept aimed at developing high-quality infrastructurefrom Asia to Africa, while promoting principles including freedom of navigation and the rule of law. To
connect Africa, Southeast Asia and India’s Northeast, a project known as the Asia-Africa Growth
Corridor (AAGC) was introduced, where Japan has provided $40 billion in order to deepen security anddefense ties, not merely for the two nations but for other parts of the world as well.

With Honorable Prime Minister Modi - a
privilege to attend his lecture to the IndianCommunity on 29th October 2018 in Tokyo

With External Affairs Minister Honorable
Sushima Sawraj on 29th March 2018 at the
Indian Embassy in Tokyo─ 40 ─

India’s Act East Policy: Japan and Mongolia

2. India-Mongolia Relation Under Prime Minister Modi
Focus on the strategic dimension of geographic location & mineral wealth of Mongolia
Mongolia occupies an important place in India’s Act East Policy towards North East Asia and its track on
Central Asian States. Bilateral relations between India and Mongolian are motivated by shared concerns
over the growing influence and power of China over Mongolian investment sector. Chinese’ increased
investment in mining and infrastructure development during these past two decades is a great concern toMongolian authorities. In an interview with the Mongolian President Battulga in 2014, he expressed
concern over the increasing dependence of trade with China. He sought to pursue a third neighbor policythat includes economic relations with India along with the US, Japan and Germany in order to diversify
its trading partners. Due to the sudden boom in mineral sector since 2011, Mongolia has attracted world’s
attention due to its abundance in uranium, gold, coal and copper being among the top ten in terms ofnatural resources. The lack of effective management of these vast natural resources make Mongolia
vulnerable, and India is determined to support Mongolia’s development in every possible field.
The bilateral political relations between the two countries have been growing since, and it was elevatedto a new level especially during the historic visit of the Indian Prime Minister Modi to Mongolia in 2015
on the occasion of 60th diplomatic relation celebrations. This visit provided fresh impetus to the bilateralrelations and is considered an important strategic step to make India’s presence felt in East Asia andNorth East Asia. This visit changed the geo-strategic spectrum of the already existing bilateral relationship between the two countries. During his visit, Prime Minister Modi promised a 1 billion US dollar
credit line (soft loan). Mongolia, with this credit, is planning to build its first in the country oil refinery
plant, which will ensure Mongolia's economic and energy independence.
India and Mongolia, in recent years have also been promoting cooperation in security, defense and bordersecurity. India considers Mongolia an important strategic partner in North East Asia. Indo-Mongolia
cooperation in security and defense is progressing well, primarily focusing on strengthening the capacityof border control guards in the two countries. This includes important initiatives between the Border
Security Force of India and the General Authority for Border Protection of Mongolia, as well as the
National Security Councils of the two countries.
Likewise, such cooperation is also extending in the defense sector. In 2017, a joint India-Mongolia military exercise called Nomadic Elephant was held in India, while Indian army personnel also took an active
part in an international peace-keeping operation exercise called Khan Quest in Mongolia. Such kind ofcooperation is expected to continue, as confirmed by the top leaders of the two countries.

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Maqsooda Sarfi Shiotani

As a consequence, bilateral high-level visits have become frequent, with Mongolian Prime Ministers,
President, Parliament Speakers visiting India and with Indian President, Vice President, Lok Sabha
Speaker and Prime Minister paying official and state visits to Mongolia. It is important to highlight that
Mongolia considers India as an important Third Neighbor and India is proud to be one.
2018 was particularly an active year in terms of mutual visits. The Mongolian Defense Minister N. Enkhbold visited India in March 2018. Soon after in April, External Affairs Minister Sushma Swaraj visited
Ulaanbaatar following her visit to Tokyo. This visit was particularly significant as this was the first visit
in 42 years by the Indian External Affairs to Mongolia since 1976. In her visit, cooperation in areas likeinfrastructure development, energy and ongoing refinery project were discussed. In her statement theminister stated, “The two countries share the bond of peace through Buddhism and bilateral relations hasgone strength to strength.” In order to further strengthen the relations, more research on Buddhist linkage
and Indian culture were encouraged and for that launching a direct air connectivity between New Delhi
and Ulaanbaatar was discussed. This was subsequently followed by the official visit of the Union Home
Minister of India Rajnath Singh in June.

The two ministers of India, during their visits, met with the Mongolian President, Prime Minister,
Speaker of Mongolian Parliament and many other high-ranking government officials. A major highlightof Rajnath Singh's visit was the oil-refinery ground breaking ceremony, in which he took part alongwith the Mongolian Prime Minister. Addressing the event, Rajnath Singh said, “I hope that the refinery,
being built as part of the credit line of US$1 billion, announced by the Prime Minister Modi during his
historic visit to Mongolia in 2015, will become an everlasting symbol of friendship between India andMongolia. Also, I believe the refinery is a step ahead for Mongolia to tap into its oil resources, and incoming times it would be a steadfast pillar of its economic independence.” A similar view wasechoed by the Prime Minister Khurelsukh of Mongolia, who said, “The joint refinery that we arecommitted to build jointly, will elevate to new heights the ancient traditional friendly relations andeconomic cooperation.” This oil refinery has been a dream of many years for Mongolia, who waseager to become self-sufficient and independent of oil imports primarily from Russia and a small
amount from China. The oil refinery is expected to be completed in four years and it would have acapacity of refining 1.5 million tons of crude oil from the oil rich basin in the south eastern part ofMongolia.

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India’s Act East Policy: Japan and Mongolia

Union Home Minister of India Honorable
Rajnath Singh with the Honorable
Mongolian President

At the oil-refinery ground breaking
ceremony with Mongolian Prime Minister

Furthermore, India and Mongolia are also interested in cooperation in disaster risk reduction. In 2017 theFirst Asian Ministerial Conference on Disaster Risk Reduction was held in India, in which the thenDeputy Prime Minister and now, the Prime Minister of Mongolia, took part. Mongolia hosted the Second
Asian Ministerial Conference on Disaster Risk Reduction on Mongolia 3–6 July 2018. The event washeld in Ulaanbaatar, in which a large Indian delegation group was led by the Indian State Minister ofHome Affairs, Kiren Riju, who made courtesy calls on the Prime Minister and Deputy Prime Minister ofMongolia to exchange views on bilateral ties, relations and future cooperation.Bilateral relations in thisarea are expected to grow in the coming years.
While the two nations have been progressing immensely through their partnerships bilateral trade between
the two countries is not yet at the expected level, accounting for only around 37.5 million USD. The twosides have noted that both the countries need to improve bilateral trade, which can be possible through─ 43 ─

Maqsooda Sarfi Shiotani

better connectivity. As mentioned earlier, the idea of exploring possible connectivity via air between
Ulaanbaatar and New Delhi has been discussed; however, economic feasibility still remains as a key
concern.
Lastly, training and capacity building of civil servants from Mongolia as well as cooperation in the IT
sector are also a part of India’s Act East Policy focus. In Ulaanbaatar, there is an A.B. Vajpayee Center
for Excellence in IT, and India wants to see the improvement of its curriculum and physical infrastructure, and is interested in assisting Mongolia. India also offers ICCR, ITEC trainings as well as scholarship program for Mongolians. India wants to see better utilization of these trainings and scholarships.
Today, apart from Mongolian civil servants, who are undergoing training in India, there are more than
600 lamas at different monasteries in India and the Indian government has promised to address the visa
issue by allowing extensions.
Consequently, India and Mongolia, the two spiritual neighbors, are unanimous that they should now aim
to bridge their geographic divide via technology and new means of connectivity. The two countries are inagreement that together they can achieve a lot in terms of promoting regional connectivity for growth anddevelopment, especially in Asia, while encouraging peace and prosperity in the Indo-Pacific region.

Conclusion
Japan and Mongolia both play an important role in Prime Minister Modi’s Act East Policy. India is anation of fast-growing economy with a promising market. In this growth story Japan is a key factor andMongolia with its natural resources and geographical location has recently developed as an advantage to
India, both economically and strategically. The relations among the three countries have long historicaland spiritual affinity and strong cultural and civilizations ties. Japan and India represent two countries
that have never been in any sort of conflict, ideological, cultural or territorial. Likewise, Mongolia andIndia share a strong relationship since ancient times and remained much less the same throughout:Mongolia is not only India’s strategic partner but also a spiritual neighbor.
Both Japan and Mongolia need India as their strong ally and so does India. Japan’s high-quality manufacturing and infrastructure is essential for India’s growth. Prime Minister Modi stated that, “in theeconomic development of India, Japan is a key factor.” Prime Minister Modi’s Make in India, Skill India,
Smart India and Digital India are all projects requiring know-how and skills from experts and its successdepends on Japanese cooperation, investment and technology. In building a strong India ‘Japan Plus’ isPrime Minister Modi’s priority. Under Prime Minister Abe’s project, ‘Partnership for Quality Infrastruc-─ 44 ─

India’s Act East Policy: Japan and Mongolia

ture Investment for Asia’s Future,’ Japanese ODA is expanding in India’s infrastructure sector. The
long-cherished goal of connectivity of Northeast to Southeast Asia is coming true through the Japanese
assistance. Both countries have also agreed on the advance maritime security cooperation, as well as toaddress regional issues including North-Korea and its nuclear power. Likewise, Mongolia’s rich natural
resources and geostrategic location play a critical role in bringing economic growth while helping ensurestability and peace in the region. India as its third and spiritual neighbor to Mongolia has many reasons
such as the China factor as well as the relevance of Buddhism and the nature of foreign policy topromote strong ties with Mongolia. As such, strategic dimension and mineral wealth of Mongolia is a big
attraction to India.To make India as one of the leading countries is Prime Minister Modi’s Vision.
Consequently, from Japan’s Maritime Self-Defense Force engaging in joint drills with the Indian navies
to Mongolia building its first oil refinery plant with India’s aid, Japan and Mongolia are prominent inIndia’s eyes and so is India to both the nations. It is to be seen how in coming years such partnerships
established among the three countries expand their relations under the Act East Policy, not only for theirown benefits exclusively, but also for the benefits of the entire Southeast Asia and the Indo-Pacificregion, including the emerging China.
Notes1 ） Tibet Sun, Everything Tibet: Pt. Jawaharlal Nehru’s Speech at “Asian relation conference” March 24,
19472 ） Ministry of Foreign Affaires of Japan, “Confluence of the Two Seas” Speech by Mr. Shinzo Abe,
Prime Minister of Japan at the parliament of the Republic of India. August 22, 2007.
3 ） Japan, India Leaders Build Ties Amid Trade, Security Worries, US News, October 28, 2018
References
India, Mongolia to enhance bilateral trade, investments, April 25, 2018https://economictimes.indiatimes.com/news/economy/foreign-trade/india-mongolia-to-enhance-bilateral-trade-investments/articleshow/63907087.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Japan, India Leaders Build Ties Amid Trade, Security Worries, US News, October 28, 2018https://www.usnews.com/news/business/articles/2018-10-28/japan-india-leaders-build-ties-amidtrade-security-worries
Ministry of Foreign Affaires of Japan, “Confluence of the Two Seas” Speech by Mr. Shinzo Abe, Prime
Minister of Japan at the parliament of the Republic of India. August 22, 2007.

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https://www.mofa.go.jp/region/asia-paci/pmv0708/speech-2.html
Rajiv Bhatia, “The Arthashastra in Modi’s India”, Gateway house, December 7, 2016
https://www.gatewayhouse.in/the-arthashastra-in-modis-india/
Tanvi Madan, “Indian Prime Minister Modi’s Foreign Policy: The First 100 Days”, August 29, 2014
https://www.brookings.edu/opinions/indian-prime-minister-modis-foreign-policy/
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Tibet Sun, Everything Tibet: Pt. Jawaharlal Nehru’s Speech at “Asian relation conference” March 24,
1947https://www.tibetsun.com/news/1947/03/24/pt-jawaharlal-nehrus-speech-at-asian-relations-conference-1947─ 46 ─