Former external affairs minister Paul Hasluck argued that India, Japan and Australia could be considered the ‘legs of the tripod’ of like-minded states with a profound interest in the ‘rebuilding of Asia’ in 1966. This concept appears to be making a re-emergence in global politics as the past month saw notable political achievements between these governments in the areas of economics, trade, infrastructure, and defence procurement. However, closer analysis of the recent visits of Indian prime minister Manmohan Singh and Australian prime minister Tony Abbott to Tokyo and New Delhi, respectively, suggests that Indo-Japanese relations have surpassed Indo-Australian bilateral ties, giving further incentive to Mr Abbott to accelerate diplomatic efforts to rebalance.

Indo-Japanese relations have been historically strong, and PM Manmohan Singh’s 1 September visit to Japan culminated in the signing of the ‘Joint Statement towards Japan-India Strategic and Global Partnership’ which involved improving diplomatic and political coordination on issues on a bilateral, regional, multilateral and global level. Equally, freed from the ideological baggage of Cold War politics, Australia and India’s relationship appears to have transcended the fondness for cricket. India’s rising economic profile, military strength, growing naval presence in the Indian Ocean Region (IOR) and the large Indian diaspora in Australia have facilitated this convergence of interests.

The recalibration of the bilateral Indo-Japanese economic relationships has emerged as a priority for these nations, which now depend on numerous smaller commercial deals. During talks, Modi and Japanese PM Shinzo Abe have pledged to double Japan’s foreign direct investment in India in five years from $2bn in 2013. Abe also pledged to raise public and private investment and financing to 3.5tn yen ($33.6bn) within five years, and provide an aid loan of 50bn yen ($480m) to the India Infrastructure Finance Company. Additionally, the Japanese 3.5 trillion yen ($34bn) Official Development Assistance (ODA) investment into India over the next five years is set to provide financial support for development projects such as the Ganges River clean up and the construction of a bullet train. Furthermore, India established a Special Management Team directly under the Prime Minister’s Office to facilitate investment proposals from Japan.

Modi has recently pledged to build one hundred new ‘smart cities’, and a pact was signed to develop Modi’s Lok Sabha constituency of Varanasi in a similar design to Kyoto, Japan. The Indian Union Ministry claims that smart cities will provide infrastructure to improve access to water, sanitation, reliable utility services, healthcare and attract investments and facilitate commercial activities with Japanese financial aid. However, there appears to be no comprehensive definition of a ‘smart city’ and hence it is difficult to observe how these cities could be implemented unless supported with a plausible plan to execute their construction.

Both sides also signed a Memorandum of Understanding (MOU) for cooperation in heritage conservation, city modernisation and cooperation in the fields of art, culture, and academia. Also, with aims to diversify supply away from China, Tokyo and New Delhi finalised an agreement to allow for the import of rare earths from India, which—aside from being both expensive and environmentally costly to extract—are vital in the manufacture of high-tech products.

India and Japan have also undertaken student and employee transfers, and PM Modi notably requested that Japanese youth undergoing training from Tata Consultancy Services “…return as India’s ambassadors to Japan”. In turn, Japan lifted the ban on six Indian entities including Hindustan Aeronautics Limited (HAL) that was imposed in the aftermath of the 1998 Pokhran II nuclear tests.

India and Japan also tightened ties to hedge against an increasingly assertive and ‘rising’ China. Given historical border disputes in the east and north of the country, India is aiming to enhance the country’s military capabilities. As Modi conveyed to business leaders in Tokyo:

“The world is divided into two camps. One camp believes in expansionist policies, while the other believes in development. We have to decide whether the world should get caught in the grip of expansionist policies or we should lead it on the path of development and create opportunities that will take it greater heights”.

Abe and Modi also vowed to make their relationship a special strategic partnership, but did not agree on whether to purchase the US-2 amphibious planes. A defence cooperation agreement is likely, and the two have agreed to hold regular joint training exercises in maritime defence in the Indo-Pacific Ocean Region. However, it appears that a deal is a distance away despite affirmations made by the head of the joint working group, Amitabh Kant, on India’s intention to purchase the planes for relief and rescue operations. Nonetheless, Japan did remove six of India’s space and defence related entities from its Foreign End User List to coincide with the summit; clearing these parties from suspicion of developing weapons of mass destruction. Beijing responded to the Indo-Japanese working group belligerently, by stating in a regime-run editorial in the Global Times: “The increasing intimacy between Tokyo and New Delhi will bring at most psychological comfort to the countries […] If Japan attempts to form a united front centred on India, it will be a crazy fantasy generated by Tokyo’s anxiety of facing a rising Beijing”.

On the other end of the diplomatic spectrum, Australia and India reached a much awaited uranium nuclear deal. Mr Abbott stated, “Australia and India already have a formally-negotiated strategic partnership. My hope is to develop an economic partnership commensurate with our countries’ history and heritage, and our people’s easy rapport with each other – mines and minds, if you like”. In a gesture of goodwill, Mr Abbott returned a precious stolen artwork, the famous Dancing Shiva, which was sold by a fraudulent New York art dealer to the National Gallery of Australia five years ago and is worth $5.6 million dollars. The bilateral talks also saw new collaborations for Indian and Australian scientists, and the signature of a MOU between Australia’s National Trauma Research Institute and India’s largest emergency services agency, the Gunupati Ventaka Krishna Emergency Management Research Institute. As Mr Abbott further expressed, “Australia and India have shared interests in continued US engagement in the region, just as we both do in a China that makes a positive contribution to stability and prosperity in the Indo-Pacific”.

In perspective, Australia’s uranium deal and Shiva return have been outshone by the strengthening of Indo-Japanese leg. it will be interesting to see whether Australia will work to deepen relations with India when Modi attends the G20 as the first Indian leader to visit Australia in 28 years.

Elise Terrell is an intern at the AIIA National Office. She can be reached at intern6@internationalaffairs.org.au.