Elevating Indo-Pacific as the Epicenter of Global Peace and Prosperity
The 21st-century geopolitical landscape is experiencing a significant shift towards the Indo-Pacific region, with Japan and India playing a crucial role in shaping this transition. This move seeks to establish a free and open Indo-Pacific (FOIP) as the bedrock of global peace, prosperity, and a rules-based order. The upcoming G7 and G20 Summits, hosted by these two nations, present an excellent opportunity to reiterate this paradigm shift, reinforcing their commitment to a free and open world.
The importance of the Indo-Pacific has been emphasized by leaders from both nations. The Japanese Prime Minister, Fumio Kishida, during his visit to India in March 2023, articulated Japan’s plan for a FOIP. Similarly, India, seen as a flagbearer of the Global South, is in a position to champion the same. These nations are aiming to position the Indo-Pacific as the geoeconomic and geopolitical center of the world, driving prosperity for the Global South.
The Indo-Pacific: A Bulwark for a Rules-Based World
The global economic landscape is currently facing significant upheavals. The Russian invasion of Ukraine has sent shockwaves across the world economy. However, it is important to note that any conflict in the East or South China Seas, possibly instigated by China, would have a far more substantial impact on the global economy. With the Indo-Pacific region accounting for more than half of the world’s economy and population, and over two-thirds of global commerce, the stakes are higher.
China’s territorial disputes with its major neighbors have rendered the Indo-Pacific one of the world’s biggest flashpoints. Thus, maintaining a free and open rules-based order in the Indo-Pacific is not just a matter of regional security, but is crucial for global stability. Japan and India have been at the forefront in championing this idea, emphasizing sovereignty, accountable governance, inclusivity, diversity, resilience, and openness.
Economic Cooperation: Driving Prosperity Across the Indo-Pacific
Japan and India’s commitment to a FOIP goes beyond political rhetoric and is strongly reflected in their economic policies and initiatives. Both nations have shown a willingness to back their calls for a peaceful, free, and open region by becoming drivers of economic growth and prosperity across the Indo-Pacific. Japan’s extensive investments in India’s major industries, such as trade and transit corridors, high-speed rail systems, and cloud infrastructure, is a testament to this commitment.
Promoting closer coordination and integration of the economies in the Indo-Pacific region should be a priority for both countries. Japan has already taken the lead through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). India, too, is striving to enhance access to regional markets through free trade agreements. The convergence of the CPTPP and the Indo-Pacific Economic Framework will undoubtedly serve the interests of both countries.
Infrastructure Development and Institutional Evolution
Meeting the regional infrastructure demand, estimated at over US$1 trillion per year, is a critical aspect of ensuring the FOIP’s value to the region’s residents. Japan, as the region’s largest source of foreign direct investment, is playing a leading role in this endeavor. However, it is imperative for India to join this effort, extending India-Japan infrastructure investments across the region.
Moreover, the establishment of a FOIP Infrastructure Fund of US$100 billion per year could be a game-changer. Such a fund could leverage private capital with the help of other nations, such as the United States, Australia, South Korea, and Europe. Investments should prioritize projects such as trade and transit corridors and submarine cables