A Study Of Japan’s Official Development Assistance To India And Its Motivations

As a form of economic diplomacy, Official Development Assistance(ODA) has gained widespread popularity in the world. With the help of its strong economic strength and rich experience, Japan deploys ODA as a means to strive for more national interests. The study shows that Japan places much emphasis on the natural resources and market size of the recipient country as well as its geographical location. Based on the changing international situation and aiming to secure its national interests, Japan’s ODA to India has been greatly increased since the start of21st century, with the latter taking the place of China and becoming the No.1recipient country of Japan.Japan-India ODA system has been well developed with unique characteristics, focusing on designated regions and industries and using the Japanese yen as a major funding currency. On the whole, Japan’s ODA to India has had positive impact on the development of Japan-Indiabilateral relations and gained respect from India thanks to its extensiveness, intensity as well as its adaptation to the changing international environment.The study shows that Japan’s ODA to India has discerning considerations in political, economic and geographical terms. The Japanese government has been seeking economic benefits through ODA while stressing the importance of political interests. Given India’s important geographical location and its rising presence as an emerging economy after the financial crisis in2008, Japan’s ODA to India attempts to follow the changing geographic pattern and consolidate its control in the Asia-Pacific area. In the meanwhile, it is also aimed at wooing India to keep a lookout on China, which is in accordance with the US strategic development strategy in the Asia Pacific region.