First India-Japan Finance Dialogue

India-Japan Finance Dialogue- Relevance for UPSC Exam

India-Japan Finance Dialogue: India-Japan Relation is important for both countries, geo-strategically and economically important. India-Japan Relation will come under International Relations (Bilateral Relations) of UPSC Mains GS Paper 2 Syllabus and Current Affairs of UPSC Prelims Syllabus.

 

India-Japan Finance Dialogue in News

• Recently, Mr. Masato Kanda, Vice Minister of Finance for International Affairs, Japan, and Mr. Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance, held the first India-Japan Finance Dialogue in New Delhi.

 

India-Japan Finance Dialogue

• About: First India-Japan Finance Dialogue is being held as an upgradation of existing Deputy Director-Generals Finance Dialogue.
  • Now, India-Japan Finance Dialogue is being held to the level of Vice Minister/Secretary.
• Participation:
  • The Japanese delegation included the representatives from Ministry of Finance, Financial Services Agency, and financial institutions.
  • From Indian side, the representatives from Ministry of Finance, Reserve Bank of India, Insurance Regulatory and Development Authority of India, Securities and Exchange Board of India, and financial institutions participated in the discussion.
• Key Outcomes:
  • The participants exchanged their views on-
    • Macroeconomic situation,
    • Financial system,
    • Financial digitalization and
    • Investment environment in both countries.
  • They also confirmed that both sides will continue to work closely together as they hold presidency of G20 and G7 next year.
  • The participants including private financial institutions also discussed various financial regulation issues towards further expansion of investment in India.
  • Both sides agreed to continue discussions for further promoting financial cooperation and strengthening bilateral relations, and agreed to explore holding the next round of the Dialogue in Tokyo.

QUAD Summit amid Russia-Ukraine War

 

History of India-Japan Relations?

• Cultural Connection: The friendship between India and Japan has a long history rooted in spiritual affinity and strong cultural and civilization ties.
  • The exchange between Japan and India is said to have begun in the 6th century when Buddhism was introduced to Japan.
  • Indian culture, filtered through Buddhism, has had a great impact on Japanese culture, and this is the source of the Japanese people’s sense of closeness to India.
• Diplomatic Relations: Japan and India signed a peace treaty and established diplomatic relations on 28th April 1952.
  • This treaty was one of the first peace treaties Japan signed after World War II.
  • Ever since the establishment of diplomatic relations, the two countries have enjoyed cordial relations.
  • In the Post-World War II period, India’s iron ore helped a great deal Japan’s recovery from the devastation.
• Regional Cooperation: India-Japan have strategic cooperation in the Indo-Pacific region. They both are part of QUAD and Indo Pacific Economic Framework.
  • India-Japan have 2+2 Ministers Dialogue mechanism along with many other channels to strengthen India-Japan Relations.

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