Japan’s Official Development Assistance to India

Abstract

India was the first country to receive Japanese Official Development Assistance in 1958. However, it was only in 2003–2004 that India became the topmost recipient of Japanese ODA. Providing ODA is an important tool used by Japan to secure its interests. Consequently India becoming a topmost recipient of Japanese ODA is an indication of its growing importance for Japan. This article attempts to understand the political, strategic and economic interests which Japan seeks to achieve while formulating its ODA policy during and after the end of the Cold War period. Till the turn of the twenty first century countries like China, Indonesia were among the main recipients of Japanese ODA. In this period, the strategic, political and economic environment in Asia has also undergone drastic changes. In the changed scenario maintaining close relations with India seems to have become an important consideration in Japan’s foreign policy making. This article also seeks to understand the importance of Japanese ODA for India and the projects for which aid has been provided. An attempt will also be made to analyse the nature of the obstacles and problems which Japan has been confronted with so far while implementing the projects in India