Why in news?
- A memorandum of understanding to set up India Japan Act East Forum is one of the outcomes of the recent 12th Indo-Japan annual summit.
- Other major agreements focussing the north-eastern region were also signed during Japanese PM's visit to India.
What are the highlights?
- Forum - The forum aims at bringing together India’s Act East Policy and Japan’s Free and Open Asia-Pacific strategy.
- This is expected to bring connectivity and promote developmental projects in India’s Northeast region.
- Loan - India and Japan also signed a document on Japanese loan and aid for highway development in the Northeast.
- Japan will extend a loan of Rs 2,239 crore to India for ‘North East Road Network Connectivity Improvement Project’.
- This will complement India's other connectivity projects in the region including BBIN (Bangladesh, Bhutan, India, Nepal) and BIMSTEC Motor Vehicle Agreements.
- The connectivity initiatives are also part of the Indo-Japan corridor conceived earlier for the Indo-Pacific region.
- The corridor also extends to Eastern Africa under the Asia Africa Growth Corridor.
What is the significance?
- Development of the Northeast is a priority for India and a key to promote its Act East Policy.
- In this context, the agreements come as a contribution to intra-regional and international connectivity in the Northeast region.
- Significantly, it is viewed as an alternative to the Chinese dominated One Belt One Road (OBOR).
- Besides, Japan has a great potential for people-to-people and cultural exchanges between Japan and the Northeast.
- This comes in the backdrop of Japan's historic connection to the Northeast through the Battle of Imphal (fought between Japanese Army and the British during World War II).
Source: Economic Times
