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).
