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Byline: Victoria Tuke
Despite favourable geopolitical conditions such as concern over the nature of Chinaai 1/2i 1/2s rise, the relationship between India and Japan remains one of unfulfilled potential. The persistence of a ai 1/2oeperception gapai 1/2i 1/2 between the two is preventing deeper engagement.
At first glance, India and Japan appear natural partners. Located on the periphery of Asia, both are examples of economic growth developing in line with democratic values.
Furthermore, India and Japan share no territorial disputes or historical animosity. Since a nadir following Indiaai 1/2i 1/2s nuclear tests in 1998, relations have evolved apace; yet certain sticking points are holding back its promise.
During the Cold War, India and Japan adopted contradictory political and ai 1/2i 1/2 crucially for Japan as a trading-nation ai 1/2i 1/2 economic systems. Indiaai 1/2i 1/2s economic liberalisation in 1991 encouraged some commercial interest, but this was low, as Japan concentrated efforts on China and South-East Asian markets.
South Korean companies, in contrast, who are less risk-averse than Japanese, established an early presence in India and have since proven more aggressive and hence successful.