"Japan is Committed to the Development of the Northeast Region with Strategic Significance."

Why Japan is focused on the development of Northeast India, extent of cooperation and the future plans were explained in his speech by Jiro Kodera, Counselor (Economic and Development), Embassy of Japan in India at Rising Asia-BCC&I Summit 2024, titled "Rising Asia: The Bengal Pivot to the East", on 20th December 2024. Sharing the speech delivered

Excellencies,

Distinguished guests, Ladies and Gentlemen,

আমার নাম জিরো কোদেরা এবং আমি জাপান দূতাবাসের অর্থনৈতিক বিভাগে কাউন্সেলর হিসেবে কাজ করছি। এই চমৎকার সম্মেলনে আমন্ত্রণ জানানোর জন্য ধন্যবাদ।

Amar naam Jiro Kodera ebong ami Japan dutabaser orthonaitik bibhage counselor hisebe kaj korchi. Ei chomotkar sommelone amontron jananor jonno dhonnobad.

Today, I would like to take this valuable opportunity to talk about why Japan has focused on the development of Northeast India, what kind of cooperation we have actually carried out, and what we plan to do in the future.

Ladies and Gentlemen,

The development of East and Northeast India is an extremely important issue for Japan. In fact, Japan has extended tremendous support and investment in this region for an extensive period. This is because this region is a vital conduit between India and Southeast Asia, and Japan views the East and Northeast region as strategically critical. As an island maritime nation, Japan’s peace and prosperity hinge on the Indo-Pacific oceans and its sea lanes. Through these sea lanes, Japan imports nearly all its natural resources, including gas, oil, and the majority of mineral resources. Therefore, it is essential to our national security that democracies along these sea lanes flourish sustainably.

For this reason, in 2007, Former PM Abe proposed a “Free and Open Indo-Pacific” (FOIP) here in India, and in 2023, Former PM Kishida proposed the “Industrial Value Chain Concept Connecting Bay of Bengal and Northeast India,” which unifies East and Northeast India, Bangladesh, and other neighboring parts of the Bay of Bengal regions into a whole economic zone with a market of over 300 million people. The North Eastern Region (NER) serves as a convergence point for India’s “Act East” policy and the FOIP policy. Japan has made efforts to develop this region in terms of not only economic interests but also political, diplomatic, and strategic interests.

In fact, Japan possesses practical expertise in establishing infrastructure and economic corridors, such as the “East-West Economic Corridor” and the “Southern Economic Corridor” in the Mekong region. These corridors stand out as some of the most successful industrial value chain projects globally.

Ladies and Gentlemen,

History has shown that Northeast India and the Bay of Bengal region were once thriving centers of trade. To rekindle this potential, Japan has provided over 22,000 crore in ODA to the NER in areas such as roads, water supply and sewage, electricity, healthcare, and biodiversity.

Among these, the flagship support is the “North East Road Network Connectivity Improvement Project.” This project connects Tura-Dalu, Shillong-Dawki, Dhubri-Phulbhari, Kailashahar-Khowai, and Khowai-Sabroom, enhancing connectivity in the states of Assam, Meghalaya, and Tripura by constructing and upgrading national highways and bridges. Simultaneously, Japan is improving access on the Bangladesh side through the “Cross-Border Road Network Improvement Project,” including bridge construction to enhance Dhaka-Benapole and Baraiyarhat-Ramgarh access. Additionally, Japan is constructing Matarbari deep-sea port in Bangladesh, which will be a game-changer when it becomes commercially operational in 2027, just three years from now. Japan aims to create an economic zone of 300 million people by connecting Kolkata and Dhaka with Matarbari Port.

At the same time, Japan is providing safe and stable water supply services to meet the increasing demand due to rapid population growth and industrialization through the “Guwahati Water Supply Project” and the “Guwahati Sewage Project.” Additionally, Japan is contributing to the health and well-being of people through the “Project for Forest and Biodiversity Conservation for Climate Change Response” in West Bengal, the “Health System Strengthening Project” in Assam, the “Mizoram State Super-Specialty Cancer and Research Centre Project” in Mizoram, and the “Nagaland Medical College Hospital” in Nagaland.

To advance these initiatives, Japan has been promoting the development of the Northeast region through the Act East Forum, a government-to-government dialogue framework, and the Japan-India Intellectual Conclave, a broader dialogue framework involving business and academia.

Ladies and gentlemen,

What potential does this region hold for the future? I would like to focus on three points: agriculture, human resources, and semiconductors.

First, agriculture. A Japanese mushroom company has collaborated with the State of Meghalaya to install a mushroom bed production facility at the Mushroom Development Centre. This facility will boost mushroom cultivation capacity, benefiting hundreds of local farmers. Also, JICA has provided technical cooperation to promote bamboo industry, including development of innovative designs to enhance marketability of bamboo products and provision of training in bamboo crafts skill development and financial management. A Japan Overseas Cooperation Volunteer (JOCV) is providing technical guidance on bamboo crafts at the Tripura forest Department. Recently, he also participated in the Hornbill Festival in Nagaland, where he demonstrated his exceptional craftsmanship. Furthermore, a Japanese organic farming company, Our Farms, that has successfully cultivated Japanese strawberry varieties in Nepal, improving farmers' incomes and promoting women's social advancement, is exploring the potential for strawberry cultivation in North, West and Northeast India. The West and Northeast states are agricultural states, and we must harness this potential.

Second, human resources. An industrial value chain is not simply created by building roads, bridges, and railways. It is people who develop farmland, start businesses, and nurture industries, and it is essential to cultivate human resources. However, many young people in Northeast India have high educational qualifications but struggle to find employment. Meanwhile, Japan is facing an aging population. India and Japan are best partners, complementing each other's strengths and weaknesses. Through the Technical Intern Training Programme (TITP) and the Specified Skilled Worker (SSW) scheme, Japan accepts Indian workers in fields such as agriculture, construction, caregiving, and hospitality for three to five years, or longer if conditions are met, addressing severe labor shortages while providing skill development through OJT. Some young people start new businesses in India after returning with the experience gained in Japan. Unfortunately, while there are 300,000 Vietnamese, 110,000 Indonesian, and 6,600 Nepali workers in Japan, there are only about 1,000 Indian workers. This is not a desirable number given the size of the country, and the Japanese Embassy is holding job fairs and information sessions for local governments and SMEs in India and Japan to boost this number. In fact, the ARMS Dimapur Center and JACEEX in Guwahati provide Japanese language education, technical training, and cultural education to ensure that Indian workers do not face difficulties in Japan. In addition, JICA dispatched the long-term Japanese expert for TITP/SSW promotion to NSDC (National Skill Development Corporation) just last week. If anyone is interested, please let us know, and we will connect you with these organizations.

Third, semiconductors. This is the newest news. At the end of February this year, the Tata Group announced the establishment of an OSAT factory for semiconductor back-end processes in Morigaon, Assam, in addition to Dholera and Sanand in Gujarat. Semiconductor industry is a highly prioritized industry for both India and Japan, and both counties signed a Japan-India Semiconductor Supply Chain Partnership in October, 2023. As you know, the semiconductor industry involves design, manufacturing, assembly, and inspection, with various companies forming clusters. Some Japanese companies have already shown interest in participating in the Morigaon semiconductor cluster, if it is realized. Additionally, JICA, JETRO, and JBIC are supporting these Japanese companies by facilitating the discussions in the JCCII Semiconductor Committee. The Japanese government is committed to supporting these initiatives by Japanese and Indian companies.

Ladies and gentlemen,

Japan is committed to the development of the Northeast region with strategic significance. With experience in realizing economic corridors in the Mekong region, Japan has been providing support in various fields and will continue to contribute to the development of the Northeast region, focusing on agriculture, human resources, and semiconductors. In conclusion, I hope this conference will make a significant contribution to realizing an industrial value chain of 300 million people.

Thank you very much.