Japan, India come together

TEXT OF STORY

Doug Krizner: Japan’s Prime Minister is leading a delegation of 200 Japanese executives this morning. They’re in Indian and their goal is to jump start economic relations between two of Asia’s largest economies. Steve Henn reports.

Steve Henn: India’s economic relationship with Japan is oddly tepid. Trade between the two countries totaled less than $7 billion last year.

Japan’s direct foreign investment in India is miniscule and actually fell from 1997 through 2004. But a China’s growth is pushing both countries to rethink their economic relationship.

Richard Samuels: It is the 850-pound gorilla.

Richard Samuels political science professor at MIT and author of a new book called “Securing Japan.” He says both India and Japan are interested in creating an economic and political counterweight to China.

Samuels: There are great opportunities the two economies are complementary.

India offers low cost manufacturing, access to new markets and a relatively cheap, highly-educated workforce.

Japan has energy efficient technologies India needs and, most importantly, money to invest.

In Washington, I’m Steve Henn for Marketplace.