One useful takeaway
- India and Japan are planning joint investments in Africa to secure critical minerals and reduce reliance on China.
ARTICLE PREVIEW
Gist India and Japan are exploring joint investments in Africa to secure critical mineral supplies and reduce their mutual dependency on China. This development marks a strategic shift from isolated procurement to collaborative resource acquisition, ensuring supply chain resilience for emerging technologies. For aspirants, this highlights the evolving India-Japan strategic partnership moving beyond traditional trade into joint geo-economic ventures in third countries. Background The global supply chain for critical minerals is heavily concentrated, with China maintaining dominant control over global supplies, creating strategic vulnerabilities for import-dependent nations. India and Japan signed a bilateral Economic Partnership Agreement EPA in 2011 to eliminate tariffs, promote investments, and enhance comprehensive economic cooperation. Despite the framework provided by the 2011 EPA , the trade balance has disproportionately favored Japan, leading to ongoing Indian concerns over a structurally widening bilateral trade deficit. Key Pointers Collaborative procurement: By partnering in Africa, India and Japan can leverage collective bargaining power to jointly negotiate supply agreements and develop overseas mining capabilities. Geopolitical hedging: This joint approach acts as a strategic countermeasure against supply chain disruptions, ensuring uninterrupted access…
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