For the second year in a row, Japan has removed several Indian companies from its end user list. The seven Indian organisations removed from the End User/Entity List can now enter into transactions involving sensitive dual-use equipment, technology, and software.
The difference from last year is that seven Indian companies have been dropped and none added. Last year while 11 companies were dropped, four new ones were included. In all only a dozen Indian companies now remain on the Japanese end user list for foreign companies.
With talks on a civil nuclear agreement not much headway, this Japanese initiative would set the stage for intensive high level interactions planned towards the later half of the year that would culminate in a summit meeting. Government sources termed the move a visible symbol of the desire of both countries to pursue a robust strategic partnership."
Public sector companies active in the space and defence segments dominate the list of companies taken off the Japanese end user list and their gradual removal could lead to some high-tech Indo-Japanese exchanges in these areas.
Missile makers Bharat Dynamics Limited, two Indian Space Research Organisations – Liquid Propulsion Systems Centre and Satish Dhawan Space Centre, Defence Research & Development Organisation’s Solid State Physics Laborotary and Armament Research and Development Establishment and a private sector company United Phosphorus Limited are among the major companies which can now uninhibitedly explore for business opportunities in Japan.
Incidentally, at least half of a dozen of these companies were dropped early this year by the US Government from its Department of Commerce's 'Entity List'. Then U.S. Ambassador to India Timothy J. Roemer had said this will strengthen global non-proliferation efforts, open new doors for space and defense cooperation and high technology trade.
Last year some of the companies removed from the Japanese end users list included some DRDO and ISRO companies besides Godrej & Boyce and Rashtriya Chemicals Limited. However, some new entities such as the DRDO's Aeronautical Research Development Establishment were added.
Improving ties with the two Far Eastern neighbours — South Korea and Japan — is part of India's “Look East” policy that involves greater security and economic partnerships with these two countries, besides China, Australia and the 10 Association of South East Nations.
India flagged its interest in a strategic relationship with South Korea by signing a civil nuclear agreement during the recent visit by President Pratibha Patil and could be attempting to dovetail summit level bilateral interaction with the Nuclear Security Summit in Seoul next March.
