Japanese Prime Minister Shinzo Abe’s visit to India as chief guest at its Republic Day celebrations yielded some important advances in India-Japan relations. Notably on the security front, the two resolved to consult on national security matters between their two national security apparatuses (Japan’s national security council having been formed recently). Additionally, the two will conduct a bilateral naval exercise in the Pacific Ocean in a move that is sure to draw China’s attention.

The pending sale of the ShinMaywa US-2 amphibious patrol aircraft—a topic of interest for India since 2011—also inched forward. Abe and Prime Minister Manmohan Singh agreed that India and Japan would follow up on the sale in March with a joint working group meeting. Indian Defence Minister A.K. Antony is set to visit Japan at some point this year (presumably before May, due to the general elections in India) to finalise the deal.

The deal is significant for a variety of reasons. On the surface, it’s another indicator of burgeoning cooperation between India and Japan on security matters. The deal is doubly significant in the context of India’s relations with Japan because once India clinches the deal, it will become the first country to purchase defence equipment from Japan since the latter’s self-imposed ban on defence exports began in 1967.

The deal is important for Abe as it would open up Japan’s defence industry for additional contracts with foreign partners and stimulate Japan’s defence industry. It should be noted that negotiations on the US-2 deal began in 2011 under the Democratic Party of Japan, first under Prime Minister Naoto Kan and then under Yoshihiko Noda.

The US-2 deal could result in a $1.65 billion tab for India, which is looking at purchasing 15 of the amphibious patrol aircraft. The deal is essentially a fait accompli (cleared politically at the highest levels in both countries) and the joint working group will iron out certain details including important modifications that would allow Japan to export the aircraft to India without violating its selfimposed defence export restrictions.