Japanese policymakers do look to India. Last month, both countries' trade delegations met for the 12th time to explore the possibility of a free-trade deal. They have good reasons to do so.

Business between the two countries is booming. In fiscal 2008, India surpassed China as the destination for direct Japanese investment with a total of ¥809 billion. The figure for China came to ¥679 billion.

Among the most prominent deals concluded in India were the takeover of generic drug maker Ranbaxy by Daiichi Sankyo and the stake taken by NTT DoCoMo in mobile phone carrier Tata Teleservices.