Throughout history, India–Japan relations have traditionally been strong. For centuries, India and Japan have engaged in cultural exchanges, primarily as a result of Buddhism which spread indirectly from India to Japan, via China and Korea. During the Second World War, Subhas Chandra Bose's Indian National Army and the Japanese Imperial Army fought together in battles against the British forces. India is the largest recipient of Japanese official development assistance (ODA).
So says Wikipedia. And it still seems to be alive because I see japanese blogs highlighting Shiva bhajans and Chanakya's books! There are even Japanese translations of the Ramayana.
