SEPTEMBER 2014

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Point Out India Japan FRUITS OF LOOKING EAST “The personal bonhomie between Modi and Abe is a larger signal to China about the Delhi-Tokyo potential. Japan’s commitment to invest $35 bn over five years in India may even spark a competition with China to India’s benefit.” 26 september <strong>2014</strong>
»» SURYA GANGADHARAN Was the prime minister eating shredded dhokla from a bowl using chopsticks during his recent visit to Japan? Or was it some other Gujarati delicacy? The question remained unanswered but Modi’s preference for Gujarati vegetarian fare is well known. The Japanese on the other hand, are known to eat anything that moves! More to the point, what did Narendra Modi’s visit to Japan achieve? “In geopolitical terms it has considerable relevance,” says Dr Swaran Singh, Japan scholar at Jawaharlal Nehru University and a visiting scholar at Hiroshima University. “The personal bonhomie between Modi and Abe is a larger signal to China about the Delhi-Tokyo potential. Japan’s commitment to invest $35 bn over five years in India may even spark a competition with China to India’s benefit.” But looking at the fine print, it’s clear that India and Japan have a long way to go. As a senior MEA diplomat put it: “The figure of $35 bn is great for headlines but we were expecting something much more given the scale of our requirements.” Much of the Japanese investment is in soft areas: the Shinkansen or bullet trains, health sector, city modernization, cleaning of the Ganga and skills development. In the “hard strategic sectors” the Japanese proved cautious and unyielding. An agreement on cooperation in the nuclear sector remains unfinished with both sides committed to continuing the negotiations. This is a setback as Japanese industry supplies many of the special steels and materials that go into the construction of nuclear reactors. So if India wishes to operationalise the nuclear agreements with France (Areva) and the US (Westinghouse), Japan’s cooperation is crucial. Tokyo has muted its insistence on India signing the Nuclear Non-proliferation Treaty and the Comprehensive Test Ban Treaty. But it wants India to agree to a moratorium on paper (and is not willing to accept the indirect formulation that saw the India-US nuclear deal go through). Indian diplomats say Modi was hopeful his personal chemistry with Abe and a spoken commitment DEFINING MOMENT IN OUR RELATIONSHIP : FICCI Commenting on the visit of the Prime Minister Narendra Modi to Japan, Sidharth Birla, President, FICCI said “This visit marks a defining moment in our relationship and will be registered in history as one that significantly elevated the level of engagement between India and Japan across areas. The agreements that have been signed and the understanding achieved under the guidance and leadership of Prime Minister Modi and Prime Minister Abe will bring the two countries closer in both strategic and economic spheres.” We are particularly enthused about the launch of the Japan India Investment Promotion Partnership under which the two sides have agreed to double the flow of FDI into India and the number of Japanese companies over the next five years. FICCI firmly believes that we must encourage greater export oriented FDI from Japan into India and this visit of PM has laid the groundwork for the same. Japan has committed to realise total financial flows of close to 3.5 trillion Yen into India over the next five years in projects that would form the building blocks of India’s growth such as smart cities, transport systems, clean energy, skill development and food processing”, added Sidharth Birla. Besides economic and strategic connects, the two sides have also laid great emphasis on promoting people to people contact. Promoting tourism, youth exchanges, educational collaboration and cultural exchanges are integral to the growth of our relationship and our leaders have expressed their determination to further enhance the same”, he added. 27
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