Japanese Prime Minister Shinzo Abe’s sweeping victory in a snap election is good news for Prime Minister Narendra Modi.
Under Modi, India and Japan came closer and now plan to cooperate on several key economic and security issues. A new term for Abe means Modi getting an ally when it matters the most for him.
Countering China
China’s emergence as a global power happens just when the U.S. is withdrawing from its role of the global leader. Under Donald Trump, the U.S. withdrew from the Trans-Pacific Partnership (TPP). China’s dominance of Asia does not bode well for Japan or India. If they come together they can pose a credible challenge to China.
Due to India’s vulnerability vis-a-vis China, especially when PM Modi is aggressively pursuing the ‘Act East’ policy, he needs a reliable ally, and Japan can be one. Modi cannot depend on flip-flopping U.S. to counter China’s rising clout in Asia.
Apart from China’s increasing military presence in Indian Ocean, another worry for Modi is China’s One Belt One Road (OBOR) project which gives it economic and strategic footholds across Asia. With Abe with him, Modi can counter China. India and Jaopan have already planned Asia-Africa Growth Corridor in response to OBOR.
Japan too needs India as a strategic ally as China threatens its influence in the Asia-Pacific. An Indo-Japanese partnership can counter China in the Asia-Pacific as well as Indian Ocean.
Personal chemistry
There are very few foreign leaders with whom Modi shares as positive a chemistry as with Abe. Both are right-wing nationalist leaders backed by strong mandates who can take tough decisions.
Due to this chemistry, Modi has better chances to work in tandem with Abe than any other foreign leader. After the rise of Modi and Abe, India-Japan ties have seen sudden improvement.
The civilian nuclear cooperation agreement between the two countries that came into force in July can be attributed to Abe-Modi chemistry. Now with Abe winning another mandate, both the leaders can find many more areas to work toegther and press ahead with common projects.
Economic compatibility
India and Japan have rare economic compatibility. Each offers what the other lacks. Abenomics and Modinomics can come together for mutual good.
The biggest task for Abe when he came to power in 2012 was to revive the stagnated Japanese economy. Abenomics is how he planned to do that.
Abe’s steps included government spending, monetary easing and economic reforms. A big challenge for Abe has been Japan’s aging population. For nearly a decade, the working-age population has been declining and is down about 13 per cent.
Modinomics, the economic polices of PM Modi, are focused on India’s demographic dividend. Most of India’s population is young and Modi has to provide them jobs. Job growth is down because private investment is down.
Modi’s ambitious ‘Make in India’ programme that aims to generate jobs, needs foreign investment. Modi’s economic reform agenda is aimed at creating a better business atmosphere for foreign investors.
Briefly, India and Japan are opportunities for each other. That’s why Japanese investment in India has grown rapidly after Modi came to power. Japan’s lack of investment avenues and India’s need for technology and infrastructure make the two countries ideal business partners.
After Japan exporting its Shinkansen bullet train tcehnology to India, India is planning to send three lakh youth to Japan for on-job training for three-five years as part of the government’s skill development programme.
Abe’s victory is a big positive for Modi. It will mean not only a boost for Modi’s ‘ct East’ policy but also evolution of a vital economic partnership.
