Kyoto to Kashi: India is the global destination Saurabh Bhattacharya l 3rd September 2014 l Niticentral As Prime Minister Narendra Modi concluded his Japan tour, his hosts would probably have an imprint of a single statement: Twenty-first century belongs to Asia but we can determine whether it will be for peace and prosperity for everyone or for other measures. Surely, Modi’s Japanese counterpart Shinzo Abe is equally satisfied with what has been chalked out in the form of ‘Tokyo Declaration’. Japan has been seeking better investment zones to further its own economic growth and Prime Minister Modi has succeeded in delivering the message: Be a partner in India’s growth since there is no better place for investment on earth today. While talking of Brand India, he reiterated the 3Ds which make it such a lucrative market. Democracy, Demography (the demographic dividend of India is its vast segment of under 30 years of age work force which is eager to learn and earn) and Demand (Indian market itself provides a consumer market that is envied by the world) is reason enough for Japanese business leaders to come to India, open manufacturing hubs which would cater to local and international markets. This will rewrite the Asian growth story. This is also probably for the first time that a bilateral meet was extended by one day. The hosts broke protocol to meet the guest in the heritage and smart city Kyoto. Symbolism was at its peak since Modi himself represents the ancient city of Varanasi – also known as Kashi – in the Indian Parliament. Kyoto has retained its Buddhist heritage even after turning into a modern smart city. Modi wishes the same for Kashi. Hence, a partner city MoU was signed to develop the temple city on those lines. This project is aimed at serving as a framework for Smart Heritage City programme between the two nations. Moreover, Japanese investment in infrastructure development to the tune of $33.5 billion in five years is a massive take away. This will help develop the 100 smart cities’ project. With Narendra Modi in 7RCR, there is hope for the Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor (DMIC) and Chennai Bengaluru Industrial Corridor (CBIC). These projects will get a new boost. In fact, an MOU was signed in December 2006 by Vice Minister, Ministry of Economy, Trade and Industry (METI) of Government of Japan and Secretary, Department of Industrial Policy & Promotion (DIPP). A Final Project Concept was presented to both the Prime Ministers of India and Japan during latter’s visit to India in August 2007. Abe would be keen to see the project take a concrete shape before he demits power. The DMIC alone envisages a high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives. The Delhi – Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor. This corridor will be equipped with an array of infrastructure facilities such as power facilities, rail connectivity to ports en route etc. Approximately 180 million people, 14 per cent of the total population, will be affected by the corridor’s development. Between April 2000 and June 2012, total FDI inflow from Japan has been to the tune of $12.66 billion. However, the Indian Embassy in Japan states: “The current level of FDI from Japan reflects neither the potential of Japan to invest nor the capacity of India to absorb. India’s growing economy and stable investment climate offer large opportunities for Japanese companies. Some of the areas which provide huge opportunity for Japanese investment include infrastructure, manufacturing, automobiles and auto parts, power, metals, renewable energy, food processing and electronic hardware.” This will not only enable India to emerge as a manufacturing hub but as PM Modi put it, “It will be low cost-high quality manufacturing.” In bilateral terms, it is a win-win situation for both the nations. Other than this, there is the additional investment – technical and operational support for bullet trains. Equally important is the agreement on defence technology sharing and production. This is one sector where the UPA had failed to get any FDI despite having the 29 per cent provision. Modi Government not only upgraded the FDI share to 49 per cent, but this japan visit has shown that the investors have confidence in the new Government and destination India. No doubt the Strategic and Global Partnership has been upgraded by both leaders to Special Strategic and Global Partnership. This will enable the growth of India in the world market. As Modi reaches New Delhi, he will have another equally important visitor, who will be here to ink the uranium deal. It will enable India get raw material for its civilian nuclear plants. The way Australia and Japan are trying to build closer links shows how India under Narendra Modi’s leadership can become the game changer of this century.
Posted on: Wed, 03 Sep 2014 12:34:44 +0000
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