DNA Edit: Meeting of minds – PM’s Japan trip shows deepening of Look East policy

Meetings between Prime Minister Narendra Modi and his good friend and Japanese counterpart Shinzo Abe must be reaching record levels. Since Modi came to power in 2014 and visited Tokyo in September that year, the two have met a whopping 11 times. This current Modi visit to Japan, to attend the 13th Indo-Japan Annual Summit, would be the twelfth meeting between the two heads of government. It shows that India’s Look East policy has acquired a new depth and meaning, particularly given China’s steady rise as the world’s principal hegemon, particularly in Asia. Apart from economic relations, which forms the basis of bilateral ties between India and Japan, two big Asian economies, Modi’s statement before embarkation, of the two countries sharing a “vision and commitment to a free, open and inclusive Indo-Pacific”, reflects that China is upper most on the minds of New Delhi and Tokyo. There is all the likelihood of mutual logistic support in the Indo-Pacific region. After all, Japan’s involvement in the Indo-Pacific region, of which South China Sea forms an integral part, and is currently the site of much muscle-flexing by Beijing, can hardly be described at a state secret. India’s involvement in a cohesive Indo-Pacific strategy and imminence of quadrilateral  grouping of like-minded nations - India, Japan, Australia and United States - could hardly be lost on China. There is also little doubt that talks are going to be further held to turn this Quad into a more meaningful force then it is right now.

The Indian Prime Minister, a great believer in connectivity and technological modernisation, puts these two subjects high on his list of priorities and is going to explore them. He has also said in specific terms that Japan is India’s most trusted partner when it comes his government’s modernisation plan. Japan has pledged a total of 384.1 billion yen ($3.6 billion) in loans to India in the 2017–18 fiscal year, which makes this country the recipient of the most Japanese loans made to any country in a single year. Japanese FDI to India in Q1 of 2018 stood at $ 874 million, and it ranks as the third largest investor for India. The number of Japanese companies registered in India has registered a steady growth, rising to 1,369 as of October 2017. The two sides will sign many MoUs, as meetings are scheduled with various business leaders. Among the important accords is a proposed closer naval cooperation between India and Japan, when the two issue a joint statement. It is equally important to remember, however, that the highly systematic Japanese investors, despite their many pledges, have found the going tough in India. As the Japanese ambassador to India recently told a magazine, despite India’s improved position in the ease of doing business list, many firms from his country find Indian infrastructure, namely transportation and electricity, a big challenge. Hopefully, some steps are going to be taken in that direction during the Indian Prime Minister’s current trip.