Saturday, September 13, 2014

Dinesh Kamath's Editorial 'Modi gives a boost to Indo-Japan ties' that was published in Newsband

Modi gives a boost to Indo-Japan ties
India and Japan are second and third largest economies of Asia. There is need to improve trade and economic partnership between India and Japan although the two are enjoying good relations with each other. One has to see first how much Japan has to offer in terms of investment and technology, and how much India needs both. India may be one of the largest recipients of Japanese ODA (Official Development Assistance), but when it comes to foreign direct investment (FDI), it ranks low. All this could change for the better post-Prime Minister Narendra Modi’s visit to Japan, which seems to have breathed new life into economic relations.
Japan has offered to assist India in a big way in sectors of infrastructure, manufacturing, transport and clean energy, and on smart cities. The two Asian giants are very keen on improving trade and investment. For Japan, India presents a good choice with its huge market. New projects such as those for super-fast trains and smart cities are ideal destinations for Japanese investments.
Japan, notwithstanding a total lack of natural resources, has proved to the world that "Mind over Matter" is the right way to develop any country fast. So this could be great beginning to transform India. However, our government must do something to unchain country from the clutches of bureaucracy before the initiation of Japanese investment.
Visit of PM in Japan has boost up the relations of the two countries and also both countries will stand to profit as Japan will find a place for market while India will earn an investment for future progress.
Japan is witnessing a rapid decline in population. The country's culture looks down upon immigration. However, the time has come for it to examine immigration as an option. For Indian professionals and skilled workforce, immigration to Japan presents a golden opportunity. Of course, for that learning of Japanese language is necessary for potential immigrants. Job creation is central to the peace and prosperity of our country. Let us hope that Japan's promise to invest 3.5 trillion yen in India in the next five years in certain sectors will be translated into more jobs
Modi has done the right thing by highlighting the affinity of India and Japan to each other. He has taken the relationship, along with his counterpart Shinzo Abe, to a much anticipated new levels economically, politically and militarily. The crucial part that remains now is the delivery within the next five years. There are two impediments that we can see. One is the Japanese management approach of consensus before taking a decision. While Abe and his government may be willing, it is the private Japanese companies that have to do the actual work of setting up plants and offices in India. India has also got to act fast and facilitate the environment.

All credit to Modi first for recognising potential for Indo-Japan economic ties first as Gujarat’s Chief Minister and now as country's PM.

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