Significance of Narendra Modi’s Japan Visit
September 4, 2014
“Being a Gujarati, money is in my blood…commerce is in my blood.” Mark Prime Minister Narendra Modi’s words when he met top Japanese industrialists in Tokyo. Obviously, a Gujarati has a knack for business. Yet the point that needs to be underscored is that hard bargaining forms the core of his business sense. “Apvanu bhav su chhe?” (What is the right selling price?) – can be heard all through a bustling Gujarati market place.
Twin Challenges of dealing with Japan and China
It’s from Gujarat too, Ahmedabad-Mumbai railway corridor to be precise, that Modi has proposed to introduce Bullet trains in the country. The two countries that are wooing India to buy such trains are arch rivals Japan and China.
Does it surprise anyone therefore, that at the time when Japanese Prime Minister Shinzo Abe was busy offering the Japanese bullet train technology to Modi, India’s Commerce Minister Nirmala Sitharaman was having a Chinese Bullet train ride from Beijing to Tianjin? After all, even China wants to sell bullet train in India in competition with Japan.
Gujaratis do have a penchant for bargaining and Modi shows he is adept at that too. After all, hasn’t it been a buyer’s market in a free economy? Even Communist China understands it well: “We are very confident that we are stronger than them (Japan) in field of railways. We have the competitive advantage in the sector of building high speed rail,” senior Chinese railway official Zhou Fangyuan was quoted as saying in the media.
Gujaratis do have a penchant for bargaining and Modi shows he is adept at that too. After all, hasn’t it been a buyer’s market in a free economy? Even Communist China understands it well: “We are very confident that we are stronger than them (Japan) in field of railways. We have the competitive advantage in the sector of building high speed rail,” senior Chinese railway official Zhou Fangyuan was quoted as saying in the media.
Thus, even as Japan declared before Modi its financial, technical and operational support for the bullet train project in India, news poured in from China that Chinese firms were roping Indian companies to jointly bid for five high-speed railway projects in the country.
Indeed, a rather innovative ‘train-diplomacy’ seems to be the flavour of the season. Watch any television journalist who accompanied Modi to the land of the rising Sun, they did all enjoy a good bullet train ride!
Yet the journey has just started. These high speed trains are likely to figure high on the agenda of Chinese President Xi Jinping’s visit to New Delhi later this month. Thereafter, the public bidding for the projects will commence.
Modi’s Business Diplomacy for Japan and China
Exploring markets speaks of good business sense. But can it be called a good example of ‘business diplomacy’?
It is remarkable that Modi, while interacting with the Japanese businessmen, did make oblique swipe at their old rivals China – “We have to decide if we want to have ‘vikas vaad’ (development) or ‘vistar vaad’ (expansionism) which leads to disintegration. Those who follow the path of Buddha and have faith on ‘vikas vaad’, they develop. But we see, those having ideas of the 18th century, engage in encroachments and enter seas (of others).”
It is remarkable that Modi, while interacting with the Japanese businessmen, did make oblique swipe at their old rivals China – “We have to decide if we want to have ‘vikas vaad’ (development) or ‘vistar vaad’ (expansionism) which leads to disintegration. Those who follow the path of Buddha and have faith on ‘vikas vaad’, they develop. But we see, those having ideas of the 18th century, engage in encroachments and enter seas (of others).”
Though Modi did not name any country, his remarks did prompt China react guardedly: “We have noted relevant information about Prime Minister Modi’s visit to Japan. You just mentioned comments made by him I don’t know what is he referring to,” Chinese Foreign Ministry spokesman Qin Gang told journalists in Beijing.
Narendra Modi – Shinzo Abe Bonhomie
The Gujarati businessman in Modi is, indeed, prompting him to leverage the souring Sino-Japan relationship to India’s gain as Japan desperately explores better options to divert its huge investments in China.
India definitely figures high in Japanese scheme of things as a viable option. Modi’s own Independent Day speech where he invited global manufacturers to make India a manufacturing hub for the world too must have sounded like music to the Japanese ears. He fully realises the role that Japan could play here – “It is important for Japan to move to low cost hubs of manufacturing.”
It is in this light that Modi-Abe bonhomie should be evaluated. Abe’s unprecedented gesture to travel all the way to Kyoto to welcome Modi was, indeed, a very powerful indicator of Japan’s willingness to do business with India.
All that Modi had to assure the Japanese was a conducive business environment in India — “There is no red tape but red carpet in India. We have eased off a lot of regulations.”(Didn’t his being a Gujarati add more credence to his claims here?). His casual charm – whether playing a drum or playfully twitching a young boy’s ears – too helped him building a rapport with the Japanese people.
All that Modi had to assure the Japanese was a conducive business environment in India — “There is no red tape but red carpet in India. We have eased off a lot of regulations.”(Didn’t his being a Gujarati add more credence to his claims here?). His casual charm – whether playing a drum or playfully twitching a young boy’s ears – too helped him building a rapport with the Japanese people.
Major Gains for India for doing business with Japan
Little surprise, therefore, that there were many takeaways for India following Modi’s visit as reflected in Tokyo Declaration for India-Japan Special Strategic and Global Partnership – significantly the 3.5 trillion Yen (USD 35 billion or Rs 2,10,000 crore) that is promised by Japan to India over next five years for various developmental works; and Japan lifting the ban that was imposed since 1998 (in the aftermath of the Indian nuclear tests) on six Indian entities including Hindustan Aeronautics Limited (HAL).
On a more personal front, roping in Kyoto – the Japanese religious capital – for Varanasi’s development too was a master stroke by Modi to cater to his home constituency.
All Eyes now on Chinese President’s India Visit
Yet, all his achievements in Japan now shifts focus on Modi’s emerging equations with China.
Isn’t it true that greater cooperation between India and Japan also means countering an aggressive China in the region?
Now, all eyes are set on Modi-Jinping’s New Delhi meet this month. Modi, will require all his Gujarati business instincts to placate the Chinese Dragon in the game of ‘business diplomacy’. International diplomacy, after all, is the art of tightrope walking!
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