Narendra modi’s visit to japan (Akshay Sikarwar)
This is the analysis of Narendra Modi's visit to Japan.
Published on: Mar 3, 2016
Transcripts - Narendra modi’s visit to japan (Akshay Sikarwar)
Narendra Modi’s visit to Japan
A strategic analysis :-
(GLA University , MBA)
Economy of Japan
The economy of Japan is :-
the third largest in the world by nominal GDP
the fourth largest by purchasing power parity
the world's second largest developed economy
According to the International Monetary Fund, the
country's per capita GDP (PPP) was at $35,855 or the
22nd highest in 2012.
Economy of India
The economy of India is :-
The tenth-largest in the world by nominal GDP
The third-largest by purchasing power parity (PPP)
According to the International Monetary Fund, the
country's per capita GDP (PPP) was at $1504 in 2013.
The GDP growth rate is 5.7%
Analysis of Narendra modi’s visit to
1. PM Modi's 3D mantra:
• Inviting Japanese investors to 'Make in India', PM Modi
said, "There is no better place than India for Japanese
investors. India is one of the most competitive markets
in the world.“
• Addressing Japan's Nikkei Exchange, Modi said that
India offers the three essential 'Ds' for businessmen to
thrive namely; Democracy, Demography and Demand.
"It is important for Japan to move to low cost hubs of
2. Bullet trains
• With Japan committing to fund bullet trains, the dream of
running high-speed trains on Indian tracks is now a step
• Modi's dream project got a big push after Japan expressed
readiness to provide financial, technical and operational
support to introduce bullet trains in India in a joint
• The first high-speed train is expected to run between
Ahmedabad and Mumbai at an estimated cost of around Rs
• As Japan is a pioneer in running superfast trains, the
agreement is expected to help Modi achieve his dream of a
bullet train for India running at a maximum of 300 km per
3. Two nominees of Japan in PMO's
• PM Modi announced that a special management team
would be set up directly under the Prime Minister's Office
to facilitate investment proposals from Japan.
• The decision to include two nominees of Japan in the
special management team is unprecedented and such a
system of having nominees of the foreign government
will happen for the first time.
• Modi said that the two nominees selected by Japan would
also be part of the decision-making team which evaluates
4. Special Strategic Global Partnership
• Japan and India have upgraded their partnership to the
level of 'Special Strategic and Global Partnership' with
the signing of a defence pact for regional stability and
Tokyo's decision to double FDI in India.
• India and Japan also decided to "upgrade" and
"strengthen" their defence cooperation as they asked
officials to launch consultations to promote military
equipment collaboration and accelerate discussions on
modalities for the sale of Japanese US-2 amphibian
5. Civil nuclear deal remains elusive
• Despite last-minute negotiations, the two sides could
not narrow down differences over Tokyo's insistence
for a tougher safe-guard regime and "no nuclear test"
clause in the bilateral agreement.
• Japan wants India to guarantee not to conduct nuclear
tests and more stringent inspections of its nuclear
facilities to ensure that spent fuel is not diverted to
6. Japan to invest over $33.58 billion in
• Japan announced doubling of its private and public
investment in India to about $34 billion over the next
• The 3.5 trillion yen ($34 billion) of investment from
Japan to India including Official Development
Assistance(ODA) during a 5-year period will be under
the aegis of India-Japan Investment Promotion
Partnership for development of projects including
infrastructure and building of smart cities.
7. Japan lifts ban on 6 Indian entities:
• Japan lifted ban on HAL and five other Indian entities,
which had been imposed in the aftermath of the 1998
nuclear tests, amid Modi's assertion that cooperation
between the two countries in defence and security will
get a "new direction".
• "Japan has decided to remove ban on some entities,"
Modi said. Sources later said the ban had been lifted on
six entities, including Hindustan Aeronautics Limited.
However, four entities still remain in the banned list.
• The removal of the ban will enable these companies to
have cooperation with Japanese firms, including
transfer of technology.
8. Japanese companies to speedy clearance
• Holding that the environment of "disappointment" was
over, Modi invited Japanese businesses to join India's
developmental efforts with a promise of non-discriminatory
and speedy clearances.
• Inviting Japanese businesses, particularly to
infrastructure and clean energy sectors, the Prime
Minister asked them to keep in mind the Gujarat
• He promised single-window clearances, speedy
decision- making which is non-discriminatory in
9. New TCS training initiative
• PM Modi inaugurated TCS Japan Technology and
Culture Academy, which will work towards enhancing
technology and cultural knowledge between IT
professionals of the two nations.
• Modi also flagged off the first batch of 48 TCS Japan
trainees, who will proceed to India to undergo training
for 6-8 weeks at various TCS locations.
10. Double Foreign Direct Investment
• Shinzo Abe also agreed to double foreign direct
investment (FDI) from Japan as well as the number of
Japanese companies in India in the next five years.
• This is part of the Japan-India Investment Promotion
• Modi has wanted Japan to set up manufacturing units
in India, much like the South Koreans.
• This could help boost India’s slowing manufacturing
sector, technology and create jobs.