The land of rising partnerships. India has reasons to cheer

The country that had been written off by many is now readying to take centre stage. Under a new leadership, Japan is already cresting ripples by stepping up its global engagement.

In recent weeks, a few important developments underlined its renewed aggression to take back its position as a global economic leader.

India stands to gain much from the resurgence of Japan. The revival of Japan’s global influence is a great development for India that has seen its regional influence wane. India’s declining economic strength allowed China to offer more to south Asian neighbours.

Japan’s global view is closer to India than to China. Japan’s recent moves have been a pleasant development.

The first was Japan’s pledge to offer economic support to Africa. And the second was the fresh burst of economic collaboration with India during a visit by prime minister Manmohan Singh. Japan is also exerting its influence in Myanmar, that will host the East Asia summit of World Economic Forum this week.

China has been the big player in Africa for the last few years. But by announcing assistance of $32 billion, prime minister Shinzo Abe made it clear that Japan will not be left behind. This assistance will be a combination of aid and support to private sector projects that invest in infrastructure.

Japan’s strategy for Africa is similar to India’s. Both countries are investing in social infrastructure like health and education while focussing on building capacity and talent.

Not surprising then that Japanese companies are considering partnerships with India. This combination could offer formidable competition to state-owned Chinese companies that remain focused on extractive  activities.

Shinzo Abe was also in Myanmar in late May to reinforce his nation’s presence in the country that is opening up. Japan wrote off over $5 billion of outstanding debt and offered another $500 million to Myanmar.

The east Asia summit of WEF that begins this week in capital Nay Pyi Taw is the first global conference after sanctions were lifted against Myanmar. Big investors from US, Japan and India are hoping to contribute to boosting infrastructure and utility services.

Prime Ministers Manmohan Singh and Shinzo Abe created a productive roadmap for bilateral relations that extended into defence ties. This partnership has led to some worries being expressed in China. Japan is being accused of encircling its strengthening partnerships with India, Myanmar and even Vietnam.

India can ally with Japan to take on the Chinese influence in the region. China violently objected to India’s  exploration of oil and gas in South China Sea with Vietnam. And now it watches as several Indian companies are in the running for off shore and onshore oil fields in Myanmar.

Companies like Jubilant Energy, Oil India, ONGC Videsh are in the fray for auction of 30 blocks.

Economic dynamics in Asia will now be far more balanced with India and Japan countering the might of China.

The author tracks India’s political economy and its engagement with the world. 

@pranjalsharma