In Japan, showcases India’s political & economic stability amid tariff tussle
Tokyo, Aug 29: Prime Minister Narendra Modi on Friday said it is important for India and China to work together to bring stability to the world economic order as he asserted that New Delhi is ready to advance bilateral ties from a strategic and long-term perspective based on mutual respect, mutual interest and mutual sensitivity.
In an interview with The Yomiuri Shimbun published during his ongoing visit to Japan, Modi also asserted that stable, predictable, and amicable bilateral relations between India and China, as two neighbours and the two largest nations on earth, can have a positive impact on regional and global peace and prosperity.
Asked about the importance of improving relations with China at this time, Modi said, “At the invitation of President Xi Jinping, I would be travelling to Tianjin from here to take part in the SCO Summit. Since my meeting with President Xi in Kazan last year, steady and positive progress has been made in our bilateral ties.”
Stable, predictable, and amicable bilateral relations between India and China, as two neighbours and the two largest nations on earth, can have a positive impact on regional and global peace and prosperity, he said.
This is also crucial for a multi-polar Asia and a multi-polar world, he added.
“Given the current volatility in world economy, it is also important for India and China, as two major economies, to work together to bring stability to the world economic order,” Modi said.
India is ready to advance bilateral relations from a strategic and long-term perspective on the basis of mutual respect, mutual interest and mutual sensitivity, and to enhance strategic communication to address our developmental challenges, he said.
On his views on the Japanese government’s concept of a free and open Indo-Pacific, Modi said there is a strong convergence between Japan’s vision of a free and open Indo-Pacific and India’s own approach encapsulated in our Indo-Pacific vision, in the ‘Vision MAHASAGAR’ and the Indo-Pacific Oceans’ Initiative.
India and Japan are committed to an Indo-Pacific that is peaceful, prosperous, stable and where the territorial integrity and sovereignty of nations are respected, the prime minister said.
“Both our countries have strong and extensive linkages with countries in the Indo-Pacific region, and we both engage with some of them in plurilateral formats to give expression to our shared objectives,” he said.
Talking about his recent conversations with the leaders of Russia and Ukraine, Modi said India has maintained a principled and humanitarian stance on the conflict, which is equally appreciated by both President Vladimir Putin and President Volodymyr Zelenskyy.
“In line with this, both the leaders spoke to me to share their perspectives on the developments related to the conflict. I reiterated India’s principled and consistent stand and encouraged dialogue and diplomacy to resolve the conflict. I have already indicated India’s willingness to support meaningful efforts aimed at achieving peaceful resolution of the conflict,” he told the Japanese newspaper.
“I believe, by virtue of our good relations with both sides, including key stakeholders, we can strengthen efforts dedicated to the restoration of an early and lasting peace in Ukraine,” Modi said.
Stressing the importance of the Global South, Modi said the global community has made a commitment to create a more equitable world through achieving Sustainable Development Goals by 2030.
“If we have to live up to this commitment, then the Global South must be given priority. In a highly interconnected world, we have seen the debilitating impact of the pandemic, conflicts and supply chain disruptions on the Global South,” the prime minister said.
They continue to face myriad challenges involving global governance, climate change, food and energy security, debt and financial stress, all having a significant impact on their development priorities, he said.
“As members of the Global South, we clearly understand these concerns and their effects on people’s lives. We have made strenuous efforts to bring these to the forefront of the global agenda,” he said.
“All our global initiatives, like Mission LiFE, Coalition for Disaster Resilient Infrastructure, International Solar Alliance, Global Biofuels Alliance, focus on promoting the interests of the Global South. Our G20 Presidency saw the inclusion of the African Union and gave voice to the aspirations of the Global South,” Modi pointed out.
Similarly, in BRICS, India is actively engaged in working toward the benefit of the Global South, he added.
India attaches importance to its engagement with BRICS, which has emerged as a valuable forum for consultation, and cooperation and has helped promote mutual understanding, on a specific set of issues of common interest to emerging economies, he said.
Under the rubric of the Quad, he said they have worked for the development and progress of the countries in the Indo-Pacific.
“India has also consistently called for urgent and comprehensive reforms of the global multilateral institutions to make them more effective and reflective of the current geopolitical and economic realities,” he said.
He pointed out that in the last 20 years, since its inception in 2004, the Quad has emerged as a force of global good, delivering positive outcomes for the people of the Indo-Pacific region.
Meanwhile, in Tokyo, PM Modi said that India is the fastest growing major economy and its political and economic stability as well as transparency in policies have made it an attractive investment destination, especially in areas of green energy, manufacturing and technology.
Modi’s remarks at a business forum shortly after landing in Tokyo on a two-day trip came amid fears of adverse impact of Washington’s 50 per tariffs against India on the country’s economy.
In his address, Modi said Japan’s technology and India’s talent together can lead the technology revolution of this century and can contribute significantly to Asia’s stability, growth and prosperity.
The prime minister said Japanese companies have invested more than USD 40 billion in India, including USD 13 billion in the past two years as he highlighted the country’s remarkable changes in the last 11 years.
“Today, we have political and economic stability, and clear and predictable policies. India is now the fastest-growing major economy in the world, and very soon, it will become the world’s third-largest economy,” he said.
“India is contributing to 18 per cent of global growth. The country’s capital markets are giving good returns, and we have a strong banking sector. Inflation and interest rates are low, and foreign exchange reserves stand at around USD 700 billion,” he said at the India-Japan Economic Forum.
Modi identified manufacturing, technology and innovation, green energy, next-generation infrastructure, and skill development and people-to-people ties as the main focus of cooperation between the two sides.
“India and Japan’s partnership is strategic and smart. Powered by economic logic, we have turned shared interests into shared prosperity,” he said.
Describing Japan as a “tech powerhouse” and India as a “talent powerhouse”, Modi said the two countries can lead the technology revolution of this century, especially in areas of artificial intelligence, semiconductors, quantum computing, biotech and space.
Modi said Japan has always been a key partner in India’s growth journey — whether it is metro networks, manufacturing, semiconductors, or start-ups.
“Japan’s technology and India’s talent together can lead the tech revolution of this century,” he said.
Modi also elaborated on possible cooperation in the clean energy sector.
“India is quickly moving towards 500 GW (gigawatts) of renewable energy by 2030. We also aim for 100 GW of nuclear power by 2047. From solar cells to green hydrogen, there are huge opportunities for partnership,” he said.
An agreement has been reached between India and Japan on a joint credit mechanism and this can be used to cooperate in building a clean and green future, he said.
The prime minister also spoke on next-gen infrastructure that the two countries can work on.
“In the last decade, India has made unprecedented progress in next generation mobility, and logistics infrastructure. The capacity of our ports has doubled.”
“There are more than 160 airports. Metro lines of a 1,000 km have been built. Work is also underway on the Mumbai-Ahmedabad high-speed rail in cooperation with Japan,” he noted.
“Japan’s excellence and India’s scale can create a perfect partnership,” he said.
In the field of skill development, India’s skilled workers have the capability to meet global needs, the prime minister said.
“Japan can also benefit from this. You could train Indian talent in Japanese language and soft skills, and together create a ‘Japan-ready’ workforce. A shared workforce will lead to shared prosperity,” he said.
The prime minister also made a mention of various reform measures that his government has rolled out, adding the approach has been to “reform, perform, and transform”.
“In 2017, we introduced ‘One Nation–One Tax’, and now we are working on bringing in new and bigger reforms in it. A few weeks ago, our Parliament also approved the new and simplified Income Tax code,” he said.
Modi said his government’s reforms are not limited to the tax system alone and it has emphasised on ease of doing business as well.
“We have established a single digital window approval for businesses. We have rationalised 45,000 compliances. A high-level committee on de-regulation has been formed to speed up this process.”
“Sensitive sectors like defence and space have been opened up to the private sector. Now, we are also opening up the nuclear energy sector,” he said.
