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Thursday, August 23, 2007

17. Abe's Indian Trip

Japanese Prime Minister Shinzo Abe arrived here yesterday (Aug 21) for a landmark trip meant to set new strategic and economic orientations for his country's relationship with South Asia's dominant power.

Abe's state visit comes exactly 50 years after his grandfather, prime minister Nobusuke Kishi, became the first Japanese premier to visit India.

Abe, who was just one year old then, is travelling this time with a delegation that includes 12 heads of universities and more than 200 top businessmen.

"Japanese prime ministers have been traditionally reluctant to be seen as communing too closely with businessmen," said a senior Japanese official, who asked not to be identified by name.

"This is the largest industry delegation to accompany a Japanese leader anywhere."

The composition of the delegation underscores Japan's rising interest in India as an investment destination.

Japan's Prime Minister Abe will address a joint session of India's Parliament in a rare honour.

The two countries are likely to announce the speeding up of plans to build a US$90 billion Mumbai-Delhi Industrial Corridor.

Such growing interest is even more obvious given that, at the moment, there are only about 400 Japanese companies in India, compared to the 4,700 more in China.

Suzuki Motor is India's largest carmaker in a consumer goods market that is otherwise dominated by South Korean companies.

A highlight of the visit will be the announcement of plans to accelerate, with Japanese help, the building of a $90 billion industrial and logistics corridor connecting India's western metropolis of Mumbai with national capital New Delhi.

The two countries also hope to vastly expand trade ties that stand at a mere $8 billion, far behind India's trade with the US or China, although it is growing at more than 20 per cent a year.

After a private dinner last night hosted by Prime Minister Manmohan Singh, Abe will receive a full ceremonial welcome today (Aug 22) in the forecourt of the presidential palace. Later, he will address a joint session of the Indian Parliament.

Plans to accord US President George W Bush a similar honour were dropped last year because of protests from Left groups.

The American leader subsequently addressed Indians from the ramparts of a Moghul-built fort in New Delhi.

Abe is widely expected to make appreciative remarks, if not openly endorse, India's nuclear accord with the US.

Earlier this month, India unveiled details of a civilian nuclear cooperation agreement with the US, a pact requiring the approval of the Nuclear Suppliers Group (NSG).

Japan is one of the countries in the group, which controls the sale of nuclear fuel, technology and reactors, as well as being the only nation ever attacked with atomic bombs.

Indian Foreign Secretary Shivshankar Menon confirmed that nuclear cooperation would be on the agenda for talks, while declining to be drawn into speculating about the results.

Yesterday, a senior Japanese official said Tokyo understood India's requirement for nuclear power both for its energy programme as well as to mitigate the impact of global warming.

"Japan is ready to participate positively in discussions on the matter within the Nuclear Suppliers Group," he said.

Ties between Japan and India, always cordial, have acquired new dimensions since former PM Junichiro Koizumi added a strategic dimension to ties. Annual summit-level talks have become a permanent fixture in their national calendars.

Next month, at India's invitation, Japan's Self-Defence Forces will participate in naval exercises in the Bay of Bengal alongside warships from the US and Singapore.

Four months ago, Indian naval ships joined warships from the US and Japan in an exercise off Yokosuka Base in Japan.

Abe's visit concludes with a trip to Kolkata tomorrow - Ravi Velloor, Straits Times, Singapore.