India's look-east policy: relevance of Japan, Thailand

The elephant may have been slow in its forays in Southeast Asia, but it needs to send a clear message to the dragon that it is not sleeping

manish vaid and tridiveshsingh | June 1, 2013



It remains to be seen as to what the tangible outcomes of prime minister Manmohan Singh’s visit to Japan are. It is an important visit not merely because it will give a fillip to economic ties between the two countries, though nothing tangible has come out in the context of a possible nuclear deal between the two sides.

Yet Manmohan Singh’s sojourn sends a clear message to China, that if it can keep its options open, then New Delhi too has the ability of maintaining ties with Beijing as well as its foes. For long, the UPA dispensation has been reluctant to play an assertive role in the South China Sea, something the US and Japan would have wholeheartedly supported. Apart from this, the visit also sends a signal that the beleaguered PM who has been bogged down by the domestic problems realises that New Delhi’s policy logjam would be detrimental with regard to its foreign policy objectives. The PM would also realise that the world cannot keep on waiting for the country’s domestic problems to stabilise since this may take long.

Perhaps, the PM would do well to learn some lessons from his Japanese counterpart Shinzo Abe who has taken on China not only in the island disputes of Senkaku in Japan and Diaoyu in China but is also aggressively increasing the country’s presence in Myanmar. Japan, which is the largest aid donor to Myanmar, waived off $3.58 billion in January and has offered further $504 million in order to re-establish itself as a major investor.

Further, the strategic intent of Japan to break China’s ‘string of pearls’ was visible in the joint statement on the PM’s Japan visit. Both the countries, for instance, have decided to regularise their joint naval exercise, involving the Indian Navy and Japan Maritime Self-Defence Force (JMSDF), which they started in June 2012 off the coast of Japan. This point also strengthens from the generosity of Shinzo Abe towards India when Tokyo offered an astounding $4.46 billion loan for various projects.

Apart from the above, it is also time New Delhi and Tokyo found synergies in Myanmar. India’s closer proximity to Myanmar can be utilised by Japan in identifying new projects. India too on the other hand can improve upon its lacklustre performances in commercial ventures in Myanmar with the support of Japan. India’s joining hands with Japan in various infrastructural projects will certainly go a long way in addressing the most chronic problem of poverty and joblessness.

Further, Myanmar which remains a stronghold of Chinese investments has of late started to lose some sheen among common public due to an uninspiring approach of doing businesses without regard for the environment. In Myanmar, the coastal community, for instance has urged the suspension of Chinese-built deep sea port and pipelines delivering oil and gas from the Bay of Bengal to China. 

This is in addition to the fall in its market share after Myanmar’s democratisation process paved way for foreign direct investment to flow, which increased by fivefold last year, though from a low base of $300 million in 2011.

All this offers trade opportunities to both India as well as Japan, drawing lessons from China’s untoward business acumen in Myanmar.

In its manoeuvre in shaping a joint business strategy with Japan, India would also do well to realise the relevance of Thailand, which is already the second largest investor in Myanmar, with an overall investment of $9.6 billion till February. Manmohan Singh, prior to his departure to Thailand, stated, “As one of our top trade and investment partners in ASEAN, Thailand is an essential part of India’s integration with the region.”

The PM in fact cited the importance of Thailand in connecting India with Southeast Asia through a 3,200 km trilateral highway project which also links Myanmar. This highway, funded by the Asian Development Bank (ADB) and the World Bank, is expected to be ready by 2016. India too has provided financing assistance of $500 million to Myanmar in 2012 to expedite work on this project. This will bring closer the proximity of Southeast Asia to South Asian region, thereby opening and strengthening the trade and commerce between these countries. Another such project which will be connecting Thailand and Myanmar with India is the Dawei SEZ, a deep sea port. Thailand’s cabinet has approved the investment plan for the Dawei deep sea port development project in Myanmar.

It is thus important for New Delhi to accelerate not just bilateral ties with Japan and Thailand, but also build a long term partnership which will facilitate its presence in Southeast Asia. The elephant may have been slow in its forays in Southeast Asia, but it needs to send a clear message to the dragon that it is not sleeping.

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