Ahmedabad, 23 November 2013

Leading Global bank CLSA finally confirmed what we Indians instinctively knew all the while. There is definite Modi wave across nation, which will take BJP to shore. Their conservative estimate bets BJP’s double century. Many informally believe numbers may grow come January. This comes just after Goldman Sachs reporting India will be on Growth trajectory should Modi led Govt form in India in the note aptly titled “Modi-fying our view”. Obviously Govt of the day is not happy with such developments. However they must understand that What CLSA and Goldman Sachs expressed publicly is already a common knowledge among diplomats and large financial institutes. The fact that people pay to come in big numbers to listen to Narendra Modi is considered a significantly unprecedented. Considering some meetings where leaders only see empty chairs in spite of paying people to attend. Or some new parties whose candidates are fend to find cash for themselves by hook or crook.

Coming back to Indian economy and global integration. The sheer size of demography and its ability to propel world growth keeps many countries genuinely interested in India’s growth. However world today is surprised the way India has been excelling in failing herself. And in this order of chaos, they see the evident, for India it has to be #MITOA. Modi Is The Only Alternative is full form of #MITOA and is used often on Twitter and other Social media. The crave is all the more telling as our so called underachiever PM backed by NG Dynasty has caused nothing but as many argue “decade of Decay”. It is not good for India or her rightful place in the world. Lets see how one of the friendliest countries Japan is seeing changes in India.

Yen for India

Something unheard of is happening. One of the IIT is planning to print their placement brochures in Japanese. This is first serious attempt from both sides to create long lasting bridges between India and Japan. Japanese companies are lining up at IIT at an interesting time when US companies are showing their back. This is indeed healthy development for India-Japan besides giving much needed help to IITs. The new leadership under PM Abe in Japan is very bullish on India and his administration is keen to engage as much as they can. Every enthusiasm of Japan meets with deaf policy paralysis and indecisiveness from India. Finally Japan is realizing what Indians and Indian Industry have realized a long back. Their search for credible India ends at Gujarat. After having experience of Delhi, Rajasthan, Haryana, TamilNadu (where bulk of their investment is lined up), Gujarat comes as a fresh air. In my personal career I have to yet to see paradigm shift in Japanese approach. Gujarat honestly never existed on their map as it was defined as “Dry area”. How things have changed. Allow me to deviate a bit.

Breath in a little bit of Gujarat

When a Japanese businessman stationed in India in Delhi makes visit to Gujarat, first thing they do after getting out of airport is take deep breath. This behavior I have seen common across people visiting from Delhi or large metros. No they are not bracing for something big or haven’t heard Amitabh Bacchan’s advice on Breathing in Gujarat. Its an instinctive human nature. The air pollution in Delhi is even worse than Beijing. Moment they land at Ahmedabad, their lungs feel fresh. The Green Gujarat (it also has cheapest and Finest Golf Courses) surprises every visitor as they step in the state. That is the reason, whether it is Japanese Govt agencies or Private industry if and when they think of investing into India, Gujarat is the benchmark. The love for place also has something to do with her leader.

Hardworking CM:

Two years back, Narendra Modi was in Japan. On 26th July 2012, as he arrived at Osaka in the evening, he must have been exhausted. Travelling from Hamamatsu early morning, addressing large gatherings at Nagoya he reached Osaka in the evening. The day had to end at 4th city Kobe for biggest Indian community meet.

So far it was one-way address or courtesy meeting for him. Osaka meet was roundtable with industry captains. Where one by one, top companies’ head would spend 5 minutes with Modi. Normally such meetings in Indian context are held in typical way. A CM behaves like someone over the seventh sky entity giving symbolic Darshan. In those situation there would be CM table and then Secretaries would seat separately. CM will only smile, shake hand and ask them to talk to secretaries.

Here it was very different. Modi did not show any fatigue and was seen rolling up his own sleeve engaging each of the delegates as if they were his personal guests and trying to earnestly learn from them, guiding them as a friend. The busy honchos had come from whole of Kansai region (whose economy is bigger than Canada) and were supposed to leave moment their turn was over. But they were so impressed with Modi that most stayed on. All of them were deeply interested in India but this meeting was happening in the backdrop of Manesar industrial terrorism where Maruti Suzuki lost employees. Investors from Japan were shaken. After individual meetings, CM thanked his audience for educating him. He shared as CM mostly investors come to meet him only when they firmed up their plans and on the verge of execution, here he could meet industry captains and discuss what problems they are facing when they have to decide. Needless to say he won over large part of Kansai on that day. Many companies later came back to invest in his state or expanded in India elsewhere. They really got assurance.

Go Global via Gujarat

Such feedbacks from ground coupled with feedback from his govt officers on how Modi differs from rest of the lot has made him one of the hopes for India in World. For Japan, coming few months are very special for Indo-Japan relationship. Very soon Emperor and Empress will spend almost a week in India. They only go to the countries Japan consider most important. Followed by invitation to PM Abe to be official guest for 26th January parade next year. In this regards, Abe’s administration is very busy. They have not yet figured out how to engage India effectively. While he may not get chance to meet Narendra Modi, Modinomics will be very much in his mind when his administration forms strategy of future of Indo-Japan.

Jetro page gives glimpse on what could be the blueprint for this.It gives glimpse for blueprint of Indo-Japan economic cooperation. One of the most important strategies Japan proposes for India is growth based on Exports and Investment. Encouraging Japanese Companies to look for India as stepping stone for markets of Africa, Middle-East and Europe. When it comes to that strategy Gujarat becomes natural choice due to ports and excellent infrastructure. Already Suzuki is going to use Gujarat in a big way, but what was heartening was to know even household brands of Japan like Rhoto also planning to follow suit. Its one of the most popular eye-drops brand and they are forming JV in Gujarat with eye on global markets west of India.

It is not a coincidence that Rhoto executives were there to meet Narendra Modi in Osaka and since then followed up their plans with Gandhinagar to announce JV. Indian exports contribution for manufacturing goods is still far from the potential. It could just change if Abenonics and Modinomics merge.

What is Japan’s view. In part two I would like to share unprecedentedly large coverage on international section of Nikkei Japan’s leading Business daily. Read here the next part of this series: KURONIN Narendra Modi and how Chaiwala tag has global relevance