Both Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe are known for their distinctive economic policies—Modionomics and Abenomics. They also share great chemistry as is evident from India and Japan joining in several fields such as transport and defence.
India and Japan are at totally different economic stages. A developed economy, Japan has been plagued by low growth for a long time which Abe is now trying to speed up.
India is a developing economy that has to focus on manufacturng to retain high growth rates and generate jobs for its pre-dominantly young population.
The biggest task for Abe when he came to power in 2012 was to revive the stagnated Japanese economy. Abenomics is how he planned to do that. Abe’s steps included government spending, monetary easing and economic reforms.
A big challenge for Abe has been Japan’s aging population. For nearly a decade, the working-age population has been declining and is down about 13 per cent.
Modinomics, the economic polices of Prime Minister Narendra Modi, are focused on India’s demographic dividend. Most of India’s population is young and Modi has to provide them jobs. Job growth is down because private investment is down. Modi’s ambitious ‘Make in India’ programme that aims to generate jobs, needs foreign investment. Modi’s economic reform agenda is aimed at creating a better business atmosphere for foreign investors.
Briefly, India and Japan are opportunities for each other. That’s why Japanese investment in India has grown rapidly after Modi came to power.
Being at different economic stages, India and Japan can complement each other in many ways. Japan looks to boost its investment and has cutting-edge technology to share while India needs both. That’s how the bullet-train project came to happen.
Now they are trying to help each other in another way. India is planning to send three lakh youth to Japan for on-job training for three-five years as part of the government’s skill development programme. Japan will bear the financial cost of the skill training of Indian technical interns. About 50,000 of them may also get jobs in Japan .The Union Cabinet has approved signing of Memorandum of Cooperation between India and Japan on the ‘Technical Intern Training Program (TITP)’, according to the skill development minister Dharmendra Pradhan .
Most of India is young and needs jobs but there arn’t adequate opportunities as private investment is not picking up. Japan is aging and needs more work force. And, of course it has a lot of know-how to impart. Abenomics and Modinomics can surely come together for mutual benefit.