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Japan’s rising yen for India

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  • The visit of Japanese Prime Minister, Shinzo Abe, to India on August 20 is expected to take forward the idea of a comprehensive India-Japan strategic partnership — first conceived during Prime Minister Manmohan Singh’s visit to Tokyo last December. True, Abe is facing a political volcano at home, following the defeat of his party in the recently held House of Councillors’ elections and the defeat may propel him to review his policy priorities on the domestic front. His foreign policy priorities, however, are unlikely to witness major change.

    Abe’s drive to build harmonious relationships with Japan’s immediate neighbours as well as with South Asia does not show any sign of diminishing. Such an Asia-centric policy framework is based on the premise that Japan’s economic vulnerability increasingly makes it incumbent upon the country to remain engaged in the region, economically, politically, strategically as well as culturally. It is against this background that Abe’s visit to India has to be seen. So far India-Japan relations have been focusing predominantly on the economic aspects. However, the centuries-old cultural ties are now being re-discovered, more specifically the common Buddhist heritage.

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    There are conservatives within Abe’s government who perceive such an external orientation as detrimental to the country’s interests. Also, the average citizen has traditionally shown little concern with his or her leaders’ external policy agendas although, generally speaking, people have not taken kindly to the perceived hawkishness in Abe’s foreign policy and his attempts to introduce structural reform to stimulate the economy. Yet, whatever his domestic compulsions may be, Abe cannot afford to turn inward in his policy-making in view of Japan’s increasing dependence on the outside world. What is commendable is that his foreign policy has a greater Asian orientation, despite the fact that such a focus is not to the liking of America, Japan’s strategic partner.

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