All eyes on Tokyo as India comes calling

All eyes on Tokyo as India comes calling

For once you won't hear me complaining about the military regime in Thailand. At least not this week, after they slashed gasoline prices by nearly 10%. Call it populism for the rich.

The decision to "restructure" energy prices took me by surprise given that the prevailing trend worldwide is to slap higher taxes on fuel to discourage waste and help conserve the limited resources available. But who am I to complain when my already low gasoline bill will dip another 10%?

There had been rumours that the junta would cut oil prices by up to a quarter, and if the men in green want to lop another 15% off our gasoline bills, by all means go ahead. But remember, if you see the already clogged streets of Bangkok get even worse, don't complain. Anyway, even if you wanted to stage a protest march you couldn't.

We can talk about the merits of what the military is doing, at a time when other governments are raising taxes on fuel to encourage the use of mass transit, or at least smaller cars. But saving consumers a few baht is popular and easy, just like cleaning up the beaches. Elsewhere, there are more meaningful issues at stake.

One event with potential to shape the future of this region in the years ahead is the visit to Japan by Indian Prime Minister Narendra Modi. The long-awaited trip is not only important economically but strategically as well.

India's new premier and Japan's Shinzo Abe are scheduled to sign several government-to-government deals that will take ties between their countries to the next level. Mr Modi is bringing with him several of India's richest and biggest business groups on the five-day trip that began on Saturday.

Japan is laying out the red carpet to welcome the leader of the world's largest democracy and please the delegation from a country that is expected to be a key ally in the near future.

Japan's engagement in India has been on the rise, and why shouldn't it be? After all, India is (or should be) the next China economically. Its new leader is bent on undertaking reforms that would push economic growth by replicating the "Gujarat Model" of economic development in his home state across India.

Japan for its part has some problems. Economic growth is finally on the uptick but one of its biggest markets happens to also be one of its biggest security threats. Anti-Japanese sentiment in China has not helped, and further deterioration of bilateral relations could spell doom for the economy and the country.

India also has long-running territorial disputes with China in the north and northeast. To make matters worse, some neighbouring countries near India have been cosying up to China in the name of economic development.

India needs to bulk up economically to push forward with its efforts to control and possibly rival China, while Japan needs a strong partner that can keep China busy on another front, as well as another big market for its goods and services that was earlier offered by China.

There is no doubt that China will continue to remain one of the largest markets for Japanese goods, but India and Japan in a way could complement each other as one has the market size while the other has the economic might to make a difference.

What Japan can offer India know-how and technology while India can offer itself as the production base for Japanese goods to ship across the world. At the same time, the two countries could take the next step of building closer strategic alliances.

Japan has already offered to sell arms to India, the first such action since the end of World War II. India and Japan could also look at a firmer partnership in tackling the common enemy.

One could say that "enemy" is too strong a word but the recent actions of China have left Asia and Asean in total disarray. The assertive nature of China has left both India and Japan along with other regional and global powerhouses wondering what their giant neighbour is really up to.

Beijing's bellicose actions have also split the 10-member Asean grouping into countries that are for and against further accommodation.

Dealing with such a powerful country is not going to be easy if the smaller countries do not join up and partner with the likes of India, because a bully can only be tackled if there is unity among the smaller nations, along with the backing of a bigger one that could lend its weight if and when the need arises.

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