Indian PM Narendra Modi and Japanese PM Abe Shinzo, both are known for their distinct economic policies, yet they somehow share a great chemistry which makes Modinomics and Abenomics play supportive for each other, effectively.
India and Japan have been getting along since some years now, especially after Modi took the lead; recently both countries have joined hands for development in transportation and defence sectors. This is maybe because both leaders share similar leader qualities and traits that work well to support each other. While we all know that India and Japan are two very different economies, where Japan is a developed economy while India is spurring towards fast growth. So naturally, both leaders have to adopt to distinct policies and boost economic growth, but they still amalgamate pretty well.
When Abe took the lead of Japan in 2012, his prime task was to revive the stagnant economy of Japan and Abenomics is how Abe plans to achieve his goal. So Abenomics basically involves a lot of government expenditures, monetary easing and economic reforms. Déjà vu? But what makes India and Japan very different is the fact that the most challenging factor for Japan is its aging population; on the other end, India has the youth but lacks enough jobs for all. Modi with his ‘Modinomics’, focuses on nufacturng to retain high growth rates and generate jobs for its pre-dominantly young population.
In simpler words, Japan has jobs but lacks young manpower and India has a pre-dominantly young population but lacks enough jobs – which means India and Japan can create opportunities for each other. Since Modinomics’ main agenda is creating a better business atmosphere for foreign investors, Abe has been keen in investing billions in Indian market. 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, both countries share mutual interests and personal perks.
Now, India and Japan are getting ready to take it up a notch as India is planning to send 3 lakh youth to Japan for on-job training for three-five years as part of the government’s skill development programme. And, Japan will bear the financial cost of training these young Indian technical interns, of which, about 50,000 will get jobs in Japan. That explains all the bromance, right? And that, fellas, is how Abenomics and Modinomics go so well together, despite being so different.