1400 years of irrevocable relationship has been strengthened with the re-election of Shinzo Abe as Japanese Prime Minister. His election not only strengthens Japanese economy but also significantly contributes to global political and economic stability. His assertion against North Korea acts and his concern towards aging people of Japan has provided a landslide victory to Abe. Also, with China reasserting itself as the power centre in Asia, Abe’s victory will soothe Japanese concerns due to his unconditional support to security issues.
While all the global economies are preparing to absorb the anticipated Fed’s interest rates hike, Abe’s election pacifies their anxiety. Abe promised to continue to retain the lower interest rates to boost the economy. This would imbibe lower capital into the global markets while the money may move towards U.S.A after Fed’s interest rate hike. India would be a major beneficiary as many projects in India are funded by Japanese. For example, India received capital for its bullet train project in Gujarat from Japan for a minimal interest rate. Nevertheless, it should not be forgotten that the interest rates in Japan are negative which makes it a win-win situation for both the countries.
In terms of security, Japan understood the importance of strengthening its defence capabilities after the North Korea’s blatant acts. Korean missiles flew over Japanese airspace sending shivers to its citizens. Abe staunchly opposed the acts of Korea and resolved to retaliate accordingly. After the Hiroshima and Nagasaki incident, Japan was in the protection of U.S.A and never tried to build defence capabilities. It was a strong propagator of peace highlighting the dismantling of nuclear weapons. But now, with Trump focussing more on its own economy, Japan cannot rely on U.S.A for its security. It needs to develop its own army, navy and air force. Also, Japan may extend support to India’s nuclear policy, which is a bone of contention between two countries since our independence.
With U.S.A reaching out to South Asian countries with its renewed foreign policy, it’s time for India to strengthen ties with Japan. Trump’s withdrawal from Trans-Pacific Partnership (TPP) has generated discontentment in Japan. India, along with Japan, could put pressure on U.S.A to reconsider its stand on Paris agreement and TPP. Also, Trump’s recent speech at IMF and World Bank stating that U.S.A has pumped in more money than expected into these institutions is a cause of concern for India. So, we could take help of Japan in making the USA reconsider its decision.