Lessons from Modi’s Asia-Pacific odyssey

by M K Bhadrakumar

The Prime Minister Narendra Modi’s visit to Australia accounted for one full half of his three-nation tour spread over  a ten-day period abroad. Was it worthwhile? The spin doctors have put out the story that Modi got the black money issue into the G20 agenda — as if the nineteen other world statesmen ate out of the hands of our prime minister. 

But in real terms, though, the only tangible result out of Modi’s 5-day visit to Australia has been themassive $16.5 billion project that the Adani group proposes to undertake in that country. 

But then, it is also not something to write home about when a very dynamic business group leaves the Indian shores to make such a big investment splash abroad — and that too, focused on building infrastructure in a developed country such as Australia. 

It implies a tragic failure on the part of our government to convince the Adani Group that it is in the enlightened national interests if only such a big investment could be made in the coal sector in India itself. It seems the Adani Group doesn’t take seriously the government’s claim that India will be able to stop importing thermal coal within the next three years. When the brightest among our industrialists lacks confidence in the business climate, it becomes bad publicity for Modi’s “Make in India” agenda. On the other hand, funnily, State Bank of India is apparently funding the Adani investment in Australia. 

Indeed, Australia has every reason to feel excited about the bizarre way its ties with India are developing. Australia is a very focused country, which pays enormous attention to economic diplomacy, and a $16.5 billion foreign investment is no small matter even for such a rich country with a per capital income close to $70000. (India’s  per capital income, by the way, is $1500.) 

Without doubt, Australia is making good money out of India. The trade ($15 billion) is heavily in Australia’s favor, with Indian exports almost non-existent at $3 billion. Then there are the “invisible” earnings in the education sector — and the IPL, of course. 

Clearly, it is about time we begin to ask what is it that Australia can do for India’s development agenda? Hopefully, Modi framed that question in no uncertain terms — and got some convincing answer from his counterpart Tony Abbott. 

--

--

--

http://blogs.rediff.com/mkbhadrakumar/2014/11/18/lessons-from-modis-asia-pacific-odyssey/