Modi’s Korea tour icing on the cake

Prime Minister Narendra Modi returns with a lot of positives from his Asian tour. His visit to South Korea is to be regarded as a breakthrough since India has come out with the most to cheer from the promised stronger ties with a dragon economy that has not only outperformed many in the vicinity but also advanced so much technologically that it can contribute a lot to India’s progress. In moving the relationship up to a special strategic partnership, India can expect to benefit from tie-ups in infrastructure, smart cities, railways and power generation.

The quartet of strategic areas represents a priority that India needs to tend to quickly if it is to truly advance into the world of quick communications and quicker, safer and more efficient movement of people and goods. In extending $10 billion for Indian development in key areas, South Korea signals not only its technological strengths but also its arrival as a key player vis-à-vis India where it has invested heavily in industry to weave a success story that also upholds the much-vaunted “Make in India” policy. The recognition of the value of these ties was probably the most important gain from Mr Modi’s trip, which was very well received, including in the Korean media. To quote the Prime Minister, Indian cricketers dancing Gangnam style to celebrate success on the field perhaps reflects the completeness of the ties. The “Act East” policy has got its biggest push from Mr Modi’s latest diplomatic foray.

Large direct financial commitments have resulted from the Prime Minister’s three-country trip while FDI inflows in the wake of Mr Modi’s diplomatic initiatives in the last year have increased by as much as 39 per cent, comparatively, between May 2014 and February 2015. India being in a position to offer Mongolia a billion-dollar line of credit also struck a sentimental note. Mr Modi’s penchant to strike a chord with audiences in different countries in doing something that is particular to their culture, like firing arrows or playing the Mongolian fiddle, also fetched dividends in terms of the perception of India. Closer home, the Prime Minister may be facing criticism over his propensity to drag national politics into his speeches, basically to the Indian diaspora, and also on the number of trips he has undertaken, visiting 18 countries in a year. Since he chooses to lace his comments with references to home, he would have to lump the diatribes that come his way. However, there is no doubt that a series of measures taken by his government to enable policy changes to improve the business environment and enhance investor confidence has already done a world of good for the image of India abroad. The trip to South Korea was the icing on the cake.