Ahmedabad, 22 November 2012

As I was witnessing and occasionally tweeting on Modi’s successful trip to Japan, it was very unfortunate to find people back home who do not have any idea of the significance were behaving like frog in a well. If so called main stream media was busy focusing only on Manesar and Modi, the local Bapus to Kakas of Gujarat were ridiculing his trip. Some of the leader even questioning the invitation and raising big question over the successful claims. May I humbly suggest they eat their words now.

One of the most ambitious projects under Japan-India partnership has finally taken a shape. The much celebrated Delhi-Mumbai Industrial Corridor (DMIC) has got full backing of Japanese Govt. With India approving investment by Japan Bank of International Cooperation (JBIC), the project got much needed boost. JBIC is going to fund some of the projects and same were to be agreed when both PMs meet in Japan. ManMohan Sigh could not make it to Japan, both leaders met in Cambodia.

Ministry of Economy Trade and Investment (METI) of Japan just announced the list of the 19 projects that would be funded by JBIC. And Gujarat got lion share of them. Out of announced 19 projects, Maharashtra got 4, Haryana and Rajasthan got 2 each, One each went to UP and MP, while two projects are yet to decide where to park them. This is the watershed event for DMIC project, as finally the concept has beze en converted to concrete projects. The companies will be given 4-5 years to finalize. If you are still wondering why I was sounding so victorious for Modi in first paragraph? Here is the reason. Whooping 7 projects, biggest numbers for any state is announced for Gujarat.

Maharashtra, Haryana, UP they all have much bigger Japanese companies presence compared to Gujarat. Still Gujarat beat them by miles in attracting mega infrastructure projects. Japanese companies with their proven tested technology will play major role along with affordable capital cost.

Needless to say that investment in infrastructure has force-multiplier effect. Gujarat will benefit immensely. But why Japan should focus so much on Gujarat? One point that goes straight in the favour is there is no political interference in decision making. There is absolute clarity in regulations and more importantly people’s appreciation and respect for business. What also goes unnoticed is the State’s fiscal discipline.

When Narendra Modi was in Japan, our media was only focusing on Manesar and Suzuki. The Japanese honchos and officials were seeing hope. Their confidence in Gujarat would have got a huge boost. So if anyone reading this trying to jump to conclusion that “Oh he had gone to lobby for these projects”, I am sorry to disappoint you. Watchout for the detailed analysis on How it is Narendra Modi’s Gujarat that is helping UPA in their biggest economic project ever.