Japan may well elbow out China from most of the pet infrastructure projects of the Modi administration, if one goes by what is being said in the corridors of power and what’s happening on the ground.
Making an offer that can’t be rejected, Japan has offered a soft loan of $15 billion for the bullet train project connecting the 505 km corridor between Mumbai and Ahmedabad. And the loan is so soft that it carries an interest rate of less than one per cent. That means a loan almost free of cost.
If Japan extends this strategy to other projects (and there’s no reason why it won’t), China may be extremely hard pressed to match the offer. And since Japanese technological prowess is superior to China any day, it is anybody’s guess who would emerge victorious.
In terms of bilateral financial strategy, it reflects Tokyo’s desire to strengthen its foothold in India and corner major infrastructure projects where Beijing has set its eyes on.
Report: M K Shukla (Editor)