Dual role for S'pore in Modi's economic plan

IT is time for newly elected Indian Prime Minister Narendra Modi to put into action his promises of economic growth and reform. It is very likely that the former chief minister of Gujarat is going to turn to East Asia for help to materialise his economic strategy for India, paving the way for Singapore to revitalise its economic engagement with the country.

Mr Modi's admiration for East Asia is quite apparent. In his previous position as supremo of Gujarat, he had visited Japan, China and Singapore and declared his respect for their economic success and development. Indeed, going by his development approaches for Gujarat, he may prefer to adopt the East Asian economies' investment-led growth models, rather than, say, Thatcherism or Reaganomics.

In Asia, Japan is a natural partner, having already established a strategic relationship with India. Notably, Tokyo may well be the destination of the first official trip for the new Indian leader, who's an admirer of Abenomics. Japan, on its part, could see its growing relationship with India as another dimension in its developing strategic nexus against China in Asia. But Mr Modi has made clear that economics, and thus pragmatism, will take centre stage in his foreign-policy considerations. This is likely to frame his engagement of China. Unlike the previous Indian government, which failed to effectively balance its engagement of both Beijing and Washington, Mr Modi is likely to lean towards the growing economic might of China to help spur his country's development.