Japan’s trade with India is about 5 percent of its commerce with China, and less than 25 percent of India-China trade. Modi and Abe, who are right-wing nationalists and economic reformers, have forged an unusually close relationship since BJP came to power previous year, partly to counter China’s growing influence.
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While Japanese Foreign Ministry official Yasuhisa Kawamura said no aspect of India-Japan ties was aimed at a third party, Indian Foreign Secretary S. Jaishankar said the two prime ministers discussed the situation in the South China Sea. “He has been prompt and positive on our economic proposals many of which are now unique to India”, Modi told the media.
Expressing hope on the civil nuclear deal between India and Japan, Defence expert Qamar Agha on Saturday said that it will help strengthen India’s economy which is not only a positive development but will also bring large investments and jobs.
“This enterprise will launch a revolution in Indian railways and speed up India’s journey into the future”, Modi said of the deal, adding that Tokyo would also extend a US$12 billion (RM51.7 billion) package of financing and assistance for the train. “It is shining symbol of a new level of mutual confidence and strategic partnership in the cause of a peaceful and secure world”, Modi said. Maruti Suzuki is expected to begin export of India-made auto Baleno to Japan from January 2016.
A joint statement issued after the two leaders met said the agreement will be signed after more details are finalized.
The nuclear and railway accord reflects Japan’s efforts in line with the Abe administration’s growth strategy, which promotes the export of infrastructure as one of its core pillars. Until recently, there have been serious doubts that Japan will seal a civil nuclear agreement with India due to the fact New Delhi has not signed the Nuclear Nonproliferation Treaty.
Regarding developments in the South China Sea, both leaders, in the joint statement, called on countries concerned to avoid “unilateral actions”.
Hong also objected to India’s invitation to Japan to participate in the Malabar naval exercises in the Indian Ocean.
To support Modis Make in India initiative, Japan has created a fund of about $12 billion which will be provided to Japanese companies for manufacturing in India.
If realized, it could become Japan’s first military equipment transfer in decades after Abe lifted a ban on weapons sales under the country’s post-World War II pacifistic constitution.
“For the first time, Japan will import cars from India”.
Capping years of arrangements, India andJapan on Saturday sealed a broad agreement for cooperation in civil nuclear energy with the final offer to be signed after particular technical and legal issues are thrashed out. During his visit to India a year ago, Chinese President Xi Jinping had pledged to assist the Indian Railways to modernise its ageing railway system with the introduction of high-speed rail links and upgraded railway stations.
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Jaishankar said Japanese side was conveyed about the various aspects of India’s nuclear liability regime.
