A massive Japanese soft-loan package of $12 billion for the first line all but guarantees that.
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The rectangular table was shared by the two prime ministers, Governor Ram Naik and Chief Minister Akhilesh Yadav. It would reduce travel times between the cities of Mumbai and Ahmedabad, the commercial capital of Modi’s home state, Gujarat, from eight hours to two.
Though India and Japan are likely to take some more months to actually sign the nuclear agreement, the breakthrough reached during Modi-Abe meeting in New Delhi is significant, as it signalled substantial progress in the protracted negotiation for a deal, which would clear roads for bilateral cooperation in peaceful use of atomic energy. “The loan is for a period of 50 years with a 15-year moratorium with the interest rate is 0.1 per cent”, said Foreign Secretary S Jaishankar.
He said that of the $35 billion investment in India over the next five years that Japan had committed when Modi visited Tokyo last year, a large part has been covered in the space of a year. Praising Modi’s reforms agenda, the Japanese premier said, “Prime Minister Modi’s speed of implementing policies and reforms is like Shinkansen (bullet train) and his reform agenda is as safe as Shinkansen“.
Japan will provide 1.5 trillion yen ($12.4 billion) in financial assistance to Japanese companies seeking to start operations in India, officials said.
To support Modi’s “Make in India” initiative, Japan has created a fund of about $12 billion which will be provided to Japanese companies for manufacturing in India. “It was ambitious. But together, we are quickly turning it into reality”.
“It is clear that India is a land of possibilities”, he added.
“No friend will matter more in realising India’s economic dreams than Japan. Japanese private investments are also rising sharply”.
Similarly, while they agreed to work towards co-operation in civil-nuclear technology, they stopped short of signing an agreement, citing outstanding technical and legal differences. “It is a shining symbol of a new level of mutual confidence”, Mr Modi commented and he had a good reason to given the fact that till recently India was a nuclear outcast of the world. The joint statement released by both sides said: “Agreement will be signed after the technical details are finalised, including those related to the necessary internal procedures”.
His comments follow an announcement in October by Maruti Suzuki India, the market leader in India, that it will export its Baleno model to Japan.
MoC on Medical Products Regulation Dialogue and Cooperation Framework: This was signed between Central Drugs Standard Control Organization and Ministry of Health, Labour and Welfare of Japan to facilitate a constructive dialogue in areas pertinent to raw materials for pharmaceutical use, biological products and and the relevant administrative and regulatory matters within the jurisdiction of the two Sides. Prime Minister Modi was also seen describing each event to his Japanese counterpart.
Earlier Prime Minister Modi and Shinzo Abe performed the “Ganga Aarti” at the Dashashwamedh Ghat, which is one of the holiest places in Varanasi.
Meanwhile, an opinion piece in China’s state-run Global Times intimated that China has been essential in pushing Japan and India closer strategically.
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Earlier Abe arrived at the ghat accompanied by Modi amid unprecedented security as people on adjoining Rajendra Prasad ghat chanted “Har Har Mahadev” (Hail Lord Shiva) and welcomed the duo with applause and sloganeering.
