Prime Minister Narendra Modi today said that for the “first time” India will export to Japan cars which will be made domestically by Maruti Suzuki as part of the “Make in India” initiative. The train will cut travel time on the 505 kilometre route from eight hours to around three.
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According to a senior Japanese official, Prime Minister Shinzo Abe complimented his counterpart Narendra Modi on accomplishing the deal during their discussions saying “no other leader could have done this”.
The Indian side was particularly elated with the package for the high-speed train between Mumbai and Ahmedabad, as it comes with an interest of a mere 0.1 percent, a duration of as many as 50 years and a moratorium on repayments up to 15 years. “This enterprise will launch a revolution in Indian railways and speed up India’s journey into the future”.
“It will become an engine of economic transformation in India”.
Recalling his last visit to the country, Modi said Japan committed an investment of $35 billion.
Modi’s government said past year it would open up the railways to foreign investment as they struggle to win back freight traffic lost to roads, coastal shipping and planes. “But, together, we are quickly turning it into reality”.
India and Japan have been negotiating a civil nuclear cooperation agreement ever since India got the Nuclear Suppliers’ Group waiver in 2008, but the Japanese have had their concerns with India not being a signatory to the Nuclear Non-Proliferation Treaty (NPT) and later because of adverse Japanese public opinion after the Fukushima disaster of 2011.
“Make in India” is proceeding in mission mode, not just in India, but also in Japan, he added.
Explaining why India deeply values the strategic partnership with Japan, Modi said, “No friend will matter more in realizing India’s economic dreams than Japan and I cannot think of a strategic partnership that can exercise a more profound influence on shaping the course of Asia and our interlinked ocean regions more than ours”. Modi also announced that India in March will begin extending “visa on arrival” privileges to Japanese citizens in recognition of the two countries’ special relationship. “It is a shining symbol of a new level of mutual confidence and strategic partnership in the cause of a peaceful and secure world”, said Modi in his statement after the talks in Hyderabad House.
A joint statement issued after the two leaders met said the agreement will be signed after more details are finalized.
Modi also welcomed the setting up of “Japan-India Make in India Special Finance Facility” of $ 12 billion by Nippon Export and Investment Insurance (NEXI) and Japan Bank for International Cooperation (JBIC).
“I know the significance of this decision for Japan and I assure you that India deeply respects that decision and will honour our shared commitment”, Modi added.
Worldwide and regional issues including UN Security Council reforms and terrorism also figured prominently in the talks as the two leaders called for closer cooperation in safeguarding the global commons in maritime, space and cyber domains. “Prime Minister Modi’s economic policies are safe and reliable”.
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On South China Sea, Modi and Abe were of the view that full and effective implementation of the 2002 Declaration on the Conduct of Parties in the South China Sea and early conclusion of the negotiations to establish a Code of Conduct in the South China Sea by consensus will contribute to peace and stability of the region.
