U.S., Japan, Germany Among 18 Nations to Build Carbon Markets

Indian Prime Minister Narendra Modi, who held talks with his Japanese counterpart and hosted him in his parliamentary constituency of Varanasi, showed little hesitation in calling Japan his country’s closest economic partner.

Under the new visa system, the maximum period of stay will be extended to 30 days from the current 15, with visas valid for five years, up from three years.

Charting a new course, India and Japan on Saturday announced a series of military and strategic agreements and understandings.

The high-speed railway project will use technology developed to build Japan’s extensive Shinkansen network-on which trains run at more than 300 kilometers an hour-and will be a welcome update to India’s vast but often inefficient and overburdened railway network, which acts as a break on the country’s economic growth.

The two sides expressed hope that investment-related assistance, guidance and support extended by Japan Plus will become even more effective and efficient through enhancing coordination with stakeholders. About talks with China on high-speed trains, the Foreign Secretary said he would talk about it when he is briefing on China. Along with the rail agreement, Mr Modi and Mr Abe signed accords on nuclear energy cooperation and defense equipment and technology transfers.

Modi briefed the Japanese Prime Minister on his agenda of reforms to make India the investment destination with the most business-friendly environment.

The Prime Minister mentioned recent economic indicators in both India and Japan, and said these were extremely encouraging, especially in the light of the global economic slowdown.

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.

Foreign secretary S. Jaishankar inked two interlinked pacts with Japan’s new ambassador here, Kenji Hiramatsu, that both dramatically elevate defence ties.

The two Prime Ministers reiterated their unwavering commitment to realise a peaceful, open, equitable, stable and rule-based order in the Indo-Pacific region and beyond.

India and Japan had started negotiations for the nuclear cooperation in June 2010. One will have to wait and watch China’s interactions with India in the near future. Earlier this year, Japan agreed to grant India the right to reprocess spent nuclear fuel.

An energy accord with Japan would allow India to boost its nuclear-power production, easing worldwide pressure for the South Asian nation to cut carbon emissions generated by its coal-fired power plants. Maruti Suzuki chairman R C Bhargava said the company will begin with export of “Baleno” from January. India and Japan share apprehensions about China’s expansionism in regional waters.

The joint statement said: “In view of critical importance of the sea lanes of communications in the South China Sea for regional energy security and trade and commerce which underpins continued peace and prosperity of the Indo-Pacific, the two Prime Ministers noting the developments in the South China Sea called upon all States to avoid unilateral actions that could lead to tensions in the region”.