Japanese PM Shinzo Abe wraps up fruitful India visit

Addressing a joint press meet with Abe, Modi said, “No friend will matter more in realising India’s economic dreams than Japan”. He said he expected India “to act responsibly in the use of nuclear energy”. Modi explained this will be different from the electronic visa facility extended globally. ET had first reported that two sides will sign an agreement on high-speed railway during Abe’s trip.

Prime Minister Modi welcomed the conclusion of agreement concerning the transfer of defence equipment and technology, saying that Japan’s help would allow India to become stronger. India is likely to buy 30% of the required equipment from Japan.

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.

“Our government will set up a special financial framework for a project meant to facilitate operations by Japanese companies that are seeking to make inroads in India and create business opportunities worth 1.5 trillion yen”, Abe said.

Modi’s reforms programme came in for high praise with Abe saying, “Prime Minister Modi’s speed of implementing policies and reforms is like Shinkansen (bullet train) and his reform agenda is as safe as Shinkansen“.

The introduction of high-speed links and bullet trains were one of the key campaign promises of Modi, who was elected in May 2014.

“We also appreciate the sharp increase in Japanese bilateral assistance and the strength of public and private Japanese commitment for the Make in India mission”, he said.

“They also supported the strengthening of global cooperation to address the challenges of nuclear proliferation and nuclear terrorism”, it said.

“On the nuclear tests, we have taken steps”. India also announced that Japan will be a partner in Malabar naval exercises, taking it from a bilateral naval exercise with the USA to a trilateral level on a permanent basis. The deal, similar to the 123 Agreement with the U.S., however, needs to be cleared by the Japanese Parliament, Diet.

These include working on defence technology, and agreeing a memorandum of understanding on the peaceful use of nuclear energy.

The new bullet train will slash journey times between the Indian cities of Mumbai and Ahmedabad, reportedly from eight hours to about two hours.

“As of now we have agreed in-principle”. Jaishankar said though feasibility report of the project is ready, a committee of officials would go into drawing the details of the joint venture.

In September the Ministry of Railways awarded contracts for three more high speed line studies: Delhi – Mumbai (Third Railway Survey & Design Institute with Lahmeyer International); Mumbai – Chennai (Systra with Rites and Ernst & Young); and Kolkata – Delhi (Ineco with Typsa and Technocrats).

Capping years of negotiations, India and Japan on Saturday sealed a broad agreement for cooperation in civil nuclear energy with the final deal to be signed after certain technical and legal issues are thrashed out.