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An energy accord with Japan would allow India to boost its nuclear-power production, easing global pressure for the South Asian nation to cut carbon emissions generated by its coal-fired power plants. Modi explained this will be different from the electronic visa facility extended globally. They called for security cooperation between Japan, India, the US and Australia, reflecting a strategy already agreed by the USA and Japan, which is aimed at checking China’s ambitions in the South China Sea. Japan’s trade with India is about 5 percent of its commerce with China, and less than 25 percent of India-China trade.

The Prime Minister, Shri Narendra Modi and the Prime Minister of Japan, Mr. Shinzo Abe at the signing ceremony, in New Delhi on December 12, 2015.

“No friend will matter more in realizing India’s economic dreams than Japan”.

At a joint media event with Modi, Abe said Japan’s cooperation with India in the nuclear field will be limited to peaceful objectives. “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.

The train project will be built by Japan’s Shinkansen, which is known for its speed, reliability and safety, Modi said.

With China breathing down the neck and trying to change the balance in Asia, empowering India with a nuclear deal means that it will create space for Japanese firms and give fillip to Western nuclear companies waiting in the wings – all of which will provide a leg-up to New Delhi, economically and strategically.

The long-pending nuclear engagement has also been identified and there is adequate indication to suggest that finally – after years of reluctance on Tokyo’s part, there may be tangible movement in this domain.

“So, any solution that we would have done would be in consonance with our longstanding policy”, he said.

India was cautious about the provision, but Abe and Modi are believed to have confirmed at the summit meeting that India would make the commitment in words to be determined later.

It said that the defence agreements signed further strengthens the foundation of “deep strategic ties”. The deal, similar to the 123 Agreement with the United States, however, needs to be cleared by the Japanese Parliament, Diet.

They also took a step toward a pact on the use of civil-nuclear energy, but said technical details needed to be ironed out before a final agreement was signed.

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

“The (Japanese) loan is for a period of 50 years with a moratorium of 15 years, at an interest rate of 0.1 percent”, said a railway ministry statement.

India and Japan on Saturday inked a number of key agreements ranging from defence, nuclear energy and transportation.

“As of now we have agreed in-principle”.

The Indian PM has pledged to overhaul India’s ramshackle railways and other infrastructure as part of his ambitious economic reforms – an area praised by Abe earlier in the day. “It will become an engine of economic transformation in India”, said Modi in a speech.