Japan to set up financial facility for ‘Make in India’ initiative

Japan’s Prime Minister Shinzo Abe (L) and his Indian counterpart Narendra Modi shares a moment during a signing of agreement at Hyderabad House in New Delhi on December 12.

The proposed 505-km-long (314-mile-long) railway will link India’s financial capital of Mumbai with Ahmedabad, a major economic and industrial hub in Modi’s home state of Gujarat. He also said that India is eager to introduce high speed train service in the Mumbai-Ahmedabad route with the help of Japanese rail technologies.

“This enterprise will launch a revolution in Indian railways and speed up India’s journey into the future”, Modi said. Japan committed another $12 billion for “Make in India” initiative after inking far-reaching pacts on defence and nuclear energy. The three-day visit saw the two countries signing a rail deal, fortifying their defense relations and agreeing to work toward cooperation in the peaceful use of civil-nuclear energy. “It is a shining symbol of a new level of mutual confidence and strategic partnership in the cause of a peaceful and secure world”, Modi said.

Among the global issues, Modi and Abe discussed North Korea’s contentious nuclear programme and expressed concern over that country’s continued development of its nuclear weapons and ballistic missile programmes, including its uranium enrichment activities. As far as Japan is concerned, after deal with Taiwan in 2007, this deal with India would be the second successful case of Japan exporting its bullet train technology to a foreign market. Japan’s trade with India is about 5 percent of its commerce with China, and less than 25 percent of India-China trade. The deals are as much a success of business negotiation skills as a tacit admission of the elephant in the room when it comes to diplomatic exchanges since China is always on the mind when India and Japan meet.

It also said that maintenance of the peace and tranquility in the Indo-Pacific waters was a shared goal of the two countries. READ ALSOModi, Abe send message to Beijing on South China Sea Several countries, including Vietnam and Malaysia, have opposed construction and shipping by the Chinese Navy in and around the disputed islands in South China Sea.

Modi and Abe, who are right-wing nationalists and economic reformers, have forged an unusually close relationship since BJP came to power past year, partly to counter China’s growing influence.

India and Japan had implemented Comprehensive Economic Partnership Agreement (CEPA) in August 2011.

Abe also said that India has become a very attractive investment destination for Japan.

“What do you think will happen”, asked Yasuhisa Kawamura, Press Secretary, Director General for Press and Public Diplomacy of the Japanese government when asked how Japan will react if India goes in for a nuclear test. 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.

Last year, Prime Minister Abe hosted Modi in Kyoto.