Japan and India agree on train deal

Along with the rail agreement, Mr Modi and Mr Abe signed accords on nuclear energy cooperation and defense equipment and technology transfers. Japan committed funds and technology to this project.

It would reduce travel times between the cities of Mumbai and Ahmedabad, the commercial capital of Modi’s home state, Gujarat, from eight hours to two. “It is a shining symbol of a new level of mutual confidence and strategic partnership in the cause of a peaceful and secure world”, he said.

Modi has underlined that India and Japan share a “fundamental identity of values, interests and priorities”.

India was largely excluded from global trade in nuclear plant and materials for over three decades because of its position outside the comprehensive safeguards regime of the Nuclear Non-proliferation Treaty.

Abe also communicated this condition to Indian Prime Minister Narendra Modi in Saturday’s discussions.

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. “The Japanese company will manufacture here and export it to Japan”, he said, adding that both India and Japan should move ahead together, not just in the sphere of high-speed trains, but also for “high-speed growth”, he added. If that happens, it could be Tokyo’s first major sale of weapons since Abe lifted a ban on export of defense equipment in 2014. Japan will also now permanently join India and the United States for the annual Malabar exercises.

MUMBAI-Japan and India strengthened their military and economic ties Saturday, signing a high-speed-rail agreement and pledging joint exercises for their navies, as countries across Asia seek to counterbalance China’s growing assertiveness in the region.

Prime Minister Narendra Modi thanked the Japanese people for their role in the developmental efforts of India and expressed their expectation that the total amount to be given by Japan to India as per the ODA (Official Development Assistance) shall reach about 400 Billion Yen in the financial year 2015-2016. “It’s also a statement for Modi that India is modernizing”.

“Tokyo will want some kind of commitment from India that it will not conduct a nuclear test. But India will have concerns about its strategic autonomy being curbed if it agrees to conditionalities”, said Lalima Varma, professor of Japanese studies at New Delhi’s Jawaharlal Nehru University.

They underscored the importance of worldwide law including the United Nations Convention on the Law of the Sea (UNCLOS) and peaceful resolution of disputes without use or threat of use of force; freedom of navigation and overflight and unimpeded lawful commerce in global waters. In the case of the India-Japan deal, Bank of Japan will accept rupees and give dollars to the Reserve Bank of India and vice versa to stabilise the two nations’ currencies during contingencies.

The two Prime Ministers also reaffirmed their desire to further develop dialogue and exchanges between the two countries in the security and defence fields, including through the full utilisation of “2+2 Dialogue”, Defence Policy Dialogue, Military-to-Military Talks and Coast Guard to Coast Guard cooperation. At present Nuclear energy is the 4 biggest source of energy in India after thermal, renewable and Hydel energy.

India has yet to sign the Nuclear Nonproliferation Treaty (NPT), making the agreement Japan’s first nuclear deal with a non-NPT member country.

Modi earlier began his speech by describing Abe as “a personal friend and a great champion of India-Japan partnership”.

The two Prime Ministers underlined their determination to expand cooperation with other partners, to enhance connectivity in the Indo-Pacific region.