Japan to invest $34 billion in India, no nuke deal
NEW DELHI (TIP): Prime Minister Narendra Modi returned home, September 3, after concluding his successful visit to Japan, which promised to give $35 billion to India over the next five years for developmental projects, as the two sides agreed to enhance their strategic cooperation to a new level.
Earlier in Tokyo, Japan announced doubling of its private and public investment in India to about $34 billion over the next five years even as the two countries decided to elevate their ties to a special strategic global partnership but failed to conclude a civil nuclear deal.
Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe during their summit talks also reaffirmed the importance of bilateral defense relations in their strategic partnership and agreed on greater defense equipment and technology cooperation.
The summit meeting took place on the third day of Modi’s five-day visit to Japan when the two countries also decided to expedite talks on sale of US-2 amphibian aircraft to India for enhancing maritime security. At a joint press conference, Abe also announced that as an example of Indo- Japan cooperation, Tokyo will help India in providing financial, technical and operational support to introduce Bullet trains, a project that Modi has been actively pursuing.
Japan will also help India in providing better connectivity with its neighbors, he said. On the civil nuclear deal, which was expected to be finalized during the visit, Abe said they have directed the officials to accelerate negotiations for early conclusion of an agreement to strengthen partnership. While India is said to be pursuing the deal with Japan on the template of the landmark Indo-US nuclear accord, Tokyo is said to be not that enthusiastic about that being the basis.
The 3.5 trillion yen ($34 billion) of investment from Japan to India including Official Development Assositance (ODA) during a 5-year period will be under the aegis of India-Japan Investment Promotion Partnership for development of projects including infrastructure and building of smart cities. The five-year period will also see the doubling of the presence of Japanese firms in India, Abe said.
Thanking Abe for providing him an opportunity to make Japan his first bilateral visit outside South Asia, Modi said,” we both have decided to raise the relationship to a special strategic and global partnership by giving it a special emphasis”. Asserting that his visit ushered in a dawn of new era in Indo- Japan relations, Modi said there is no “limit” to partnership between the two countries. Coinciding with the summit, Japan removed six of India’s space and defenserelated entities from its Foreign End User List.
On the nuclear cooperation issue, Abe said “important progress” has been made in the past several months. He said the two sides were able to have a frank discussion and a deeper understanding on this issue. Modi said India and Japan are old friends and that his current visit will give an opportunity to both of them to further intensify their ties. Modi said a developed India and a prosperous Japan was important for Asia and for global peace and security. India and Japan are two big democracies and they are also part of the three big economies of Asia, he noted.
He said 21st century is said to be Asia’s century but for that to become a reality it is dependent on cooperation between India and Japan and that is why the two countries have decided to elevate their relationship. “This is not just raising the relationship from one category to another… Our relationship is not only regional in its framework, but will have a global impact,” he added. Modi also said that Japan occupies top priority in India’s foreign policy.
He was effusive in his praise for Abe saying he spent a considerable amount of his valuable time to be with him in Kyoto for two days and in Tokyo today. The Prime Minister said Abe has agreed to cooperate with India in all areas taking into account his vision of inclusive development of the country. “We will help you,” Abe told Modi, adding he was ready to extend his help in Ganga cleaning project when he raised the issue. “This is an example of his love and respect for India,” he said, adding the relationship between the two countries was also spiritual in nature.