UPDATE: Indian, Japanese Leaders Agree To Boost Defence, Economic Ties Japanese Prime Minister Shinzo Abe and his Indian counterpart Narendra Modi on Monday vowed to bolster defence and economic cooperation, amid increasing assertiveness from China. Abe and Modi decided to upgrade and strengthen security ties and directed their officials to speed up negotiations for a possible Indian purchase of US-2 amphibious aircraft from Japan, said a declaration issued by the two leaders after a meeting in Tokyo. The leaders also agreed to continue joint maritime drills and trilateral drills with the US in the Pacific. The move comes as regional concerns are increasing over Chinas territorial ambitions and military build-up. On the economic front, Abe pledged to provide a 50-billion-yen (480-million-dollar) loan to India for an infrastructure project in Asias third-largest economy. The two leaders also vowed to double Japans investment in India within five years. Japan is the third-largest investor in India, according to the Japan External Trade Organization. Nevertheless, India only represents a tiny portion of Japanese investment worldwide, said Richard Katz, a long-time Japan watcher and the editor of the Oriental Economist. India is less important to Japan than Japan is to India, in particular for Indian industry, he said. India accounted for only 1% of Japans total trade in 2013, while rival China was Japans largest single trading partner at 20%. Modi met with Trade Minister Toshimitsu Motegi earlier in the day, calling for increased Japanese investment in such areas as high-speed railway networks. The minister told Modi that Japan was willing to bolster cooperation in various fields, including infrastructure-building and energy, but asked the Indian premier to improve the investment environment. A civil nuclear deal for Japan to export reactors to India was also discussed, with Abe and Modi directing their officials to accelerate talks for the pact. However, the deal has been strongly opposed by anti-nuclear activists in both countries. Such exports have become key to Japans nuclear industry after the 2011 disaster at the Fukushima Daiichi Nuclear Power Station. All of the countrys 49 nuclear reactors remain offline amid growing public mistrust of atomic energy following the accident. India has 21 operational reactors, which contribute less than 3% of the countrys total energy output, and it wants to raise the ratio to 25% by 2050, according to Greenpeace India. During a luncheon meeting with Japanese and Indian business leaders, Modi called for further cooperation from Japan in industrial research and development, including the area of clean energy. I would like to work together with Japan in the field of research and development. We should (cooperate) continuously, the Indian premier said. I dont want to create energy by destroying nature, he said, referring to coal and other fossil fuels. Japans cooperation will play significant roles in developing environmentally friendly energy, Modi said. The premier added that providing clean energy to the 1.2 billion people in his country will also help fight global warming. Modi, who is on his first bilateral visit outside South Asia since taking office in May, arrived in the ancient city of Kyoto on Saturday and attended an unofficial banquet hosted by Abe. The two visited Toji Temple on Sunday while the Indian premier also stopped by Kyoto Universitys Centre for iPS Cell Research and Application and met with professor Shinya Yamanaka, the Nobel Prize-winning scientist who heads the centre. On Tuesday, Modi will meet with Emperor Akihito, who visited India with Empress Michiko last year. The Indian premier will also attend a ceremony of the Indian community in the evening.
Posted on: Mon, 01 Sep 2014 14:00:10 +0000
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