Japan’s promises to Narendra Modi

Prime Minister Narendra Modi on Monday said Japan would play a big role in India's future transformation and development.   According to the Nikkei business daily, the Japanese Prime Minister Shinzo Abe aims to double its direct investment of $2 billion in 5 years’ time from now.   On his first major foreign visit since a record breaking election win in May, he arrived on Saturday for a five-day trip aimed at capitalizing on a personal affinity with Abe to tighten security and business ties.   India being Asia's third-largest economy after China and Japan needs faster economic growth to create work for the one million young people who enter the workforce every month.   On the other hand, Japan wants explicit guarantees from India, which has however not signed the nuclear non-proliferation plea aimed at limiting atomic tests and enabling closer inspection of its facilities. Furthermore, during the summit it was mentioned that Japanese firms also want clarity on nuclear disaster compensation, after the Fukushima disaster March 2011.   Under informal discussion the two leaders have proposed to bring together the foreign and defense ministers of both countries, and the possible sale of a semiaquatic aircraft to the Indian navy.   In this shared vision, the two are likely to agree to hold regular joint training exercises in maritime defense, some of which will also involve the United States. The two leaders are also likely to agree on the manifold of economic possibilities instead of focusing on an un-concretized past agreement.   To start off with, Modi has allowed foreign investors to own 100% of railway projects so as to shoot up interest in Japan’s like high-speed 'bullet' trains. The Indian prime minister has also approached Japanese investors in an ambitious industrial "corridor" to run between Delhi and Mumbai. Source: Investing.com, Times of India
Priscilla Camryn By: Priscilla Camryn