No friend will matter more in realising India's economic dreams than Japan, says Modi
GN Bureau | December 12, 2015
India’s first bullet train network between Mumbai- Ahmedabad at a cost of about Rs 98,000 crore received formal approval today at a meeting between Prime minister Narendra Modi and his Japanese counterpart Shinzo Abe. Other key areas of cooperation are defence and nuclear energy.
India also announced 'visa-on-arrival' to all Japanese citizens from 1st March 2016.
The strategic pacts were inked after the summit meeting of the prime ministers and they also discussed issues of mutual importance including UN security reforms.
Addressing a joint press meet with Abe, Modi said, "No friend will matter more in realising India's economic dreams than Japan" while describing Abe as "a personal friend and a great champion of India-Japan partnership".
Referring to the pacts signed, Modi said, "No less historic is the decision to introduce high speed rail on Mumbai-Ahmedabad sector through Shinkansen known for speed, reliability, safety", noting that Abe's extraordinary package of approximately $ 12 billion and technical assistance, on very easy terms, for this project was greatly appreciated.
"The memorandum we signed on civil nuclear energy cooperation is more than just an agreement for commerce and clean 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 added.
The bullet train network will link the India's financial hub Mumbai with Ahmedabad, the capital of Modi's home state, Gujarat. Bullet train between the two cities will cut travel time on the 505 kilometre route from eight hours to around three. The approx. cost of the project is estimated to be around Rs 98,000 crore.
The two sides also inked agreements - one concerning the transfer of defence equipment and technology and another related to security measures for protection of classified military information.
Terming defence pacts as "decisive steps in our security cooperation", Modi said they will deepen the defence relations and promote defence manufacturing in India.
"This builds on our decision to expand staff talks to all three wings of the Armed Forces and make Japan a partner in Malabar naval exercises," he added.
The two leaders also issued a joint statement on 'India and Japan Vision 2025: Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World'.
The statement said the two prime ministers welcomed the agreement reached between the two governments for cooperation in peaceful uses of nuclear energy and confirmed that this agreement will be signed after the technical details are finalised including those relating to necessary internal procedures
On his part, Abe said, "We have taken relationship to new level and buds have turned into blossoms". Abe said his country’s public and private sector would act in unison to support the growth of India.
Both Modi and said the civil nuclear deal was not just about commerce and clean energy but also a sign of mutual confidence and partnership for a secure world.
As for the high-speed rail network, it will be built on the Shikansen model known for its reliability and safety. PM Modi noted that Abe’s extraordinary package of approximately $12 billion and technical assistance, on very easy terms, for this project was greatly appreciated.
Bullet train between the two cities will cut travel time on the 505 kilometre route from eight hours to around three. The approx. cost of the project is estimated to be around Rs 98,000 crore.
The two sides also inked agreements – one concerning the Transfer of Defence Equipment and Technology and another related to Security Measures for Protection of Classified Military Information.
Terming defence pacts as “decisive steps in our security cooperation”, Modi said they will deepen the defence relations and promote defence manufacturing in India.
“This builds on our decision to expand staff talks to all three wings of the Armed Forces and make Japan a partner in Malabar Naval Exercises,” he added.
The two leaders also issued a joint statement on ‘India and Japan Vision 2025: Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World’.
PM Abe is on a three-day visit to India during the course of which he will also be travelling to Varanasi, the parliamentary constituency of PM Modi, and take part in the aarti on the banks of River Ganges.
Here is the full text of the Joint Statement on India and Japan Vision 2025
Mr. Shinzo Abe, Prime Minister of Japan, is paying an official visit to India at the invitation of H.E. Mr. Narendra Modi, Prime Minister of the Republic of India from 11 to 13 December.
Expressing satisfaction at the direction of bilateral engagement, the two Prime Ministers resolved to transform the India-Japan Special Strategic and Global Partnership, a key relationship with the largest potential for growth,into a deep, broad-based and action-oriented partnership, which reflects a broad convergence of their long-term political, economic and strategic goals.
Vision for a Deep, Broad-based and Action-oriented Partnership
The peoples of India and Japan are guided by common cultural traditions including the heritage of Buddhism, and share commitment to the ideals of democracy, tolerance, pluralism and open society. India and Japan, two of the largest and oldest democracies in Asia having a high degree of congruence of political, economic and strategic interests, view each other as partners that have responsibility for and are capable of responding to global and regional challenges.
The two Prime Ministers reiterated their unwavering commitment to realise a peaceful, open, equitable, stable and rule-based order in the Indo-Pacific region and beyond. India and Japan uphold the principles of sovereignty and territorial integrity; peaceful settlement of disputes; democracy, human rights and the rule of law; open global trade regime; and freedom of navigation and overflight. They pledged to work for peace, security and development of the Indo-Pacific region toward 2025 underpinned by these principles.
The two Prime Ministers underlined the need for closer coordination and effective communication, bilaterally and with partners, to address existing and emerging challenges in spheres of security, stability and sustainable development. They underlined their determination to expand cooperation with other partners, to enhance connectivity in the Indo-Pacific region. India and Japan will work to strengthen regional economic and security forums and coordinate their actions to tackle global challenges including the reform of the United Nations, climate change as well as terrorism.
The two Prime Ministers view that imperatives of a stronger bilateral strategic partnership require deep and broad-based cooperation and concrete actions in defence, security, economic and cultural fields. Our future-oriented partnership raises our collaboration to a new level in areas of infrastructure, manufacturing and high technology, including advanced transportation systems, civil nuclear energy, solar power generation, space, biotechnology, rare earths and advanced materials.
Recognising the importance of people to people exchanges and cultural ties, the two Prime Ministers resolved to boost opportunities for study, tourism, youth exchanges and educational collaboration to deepen broad-based and diversified engagement between the two peoples.
With the view to realise the objectives of India and Japan Vision 2025, the two leaders decided to develop a comprehensive and concrete medium and long-term action plan.
The two Prime Ministers welcomed the conclusion of the Agreement concerning the Transfer of the Defence Equipment and Technology and the Agreement concerning Security Measures for the Protection of Classified Military Information, which further strengthens the foundation of deep strategic ties. Taking note of the Agreements, they reaffirmed their commitment to continue discussions to deepen the bilateral defence relationship including through two-way collaboration and technology cooperation, co-development and co-production. The two Prime Ministers expressed their intention to explore potential future projects on defence equipment and technology cooperation such as US-2 amphibian aircraft.
The two Prime Ministers welcomed Japan’s participation in the India-US Malabar Exercises on a regular basis, as it would help create stronger capabilities to deal with maritime challenges in the Indo-Pacific region, including through enhanced disaster response and mitigation capacity. They 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. The two Prime Ministers appreciated the decision to begin Air Force-to-Air Force staff Talks.
Highlighting the need to leverage their excellent bilateral relations to promote trilateral dialogues and cooperation with major partners in the region, the two Prime Ministers welcomed the holding of the Japan-India-U.S. Trilateral dialogue among the Foreign Ministers of the three countries in New York in September 2015. They noted with satisfaction the efforts of the three countries to seek closer cooperation in such areas as humanitarian assistance and disaster relief, regional connectivity as well as maritime security. The two Prime Ministers expressed satisfaction on the inaugural Japan-India-Australia Trilateral dialogue. They were of the view that these dialogue mechanisms could contribute to regional efforts to evolve an open, inclusive, stable and transparent economic, political and security architecture in the Indo-Pacific region.
Seeking the synergy between India’s “Act East” policy and Japan’s “Partnership for Quality Infrastructure”, the two Prime Ministers decided to develop and strengthen reliable, sustainable and resilient infrastructures that augment connectivity within India and between India and other countries in the region.The two Prime Ministers pledged to advance industrial networks and regional value chains with open, fair and transparent business environment in the region. They recognised the importance of enhancing their cooperation and coordination bilaterally and with other stakeholders to realise this strategic initiative.
The two Prime Ministers welcomed the agreement reached between the two Governments on the Agreement between the Government of Japan and the Government of the Republic of India for Cooperation in the Peaceful Uses of Nuclear Energy, and confirmed that this Agreement will be signed after the technical details are finalised, including those related to the necessary internal procedures.
Investing in the Future
The two Prime Ministers noted that India’s railways modernisation and expansion plans open up commercial opportunities for Japanese companies in high speed rail, station re-development and rolling stock manufacturing. They welcomed the signing of memoranda on technologicalcooperation, and R&D collaboration in the railways sector.
The two Prime Ministers welcomed the signing of the Memorandum of Cooperation on introduction of Japan’s High Speed Railways (HSR) technologies (the Shinkansen system) to Mumbai-Ahmedabad route. Prime Minister Modi appreciated Japan’s consideration of providing highly concessional yen loan for the HSR on Mumbai-Ahmedabad route. Both sides will explore further strengthening of their partnership in high speed railways, which is a high technology area having potential to transform India’s transportation sector.
The two Prime Ministers stressed the need for further actions for investing in the future. Prime Minister Abe commended Prime Minister Modi’s strong initiatives such as “Make in India,” “Digital India,” “Skill India,” “Clean India” and “Smart City”. Prime Minister Abe also expressed his intention to support India’s efforts by sharing its advanced skills and technologies and through active mobilisation of Japanese public and private sector involvement, including Official Development Assistance (ODA).
The two Prime Ministers welcomed the steady progress to realise 3.5 trillion yen of public and private financing to India in five years under the “Japan-India Investment Promotion Partnership” announced during the last annual summit meeting.
They also welcomed the progress in the flagship projects such as the Western Dedicated Freight Corridor (DFC), and reaffirmed the determination to expedite the Delhi-Mumbai Industrial Corridor (DMIC) projects. The two Prime Ministers further concurred to take the Chennai Bengaluru Industrial Corridor (CBIC) project to the next stage of concrete implementation including by utilising ODA loan schemes and other facility measures. Indian side expressed a hope to attract US $ 5.5 billion of investment and other support.
In this context, Prime Minister Modi welcomed the “Japan-India Make-in-India Special Finance Facility” up to 1.5 trillion Yen by Nippon Export and Investment Insurance (NEXI) and Japan Bank for International Cooperation (JBIC), which aims to promote direct investment of Japanese companies and trade from Japan to India, to support their business activities with counterparts in India, including development of necessary infrastructure, and to help materialise Make-in-India policy of the Government of India. Prime Minister Abe expressed his expectation on further enhancement of reform measures including in the financial sector. The two Prime Ministers decided to deepen mutual cooperation regarding the Make-in-India policy.
The two Prime Ministers recognised the invaluable role played by Japan’s ODA in broadening, deepening and strengthening bilateral relations. Appreciating that India is one of the largest recipients of Japan’s ODA, Prime Minister Modi thanked the people of Japan for their contribution to the building of social and physical infrastructure in India that is key to the country’s development and modernisation. The two sides expressed their expectation that the total commitment of Japanese ODA yen loan to India in FY 2015 may reach around 400 billion yen, the highest ever provided to India, and concurred to accelerate their respective efforts with a view to achieving this goal.
Prime Minister Modi welcomed the Japanese ODA loans of about 100 billion yen for the metro projects both in Chennai and Ahmedabad.
Prime Minister Abe expressed Japan’s intention to provide ODA loans for the improvement of road network connectivity in northeastern states of India, the peripheral ring road surrounding Bengaluru, and the horticulture irrigation in Jharkhand.
Prime Minister Modi welcomed ongoing surveys regarding Mumbai Trans Harbour Link and the modernisation of ship recycling yards in Gujarat, and an expected survey for Tuticorin Outer Harbour.
The two Prime Ministers also confirmed the importance of securing appropriate implementation of ODA projects.
Prime Minister Modi briefed Prime Minister Abe on his agenda of reforms to make India the investment destination with the most business-friendly environment, for which Prime Minister Abe expressed his appreciation. Prime Minister Modi reaffirmed his determination to improve the business environment in India.
The two Prime Ministers reaffirmed the intention to develop “Japan Industrial Townships (JITs),” with investment incentive for companies that would not be lower than under the prevailing policy framework such as Special Economic Zone (SEZ), and National Investment and Manufacturing Zone (NIMZ). Moreover, both sides will work toward evolving special packages for attracting Japanese investment in the Japanese Industrial Townships in India. The two Prime Ministers reaffirmed to further deepen bilateral economic and financial cooperation.
The two Prime Ministers positively appraised the work of “Japan Plus” and expressed strong hope that investment-related assistance, guidance and support extended by Japan Plus will become even more effective and efficient through enhancing coordination with stakeholders. Prime Minister Abe appreciated creation of “Core Group” chaired by Cabinet Secretary to coordinate and closely monitor the process to ensure that investments from Japan as envisaged in India-Japan Investment Promotion Partnership are facilitated.
The two Prime Ministers stressed the importance of expansion in the two-way investment between Japan and India. The Japanese side expressed the intention of establishing a new mechanism, “Japan-India IoT Investment Initiative,” to promote investment in Internet of Things (IoT) related area from India to Japan.
The two Prime Ministers recognised the importance of close collaboration in the electricity and energy sector through such measures as use of high-efficiency andenvironmentally friendly coal-fired power generation technology, and Clean Coal Technology (CCT) including Integrated Gasification Fuel Cell (IGFC) once developed, and renewable energy and promotion of energy efficiency. Prime Minister Abe lauded India’s effort to enhance contribution of renewables to its overall energy mix.
Indiaand Japan, as two countries seeking to transform into knowledge-based societies, expressed satisfaction to the continuous strengthening of their institutionalisedScience and Technology cooperation, of which 2015 marks the 30th anniversary year. They shared their intention to raise the level of their ambition through the establishment of joint research laboratories; enhanced exchanges between young scientists and those under”Japan-Asia Youth Exchange Program in Science”; the establishment of joint research centres in India in the field of ICT; stem cell research collaboration; and the joint fellowship Programme for young researchers.
The Indian side appreciated Japan’s support to Skill India Initiative through training at Industrial Training Institutions (ITIs), skills development for managers, curriculum development and the Skills Evaluation System Promotion Program. Both countries will further advance their cooperation by providing Indian trainees with opportunities to acquire industrial skills in Japan including under the Technical Intern Training Program.
Acknowledging the importance of cooperation in the education sector, they welcomed the institutionalised exchange of doctoral and post-doctoral research fellows, and encouraged movement of professors and faculty between India and Japan. The two Prime Ministers invited their universities and academic institutions to further expand cooperation. Prime Minister Abe expressed that in the next five years, 10,000young Indian talents will be visiting Japan under such frameworks as students exchange, IT training and short term exchanges, and hoped that it will provide solid bonds for our future relations.
Recognising the importance of facilitating exchanges between people of the two countries, both leaders stressed the importance of further simplifying their visa procedures for nationals of each other.
The two leaders welcomed the priorities for action in the Sendai framework for Disaster Risk Reduction 2015-2030, and noted the importance of measures to mitigate the risk of disaster arising from earthquake, cyclone and tsunami, including flood control and early warning systems. They recognized the need to advance bilateral cooperation and collaboration in disaster risk reduction. Prime Minister Modi appreciated Japan’s assistance to land slide prevention in the area of highway development.
The two Prime Ministers appreciated the growing cooperation in the field of women empowerment and healthcare. Prime Minister Abe briefed Prime Minister Modi on his efforts to create a “society where all women shine,” including by hosting “WAW!”. Prime Minister Modi expressed that the target regarding quantitative share of generic medicines in Japan would be an excellent opportunity for collaboration between Indian and Japanese pharmaceutical companies.
The two Prime Ministers welcomed enhanced partnership between Indian States and cities with Japanese prefectures and cities as these help bilateral relations grow deeper roots. They expressed satisfaction at the strengthened ties between the City of Kyoto and Varanasi, two ancient and historic cities integral to their respective cultural heritage. Prime Minister Modi expressed his expectation that the two sides will explore to develop a convention centre in Varanasi.
Sharing the view that the future of Asia needs to build on the positive influence of traditions of non-violence and democracy in Asia, the two Prime Ministers welcomed the Samvad conference held in India in September and looked forward to Japan hosting the next conference in January 2016.
Vision for Peace and Stability
Recognising that peace, stability and development in the Indo-Pacific region is indispensable to their national security and prosperity, they reaffirmed that close cooperation between Japan and India is the key to achieving peace and stabilityin the region. They welcomed the progress instrengthening the East Asia Summit to enhance dialogue on political and security issues, and reaffirmed their commitment to continue to work with all partners, especially with ASEAN which is at the core of EAS, to make EAS the premier leaders-led forum to discuss regional peace and security agenda.
Expressing their commitment to the principles of sovereign equality of all states as well as respect for their territorial integrity, they affirmed closer cooperation in safeguarding the global commons in maritime, space and cyber domains. They underscored the importance of international 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 international waters.
In view of critical importance of the sea lanes of communications in the South China Sea for regional energy security and trade and commerce which underpins continued peace and prosperity of the Indo-Pacific, the two Prime Ministers noting the developments in the South China Sea called upon all States to avoid unilateral actions that could lead to tensions in the region. They were of the view that full and effective implementation of the 2002 Declaration on the Conduct of Parties in the South China Sea and early conclusion of the negotiations to establish a Code of Conduct in the South China Sea by consensus will contribute to peace and stability of the region. They decided to hold regular close consultations on the issues related to maritime safety and security of sea lanes of communication.
Sharing their concerns about the growing threat and universal reach of extremism, the two Prime Ministers reiterated their strong condemnation of terrorism in all its forms and manifestations with ‘zero tolerance’ and reaffirmed their deep concern over the continued threat posed byterrorists and terroristgroups. They called upon all countries to implement the United Nations Security Council Resolution 1267 and other relevant resolutions designating terrorist entities. They also called for eliminating terrorist safe havens and infrastructure, in disrupting terrorist networks and financing channels, and stopping cross-border movement of terrorists. They underlined the need for all countries to effectively deal with trans-national terrorism emanating from their territory. They emphasised that the evolving character of terrorism called for stronger international partnership in combating terrorism, including through increased sharing of information and intelligence. They affirmed the importance of bringing the perpetrators of terrorist attacks including those of November 2008 terrorist attack in Mumbai to justice.
The two Prime Ministers expressed concern over North Korea’s continued development of its nuclear weapons and ballistic missile programmes, including its uranium enrichment activities. They urged North Korea to fully comply with its international obligations, including under relevant United Nations Security Council resolutions and to take actions towards the denuclearisation of the Korean Peninsula. They also urged North Korea to address at the earliest the abductions issue.
Prime Minister Abe briefed Prime Minister Modi on Japan’s efforts, including the “Proactive Contribution to Peace” based on the principle of international cooperation and the “Legislation for Peace and Security,” to contribute even more to peace, stability and prosperity of the region and the international community. Prime Minister Modi welcomed and supported Japan’s efforts and desire to enhance its contribution to global peace, stability and prosperity.
The two Prime Ministers reaffirmed their intention to work together for the early realisation of U.N. reforms, particularly the Security Council reform, to better reflect the realities of the international community in the 21st century. They welcomed the recent developments in the Inter-Governmental Negotiation (IGN) process, towards the launch of text-based negotiations, and reaffirmed their determination to redouble their efforts towards achieving concrete outcomes during the 70th Session of the U.N. General Assembly. The two Prime Ministers reiterated their support for each other’s candidature, based on the firmly shared recognition that India and Japan are legitimate candidates for permanent membership in an expanded Security Council.
Recognising India as the largest democracy and a fast growing large economy in the Asia-Pacific region, the Japanese side conveyed its support to India’s membership of the APEC as a positive contribution to the economic integration in the region.
The two Prime Ministers, on the occasion of the 70th year since the atomic bombings of Hiroshima and Nagasaki, reaffirmed their shared commitment to the total elimination of nuclear weapons. They called for an immediate commencement and early conclusion of negotiations on a non-discriminatory, multilateral and internationally and effectively verifiable Fissile Material Cut-off Treaty (FMCT) on the basis of Shannon Mandate. In this context, Prime Minister Abe stressed the importance of early entry into force of the Comprehensive Nuclear Test Ban Treaty (CTBT) which should lead to nuclear disarmament. They also supported the strengthening of international cooperation to address the challenges of nuclear proliferation and nuclear terrorism.
The two Prime Ministers recognised the importance of effective national export control systems. Japan welcomed India’s intensified engagement with export control regimes．The two Prime Ministers affirmed their commitment to work together for India to become a full member in the four international export control regimes: Nuclear Suppliers Group, Missile Technology Control Regime, Wassenaar Arrangement and Australia Group, with the aim of strengthening the international non-proliferation efforts.
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