Partnership for prosperity rolled out during PMs Modi and Abe meet
Japanese Prime Minister Shinzo Abe affirmed a broader and stronger partnership for his Indian counterpart Narendra Modi's bold and ambitious vision for accelerating inclusive development in India, particularly by transforming the infrastructure and manufacturing sectors.
Prime Minister Modi on his part expressed deep appreciation for Japan's continuous support for India's economic development and stated that no country has done more for modernizing India's infrastructure than Japan.
The two Prime Ministers announced the India-Japan Investment Promotion Partnership under which they decided to set a target of doubling Japan's Foreign Direct Investment and the number of Japanese companies in India within five years as an objective to be jointly achieved.
They also decided to work closely towards further expanding bilateral trade relationship to the next stage.
Prime Minister Abe expressed his intention to realize 3.5 trillion Yen of public and private investment and financing from Japan, including Overseas Development Assistance (ODA), to India in five years, to finance appropriate public and private projects of mutual interest including in the areas of next generation infrastructure, connectivity, transport systems, smart cities, rejuvenation of Ganga and other rivers, manufacturing, clean energy, skill development, water security, food processing and agro industry, agricultural cold chain, and rural development.
In this connection, Prime Minister Abe pledged an ODA loan of 50 billion Yen to India Infrastructure Finance Company Limited (IIFCL) for a public-private partnership infrastructure project in India.
The two Prime Ministers welcomed the public-private initiatives between the two countries to set up Electronics Industrial Parks in India. They also shared the intention to develop "Japan Industrial Townships" and other industrial townships with investment incentives for companies would not be lower than under the prevailing policy framework such as Special Economic Zone (SEZ), National Investment and Manufacturing Zone (NIMZ).
The two Prime Ministers directed their officials to work out an appropriate mix of financing mechanisms, including public-private partnership, and terms for utilization of public funds, taking into account the nature of the projects, developmental priorities, procurement policies, level of industrial and technological capacities and skills available locally. They decided to explore ways to enhance Japanese and Indian participation in appropriate infrastructure projects in India.
Prime Minister Modi underlined his determination to further improve the business environment in India, including through tax, administrative and financial regulations, in order to boost investment.
The two Prime Ministers decided to further deepen bilateral economic and financial cooperation. Prime Minister Abe welcomed the approval to establish Mizuho Bank's Ahmedabad branch.
The two Prime Ministers placed special emphasis on Japan's cooperation for enhanced connectivity and development in Northeast India and linking the region to other economic corridors in India and to Southeast Asia, which would catalyse economic development and increase prosperity in the region.
Prime Minister Modi briefed Prime Minister Abe on his initiative for smart cities and renewal of heritage cities, including the city of Varanasi. Prime Minister Abe expressed Japan's willingness to support this objective.
The two Prime Ministers welcomed the signing of the document to promote partnership city arrangement between the ancient cities of Varanasi and Kyoto.
Lauding Prime Minister Modi's vision for development of world class infrastructure in India, including a high speed railway system, Prime Minister Abe expressed his hope that India could introduce the Shinkansen system for the Ahmedabad -Mumbai route. Prime Minister Abe expressed his readiness to provide financial, technical and operational support to introduce Shinkansen system, for which Prime Minister Modi expressed his appreciation. The two Prime Ministers look forward to the completion of the Joint Feasibility Study on High Speed Railway system on Ahmedabad - Mumbai route.
The two Prime Ministers welcomed the progress in the ongoing flagship projects of India-Japan economic partnership, such as the Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor (DMIC),Chennai-Bengaluru Industrial Corridor(CBIC) and committedto accelerate their implementation.Prime Minister Modi invited Japanese investments in the development of new smart cities and industrial parks along these corridors. Appreciating Japan's contribution to the development of urban mass rapid transport system in India, Prime Minister Modi sought Japan's association with Ahmedabad Metro Project. Prime Minister Abe expressed Japan's willingness to support the project in a mutually beneficial manner.
Recognising the critical dependence of their economies on imported energy sources and their vulnerability to supply shocks, the two Prime Ministers affirmed their intention to further strengthen energy cooperation through the India-JapanEnergy Dialogue.
They shared the intention that India and Japan would explore a higher level of strategic collaboration in the global oil and natural gas market, including through joint procurement of LNG, upstream development of oil and gas, and joint efforts to promote flexible LNG markets, including through relaxation of destination clauses.
The two Prime Ministers also welcomed enhanced cooperation on utilizing highly efficient and environmentally-friendly coal-fired power generation technology and progress on cooperation in Clean Coal Technology (CCT).
The two Prime Ministers welcomed substantial agreement on a commercial contract for manufacturing and supply of rare earth chlorides from India to Japan and affirmed their strong resolution for the finalization of commercial contract as well as the commencement of commercial production at the earliest.
The two Prime Ministers affirmed the commitment of both countries to actively engage in the Regional Comprehensive Economic Partnership (RCEP) negotiations and to make RCEP a modern, comprehensive, high-quality and mutually beneficial economic partnership agreement. They decided to cooperate further towards conclusion of RCEP negotiations.
(Posted on 02-09-2014)