India-Japan partnership reaches new high

Prime Minister Narendra Modi’s Japan visit over October 28-29 for an annual summit saw the two governments enter into a number of critical partnerships, including a US$75 billion currency swap agreement

October 29, 2018

With a view to enhancing financial and economic cooperation, Governments of Japan and India has entered an agreement to conclude a bilateral swap arrangement (BSA) of US$75 billion

Strong ties has allowed expanded cooperation in fields ranging from high-speed railway to telecommunications, with Japan investing around US$28.2 billion over the past two decades

The latest visit saw new deals covering solar energy; maritime defence cooperation; next gen technologies; healthcare and nutrition; agriculture and food processing; and skill development

The trip also saw initial proposals from 57 Japanese companies to make investment in India as well as 15 Indian companies to make investment in Japan supported by both governments

Prime Minister Narendra Modi’s Japan visit over October 28-29 for an annual bilateral summit saw the two governments enter into a number of critical partnerships, including a US$75 billion currency swap agreement. The event marked PM Modi’s 12th meeting with Japanese Prime Minister Shinzo Abe since September 2014. Last year, PM Abe had visited India as part of joint efforts to cement bilateral ties that has risen to the level of a Special Strategic and Global Partnership. Strong governmental ties has allowed expanded cooperation in fields ranging from high-speed railway to telecommunications, with Japan becoming the third largest foreign investing nation in India at US$28.2 billion over the past two decades.

Japan has also been at the forefront of engaging in our national initiatives, such as ‘Make in India’, ‘Skill India’, ‘Digital India’ and ‘Start Up India’. Hence, during the latest visit, the two sides entered into a host of new deals covering the fields of solar energy; note exchanges to allow seven Yen-loan projects worth US$2.8 billion among others; maritime defence cooperation; “Digital India”, “Smart City” and “Start-up India” with next gen technologies such as AI and IoT; primary healthcare and nutrition as well as wellness and traditional medicine; food safety and food processing as well as food value chain and agriculture; advanced science and innovation; electronics and robotics; education, research and skill development.

The trip also saw initial proposals from 57 Japanese companies to make investment in India as well as 15 Indian companies to make investment in Japan, supported by both governments of India and Japan. On the tour, PM Modi addressed Japanese and Indian business leaders and also the Indian community in Japan. Such interactions are expected to help the two nations improve cooperation in new areas such as healthcare, digital technologies, agriculture and food processing, disaster risk reduction and disaster resilient infrastructure. In the meantime, the countries have recorded active partnerships in areas such as education, skill development, culture and tourism, while driving socio-economic projects worldwide.

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