Modi lures investors: No breakthrough in nuclear deal, Japan to invest $35 billion in India in 5 years

Tokyo: Japan on Monday announced doubling of its private and public investment in India to about USD 34 billion over the next five years even as the two countries decided to elevate their ties to a Special Strategic Global Partnership but failed to conclude a civil nuclear deal.

Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe during their summit talks also reaffirmed the importance of bilateral defence relations in their strategic partnership and agreed on greater defence equipment and technology cooperation.

Read: India, Japan to 'upgrade' defence cooperation

The summit meeting took place on the third day of Modi's five-day visit to Japan when the two countries also decided to expedite talks on sale of US-2 amphibian aircraft to India for enhancing maritime security.

At a joint press conference, Abe also announced that as an example of Indo-Japan cooperation, Tokyo would help India in providing financial, technical and operational support to introduce Bullet trains, a project that Modi has been actively pursuing.

Japan will also help India in providing better connectivity with its neighbours, he said.

On the civil nuclear deal, which was expected to be finalised during the visit, Abe said they have directed the officials to accelerate negotiations for early conclusion of an agreement to strengthen partnership.

While India is said to be pursuing the deal with Japan on the template of the landmark Indo-US nuclear accord, Tokyo is said to be not that enthusiastic about that being the basis.

The 3.5 trillion yen (34 billion USD) of investment from Japan to India including Official Development Assistance (ODA) during a 5-year period will be under the aegis of India Japan Investment Promotion Partnership for development of projects including infrastructure and building of smart cities.

The five-year period will also see the doubling of the presence of Japanese firms in India, Abe said.

Thanking Abe for providing him an opportunity to make Japan his first bilateral visit outside South Asia, Modi said," we both have decided to raise the relationship to a special strategic and global partnership by giving it a special emphasis".

Asserting that his visit ushered in a dawn of new era in Indo-Japan relations, Modi said there is no "limit" to partnership between the two countries.

Here are the highlights of the joint statement by Japanese PM Shinzo Abe:

• We have agreed to pursue defence and security operations with India, including maritime security
• Concerning economic matters, agreed to move towards a common goal of dramatically increasing Japan's investment in India
• When we met at To-ji temple I told him(PM Modi) about age old ties betwn India-Japan which was brought abt by Buddhism
• I greeted India's PM in Kyoto, we renewed our friendship there
• Modi & me have instructed our officials to accelerate negotiations with the goal of early conclusion of nuclear agreement
• We agreed to work towards a common goal of dramatically increasing Japanese investment in India

Here are the highlights of the joint statement by Indian PM Narendra Modi:

• I am happy that within 100 days of becoming PM I got the opportunity to visit Japan
• I am happy that Shinzo Abe invited me to Japan and strengthened our friendship
• I am not only satisfied with this visit but also encouraged by the deepening of Indo-Japan relationship
• We have decided to turn our Strategic & Global Partnership into Special Strategic & Global Partnership
• I am sure this deepening of Indo-Japan relation will be very fruitful and satisfying
• Japan will play a more important role in India's growth and development in days to come
• In our foreign policy, we have a special priority for Japan
• PM Shinzo Abe committed to investing $35 billion and I welcome that
• Understanding my vision, PM Shinzo Abe has assured to extend his support for India's development
• Our relations are not only economic. There are several aspects to it
• PM Abe has understood my vision and assured support in various sectors
• In fields like advance technology, education, research and development we are working for the benefit of both countries
• Japan & India are the two most important democracies of India. Our ties will have an effect in Asia and World
• When we talk of Spatial Strategic Partnership, both nations have decided to give more importance to take the this relation forward
• Have instructed our officials to accelerate discussions with the goal of taking our strategic relation forward
• Japan to remove sanctions on some of our companies, a gesture of goodwill, it has renewed our trust
• On many issues like non-proliferation, space security, cyber security and UN reforms, we can work together