Japanese Prime Minister Yoshihiko Noda today arrived in India for a agenda-packed short visit which include entering into a $10-billion currency swap agreement and reviving a civilian nuclear deal. In his first engagement this evening, the dignitary expressed his commitment to enhancing security and economic ties between the two countries.
“I am determined to further step up the cooperation between the two Asian countries in areas like security and economics,” he said at a function organised by industry association Ficci and India Centre Foundation.
In his maiden visit to India after assuming charge, Noda called for a deep partnership between the two countries, particularly in infrastructure development. He said, “On the economic front, there is a plenty of potential for benefiting with mutual cooperation between the two countries.”
“Japan has technology and capital, while India has a young workforce as well as abundant demand for infrastructure,” Noda said, adding he would also discuss about the ambitious $90 billion project of Delhi Mumbai Industrial Corridor (DMIC) with his Indian counterpart.
Earlier this year, Japan committed to provide India with a loan of Rs 2,257 crore for infrastructure projects in Himachal Pradesh, Tamil Nadu and Delhi.
About 800 Japanese companies operate in India. In 2010-2011 Japanese foreign direct investments totalled $3.62 billion. Moreover, the India-Japan bilateral trade has shown a robust increase of 24 per cent at $13.2 billion during January-September on the back of Comprehensive Economic Partnership Agreement (CEPA). Significantly, Japan has given access to Indian pharmaceutical products.
On Wednesday, when the Japanese PM meets his Indian counterpart Manmohan Singh and External Affairs Minister SM Krishna, India and Japan are expected to discuss a $10-billion currency swap agreement and revive civil nuclear cooperation negotiations. Under the agreement, central banks of the two countries are likely to provide each other 5 billion dollars to stabilise the local currency. The deal is significant in the backdrop of Indian currency falling by around 20 per cent since August. The two countries had signed a similar currency deal in 2008, but its size totaled $3 billion. It expired without any country resorting to the currency swap for stabilising the currencies.
Also, the two prime ministers are expected to revive the nuclear negotiations that stalled after the Fukushima nuclear disaster in March 2011
During the two-day visit, Noda will also address FICCI, CII and Assocham.