| A new phase in Indo-Japanese relations was heralded with an agreement between visiting Japanese Prime Minister Junichiro Koizumi and Prime Minister Manmohan Singh. |
| Japan urged India to consider a dedicated freight corridor along the Golden Quadrilateral railway project. The estimated cost of the project is likely to be around $5 billion (Rs 22,500 crore). |
| A joint declaration, called the eight-fold initiative, was also signed by the two prime ministers. |
| The freight project is proposed to be the jewel in the "eight-fold" crown and is envisaged as a dedicated multi-modal high-axle load freight corridor with a computerised train control system on the Mumbai-Delhi and Delhi-Howrah routes. |
| The project, built with inputs on Japanese technology and expertise, will utilise the Special Terms for Economic Partnership Scheme. |
| The eight-fold initiative envisages greater promotion of ministerial meetings, including defence, foreign, trade, finance and ICT ministers, with special emphasis on trade and petroleum. |
| A high-level strategic dialogue will also be launched between the two countries. The prime ministers will meet every year. |
| Economic and trade cooperation based on complementarities will be promoted and a joint study group has been directed to come up with its report in a year, focusing on measures required for a comprehensive expansion of trade in goods, trade in services, investment flows and other areas of economic relations between the two countries. |
| The joint declaration saw the two countries pledging to make a special effort to encourage not just government but foreign investment by Japanese companies in India. |
| An international engineering and technology fair will be organised by the Confederation of Indian Industry in 2007, actively assisted by Japan. |
| An ICT forum and encouragement to the ICT industries was also mooted. Overseas development assistance from Japan will continue to finance priority sectors like infrastructure and environment. |
| Shipping and aviation links would be strengthened, the joint declaration said, and added that "negotiations to revise the existing tax treaty will be concluded at the earliest possible date". |
| Japanese also conveyed its decision to support India's membership in the East-Asia Summit. The two countries pledged to work together to reform the United Nations and adopt a common approach at the World Trade Organisation. |
| The personal chemistry between the two prime ministers was palpable. Manmohan Singh recalled during his speech at the banquet in honour of Koizumi that in 1991, "When I was a finance minister, Japan played a very supportive role to help us tide over the economic crisis. It was a result of such friendly support that India was able to emerge from the crisis and subsequently embark on the path of economic reform that changed the face of the economy." |
| He also endorsed Japan's claim to a bigger role in the UN Security Council. |
| Earlier, at a lunch meeting organised by CII, Ficci and Assocham, Koizumi allayed fears of Indo-Japanese trade stagnating and asserted "it is growing and is heading on the right course". |
| Emphasizing that trade between the two countries had witnessed a quantum leap of 16 per cent last year over the previous year, Koizumi observed that about 300 Japanese companies had invested in India and more would in future. |
| Quoting a survey, he said, "We also learn that as a destination for Japanese businesses, India now ranks third after Korea and China." |
| He said, "It is important that such chances are further expanded in future", and added that other Japanese companies would share the success of Suzuki and other companies that set up shop in India. |
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