Agenda set for Koizumi visit

Important political and economic initiatives are going to be taken when Japanese Prime Minister Junichiro Koizumi visits India on an official visiting beginning April 28.

Apart from an eight-point action plan to provide "strategic orientation" to their global partnership, the two leaders will also reaffirm support for each other's candidature for the United Nations Security Council.

Last year, the two countries exchanged mutual support for each other's bid to claim a permanent seat on the UNSC and Japan supported India's candidature for the first time in an overt manner. The support to India was announced before the declaration of support to Germany.

Against the background of recent anti-Japanese protests in China and Beijing's perceived ambivalence in supporting India, Japan's stance will pose a stark contrast. Cooperation on non-proliferation of nuclear weapons and leakages from Pakistan to North Korea of technology used to make a nuclear bomb will also be discussed.

Talking to Business Standard, Japanese Ambassador in India, Yasukuni Enoki, said that Japan was convinced that India, China Japan were destined to play a major role in the management of Asia. Koizumi's visit should be seen in that perspective.

He said whether on trade or investment, Japan saw India as the most important market, especially after signing free-trade agreements with several Asean countries that gave Japanese investors access to a natural and huge market. Enoki said small irritants, like the technical services fee levied on software business, are likely to be ironed out.

He also said Japanese investors were beginning to feel that markets in China were reaching saturation levels and now that the Japanese economy was showing some recovery, they were looking for alternative markets. India was one such.

Enoki revealed that on March 31, he signed loan assistance to India equivalent to Rs 5,600 crore in Japanese yen, to finance eight big projects in India. This is the biggest-ever amount given by Japan as aid. India is the No 1 recipient of Japanese ODA.

The two prime ministers will sign a joint statement and Rakesh Mohan secretary, Economic Affairs, and Japan's deputy foreign minister are likely to launch a joint study group on improvement of Indo-Japan economic and trade relations. Also, 2007 will be a special year to commemorate the cultures of each other in each other's countries.

Indo-Japan advantage

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• Japan sees India as the most important market, especially after signing FTAs with several Asean countries
  
  
• Japanese investors feel that markets in China are reaching saturation levels and are looking for alternative markets
  
  
• Japan has given India a Rs 5,600 crore loan for eight projects""the biggest-ever amount given by teh country as aid