India, Japan seal historic nuclear deal


Modi Abe

In a historic step, India and Japan wrapped up their negotiations on a landmark civil nuclear deal and also signed an agreement on construction of the first bullet train in India, paving the way for a decisive transformation of India-Japan relations.

India’s Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe signed a Memorandum of Understanding (MoU) on civil nuclear cooperation. The nuclear deal has been concluded, but this agreement will be signed after the technical details are finalised, including those related to the necessary internal procedures, according to the joint statement released. “The two Prime Ministers welcomed the signing of the Memorandum of Cooperation on introduction of Japan’s High Speed Railways (HSR) technologies (the Shinkansen system) to Mumbai-Ahmedabad route. Prime Minister Modi appreciated Japan’s consideration of providing highly concessional yen loan for the HSR on Mumbai-Ahmedabad route. Both sides will explore further strengthening of their partnership in high speed railways, which is a high technology area having potential to transform India’s transportation sector,” as per the joint statement.


Here are some if the highlights from the meeting between Mr Modi and Mr Abe:

  • The two Prime Ministers welcomed the agreement reached between the two Governments on the Agreement between the Government of Japan and the Government of the Republic of India for Cooperation in the Peaceful Uses of Nuclear Energy, and confirmed that this Agreement will be signed after the technical details are finalised, including those related to the necessary internal procedures.
  • The two Prime Ministers welcomed the signing of the Memorandum of Cooperation on introduction of Japan’s High Speed Railways (HSR) technologies (the Shinkansen system) to Mumbai-Ahmedabad route.
  • Prime Minister Abe commended Prime Minister Modi’s strong initiatives such as “Make in India,” “Digital India,” “Skill India,” “Clean India” and “Smart City”.
  • Prime Minister Abe also expressed his intention to support India’s efforts by sharing its advanced skills and technologies and through active mobilisation of Japanese public and private sector involvement, including Official Development Assistance (ODA).
  • With the view to realise the objectives of India and Japan Vision 2025, the two leaders decided to develop a comprehensive and concrete medium and long-term action plan.
  • The two Prime Ministers welcomed the conclusion of the Agreement concerning the Transfer of the Defence Equipment and Technology and the Agreement concerning Security Measures for the Protection of Classified Military Information, which further strengthens the foundation of deep strategic ties.
  • The two Prime Ministers welcomed Japan’s participation in the India-US Malabar Exercises on a regular basis, as it would help create stronger capabilities to deal with maritime challenges in the Indo-Pacific region, including through enhanced disaster response and mitigation capacity.
  • The two Prime Ministers further concurred to take the Chennai Bengaluru Industrial Corridor (CBIC) project to the next stage of concrete implementation including by utilising ODA loan schemes and other facility measures. Indian side expressed a hope to attract US $ 5.5 billion of investment and other support.
  • Prime Minister Modi welcomed the “Japan-India Make-in-India Special Finance Facility” up to 1.5 trillion Yen by Nippon Export and Investment Insurance (NEXI) and Japan Bank for International Cooperation (JBIC), which aims to promote direct investment of Japanese companies and trade from Japan to India, to support their business activities with counterparts in India, including development of necessary infrastructure, and to help materialise Make-in-India policy of the Government of India.
  • Prime Minister Abe expressed his expectation on further enhancement of reform measures including in the financial sector. The two Prime Ministers decided to deepen mutual cooperation regarding the Make-in-India policy.
  • The two sides expressed their expectation that the total commitment of Japanese ODA yen loan to India in FY 2015 may reach around 400 billion yen, the highest ever provided to India, and concurred to accelerate their respective efforts with a view to achieving this goal.The two Prime Ministers stressed the importance of expansion in the two-way investment between Japan and India. The Japanese side expressed the intention of establishing a new mechanism, “Japan-India IoT Investment Initiative,” to promote investment in Internet of Things (IoT) related area from India to Japan.
  • The two Prime Ministers recognised the importance of close collaboration in the electricity and energy sector through such measures as use of high-efficiency andenvironmentally friendly coal-fired power generation technology, and Clean Coal Technology (CCT) including Integrated Gasification Fuel Cell (IGFC) once developed, and renewable energy and promotion of energy efficiency
  • The two Prime Ministers reaffirmed the intention to develop “Japan Industrial Townships (JITs),” with investment incentive for companies that would not be lower than under the prevailing policy framework such as Special Economic Zone (SEZ), and National Investment and Manufacturing Zone (NIMZ).
  • Both countries will further advance their cooperation by providing Indian trainees with opportunities to acquire industrial skills in Japan including under the Technical Intern Training Program.
  • The two Prime Ministers invited their universities and academic institutions to further expand cooperation. Prime Minister Abe expressed that in the next five years, 10,000young Indian talents will be visiting Japan under such frameworks as students exchange, IT training and short term exchanges, and hoped that it will provide solid bonds for our future relations.
  • Recognising the importance of facilitating exchanges between people of the two countries, both leaders stressed the importance of further simplifying their visa procedures for nationals of each other.
  • They expressed satisfaction at the strengthened ties between the City of Kyoto and Varanasi, two ancient and historic cities integral to their respective cultural heritage. Prime Minister Modi expressed his expectation that the two sides will explore to develop a convention centre in Varanasi.
  • They welcomed the progress instrengthening the East Asia Summit to enhance dialogue on political and security issues, and reaffirmed their commitment to continue to work with all partners, especially with ASEAN which is at the core of EAS, to make EAS the premier leaders-led forum to discuss regional peace and security agenda.
  • In view of critical importance of the sea lanes of communications in the South China Sea for regional energy security and trade and commerce which underpins continued peace and prosperity of the Indo-Pacific, the two Prime Ministers noting the developments in the South China Sea called upon all States to avoid unilateral actions that could lead to tensions in the region.
  • The two Prime Ministers reaffirmed their intention to work together for the early realisation of U.N. reforms, particularly the Security Council reform, to better reflect the realities of the international community in the 21st century.
  • They also supported the strengthening of international cooperation to address the challenges of nuclear proliferation and nuclear terrorism.
  • Japan welcomed India’s intensified engagement with export control regimes.
  • The two Prime Ministers affirmed their commitment to work together for India to become a full member in the four international export control regimes: Nuclear Suppliers Group, Missile Technology Control Regime, Wassenaar Arrangement and Australia Group, with the aim of strengthening the international non-proliferation efforts.


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