India, Japan in $75bn currency swap pact, will start '2+2' talks

Saul Bowman
October 30, 2018

Prime Minister Narendra Modi has said that there is a need to work unitedly to address issues such as terrorism, climate change, economic development to social justice through universal cooperation and co-ordination.

The 2+2 Dialogue will be an addition to the existing mechanisms like the Annual Defence Ministerial Dialogue, Defence Policy Dialogue, the National Security Advisers' Dialogue, and Staff-level Dialogue.

The formal summit between Modi and Abe came a day after the two prime ministers spent about eight hours together at a picturesque resort near Mount Fuji in Yamanashi prefecture discussing ties between the two countries and ways to deepen strategic dimension of the bilateral relationship.

India and Japan have signed a $75 billion bilateral currency swap agreement on Monday during Prime Minister Narendra Modi's visit to Tokyo, India said in a statement.

"The two leaders reaffirmed their shared commitment to the total elimination of nuclear weapons and remained resolute in the task of strengthening worldwide cooperation to address the challenges of nuclear proliferation and nuclear terrorism", the vision statement read.

Relations with China are a major issue shared by Modi and Abe, as their cooperation may balance China's growing regional influence and military assertiveness.

PM Modi said Japan investors have announced they would invest $2.5 billion in India.

Also on Sunday, in addition to holding talks in what is now their 11 bilateral, the two leaders visited a robot factory.

"'Make in India' has emerged as a global brand today".

"I have been told that today Japan investors have announced that they will invest 2.5 billion United States dollars in India", he said.

The two leaders are set to hold a summit meeting at the office of the prime minister in Tokyo on Monday.

On the economic front, while Islamabad has been a partner in China's Belt and Road Initiative, notably via the China-Pakistan Economic Corridor (CPEC), New Delhi - which fought a border war with Bejing in 1962 and still is still embroiled in related border disputes - has been wary about accepting Chinese capital.

Japan and India also discussed joint infrastructure projects in the region, including Sri Lanka.

'India is going through a massive transformative phase today.

The Japanese PM said on Twitter that the opportunity allowed him to talk frankly about India-Japan relations in a relaxed atmosphere. Japan is funding 80% of the Mumbai-Ahmedabad bullet train project through a soft loan of Rs 79,000 crore at an interest rate of 0.1%, with a tenure stretching over 50 years and a moratorium period of 15 years.

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