Updated

New Delhi, Dec 12 (PTI): A USD 12-billion deal for India's first ever bullet train network, an MoU on civil nuclear energy cooperation and sharing defence technology were among key agreements India and Japan today sealed to take forward their special strategic and global partnership to a new height.

The pacts were inked after the talks between Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe who also focused on driving up economic ties besides deliberating on global issues including situation in South China Sea, challenges of terrorism and UN reforms.

Addressing a joint press meet with Abe, Modi said, "No friend will matter more in realising India's economic dreams than Japan" while describing Abe as "a personal friend and a great champion of India-Japan partnership".

To support Modi's 'Make in India' initiative, Japan has created a fund of about USD 12 billion which will be provided to Japanese companies for manufacturing in India. Japan has also pledged USD 5 billion as part of its Overseas Development Assistance to India.

After Modi-Abe talks, the two countries signed a broadbased MoU for cooperation in civil nuclear energy with the final pact to be signed after certain technical and legal issues are thrashed out. This is the first time that Japan has inked such an MoU with any non-NPT (Non Proliferation of Nuclear Weapons Treaty) signatory country.

"The memorandum we signed on civil nuclear energy cooperation is more than just an agreement for commerce and clean energy. It is a shining symbol of a new level of mutual confidence and strategic partnership in the cause of a peaceful and secure world," Modi said.

Referring to inking of a pact on the bullet train project, Modi said, "No less historic is the decision to introduce High Speed Rail on Mumbai-Ahmedabad sector through Shinkansen known for speed, reliability, safety".

He also noted that Abe's extraordinary package of approximately USD 12 billion and technical assistance on very easy terms for this project was greatly appreciated.

The bullet train network will link India's financial hub Mumbai with Ahmedabad in Modi's home state Gujarat. The train will cut travel time on the 505 kilometre route from eight hours to around three.

The two sides also inked agreements - one concerning the Transfer of Defence Equipment and Technology and another related to Security Measures for Protection of Classified Military Information.

Terming defence pacts as "decisive steps in our security cooperation", Modi said they will deepen the defence relations and promote defence manufacturing in India.

"This builds on our decision to expand staff talks to all three wings of the Armed Forces and make Japan a partner in Malabar Naval Exercises," he added.

The two leaders also issued a joint statement on 'India and Japan Vision 2025: Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World'.

The statement said the two Prime Ministers welcomed the agreement reached between the two governments for cooperation in peaceful uses of nuclear energy and confirmed that this agreement will be signed after the technical details are finalised including those relating to necessary internal procedures

After the talks, Modi also announced that "Recognising our special relationship, India will extend 'visa on arrival' to all Japanese citizens from 1st March 2016."

On his part, Abe said, "We have taken relationship to new level and buds have turned into blossom."

The two Prime Ministers reaffirmed the intention to develop "Japan Industrial Townships (JITs)" in India with incentive for companies which invest in the project. At least 13 such townships are under consideration.

An agreement on security measures for protection of classified military information and an amendment protocol of double taxation avoidance agreement were among 16 pacts signed by the two sides.

The two leaders also expressed their concern about the growing threat and "universal reach of extremism" and reiterated their strong condemnation of terrorism in all its forms and manifestations with "zero tolerance".

Japan also decided to provide opportunity to 10,000 young Indian youths in Japan under students exchange programme.

Modi said India and Japan will work together in East Asia Summit to promote an inclusive, balanced and open regional architecture and maritime security in the region.

"We stand strongly for ensuring freedom of navigation and over-flight, and unimpeded maritime commerce. We believe that disputes must be resolved peacefully and that all countries must abide by international law and norms on maritime issues."

On South China Sea, Modi and Abe were of the view that full and effective implementation of the 2002 Declaration on the Conduct of Parties in the South China Sea and early conclusion of the negotiations to establish a Code of Conduct in the South China Sea by consensus will contribute to peace and stability of the region.

They decided to hold regular close consultations on issues related to maritime safety and security of sea lanes of communication.

Thanking Abe for his support to India's membership of the APEC, Modi said India will also strive for "our rightful place in a reformed UN Security Council".

The two Prime Ministers also expressed satisfaction on the inaugural Japan-India-Australia trilateral dialogue and talked about the India-Japan-US trilateral as well.

Modi and Abe also welcomed the progress in the flagship projects such as the Western Dedicated Freight Corridor (DFC), and reaffirmed the determination to expedite the Delhi-Mumbai Industrial Corridor (DMIC) projects.

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.

On terrorism, both leaders called upon all countries to implement the United Nations Security Council Resolution 1267 and other relevant resolutions designating terrorist entities.

They also called for eliminating terrorist safe havens and infrastructure, in disrupting terrorist networks and financing channels, and stopping cross-border movement of terrorists.

"They underlined the need for all countries to effectively deal with trans-national terrorism emanating from their territory. They emphasised that the evolving character of terrorism called for stronger international partnership in combating terrorism, including through increased sharing of information and intelligence.

"They affirmed the importance of bringing the perpetrators of terrorist attacks including those of November 2008 terrorist attack in Mumbai to justice," said the joint statement.

It said the two Prime Ministers expressed concern over North Korea's continued development of its nuclear weapons and ballistic missile programmes, including its uranium enrichment activities.

Modi and Abe also called for an immediate commencement and early conclusion of negotiations on a non-discriminatory, multilateral and internationally and effectively verifiable Fissile Material Cut-off Treaty (FMCT) on the basis of Shannon Mandate.

"In this context, Prime Minister Abe stressed the importance of early entry into force of the Comprehensive Nuclear Test Ban Treaty (CTBT) which should lead to nuclear disarmament. They also supported the strengthening of international cooperation to address the challenges of nuclear proliferation and nuclear terrorism," he said.

Japan also 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," said the statement.

Earlier Update

'Make in India' has become a movement in Japan: Modi

New Delhi, Dec 12 (PTI): Prime Minister Narendra Modi today said the 'Make in India' initiative has become a movement in Japan and the island nation has created a fund of about USD 12 billion for it.

"Today, there is a 'Make In India' movement in Japan. I have been told that USD 11-12 billion fund has been earmarked for it. This clearly indicates how both the countries can move forward," he said while addressing the India-Japan Business Leaders Forum here.

'Make in India' is proceeding in mission mode, not just in India, but also in Japan, he added.

Modi also said that for the first time Japan will import cars from India. "Maruti (Suzuki) will manufacture here... Japanese company will manufacture here and export it to Japan," he said, adding that both India and Japan should move ahead together, not just in the sphere of high-speed trains, but also for "high-speed growth."

Recalling his last visit to the country, Modi said Japan committed an investment of USD 35 billion.

"The figure had surprised many at that time, but today, within a short time-span, unimaginable progress had been made, and the contours of this investment were beginning to get visible on the ground," he said.

Highlighting the improvement in economic indicators in both India and Japan, he said these were extremely encouraging, especially in the light of the global economic slowdown.

"It is clear that India is a land of possibilities," he added. Praising Modi's reforms programme, Japanese Prime Minister Shinzo Abe said, "Prime Minister Modi's speed of implementing policies and reforms is like Shinkansen (bullet train) and his reform agenda is as safe as Shinkansen." Abe also said that India has become a very attractive investment destination for Japan.

Earlier Report

PM Modi's policies akin to bullet trains - fast and reliable: Shinzo Abe

New Delhi, Dec 12 (HT): Praising Narendra Modi’s economic policies, Japan’s Prime Minister Shinzo Abe said on Saturday that Modi policies are like a Japanese railway network— fast, safe and reliable.

Shinzo Abe was speaking at the Business Leaders Forum in New Delhi.

PM @AbeShinzo : PM @narendramodi's economic policies are like Shinkansen-High speed, safe and reliable and carrying many people along
— Vikas Swarup (@MEAIndia) December 12, 2015

Meanwhile, Prime Minister Narendra Modi made it clear that apart from high-speed trains, India needs high-speed growth.

Expanding economic and strategic cooperation: PM @narendramodi begins address at the business leaders meet 
— Vikas Swarup (@MEAIndia) December 12, 2015

Here are highlights of what the two said at the forum:

# A strong India is good for Japan and a strong Japan is good for India, said Abe
# Not just high speed train, India wants high speed growth, said Modi
# India is a land of possibilities with excellent human resources, a technological base & Japan has been there at every turning point, he added.
# Today there is a ‘Make in India’ movement in Japan with a $12 billion fund.

Expanding economic and strategic cooperation: PM @narendramodi begins address at the business leaders meet 
— Vikas Swarup (@MEAIndia) December 12, 2015

Later in the day, Modi and Abe are expected to discuss deals covering high-speed rail, defence and civilian nuclear technology.

A special friend & a valued partner. PM @narendramodi receives PM @AbeShinzo for the Business Leaders Forum  
— Vikas Swarup (@MEAIndia) December 12, 2015

The two countries are seeking to take advantage of that friendship, formed partly over their mutual desire to counter regional rival China’s growing influence, during Abe’s two-day visit.

Abe, who arrived in the capital on Friday for a three day visit, invited Indian companies to invest in Japan. Addressing the industry captains, Abe said “I want you, the representatives of the Indian industry to come and invest in Japan.”

Underlining the need to enhance mutual co-operation between the two largest democracies in Asia, Abe, who is here to attend the 9th annual Indo-Japan summit said, “A strong India is good for Japan and a strong Japan is good for India.” Co-operation between the two countries would ensure world peace and stability, he said at the Japan-India Innovation seminar, organized by the Japan External Trade Organisation along with CII, and other industry bodies among others.

Abe also said that once the Shinkasen – the bullet train -- is introduced in India, inter-city travel in the country could become easier and faster. A Japanese consortium has won the bid for the high-speed train corridor between Ahmedabad and Mumbai,

Hours after he arrived, external Affairs Minister Sushma Swaraj called on Abe during which a host of issues of mutual interest figured.

Welcoming Abe, Modi described him as a “phenomenal leader” and said his trip will further deepen the bilateral relations.

“Welcome to India @AbeShinzo. Your visit will provide new strength and vigour to India-Japan ties,” Modi tweeted

During their summit on Saturday, Abe and Modi are likely to sign a number of agreements to expand cooperation in a range of areas and deliberate on several infrastructure projects including the ambitious smart cities initiative of Modi.

After the talks, he will leave for Varanasi, Modi’s Parliamentary constituency, where he will attend the famous Ganga aarti at the Dasaswamedh Ghat.

Modi will accompany Abe during his nearly four-and-a-half- hour-long visit to Varanasi. Abe will return here in the evening and depart on Sunday.

During Abe’s visit, the two sides are expected to ink deals worth Rs 98,000 crore which would include India’s first bullet train project. The civil nuclear pact is also likely to be deliberated upon.

The Japanese premier added that Japan has a lot to offer to India in terms of environment friendly technologies including the coal-fired power generation for cleaner energy. Abe also said that once the Shinkasen – the bullet train is introduced, inter-city travel in the country could become easier and faster.

During Prime Minister Narendra Modi’s visit to Japan in September 2014, Japan committed to doubling its investment in India to $35 billion over the next five years. The two countries also pledged to work towards industrial infrastructure development with the creation of smart community projects in six Indian states which form a part of the Delhi Mumbai Industrial Corridor (DMIC) Project. Both the prime ministers are also expected to take stock of the progress of the decisions taken in the last one year.

Japan, which is the fourth largest investor in India, is also one of the largest bilateral donor.

At present, over 1, 200 Japanese firms are present in India, of which 137 started their operations after October 2013.