Japan looks to treble trade with India

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NEW DELHI, Aug 23 (PTI): Japan, where Buddhism remains the most famous import from India, aims to treble two-way trade with the sub-continent to USD 20 billion by 2010 for which it has sought early conclusion of an economic partnership pact.
Addressing MPs in Parliament, Japanese Prime Minister Shinzo Abe favoured signing of the economic partnership agreement (EPA) soon to firm up relations and raise volume of bilateral trade three-fold. Trade between the two countries in 2006 was about USD 6.5 billion.
"I likewise urge the Indian side to give their support to enable the early conclusion of this high quality agreement," he said on the second day of his three day visit to the country.
He said bilateral relations are blessed with the "largest potential" for development, adding that a strong India is in the best interest of Japan and a strong Japan is in the best interest of India.
Outlining various fields in which the two countries can cooperate closely, he promised to help India in the field of energy by providing technology. But, he did not mention nuclear power.
Japan, which has been one of largest economic assistance providers to India through ODA, also wants to partner India in mega projects like the Delhi-Mumbai industrial corridor being funded by it now.
Abe, the third Japanese Prime Minister to address Parliament, promised to assist India in infrastructure development, particularly the Delhi-Mumbai and Delhi-Kolkata Dedicated Freight Corridors and the USD 90 billion Delhi-Mumbai Industrial Corridor.
Referring to the ambitious plans to connect Delhi, Mumbai and Kolkata with freight corridors, he noted that Prime Minister Manmohan Singh has demonstrated "great enthusiasm" in executing these Japan-aided projects.
Final reports of the feasibility studies will be drawn up in two months, Abe said while describing them as projects of "tremendous significance" for which Japan is actively considering means for financial assistance.
Later addressing a luncheon meeting of the apex chambers, Abe said India and Japan have agreed to sign a basic bilateral agreement on currency swap to provide emergency financial liquidity to either or both parties in times of currency market or other turbulence.
"A basic agreement has been reached on bilateral currency swap in response to short term liquidity crunch," he said. The agreement will also enable both countries to swap foreign currencies like US dollar or euro to maintain the value of rupee and yen in foreign exchange markets.
Meanwhile, India and Japan have agreed to sign a basic bilateral agreement on currency swap, which will add to a regional network of such accords designed to provide emergency financial liquidity to either or both parties in times of currency market or other turbulence.
"A basic agreement has been reached on bilateral currency swap in response to short term liquidity crunch," Japanese Prime Minister Shinzo Abe said here today, while speaking at an interactive session with business leaders from the two countries organised by apex industry chambers.