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Topic: PM MODI’s visit to JAPAN

Prime Minister Narendra Modi's maiden five-day visit to Japan saw the latter nation pledging financial
support for building infrastructure in India. Sticking to his 'Make in India' slogan, Modi gave an open
invitation to Japanese companies to consider India as a 'competitive low-cost manufacturing hub'.
The meet also saw India-Japan relations being upgraded to the level of Special Strategic Global
Partnership
INDIA-JAPAN RELATION: Background
India–Japan relations have traditionally been strong. Political relations between the two nations
have remained warm since India's independence. Japanese companies, such as Sony, Toyota, and
Honda, have manufacturing facilities in India, and with the growth of the Indian economy, India is a
big market for Japanese firms. Japanese firms in fact, were some of the first firms to invest in India.
Key Discussion Points & Outcomes of the PM Modi’s Visit to Japan:
1. India, with its demographic wealth can offer demographic advantage to Japan, which lacks
poorly on demographic basis. It is important for Japan to move to low cost hubs of
manufacturing. Moreover, India with its demographic dividend coupled with its growing
purchasing power can offer new markets and demands for Japanese products.

2. Modi's dream project got a big push after Japan expressed readiness to provide financial,
technical and operational support to introduce bullet trains in India in a joint statement.

3. PM Modi announced that a special management team would be set up directly under the
Prime Minister's Office to facilitate investment proposals from Japan.
The decision to include two nominees of Japan in the special management team is
unprecedented and such a system of having nominees of the foreign government will happen
for the first time. Modi said that the two nominees selected by Japan would also be part of the
decision-making team which evaluates business proposal.

4. A defence pact has been signed between Japan & India with Japan intending to double its FDI
In India. The two sides signed a Memorandum of Cooperation and Exchanges in the Field of
Defence.

5. The final agreement on Civil Nuclear Deal has not yet been achieved. The two sides could not
narrow down differences over Tokyo's insistence for a tougher safe-guard regime and "no
nuclear test" clause in the bilateral agreement.

6. Japan announced doubling of its private and public investment in India to about $34 billion
over the next five years. This seems a solution to the infrastructural projects India is keen to
take up in near future, like building of smart cities.

Japan lifted ban on Hindustan Aeronautical Limited (HAL) and five other Indian entities, which had been
imposed in the aftermath of the 1998 nuclear tests. The removal of the ban will enable these companies
to have cooperation with Japanese firms, including transfer of technology.