Japan and India Pledge to Strengthen Ties as China Rises
Prime Minister Shinzo Abe pledged an upgrade of economic and security ties with India, saying Japan would double investment and expand defence cooperation amid concerns about China’s growing influence in the region.
Abe and his Indian counterpart Narendra Modi at a summit meeting in Tokyo yesterday agreed to elevate ties to a special strategic and global partnership. Abe offered 50 billion yen ($480 million) in infrastructure loans and pledged 3.5 trillion yen of public and private investment and financing in India in five years.
The declaration comes three months after Modi took office pledging to take a tougher stance with neighbours China and Pakistan on border disputes, and hours after Japan said three Chinese coast guard vessels entered waters near disputed islands.
China remains India’s largest trading partner, accounting for about 9% of the country’s total commerce, more than four times that of Japan, according to Indian Commerce Ministry data. Japan is the fourth-largest foreign direct investor in India, while China is not in the top 10, the data show.
“We are determined to increase our economic cooperation and the magnitude to which Japan is offering financial support signals a strong bond between our two countries,” Modi said.
Source: bloomberg
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