| $5 bn high-speed rail project part of agreement on widening economic ties.
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| A new phase in Indo-Japanese relations was heralded with an agreement between visiting Japanese Prime Minister Junichiro Koizumi and Prime Minister Manmohan Singh.
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| Japan urged India to consider a dedicated freight corridor along the Golden Quadrilateral railway project. The estimated cost of the project is likely to be around $5 billion (Rs 22,500 crore).
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| A joint declaration, called the eight-fold initiative, was also signed by the two prime ministers.
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| The freight project is proposed to be the jewel in the “eight-fold” crown and is envisaged as a dedicated multi-modal high-axle load freight corridor with a computerised train control system on the Mumbai-Delhi and Delhi-Howrah routes.
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| The project, built with inputs on Japanese technology and expertise, will utilise the Special Terms for Economic Partnership Scheme.
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| The eight-fold initiative envisages greater promotion of ministerial meetings, including defence, foreign, trade, finance and ICT ministers, with special emphasis on trade and petroleum.
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| A high-level strategic dialogue will also be launched between the two countries. The prime ministers will meet every year.
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| Economic and trade cooperation based on complementarities will be promoted and a joint study group has been directed to come up with its report in a year, focusing on measures required for a comprehensive expansion of trade in goods, trade in services, investment flows and other areas of economic relations between the two countries.
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| The joint declaration saw the two countries pledging to make a special effort to encourage not just government but foreign investment by Japanese companies in India.
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| An international engineering and technology fair will be organised by the Confederation of Indian Industry in 2007, actively assisted by Japan.
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| An ICT forum and encouragement to the ICT industries was also mooted. Overseas development assistance from Japan will continue to finance priority sectors like infrastructure and environment.
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| Shipping and aviation links would be strengthened, the joint declaration said, and added that “negotiations to revise the existing tax treaty will be concluded at the earliest possible date”.
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| Japanese also conveyed its decision to support India’s membership in the East-Asia Summit. The two countries pledged to work together to reform the United Nations and adopt a common approach at the World Trade Organisation.
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| The personal chemistry between the two prime ministers was palpable. Manmohan Singh recalled during his speech at the banquet in honour of Koizumi that in 1991, “When I was a finance minister, Japan played a very supportive role to help us tide over the economic crisis. It was a result of such friendly support that India was able to emerge from the crisis and subsequently embark on the path of economic reform that changed the face of the economy.”
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| He also endorsed Japan's claim to a bigger role in the UN Security Council.
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| Earlier, at a lunch meeting organised by CII, Ficci and Assocham, Koizumi allayed fears of Indo-Japanese trade stagnating and asserted “it is growing and is heading on the right course”.
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| Emphasizing that trade between the two countries had witnessed a quantum leap of 16 per cent last year over the previous year, Koizumi observed that about 300 Japanese companies had invested in India and more would in future.
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| Quoting a survey, he said, “We also learn that as a destination for Japanese businesses, India now ranks third after Korea and China.”
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He said, “It is important that such chances are further expanded in future”, and added that other Japanese companies would share the success of Suzuki and other companies that set up shop in India.
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| The sun rises here
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A joint declaration, called the eight-fold initiative, was signed by the two prime ministers
The agreement calls for more minister-level meetings
Shipping, aviation links to be strengthened
Revision of existing tax treaty to be expedited
Economic and trade cooperation based on complementarities will be promoted and a joint study group has been directed to come up with a report |
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