Prime Minister Taro Aso and his Indian counterpart Mr. Manmohan Singh issued a joint statement in Tokyo this week expressing their desire to deepen bilateral economic relations. This is quite understandable and reasonable since India is the third-largest economy in Asia — after Japan and China — and growing. The statement said the two nations will work together toward an early conclusion of an economic partnership agreement and will cooperate closely in dealing with the global financial crisis.
Japan has agreed to provide yen loans worth about ¥450 billion to help build a freight rail link between New Delhi and Mumbai. This project would contribute to strengthening badly needed industrial infrastructure in India. Japan and India also have set a worthy goal of expanding their trade from $10 billion in fiscal 2007 to $20 billion by 2010.
Noteworthy is the fact that Mr. Aso and Mr. Singh agreed that their nations will build a bilateral security cooperation framework. They signed a joint declaration calling for strategic dialogue as well as cooperation in maritime safety, counterterrorism and disaster preparedness. India has thus become the third nation to forge a security cooperation framework with Japan, following the United States and Australia.