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The Shinkansen high-speed train at Tokyo station. Photo: AP

Bullet trains and nuclear power: Technology upgrades lead the agenda as Abe begins three-day visit to India

Tokyo, still smarting from losing out to China over an infrastructure agreement in Indonesia, has promised technical and financial support to New Delhi, including a low-interest 50-year Japanese loan.

Prime Minister Narendra Modi hopes the visit this weekend by Shinzo Abe will be a major step in transforming India into an economic powerhouse with Japan’s help in building bullet trains, “smart cities” and accessing nuclear technology.

India and Japan are set to sign a US$15 billion agreement for a high-speed train linking the Indian financial hub of Mumbai with Ahmadabad, the commercial capital of Modi’s home state, Gujarat. The train would cut travel time on the 505km route from eight hours to two.

For Japan, still smarting from losing out to China over a similar agreement in Indonesia, firming up the Indian deal was crucial. Tokyo has promised technical and financial support to New Delhi for the project, including a low-interest 50-year Japanese loan.

The deal would benefit Japanese companies with contracts for manufacturing rail cars, tracks and operating systems.

Tokyo will want some kind of commitment from India that it will not conduct a nuclear test
Professor Lalima Varma

Other major priorities during Prime Minister Abe’s three-day visit include discussions on a civil nuclear agreement, military purchases for India’s armed forces and Japanese aid to upgrade India’s creaking infrastructure.

As India tries to balance its economic growth with sustainable development, New Delhi is keen to increase its use of nuclear power but the two sides are still some distance away from a nuclear deal.

Analysts said that Japan, which has long been seen as a pacifist nation and a firm supporter of nuclear non-proliferation, will have strong reservations about signing a civil nuclear agreement with India, because New Delhi has not signed the Nuclear Non-Proliferation Treaty.

“Tokyo will want some kind of commitment from India that it will not conduct a nuclear test. But India will have concerns about its strategic autonomy being curbed if it agrees to conditionalities,” said Lalima Varma, professor of Japanese studies at New Delhi’s Jawaharlal Nehru University.

Japan’s Prime Minister Shinzo Abe. Photo: EPA

“While it’s unlikely a civil nuclear deal will be signed during this visit, the two sides will air their concerns. That could be construed as progress.”

In 1998, when India conducted its nuclear tests, Japan imposed economic sanctions and cut off financial aid to India. The sanctions were lifted in 2001 and relations have since improved significantly.

India has been trying to upgrade its military equipment and a potential defence agreement to sell US-2 amphibious aircraft to India could turn out to be Japan’s first major military sale after it lifted a post-war ban on the export of defence equipment in 2014. Japan’s navy uses the US-2 aircraft for maritime surveillance and search and rescue operations.

The two countries are also likely to sign an agreement allowing the transfer of defence technology and co-production of arms and military equipment.

No nation has contributed so much to India’s modernisation and progress as Japan
Indian Prime Minister Narendra Modi

Abe and Modi are expected to explore ways to boost their surprisingly low trade. Analysts say despite a 15 per cent annual rate of increase in two-way trade, India accounts for only 1.2 per cent of Japan’s total trade, and Japan for 2 per cent of India’s.

In contrast, China accounted for 18.3 per cent of total Japanese exports in 2014, said Rajiv Biswas, Asia-Pacific Chief Economist for IHS Global Insight.

Japan’s concerns about China’s attempt to expand its influence in the region, and India’s worries about China’s forays into the Indian Ocean, have created enough common ground for Tokyo and New Delhi to consider coordinating maritime security efforts.

In October, Japan joined the Indian and US navies in the annual Malabar exercises in the Bay of Bengal.

India’s Prime Minister Narendra Modi. Photo: AFP

“Japanese and Indian forces might not be operating together, but they share the same goal: to maintain the balance of power in the region,” said Narushige Michishita at the Woodrow Wilson International Centre in Washington.

Modi has said that he wants to attract Japanese investment into Indian manufacturing and infrastructure development, including his grand scheme of building around 100 “smart cities” with integrated transport and communications.

“No nation has contributed so much to India’s modernisation and progress as Japan,” Modi said recently. “And, no partner is likely to play as big a role in India’s transformation as Japan.”

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