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
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.