India ready to seal nuclear deal, boost trade with Japan: PM

[majesticpankaj]

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TOKYO: India is ready to seal a civilian nuclear deal and boost trade ties with Japan, Prime Minister Manmohan Singh said, as New Delhi looks to prove its friendship in the wake of Tokyo's bitter territorial spat with Beijing.

"I am confident that we will be able to conclude an agreement (on a civilian nuclear deal), which will be a win-win proposition for both of us," Singh told a group of Japanese media, before heading to Tokyo to meet with his Japanese counterpart Naoto Kan on a three-day trip.

His visit comes as Tokyo struggles to repair ties with Beijing, hit by the worst diplomatic row in years over a disputed island chain in the East China Sea.

Singh said India would like Tokyo to be its partner in nuclear energy, noting that Japan has "one of the highest and most advanced nuclear technologies."

Japan and India launched talks in June on signing an atomic civilian cooperation agreement that will allow Tokyo to export nuclear power generation technology and related equipment to energy-hungry India.

But Japan, which was hit by World War II US atomic bombings, has warned India that conducting any new nuclear tests would force a halt to any civilian nuclear cooperation with the South Asian giant, as India has developed nuclear arms without signing the Nuclear Non-Proliferation Treaty.

"With regards to tests, we have unilaterally declared a moratorium on explosive testing, and we have no intention" of revising that commitment, Singh said in an interview broadcast by NHK.

Singh and Kan were Monday expected to declare the completion of talks on an economic partnership agreement (EPA), which Singh said would open up the fast-growing Indian market to Japanese firms.

"I attach great importance to the potential of the economic cooperation," Singh said. The EPA "will boost our trade and economic ties many-fold."

Japan's high technology and India's "fast-extending market," if combined, can bring about "mutually beneficial growth opportunities" for both countries, Singh said, as quoted by Jiji Press.

Japan, a greying nation with a shrinking population, has long tried to enhance ties with emerging economies but its relations with China, Asia's other population giant, hit rock bottom in a row following Japan's arrest of a Chinese trawlerman last month in disputed waters.

Beijing reacted angrily to the arrest, cancelling all high level talks and civilian programmes as well as suspending exports of rare earth minerals crucial for Japan's high-tech industries.

India has seized on this blocking of exports as a chance to step into a gap, with Singh saying New Delhi and Tokyo can cooperate on the production of rare earth minerals in India.

"This should be an added incentive for many countries which have a potential to produce rare earths to take advantage of that opportunity," Singh said.

But he added that "It's our sincere hope" that any Japan-China disputes involving maritime activities or maritime boundaries will be "resolved peacefully through diplomatic channels."

[Firemaster]

It is a very good time for india and japan to be strategic parteners .
india should develop arms with japan just like it is developing with israel.
thus india can absorb high end electronics technology

[adatta]

India to export rare earths to Japan


TOKYO: The increased tension between Japan and China seems to have opened a new business opportunity for India. With China announcing its plans to drastically prune its export quotas of rare earths to Japan, Prime Minister Manmohan SIngh has offered to supply the commodity to Japan.

Mr Singh himself has said that China’s recent restrictions on exports of rare earths should be an added incentive for many countries which have a potential to produce the commodity.

A joint statement issued after the talks between Mr Singh and Mr Ken indicated cooperation between the two countries in the rare earths area. “Recognising the importance of rare earths and rare metals for future industries, the two prime ministers decided to explore the possibility of bilateral cooperation in development, recycling and re-use of rare earths and rare metals and in research and development of their industrial substitutes,” the joint statement noted.

Foreign secretary Nirupama Rao, who later briefed the media, said that joint ventures could be established to tap Indian potential in rare earths. In the event of the two sides striking a deal, the biggest beneficiary would be the Kerala-based state-run Indian Rare Earths. New Delhi has suspended exports since 2004 following the closure of a mine on Orissa on environmental grounds. The production of rare earths is expected to begin soon at its plant in Kerala’s Chavara.

Japan is currently involved in negotiations with China for easing restrictions. But with strategic and political relations between the two nations now strained, the possibility of Beijing heeding Tokyo’s call is rated slim.

The two sides are expected to raise the issue when the leaders of the two countries meet at Hanoi for the Asean summit. India’s offer is certain to be encouraging for Japan as rare earths is critical for the production of high technology products.

China had recently announced its intention to cut export quota by 40% from the 2009 levels. Chinese experts had recently told the media that there was no reason for selling rare earths, “which is as precious as gold”, at the price of radish. They have also been maintaining that the resource will run out in 10 to 15 years if it did not place any restrictions.

Japan has been sourcing 90% of the rare earths required from China. China accounts for more than 90% of the world’s rare earths output. In an address at a business luncheon organised by Nippon Keidanren, Mr Singh said India and Japan are natural partners because of their shared values of freedom democracy, respect for rule of law and free market economy. It was seen as Mr Singh’s way of saying that business can be conducted hassle free with India rather than others.

Mr Singh told Japan’s business leaders that the Comprehensive Economic Partnership Agreement between the two countries will create new opportunities for India’s pharma industry in the Japanese market.

“This will help to meet Japan’s growing demand for high quality and relatively inexpensive generic drugs.”


India to export rare earths to Japan - The Economic Times

[devd]

Good to hear India is making Good progress. Bright future for the upcoming decades. Go India go.

[DukeOfDefense]

India’s offer is certain to be encouraging for Japan as rare earths is critical for the production of high technology products.

Frankly, I think it should be a half and half deal. India needs manufacturing, and particularly for the future, hi-tech manufacturing. In return for these rare earths, Japan should 'share' some of that manufacturing through private investments, etc.

Though this relationship is just another part of the growing Asian chain

[adatta]

India is taking very calculated and bold steps to further strengthen its economic and strategic depth in almost all anti-china countries as part of its look east policy... this will enhance competition between the two asian giants which eventually help both ....

[Kinetic]

Frankly, I think it should be a half and half deal. India needs manufacturing, and particularly for the future, hi-tech manufacturing. In return for these rare earths, Japan should 'share' some of that manufacturing through private investments, etc.

yeah Japan has some of the best technologies for manufacturing and production line in the world and undoubtedly the best quality management. These both along with huge investments are required for India and Japan can gain from India's rapid GDP growth and mineral and human resources.

Though this relationship is just another part of the growing Asian chain

Well said.

[kingdurgaking]

We have to set our strong foot folds in Eastern countires unlike EU, Middle East and US where we are already generating lot of revenues..
Now is the time to concentrate in east and develope our economy further.. It is going to be very competitive but is doable .... Especially in Hongkong, japan, South Korea, Singapore , Malaysia .. Our PM Dr.Singh is no wonder a true economist ... Hail him

[roach]

This is going to be the BIG DEAL in all these deals: the Delhi-Mumbai Industrial corridor. It is being developed with Japanese help.

"Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 90 billion with the financial & technical aids from Japan, covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai."



Delhi Mumbai Industrial Corridor :: An Indo-Japan Mega Infrastructure Project

[KALKI]

Right now BIMARU states must be our priority.

[Bangalorean]

Right now BIMARU states must be our priority.

Well, as per the map posted by roach, Rajasthan and MP are part of the corridor plan.

[Kinetic]

This is going to be the BIG DEAL in all these deals: the Delhi-Mumbai Industrial corridor. It is being developed with Japanese help.

"Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 90 billion with the financial & technical aids from Japan, covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai."



Delhi Mumbai Industrial Corridor :: An Indo-Japan Mega Infrastructure Project

Yea DMIC is the largest ever project in India. $ 90 billion!!!! Its important for future economic growth of India.

in details..



There were talks about Eastern corridor as well in the line of DMIC from Delhi to Kolkata.

[KALKI]

Recently there bwas a report of GoI planning to spend nearly $1tln on infra during next few years. Does that figure include this project's cost?

[Markus]

Japan supports/sponsors multiple infra projects in many developing countries. Their humanitarian gesture is commendable.

[Kinetic]

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Japan supports/sponsors multiple infra projects in many developing countries. Their humanitarian gesture is commendable.

Actually its a good business. India has huge resources and rapid economic growth so this is a win win situation for both the countries.