The Hindu Business Line : India, Japan aim at $20-b bilateral trade by 2010

Partnership: The Prime Minister, Dr Manmohan Singh, with the Japanese Prime Minister, Mr Shinzo Abe, during a press meet in New Delhi on Wednesday. —

Our Bureau

New Delhi, Aug. 22 India and Japan on Wednesday decided to enhance bilateral trade to $ 20 billion by 2010 from $ 8.5 billion in 2006.

This was agreed in a two-hour meeting between the Prime Minister, Dr Manmohan Singh, and the visiting Japanese Prime Minister, Mr Shinzo Abe.

The two countries have also agreed to have a currency swap agreement that is likely to be signed before the year-end. Senior officials indicated that the agreement, which is likely to be signed at the meeting of the central bank governors in Basel or Washington, would create a $3-billion fund. “The fund would be in a nature of a Balance of Payment adjustment facility. If either country gets into a BoP problem then the other country gives up to $ 3 billion to help the other,” said a senior official.

The two sides also took on board the suggestions put forward by the meeting of the Business Leaders Forum. “The first meeting of the Forum was held today and their recommendations have been very insightful. I have instructed my officials to act on the recommendations to translate them into reality,” Mr Abe said.

The Prime Minister also said that Japan could consider Yen loan for the dedicated freight corridor and also look at the possibility of providing funds for the studies being done for the viability of the Delhi-Mumbai Industrial Corridor.

During their discussions, the two Prime Ministers also decided to explore the creation of Japan Depository Receipts (JDRs) on the lines of the American Depository Receipts and global depository receipts. It was felt that JDRs could be a potential source of financing for private sector development in India, including the Delhi-Mumbai Industrial Corridor.

A joint statement issued at the end of the meeting also reaffirmed the importance of delivering a high quality and mutually beneficial economic partnership agreement or a comprehensive economic partnership agreement that reflects the strategic importance of bilateral relations and fully harnesses the potential of the economic relationship between the two countries.

To promote tourism between India and Japan, the statement called for enhancing tourist visits between the two countries to 3 lakh by 2010 and 5 lakh by 2015.

The two Prime Ministers reviewed the dialogue on high technology trade and expressed the willingness to continue the bilateral talks through the consultation mechanism so as to facilitate two-way high technology trade and address export control systems.

On the question of co-operation in the civil nuclear energy, Mr Abe said: “Japan is aware and understands the need for India to have nuclear energy. However, this is a sensitive issue in Japan as the people were victimised. I have conveyed to Prime Minister Dr Singh that it is essential for India to address negotiations with the International Atomic Energy Association and to respond to the need of Japan and the international community,” Mr Abe said.

Later answering questions, Dr Singh said that “It is certainly is the truth that there is turbulence in the political air. But I am confident that this will be overcome. As some one said, if winter has come can spring be far behind.”