India seeks more Japanese investments: PM

New Delhi: The Prime Minister Manmohan Singh has sought increased Japanese investment in India even as both the countries have agreed to explore the idea of concrete cooperation in manufacturing and research and development in the electronic sector as well as in energy efficient and energy saving technologies.

"I believe there is enormous untapped potential in our business ties," Singh said after the annual summit level meeting between India and Japan adding that the presence of Japanese companies in India increased 16 per cent last year. The Japanese Prime Minister, Shinzo Abe, is currently in India for the annual summit meeting. Abe will also be the chief guest for the Republic Day celebrations to be held here on Sunday.

"Japan is at the heart of India's 'Look East Policy'. It is also a key partner in our economic development and in our quest for a peaceful, stable and prosperous Asia and the world. Anchored in our shared values and interests, the partnership between a strong and economically resurgent Japan and a transforming and rapidly growing India can be an effective force of good for the region," Prime Minister Singh said.

Commenting on the growing ties between the two countries, Singh said the bilateral maritime exercises have now been established on an annual basis and India has welcomed Japan's participation in the Malabar exercise this year.

"Our negotiations towards an Agreement for Cooperation in the Peaceful Uses of Nuclear Energy have gained momentum in the last few months. Our Joint Working Group on US-2 amphibian aircraft has met to explore the modalities of cooperation on its use and co-production in India," Singh said.

A joint statement issued after the talks, states that the two leaders welcomed the expansion of the bilateral currency swap arrangement to $50 billion from $15 billion and signing of the contract for its entry into force in January this year. The two Prime Ministers expressed their expectation that this expansion will further strengthen financial cooperation and contribute to the stability of global financial markets including emerging economies, the statement adds.

The two leaders also welcomed the signing of the Exchange of Notes for yen (¥) loan totalling ¥11.390 billion for the "Uttarakhand Forest Resource Management Project" which will help in the reconstruction efforts in the wake of devastating floods that hit the state in June last year, as well as the signing of the Exchange of Notes for grant aid totalling ¥1,495 billion for a "Project for Improvement of the Institute of Child Health and Hospital for Children" in Chennai.

Recognising the importance of development in the Chennai-Bengaluru areas, they underlined their commitment to enhancing cooperation between the two countries on the Chennai-Bengaluru Industrial Corridor (CBIC).