The Prime Minister of India Dr Manmohan Singh signed a land mark security pact with Japan on October 22, 2008. Both Japan and India agreed to strengthen economic cooperation between them. Meanwhile, Japan has approved the $4.5 billion loan for constructing 1468 km-long freight corridor between New Delhi and Mumbai. While signing the joint declaration on enhanced security cooperation, Manmohan Singh said that economic tie between India and Japan is not focused to compete with another country. He stated that entering into economic agreement will help both the countries to realise their development ambitions

 

However, Japan did not go for any nuclear commerce with India. The two countries agreed that atomic power could play an important role as a sustainable and non-polluting source of energy in meeting the growing global demands. But Japanese leadership was reluctant to initiate any nuclear business with New Delhi. Talking about the economic ties between India and Japan, Manmohan Singh said that it will help to counter economic slow down in the region. The Prime Minister is on a visit to Japan and China. After his Japan stint, he will leave for China where he will attend the ASEM summit in Beijing from Oct 24-25.