TOKYO -- Japan aims to double its investment in India over the next five years, along with the number of companies operating there, Prime Minister Shinzo Abe will tell his counterpart, Narendra Modi, at a summit meeting on Monday.
The two will discuss bilateral cooperation in economic development and regional security at Monday's meeting in Tokyo.
Infrastructure development in India, including subway systems, major roads and industrial parks, will be a key area of investment. Japan has already decided to provide yen-denominated loans totaling 50 billion yen ($477 million) for such purposes. And the Japanese public and private sectors are seen in the plan contributing several trillion yen over the next five years.
For many Japanese companies, India is a potentially massive market with a population of more than 1.2 billion. As of last October, 1,072 Japanese businesses were operating there, and direct investment from Japan last year totaled 210.2 billion yen.
Many Japanese companies, however, often see a lack of regulatory transparency as a challenge. To address this, Abe will request that India improve its transparency and quicken the process of approving business proposals.
On the issue of regional security, Abe and Modi will likely agree to establish a so-called "two-plus-two" meeting framework in which ministerial-level officials charged with foreign affairs and defense will discuss cooperation. This is an upgrade from the current framework, which involves vice ministers.
With China in mind, the two countries will likely plan regular joint training exercises in maritime defense, some of which will involve the U.S. as well.
Exporting Japan's US-2 amphibious air-sea rescue aircraft to India, cooperating in nuclear energy, and setting up technical assistance and student exchange programs will also be on the agenda.