4)India and Russia discuss ways to boost their economic ties
India and Russia have discussed ways to boost their economic ties to achieve the target of 30 billion dollar in bilateral trade in the next 10 years. India’s External Affairs Minister Sushma Swaraj and Russia`s Deputy Prime Minister Dmitry Rogozin chaired the 21st India-Russia Inter-Governmental Consultations in Moscow on 21st October.
- They also looked at ways to enhance mutual direct investment to 15 billion dollar by 2025. Both the sides identified various sectors to achieve the commercial targets, agreed upon by Prime Minister Narendra.
5)Japan offers India $15-bn for bullet train project
Japan has offered to finance India’s first bullet train, estimated to cost $15 billion, at an interest rate of less than a per cent, stealing a march on China, bidding for other projects on the world’s fourth-largest network. Tokyo was picked to assess the feasibility of building the 505-kilometre corridor linking Mumbai with Ahmedabad and concluded it would be technically and financially viable.
The project to build and supply the route will be put out to tender, but offering finance makes Japan the clear frontrunner.
Last month, China won the contract to assess the feasibility of a high-speed train between Delhi and Mumbai, a 1,200-km route estimated to cost twice as much. No loan has yet been offered.
- Japan’s decision to give virtually free finance for Modi’s pet programme is part of its broader push back against China’s involvement in infrastructure development in South Asia over the past several years.
- The two projects are part of a ‘Diamond Qaudrilateral’ of high-speed trains over 10,000 km of track that India wants to set up connecting Delhi, Mumbai, Chennai and Kolkata. Japan has offered to meet 80 per cent of the Mumbai-Ahmedabad project cost, on condition that India buys 30 per cent of equipment, including the coaches and locomotives from Japanese firms.
- Japan’s International Cooperation Agency (JICA), which led the feasibility survey, said the journey time between Mumbai and Ahmedabad would be cut to two hours from seven. The route will require 11 new tunnels, including one undersea near Mumbai.
- Beijing offered $5 billion in loans without asking for guarantees, an Indonesian official said, ending a months-long battle to build the line linking Jakarta with the textile hub of Bandung.
- The average speed of trains is 54km/hour, and rail experts have argued that the priority ought to be to improve the speed and safety on existing trains and routes.
6)India, Africa align on WTO issues
Ahead of the World Trade Organization (WTO)`s ministerial conference, India and Africa on 23rd October discussed their respective positions, especially those pertaining to a permanent solution for food stockholding programme. The WTO ministerial conference will take place in Nairobi, Kenya during December 15-18.
7)AP, Japan sign MoC to develop industries, new capital
Andhra Pradesh and Japan have entered into a Memorandum of Cooperation (MoC) for industrial development and construction of the new capital Amaravati. Andhra Pradesh Chief Minister N Chandrababu Naidu and Japanese State Minister for Economy, Trade and Industry (METI) Yosuke Takagi, signed the MoC on 22nd October
- A Memorandum of Understanding was also signed between the AP Finance department and Japan Bank for International Cooperation (JBIC) to invite foreign investments and to develop proposed capital city and region.
- JBIC intends to promote investments and exports to the State by Japanese companies.