Japan, India agree to set up fund for infrastructure improvement

TOKYO, Oct. 21 Kyodo - Japanese industry minister Toshihiro Nikai agreed Tuesday with his Indian counterpart Kamal Nath that the two countries will set up a fund for improving India's infrastructure, Japanese officials said.

During a meeting in Tokyo, the ministers agreed that Japan and India will split
the cost evenly for the fund worth about 15 billion yen, the officials said.
The plan to establish the fund will formally be agreed between Japanese Prime
Minister Taro Aso and his counterpart Manmohan Singh when the two hold talks
Wednesday in Tokyo, the officials said.
The Japan Bank for International Cooperation will finance Japan's share of the
fund, which is designed to support the development of infrastructure and
logistical functions between New Delhi and Mumbai, according to the Ministry of
Economy, Trade and Industry.
Japan has recently been active in taking part in India's infrastructure
development projects, including one dubbed the Delhi-Mumbai industrial
corridor, in part to make it easier for Japanese companies to expand operations
in the fast-growing country.
In addition, the two ministers exchanged opinions concerning the global
financial crisis, the officials said, adding that Nath pointed out that in this
kind of environment Asia should be ''the driving force'' of the world economy
and that Nikai agreed with his view.
Nikai and Nath also agreed that Japan and India will step up their efforts to
wrap up negotiations on a bilateral free trade agreement and the Doha Round
multilateral trade liberalization talks under the World Trade Organization at
an early date, the officials said.