While Japanese Prime Minister Shinzo Abe arrived at Ahmedabad for a two day visit, many new areas of cooperation between the two countries are on cards.
Both the Prime Ministers are to lay foundation for the Mumbai-Ahmadabad High Speed Rail project, also called the bullet train project. It will be 80 percent funded by the Japan Investment Cooperation Agency (JICA) as a soft loan, which India has to repay over 50 years at minimal interest rate.
Indian Railways will bear the rest of the cost, Rs 9800 crore. Japan will transfer its Shinkansen Technology.
India also has plans to expand military ties with Japan with reports that Japanese firms such as Mitsubishi Electric Corporation that manufactures drones and radars, and Mitsubashi Heavy Industries which constructs ships and submarines are to accompany the Prime Minister.
Japan has shown willingness to invest in programmes such as Make in India, Skill India and the Clean Ganga Mission.
In 2015 two leaders had agreed for a developmental-cooperation trajectory that would involve Japan soft loans to build bullet trains in India and $12 billion in incentives for Japanese companies investing in India.
Both countries are also partnering for an expansion of their presence at Africa through infrastructure development projects