Source: http://www3.nhk.or.jp/daily/english/20111229_05.html

Image credit: http://www.japantoday.com/images/size/x/2011/12/photo_1325092593170-1-0.jpg

Japanese and Indian leaders have confirmed that the two countries will step up economic and defense cooperation.

Japan's Prime Minister Yoshihiko Noda, currently visiting India, met with the country's Prime Minister Manmohan Singh on Wednesday.

Noda told Singh that Japan will provide a loan worth about 4.5 billion dollars to build a 1500-kilometer long cargo railway between the capital New Delhi and Mumbai, as well as industrial estates and distribution facilities around it.

Noda and Singh agreed to create a new framework for currency swaps to help prevent Europe's credit crisis from affecting Asian financial markets.

They also agreed to step up bilateral security cooperation with China's ambitions in the South China Sea in mind.

In a joint news conference after the meeting, Singh said the two countries reached perfect agreement on cooperating with each other to tackle global issues and security threats.

Noda said that great progress was made on economic cooperation. He said that the two countries also agreed to hold a joint exercise of Japan's Maritime Self Defense Force and India's Navy.