Demise of Dollar: India, Japan Sign $75 Billion Bilateral Currency Swap Deal

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"It is clear that there won't be a century of Asia without cooperation between India and Japan".

The two leaders have reportedly become friends, and Modi became the first foreign leader to receive an invitation to Abe's holiday home in Yamanashi near Mount Fuji, where the pair held informal talks on Sunday.

In September previous year, Abe paid a visit to Ahmedabad in Modi's home state of Gujarat in western India and attended a ceremony to mark the beginning of construction of a new high-speed railway employing Japanese bullet train technology to link the city and Mumbai.

Condemning in the strongest terms the growing threat of terrorism and its universal reach, the two leaders expressed their desire to strengthen cooperation against terrorist threats from groups including Al-Qaida, ISIS, Jaish-e-Mohammad, Lakshar-e-Tayyiba, and their affiliates.

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Both Modi and Abe called upon Pakistan to bring to justice the perpetrators of terrorist attacks, including those of November 2008 in Mumbai and January 2016 in Pathankot.

PM Modi also lauded the Indian diaspora for introducing Kabbadi and Cricket in Japan where martial art is very popular.

This is PM Modi's third visit to Japan as Prime Minister.

Based on their shared vision, the two Prime Ministers reiterated their unwavering commitment to working together towards a free and open Indo-Pacific. On September 6, Foreign Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman held the first edition of the "2+2" dialogue with their USA counterparts Michael Pompeo and James Mattis in New Delhi. These issues are reflected in growing defense ties between New Delhi and Tokyo. Once signed, Japan's Maritime Self-Defence Force will be able to secure access to Indian naval facilities in the Andaman and Nicobar islands, which are strategically located close to the western Malacca Straits, a choke point for much of Japan and China's trade and fuel imports.

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China claims nearly all of the South China Sea and also laid claims on the Senkaku islands under the control of Japan in the East China Sea.

Yet as cooperation between Japan and India grows, Abe is also seeking to improve ties with China. Although Japan has an intense interest in the issue, it is now on the outside looking in as Pyongyang pointedly ignores Tokyo and talks with Beijing, Seoul and Washington.

Abe pledged low-interest loans worth 316 billion yen ($2.8 billion) for seven infrastructure projects in India.

It is meant to link Ahmedabad to India's financial capital Mumbai and is scheduled for completion by the end of 2023.

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