Indian Prime Minister Narendra Modi and his Japanese counterpart Fumio Kishida, who is on a two-day visit to Delhi for the 14th India-Japan Annual Summit, discussed ways to improve ties between the two countries on Saturday.

At the meeting between PM Modi and PM Kishida at the Hyderabad House in Delhi, the two leaders discussed means to improve economic and cultural ties between India and Japan, news agency ANI quoted the Prime Minister’s Office (PMO) as saying.

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The Ministry of External Affairs (MEA), meanwhile, described the talks between the two leaders as “Another step toward advancing the India-Japan partnership – a partnership for peace, prosperity and progress!”

The meeting between PM Modi and PM Kishida is expected to be a crucial one, especially with regard to the economy.

The Japanese Prime Minister is reportedly expected to announce a whopping $42 billion in investments in India over a period of five years.

Kishida is also expected to agree to a 300 billion yen loan to India and is expected to sign an agreement related to carbon reduction.

Additionally, Kishida is also expected to pledge growth in direct investments in India, as well as an increase in the presence of Japanese companies in India.

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The timing of the meeting between the two leaders – amid the ongoing war in Ukraine – makes the summit particularly important: both India and Japan are part of the Quad alliance of countries, along with the United States and Australia.

While all other members of the Quad have condemned Russia’s invasion of Ukraine and imposed various sanctions on Moscow, India has thus far abstained from voting at the United Nations against Russia’s invasion of Ukraine, despite New Delhi’s calls for peace in Europe.