His Excellency, President Chaini,
Ladies and Gentlemen,

It is my great pleasure to be invited to the seminar, "Japan-India Relations: Sustainability Issues in Turbulent Times." Also, I would like to extend my deepest appreciation to His Excellency Mr. Suresh Prabhu, Member of Parliament, whom I met at the GLOBE Meeting in Tokyo in June, and kindly invited me to visit India.

Two years ago, I came to Mumbai as Senior Vice-Minister for Foreign Affairs. I was strongly impressed by this rapidly growing city, running up the ladder of economic growth at full speed, as I witnessed many high-rise buildings and roads under construction everywhere in the city. Today, after two years, I came back to Mumbai, and my memory of that trip vividly comes back to my mind, and once again, I am pleasantly surprised that this city has become even more vibrant and confident of its future prosperity.

At that time, there were neither daily flights between India and Japan, nor direct flights between Tokyo and Mumbai, and I was asked by many Indian businessmen as well as Japanese resident businessmen to open the flight. I strongly believe that the international flights should be based on "open-sky policy," and my memory on various consultations with the relevant officials and executives on Narita-Mumbai direct flight is still fresh. And I am profoundly delighted to note that, this time I have arrived via direct ANA flight from Narita to Mumbai. But, as I tell you later, ANA flight is deserved to be always fully booked by having much stronger bilateral ties between our 2 countries with more exchanges of people, goods, capital and technology.

World is closely watching rapid economic growth in India and its active foreign policy. India is leading global economic growth and has been playing even more important role in the regional cooperation in Asia, fight against terrorism, climate change and other various issues of international community. This year's Summit Meeting, Outreach Meetings and MEM in Hokkaido/Toyako, really imposed us a question of whether "G8 framework "without India and other emerging countries is sufficient and effective enough to cope with global issues. For the peace, stability and prosperity in Asia and the international community, Japan welcomes India's active role and its engagement in the international agendas. And Japan hopes to closely cooperate with India, as a partner sharing basic values and interests.

Let me turn to the recent Japan-India relationship. For the past several years, it has been strengthened so much. To enhance our bilateral relationship from strategic, as well as political and economic perspective, and to contribute to the peace and stability in the region and the international community, "a Strategic Partnership" was established under the initiative of the leaders of the two countries. Based on this partnership, both countries have been making strenuous efforts to strengthen their relationship even further. For example, the leaders of the countries hold annual Summit-level meetings in respective capitals, and in the latter half of this year, Prime Minister Dr. Manmohan Singh's visit is expected. In the beginning of this week, Foreign Minister Koumura visited India and exchanged views with Prime Minister Singh, Foreign Minister Muhkerjee and other ministers. I am informed that, in each meeting, they reaffirmed that they will continue to make active efforts to further enhance the relationship, to make Prime Minister Singh's visit to Japan successful.

On our economic relationship, the bilateral trade volume has crossed the 10 billion dollar mark. Our bilateral investment has increased more than ten times in the past five years. Between the two governments, vigorous efforts have been made to enhance our bilateral economic relationship, including the Japan-India Economic Partnership Agreement. The governments are under consultations on the "Dedicated Freight Corridor" project, connecting Delhi and Mumbai and "Delhi- Mumbai Industrial Corridor" as well.

Ladies and Gentlemen,

Today's international community is faced with various challenges. There are numerous elements of instability, namely, international terrorism, proliferation of weapons of mass destruction, breakout of pandemic including avian influenza, and global warming. Also, future of global economy, which has become even more unstable as a result of sub-prime mortgage crisis and global energy and food price hike, is another factor of concern. Progress in the information technology and transportation is integrating the entire world as one community. If we fail to appropriately address these current economic challenges, its impact will spread all over the world, and will last for a long time. All the countries must be united in addressing these challenges, now.

Then how should Japan and India act in this world full of challenges?

Needless to say, Japan and India are the major global players responsible for stability in the region and the world. How we, the two countries, act together is an important factor navigating the future of Asia and the world. That is why the world is closely watching our two countries. Now is the time to prove the true value of Japan-India Strategic Global Partnership.

Most importantly, Japan and India need to further develop our excellent bilateral relationship into a more advanced and solid one, and demonstrate our partnership to the world.

As I mentioned earlier, although our bilateral economic relationship has been strengthened steadily, taking into account of the true national power of our two nations, there are even greater potential to be realized. We can not be satisfied with the current status of our bilateral trade and investment. Indian trade with Japan occupies 13th seat in its trading partners'list, whereas in the Japanese list, India occupies 28th seat. Number of Japanese companies operating in India is now only 555, whereas in the case of China, the number is well above 32,000.

In order to convince conservative and cautious Japanese companies, we do have to expedite the process of EPA and increase economic cooperation through our ODA which will contribute to set the better economic infrastructure on which far greater number of Japanese companies feel comfortable to invest more in India.

Also, there are great possibilities in the field of intellectual exchanges, such as facilitating the synergy between Japanese manufacturing technology and software invented in India. Just off the subject, but in my previous trip to Mumbai two years ago, I visited Indian Institute of Technology(IIT) at Mumbai, and was extremely disappointed, as the management people of the university were directing their attention to the US and European countries, not to Japan. However, now the Japanese government and the government of India have been under close consultations on the establishment of a new IIT, and on how best Japan can cooperate. I am sure that, when a new IIT is established under Japan-India collaboration, it will be a great symbol of intellectual exchange between the two countries.

To realize full potential of our bilateral cooperation, the business and academic world, and the government of the two countries need to enhance their cooperation. To this end, the then Prime Minister Shinzo Abe and I decided to accompany in his visit to India last year, the Japanese business executives of about 200, including Chairman of the Japan Business Federation, Mr. Fujio Mitarai. On that occasion, the first Japan-India Dialogue of Vice-Chancellor/President on Academic Exchange was held, with the participation of deans of eminent universities both in Japan and India, and exemplified our partnership to the world. We are glad that universities of both sides are continuing to have active exchanges. We need to continue and develop these initiatives with the efforts of the two peoples.

Japan and India need not only to build up solid bilateral relationship, but also to work together to address global challenges. The two countries need to cooperate in numerous issues, including international economic issues of energy and food security and sustainable economic development. On the issue of climate change, although there is a difference between us in the manner we take on the global responsibilities, this issue could present a model of cooperation, if Japan and India can present a united stance on it. For example, Japan has various cutting-edge technologies in terms of so-called "clean energy" including solar energy, plug-in electric automobile, geo-thermal energy, and nuclear power. Many countries increasingly focus their attention to it, especially taking a fresh look at the potential of nuclear energy. I believe that Japan can cooperate in so many aspects in these regards. In any case, an issue like climate change, which two countries' positions differ, could turn into an important issue for cooperation to demonstrate our close partnership to the world. We may have to recognize each other, "the common but differentiated responsibilities", but at the same time, we are sure to share "the common and mutually beneficial opportunities" in the investments in the clean energy, thus achieving sustainable growth on both sides.

I am informed that, the distinguished guests tonight are business leaders who are very active in Mumbai, the economic center of India. To lead the economy in Mumbai means that you are the most important players in India and the global economy.

Tonight, I am thrilled and looking forward to learning fully your insights on how Japan and India can further develop our bilateral relationship, and how the two countries together can address various challenges in the international community.

Thank you very much.