New Delhi , 26th december 2009 : With India officially overtaking China as the preferred destination for Japanese foreign direct investment, the forthcoming visit of Japanese PM Yukio Hatoyama is expected to focus on economy and security.

India is the only country with which Japan has an institutional arrangement of annual summit-level visits. Sources said Hatoyama insisted (through a brewing scandal and a budget in Japan) on honouring the letter and spirit of the agreement.

It will also be the first visit by a Japanese premier to Mumbai, the commercial capital, where Hatoyama is expected to meet with Ratan Tata. His predecessor Shinzo Abe had visited Kolkata.

In a statement, the foreign ministry said, “The two prime ministers will discuss ways to enhance and expand and strengthen the India-Japan strategic friendship and global partnership. They will discuss global and regional issues.”

The Delhi-Mumbai industrial corridor, which will be officially launched during the visit, could prove to be a big leg-up for Indian manufacturing. The two countries are targeting some “early bird” ventures that will take off soon.

The security agreement signed in 2008 between India and Japan will be expanded and deepened, said sources, to focus on maritime cooperation particularly in tackling piracy. The whole idea that both sides will stress on will be to avoid raising hackles in other countries.