Japan and India agreed yesterday to upgrade diplomatic and military ties, with Tokyo also offering low-interest loans as the two countries seek closer ties to balance China's weight in the region. The plans were announced as India's Prime Minister Narendra Modi rounded out a three-day trip to Tokyo for talks with his Japanese counterpart Shinzo Abe, senior ministers, and local business leaders. Experts said Abe, who last week became the first Japanese prime minister to visit Beijing since 2011, was performing a delicate balancing act - working to improve ties with China while keeping relations with India on a strong footing.

"Strong relations between Japan and India are the foundation that will sustain the region," Abe said in a joint press statement with Modi after talks in Tokyo.

He said the two sides would launch a new ministerial-level security dialogue and strengthen exchanges between army and naval forces, and he offered low-interest loans worth 316.4 billion yen ($2.8 billion). Modi said the investment would create around 30,000 new jobs in India, and that the two leaders had pledged "to push our cooperation at an uninterrupted speed." Though neither leader mentioned China by name, experts said the talks come against the backdrop of expanding Chinese influence in the region.