NEW DELHI, Jan. 4 (Xinhuanet) -- India and Japan agreed on Wednesday to step up cooperation in the energy sector, according to a joint statement released by Indian Ministry of External Affairs here Wednesday.

    The Japanese Minister for Foreign Affairs Taro Aso on Wednesday held talks with Indian Minister of State for External Affairs E. Ahamed, Minister of Commerce and Industry Kamal Nath and National Security Adviser M.K. Narayanan here.

    The cooperation in energy sector will be achieved through implementation of action plan agreed upon between India and Japan in September 2005.

    The two ministers agreed to strengthen exchanges between the two countries in the security and defense fields. The Indian defense minister is expected to pay an official visit to Japan later this year.

    The ministers agreed to launch a dialogue on disarmament and non-proliferation and address issues relating to high-technology trade.

    The two ministers reiterated the principles and understandings contained in the Joint Statement signed by Indian Prime Minister Manmohan Singh and Japanese Prime Minister Junichiro Koizumi in New Delhi in April last year. Singh is expected to visit Japan in response to an invitation from Koizumi.

    The two sides agreed to consider the possibility of a comprehensive economic partnership agreement in context of the ongoing work of the India-Japan Joint Study Group, which is expected to submit its report by June 2006.

    Aso said India would remain the largest recipient of the Japanese Official Development Assistance (ODA) loan in the current fiscal year for the third consecutive year.

    The ministers reaffirmed the need for urgent and comprehensive reform of the United Nations, including the reform and expansion of the UN Security Council, in both permanent and non-permanent categories.

    Meanwhile, the Indo-Asian News Service reported here Wednesday that M.K. Narayanan underlined India's credentials as a responsible nuclear power and asked Aso to use Japan's influence to alter international opinion in favour of civilian nuclear energy cooperation with India.

    The two sides also discussed the possibility of a free trade agreement. Trade between India and Japan during 2004-05 was estimated at 5 billion U.S. dollars. Japan ranks as the fourth largest foreign direct investor in India. Enditem