The India-Japan special strategic and global partnership is based on shared democratic values and respect for the rule of law, and promotes peace and stability in the Indo-Pacific region, Prime Minister Narendra Modi said after holding wide-ranging talks with his Japanese counterpart Fumio Kishida.

The talks between the two leaders largely focussed on boosting India-Japan ties in sectors like defence, healthcare, technology, semiconductors and co-development of military hardware besides exploring ways to deal with regional security challenges amidst the increasing assertiveness of China.

They also discussed ways to increase competitiveness in logistics, food processing, MSME, textiles and other sectors.

The Japanese Prime Minister arrived in Delhi on Monday (20 March) morning on a brief visit amid global geopolitical turmoil over the Ukraine conflict and increasing concerns over China's aggressive behaviour in the Indo-Pacific.

PM Modi and his Japanese counterpart Fumio Kishida also relished tangy golgappas and fried idlis in the lush environs of the Budhha Jayanti Park in Delhi during their discussion to strengthen cultural ties.

Modi and Kishida continued their talks beyond the closed doors of meeting rooms as they took a stroll around the park which was developed to celebrate the 2,500th anniversary of Gautam Buddha's birth.

The two leaders were seen sipping tea from an earthen cup sitting on a bench in the park, engrossed in talks. After a short walk, Modi and Kishida were seen relishing local delicacies such as aam panna, golgappas and fried idlis.

During the bilateral talks later, PM Modi conveyed to the Japanese PM Kishida that one of the areas of very strong cooperation between India and Japan could be co-innovation, co-design co-creation in the defence manufacturing sector, officials said.

The two leaders also vowed to work together to deal with pressing global challenges under India's presidency of the G20 and Japan's chairship of the G7 grouping.

Kishida, who was in India for just about 27 hours, said he invited Modi to the G-7 summit in Hiroshima in May, and the offer was immediately accepted.

On the sidelines of the talks, a note was exchanged between the two sides concerning the provision of the fourth tranche of a Japanese loan of up to 300 billion yen (around Rs 18,000 crore) for the Mumbai-Ahmedabad high-speed rail.

In his media statement, PM Modi said that he explained to his Japanese counterpart about the priorities of India's G20 Presidency.

"Giving voice to the priorities of Global South is an important pillar of our G20 Presidency. We have taken this initiative because we are a culture that believes in "Vasudhaiva Kutumbakam", and in taking everyone along," he added.

The two leaders also welcomed the steady progress made toward the 5-trillion-yen target of public and private investment and financing from Japan to India in the next five years, which was set in March last year.

They welcomed the signing of a 300-billion-yen loan for the project for Construction of high-speed rail and confirmed that they will continue cooperation in promoting the high-speed rail project as a flagship project of Japan and India, according to a statement.

The two leaders also confirmed that they would continue cooperation on the development of the North-eastern region of India, through the Japan-India Act East Forum.

Briefing reporters, Foreign Secretary Vinay Kwatra said PM Modi and PM Kishida held substantive discussions commensurate with the depth of the India-Japan engagement and that the talks covered cooperation in areas of defence and security, economic partnership, climate and energy, people-to-people exchanges and skill development.

Asked whether challenges being faced by the two countries from China figured in the talks, Kwatra indicated that the matter figured in the meeting.

"They spoke about the challenges that we face in the region and how India and Japan and other like-minded countries can work together to address those challenges and cooperate in the wider expanse of the Indo-Pacific," he said.

(With inputs from PTI)