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To help move things along, India needs to attract investment by slashing red tape, experts say. Yet it remains unclear if Japan would proceed with sales of nuclear technology and related equipment to India. Such exports have been hampered by sensitivity in Japan over India's atomic tests and its refusal to sign the Nuclear Non-Proliferation Treaty."It is not an easy ride, definitely," Singh said. But he added that while India is balking at limits Japan wants to impose, the personal camaraderie between Abe and Modi might help, adding "the personal equations have to kick in, and we know they share a good bonhomie."

So far, Japan's investments have been concentrated mainly in India's thriving pharmaceuticals sector and auto industry — Maruti-Suzuki, a subsidiary of Japan's Suzuki Motor Corp., is India's biggest carmaker. In the energy sector, the Japan Bank for International Cooperation and other Japanese banks agreed earlier this year to co-finance a $550 million loan for Reliance Industries Ltd.'s expansion of petrochemical and gasification plants and a refinery.And Abe's moves to ease restrictions on exports of defense-related equipment dovetails with Modi's goal of refurbishing India's military.

During a visit by Abe to India in January, the two sides agreed on closer cooperation in the energy and telecom sectors. The two sides also agreed to hold regular consultations between their national security councils on security issues. India invited Japan's Maritime Self-Defense Force to participate in this year's India-U.S. naval exercises off India's western coast, and it wants to buy an amphibian aircraft called the US-2 and to participate in its production.