In a boost to Prime Minister Narendra Modi's 'Make in India' initiative Japan and India on Thursday signed a five-point action agenda to increase bilateral trade and investment between the two nations.

The five-point agenda includes development of selected townships in India as Japanese industrial townships, promotion of investment and infrastructure development, further development and cooperation in IT sector, enhancing cooperation in strategic sectors and Asia-Pacific economic integration.

Japan's Minister for Economy, Trade and Industry Yoichi Miyazawa said that the agenda is in line with the realisation of Prime Minister Narendra Modi's 'Make in India' campaign and it would help both the countries to strengthen economic ties. These agendas are "absolutely indispensable" in furthering the trade relations, he said.

The action agenda was signed between Miyazawa and Commerce and Industry Minister Nirmala Sitharaman.

"I believe that agreements in these agendas are a historic milestone in the economic relations between India and Japan. I hope that India and Japan can move as one...we will take action and make progress in these areas," he said after the signing.

Sitharaman said that useful dialogue held on trade and investment related issues at both the government and private sector level.

The Japanese minister was accompanied with a business delegation here. In September last year, Prime Ministers of both the countries decided to set a target of doubling Japan’s foreign direct investment and the number of Japanese companies in India within five years.

Bilateral trade stood at $16.29 billion in 2013-14. Between April 2000 and February 2015, India has received $18 billion as Foreign Direct Investment.