Sunday 13 December 2015 1:21 pm

Japan's super fast bullet trains will soon be in India after $12bn deal agreed between Shinzo Abe and Narendra Modi

Japan 's famous bullet trains, which can hit speeds of more than 200 mph and put most of the rest of the world's transport to shame, will soon make travelling in India a lot faster after a deal was struck between the two countries.

On a visit to India, Japan's premier Shinzo Abe agreed a deal with his counterpart in the country, Narendra Modi, to finance the first bullet trains in India to transform the aged railway system with a $12bn "soft loan".

The train will run from the financial heart of India in Mumbai to Ahmedabad, reducing the time it takes to travel between the two cities from eight hours to just two.

"This enterprise will launch a revolution in Indian railways and speed up India's journey into the future. It will become an engine of economic transformation in India," said Modi in a speech.

The generous loan terms are a 0.1 per cent rate of interest with repayment due over 50 years, including a 15 year moratorium.

Further deals between the two countries were agreed, meaning they will cooperate on defence by sharing technology, equipment and military information.

A $1.1bn deal on aircraft was not concluded and neither was a final decision on cooperating on nuclear technology.

Japan recently lost out on a contract to create a high-speed railway in Indonesia to China.