Tokyo: An economically resurgent India today sought to expand ties with technologically advanced Japan by having a Comprehensive Economic Partnership Agreement to step up trade with the far east nation.

Visiting Prime Minister Manmohan Singh, in an address to the Japanese Diet (Parliament), underlined the need for a relationship to be built with economic ties as the foundation.

"Economic ties must be the bedrock of our relationship and a strong push is required in this area," he said.

Singh, who first visited Japan in 1992 as India's finance minister, said trade and investment ties between the two "civilisational neighbours" were well below potential.

In fact, it was three times lower than China's trade with India, while Korea's trade with India was almost equal to Japan's trade with India, he noted.

"India's trade with both China and Korea is booming and grew last year at around 40 per cent with both countries." India is soon expected to reach a Comprehensive Economic Partnership Agreement with Japan, with whose assistance India built the world's most modern metro rail system in New Delhi.

"Prime Minister (Shinzo) Abe and I will launch negotiations that will lead to a Comprehensive Economic Partnership Agreement to encourage greater flows of trade, investment and technology between our two countries," he said.

Singh said New Delhi was determined to provide an investment friendly economic environment and invited Japanese companies to expand their presence in India.

The credit of changing the dynamics of the Indian car market goes to Suzuki, which over two decades ago partnered with the Indian government to float Maruti. Since, other big Japanese names Honda, Toyota and Mitsubishi have followed suit.