Japan and India agreed Monday to upgrade diplomatic and military ties, with Tokyo also offering low-interest loans as the two countries seek closer ties to balance China’s weight in the region.

The plans were announced as India’s Prime Minister Narendra Modi rounded out a three-day trip to Tokyo for talks with his Japanese counterpart Shinzo Abe, senior ministers, and local business leaders.

Experts said Abe, who last week became the first Japanese prime minister to visit Beijing since 2011, was performing a delicate balancing act – working to improve ties with China while keeping relations with India on a strong footing.