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Home arrow News arrow Business News arrow PM invites greater Japanese investment in Indian industry, infrastructure
PM invites greater Japanese investment in Indian industry, infrastructure Print E-mail
Written by Ganesh   
Thursday, 28 October 2010
New Delhi: Prime Minister Manmohan Singh, on the second day of his three-day visit to Japan, invited greater Japanese involvement in Indian industry. Japanese Foreign Direct Investment in India has grown substantially in the last three years. Much of this has been due to mergers and acquisitions.

"We seek the creation of new capacity in India's manufacturing and infrastructure sectors and freer flow of high-end technologies," he said. He was speaking  at a business luncheon hosted by Nippon Keidanren in Tokyo.

The number of Japanese companies with an established business presence in India has more than doubled in the past four years.

"With India's rapid economic growth, the demand for energy has been rising rapidly. Japan, as a global leader in energy efficient technologies can play a significant role in helping us meet India's energy needs in an environmentally friendly manner. We seek Japanese technology and investment in conventional as well as new and renewable energy," Dr. Singh stated while speaking about what Japan and India can do together.

"Nuclear energy can provide our growing economy with a clean and efficient source of power. Cooperation in this area will enable Japanese companies to participate in India's ambitious nuclear energy programme," he added.

Dr. Singh stated that Japan was a partner of choice in the Delhi-Mumbai Industrial Corridor project. This is a mega project covering a length of over 1480 km across six States of India. It has the potential to become the hub of new bilateral economic engagement in the area of manufacturing. Some of the notified investment regions are almost the size of Singapore in terms of their area. He welcomed in particular the involvement of Japanese companies in the development of "smart communities" in the DMIC area.

"India's infrastructure deficit poses a major constraint on manufacturing growth and can adversely impact FDI flows. During India's next Five Year Plan from 2012 to 2017, we envisage financial outlays of over one trillion US dollars on infrastructure projects. Private investment will play a large role in achieving this target. We would welcome a much greater role by Japanese industry in the development of economic infrastructure in India," he said.

Bilateral trade has made a robust rebound in 2010 and should exceed 20 billion US dollars by 2012. Dr. Singh said that India-Japan trade is still at a low threshold, apart from being unbalanced.

He said that a mutually beneficial Comprehensive Economic Partnership Agreement is ready to be concluded. Negotiations for this agreement was launched almost four years ago with a perspective to create a business environment conducive to much greater two-way trade and investment flows.

 
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