New Delhi, Sept 12 (ANI): India and Japan have charted out a roadmap to boost investment between both countries.
In a meeting headed by the Union Minister of Commerce and Industry Anand Sharma and Toshimitsu Motegi, Japan's Minister of Economy, Trade and Industry on Wednesday, business leaders from both countries were of a firm view that India's growing economy and stable investment climate offers large opportunities for Japanese companies.
"Our action plan focuses on investment in export oriented manufacturing. Japan has shown tremendous interest that will lead not only foreign investment flows, bring in a culture of quality and high-end management practices in Indian industry along with creation and strengthening supply chains," Sharma said.
In order to make the business environment amiable, the Japanese side agreed to hold business matching activities for procurement of automobile parts and raw materials in Chennai and Pune this year.
It will be organized by Japan External Trade Organization (JETRO) for further consolidation of supply chain networks between both the countries.
The Japanese side will also hold Japan-India Energy Exhibition in 2013 by JETRO and New Energy and Industrial Technology Development Organization (NEDO) for business alliances in energy-saving sector. Same business matching exercise will be carried in the companies involved in creative industries.
For further enhancing cooperation with the Central and State Governments on investment promotion and facilitation, the Indian and Japanese side felt the need of the establishment of institutional mechanisms and frameworks for exchange of views on issues related to investment among Government of Japan, Indian and Japanese businesses, Ministry of Commerce and Industry and various state governments.
The business delegation of both the countries strongly urged for the promotion of dissemination of investment information related to both Central and state governments including investment rules, regulations, policies and procedures.
Acting on this, the Japanese side will provide information to Indian investors on all aspects of doing business in Japan, offer free temporary office space throughout Japan by JETRO, and receive any inquiries from Indian investors regarding investment in Japan to give assistance on individual case in cooperation with relevant ministries by JETRO.
Apart from this, the Japanese side will also support Japanese small and medium enterprises' investment in India through the establishment of SME Overseas Business Support Platform in Mumbai and Chennai by JETRO from 2013.
The Japanese side will also support capacity enhancement of export supporting institutions such as Federation of Indian Export Organizations (FIEO) through JETRO.
Both sides would also start industrial human resource development by utilising the overseas Human Resources and Industry Development Association (HIDA) programmes to develop and upgrade skills and promote investments in India's manufacturing sector.
Both sides will promote investment in India by Japanese companies, which will enable them to export from India to neighbouring countries including countries in Indian Ocean Rim Association for Regional Cooperation (IOR-ARC).
The Indian and Japanese business leaders also sensed the need to establish one-stop investment centers in the respective countries to provide assistance and advisory services to the business sectors, including information on regulatory regimes, incentives, infrastructure and facilitation of operating licenses and permits.
Sharma further stressed on the fact that although there has been increasing flow of Japanese investments over the last five years, it is still much below the potential that exists between our two countries.
"There are huge opportunities for investment in sectors like infrastructure including investments in DMIC region, power, metals, renewable energy, manufacturing; automobiles and auto parts, agro processing and food processing, Electronics Hardware Manufacturing (EHM) and creative industries," he said.
The presence of Japanese companies in India has increased from 555 sites in 2008 to 1422 sites in 2011 and is expected to reach 2500 sites by 2015.
Japan has partnered India in several high-key, high-value, high-priority projects like the Western Dedicated Freight Corridor Project and the Delhi-Mumbai Industrial Corridor Project.
From April 2005 to March 2013, the cumulative Indian investments into Japan are around USD 371.46 million. While, on the other hand, according to JETRO, Japanese investments in India are around USD 15.93 billion inclusive of FDI as well as portfolio investment and M and A. (ANI)