New Delhi, Sept 12 (KNN) Chalking out the roadmap to boost investment between India and Japan, the Japanese side will support its small and medium enterprises in India through the establishment of SME Overseas Business Support Platform in Mumbai and Chennai by JETRO from 2013.
The idea was discussed during the meeting between visiting Minister of Economy, Trade and Industry of Japan, Toshimitsu Motegi and Minister of Commerce and Industry of India, Anand Sharma here yesterday.
“Our action plan focuses 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” said Sharma at the meeting.
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.”
In order to make a cordial business environment between the two countries, 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 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, said an official statement.
For 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 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, and 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&A.