Japan looks to invest in non-traditional areas in India

KOLKATA: Having pumped in $1.8-bn FDI over three years (’05-07), Japan is increasingly looking at areas like manufacturing, pharmaceuticals, food processing, IT software and textiles to expand its activities in India, apart from the traditional sectors like the automotive and petrochemical industries.

“We want to focus on areas other than our traditional focus areas. In West Bengal, the second highest recipient of Japanese FDI, we see prospects in the textile industry as well as auto-component manufacturing and agricultural equipment manufacturing units,” said Yoshikazu Takeuchi, consul-general of Japan in Kolkata.

He was speaking to media persons at a meeting organised by the Bengal National Chamber of Commerce and Industry (BNCCI). Many Japanese SMEs are also expressing interest in the Indian market. Japan External Trade Organisation (Jetro) has opened a business support centre in New Delhi and is likely to open one more in Bangalore. These will act as incubators for Japanese businesses looking to expand in India.

At the same time, they will help Indian companies looking for Japanese partners. In West Bengal, Japan is also looking at investing in special economic zones (SEZs), especially in areas like leather and jewellery.