Japanese FDI to touch $5 bn in 3 years
India expects Japanese investment in the country to touch $5 billion by 2010.
By TNN |
KOLKATA: India expects Japanese investment in the country to touch $5 billion by 2010. This was indicated by department of industrial promotion and policy (DIPP) director, Sanjay K Thade, in Kolkata on Friday.
Addressing a seminar on ‘Doing business in Japan’ organised by Ficci, Mr Thade said “Japanese FDI is expected to flow into four sectors-automobiles, auto components, chemicals and infrastructure.” The DIPP director said from July 1991 to July 2007, Japan’s cumulative FDI inflow into India is to the tune of $2,585 million, which is only 5% of the total FDI flow of $60.2 billion into India since July 1991.
Mr Thade pointed out that the balance of trade was in favour of Japan, which is the 13th largest trading partner of India.
“A closer look at the Japanese investment pattern over the last decade and a half reveals that Japanese companies invested in countries of Asean and China for the purpose of re-exports to Japan. This clearly indicates that trade and investment are interlinked,” he said.
“Strengthening India’s relationship with Japan is a matter of high priority for us,” he said. Mr Thade’s comments come at a time when the Japanese automobile majors like Suzuki, Toyota and Honda are working on plans to increase their exposure in the Indian market.
Naoyoshi Noguchi, director general of Japan External Trade Organisation (Jetro), who was also present at the meeting, indicated that a leading Japanese consumer electronics company, which had shut down its manufacturing facility in India, may again reconsider setting up its production facility in the country.
“There is immense scope in white goods in India. The Japanese consumer electronics companies are closely watching the sector,” Mr Noguchi said.
Addressing a seminar on ‘Doing business in Japan’ organised by Ficci, Mr Thade said “Japanese FDI is expected to flow into four sectors-automobiles, auto components, chemicals and infrastructure.” The DIPP director said from July 1991 to July 2007, Japan’s cumulative FDI inflow into India is to the tune of $2,585 million, which is only 5% of the total FDI flow of $60.2 billion into India since July 1991.
Mr Thade pointed out that the balance of trade was in favour of Japan, which is the 13th largest trading partner of India.
“A closer look at the Japanese investment pattern over the last decade and a half reveals that Japanese companies invested in countries of Asean and China for the purpose of re-exports to Japan. This clearly indicates that trade and investment are interlinked,” he said.
“Strengthening India’s relationship with Japan is a matter of high priority for us,” he said. Mr Thade’s comments come at a time when the Japanese automobile majors like Suzuki, Toyota and Honda are working on plans to increase their exposure in the Indian market.
Naoyoshi Noguchi, director general of Japan External Trade Organisation (Jetro), who was also present at the meeting, indicated that a leading Japanese consumer electronics company, which had shut down its manufacturing facility in India, may again reconsider setting up its production facility in the country.
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“There is immense scope in white goods in India. The Japanese consumer electronics companies are closely watching the sector,” Mr Noguchi said.
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