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Japan keen to increase direct investment in India

Sandesh Prabhudesai in Panaji

Japan is planning to increase its direct investment to India, identifying at least five areas in the field of production, trade, and infrastructure. It has also agreed to set up a full-fledged technological institute here to impart Japanese skills to the Indian workers.

This was decided at the 29th joint meeting of the India-Japan Study Committee held in Goa last week. The Japanese delegation, which included industrialists, bankers and researchers, saw potential in tourism, food processing, floriculture, horticulture, and infrastructure.

According to Eijiro Noda, chairman of the Japan Committee and former ambassador to India, continuous interaction with their Indian counterparts in the field of industry as well as education may help in making Indian market more attractive for Japanese investors.

Though Japanese investment is extremely low at present, Noda is hopeful of a steep rise in the near future. A conscious effort at interaction between universities and the authorities of both the countries will be ensured, he said.

India Committee Chairman Dr G Thimmaiah, a Planning Commission member, is happy that the Japan Committee has agreed to provide its highly skilled technological assistance to the food processing industry in India, which has suffered a severe setback due to quality control measures imposed by the European Union.

Japan Committee Secretary Yoshinobu Sei spoke of imports from India. "Indian products have the power to change the Japanese market. We experienced it by importing Indian roses, which stabilised our prices. We are equally keen on getting Indian mangoes, meat and fish, provided that quality and hygiene is maintained," he said.

"Japan is already constructing a bridge over the Yamuna river," said Noda, "and deliberations have begun to provide Japanese skills to modernise the Jawaharlal Nehru Port in Bombay."

He added, "Though overcoming infrastructural problems is little difficult in a democratic system, we are hopeful of speedy reforms," he added.

However, the interest shown by Japanese investors in the tourism industry is facing the difficulty of non-availability of land at reasonable rates in the metropolitan cities. "Tourist places like Goa are not promoted properly in Japan," pointed out Sei, adding, "It is the same with historical places of Buddhist origin which are of special cultural importance to the Japanese."

The two-day meet, which was also attended by Japan’s former prime minister Toshiki Kaifu, also discussed potential Japanese investment in food processing, small scale industries, and housing. A proposal for introducing Japanese language teaching was also discussed.

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