Saturday, November 03, 2007

Japan FDI to touch $5bn in 3 years

It seems that Japanese FDI is firmly set for a take off in India. A recent report from "The Telegraph" in Kolkata seems to further confirm this trend. Editor

(From right) Japanese consul-general Motoyoshi Noro, Ficci (eastern region) chairman C.K. Dhanuka, DIPP director Sanjay K. Thade and Jetro director-general N. Noguchi in Calcutta on Friday. Picture by Kishor Roy Chowdhury

Calcutta, Nov. 2: Japanese foreign direct investment in India is projected to reach $5 billion in the next three years. The target sectors are automobiles, auto components, chemicals and infrastructure.

Between July 1991 and July 2007, around 5 per cent of the $60-billion FDI to India has been from Japan.

“A closer look at the Japanese investment pattern over the last decade reveals that companies from that country have invested in Asean nations and China for re-exports to Japan. Trade and investments are interlinked. Export of products manufactured in India can substantially increase with the redistribution of Japanese FDI,” said Sanjay K. Thade, director of the department of industrial policy & promotion (DIPP).

Thade was speaking at a seminar on doing business in Japan organised by Ficci, DIPP and Japan External Trade Organisation (Jetro).

Globally, Japanese FDI was $50 billion in 2006.

India received $15.7 billion of FDI last year, which is expected to double this fiscal to $30 billion.

“Bengal and Calcutta, being the gateway to the Asean countries, can play an important role in Japanese investments. The largest Japanese investment of $340 million by Mitsubishi is in Haldia, Bengal,” said N. Noguchi, director-general, Jetro, New Delhi.

However, Bengal needs to be more aggressive in promoting the state like its counterparts Gujarat and Rajasthan, Noguchi added.

The $100-billion IT market in Japan has also witnessed investments by 70 Indian companies.

Tata Consultancy Services has a centre of excellence in Calcutta that caters to the business from Japan.

Some Japanese consumer electronics companies that had closed operations in India and gone to other South Asian countries could be contemplating a return.

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