The Hindu Business Line: June, 2010
Bangalore: The proposed Chennai-Bangalore industrial corridor is a strategic area of investment for Japan, said the Ambassador of Japan, Mr Hideaki Domichi.
“Big companies like Toyota are already here (Bangalore), and the Chennai area is also attracting a lot of Japanese investments,” he said, at the BCIC meet on Friday.
Both Governments are committed to promote the “global strategic partnership” under which “we promote major flagship projects such as construction of the Dedicated Freight Corridor (DFC) and Delhi-Mumbai Industrial Corridor (DMIC)”. “Our official development assistance to India, especially in the form of long-term financing, is the largest amounting to $2.5 billion a year.”
The DFC project, encompassing Mumbai and Kolkata, is expected to meet the growing demand for container traffic. “The double-decker train will run at 100 kmph,” said Mr Domichi. The Japanese Government also proposes to introduce smart communities alongside the corridor.
The Ambassador also said that his country's direct investment into India has been growing phenomenally, and that India surpassed China as the number one destination of Japanese overseas direct destination in 2008, when the amount invested in India was about $8 billion.
While China is an assembly hub, Japan looks at India as a frontier in the future with its strength in technology.
Besides automakers, Japanese investments have become more diversified to include areas such as power plant, pharmaceuticals, home electronics, life and non-life insurance and telecommunication, he said. “Our strength is in manufacturing, and more and more Japanese companies are expecting opportunities in the area of environment-related business in which they have competitive edge, or consumer goods and distribution, infrastructure and civil nuclear.”
Explaining that Japanese companies were now looking for partners, he said that in order to succeed, they should bring the best technology and modify them to suit the Indian market, form good partnerships and make India a hub for their global strategies. “We have to be more familiarised with how to participate in PPPs especially in order to participate in infrastructure building,” he added.
According to him, the Japan Chamber of Commerce and Industry plans to send a delegation to India soon jointly with its Australian counterpart to explore ways to participate in PPP business.