India to set up Japanese industrial township in Assam to further boost economic ties
NEW DELHI, NNA- India is planning to set up its thirteenth Japanese industrial township (JIT), designed to offer a conducive business environment to Japanese firms and further boost economic ties between the two countries, a top government official said.
The latest JIT will be established in the northeastern state of Assam, said Guruprasad Mohapatra, secretary at India’s Department for Promotion of Industry and Internal Trade (DPIIT).
"These are integrated industrial parks with ready-to-move-in infrastructure facilities, with world-class infrastructure, plug-and-play factories, pre-approved licenses and investment incentives exclusively for Japanese companies," Mohapatra said in a video conference at the “Invest India Exclusive Investment Forum-Japan Edition” on Thursday.
Development of JITs was one of the initiatives of the Japan-India Investment Promotion Partnership announced by Japanese Prime Minister Shinzo Abe and his Indian counterpart Narendra Modi in September 2014.
Piyush Goyal, India’s Minister of Commerce and Industry, said the two countries’ partnerships have focused on technical cooperation, but India is now looking to Japan as a strategic and investment development partner.
“Japan’s interest in India is increasing due to a variety of reasons including India’s large and growing market. With its large population and growing consumer base, India is the preferred destination for Japanese investments,” Goyal said at the same event.
According to the joint survey by the Embassy of Japan in India and the Japan External Trade Organization (JETRO), about 1,441 Japanese companies were registered in India as of October 2018, at 5,120 business establishments including liaison and branch offices as well as local subsidiaries.
The latest DPIIT data show Japan as the fourth-largest investor in the Indian economy after Mauritius, Singapore and the Netherlands. Japan’s cumulative foreign direct investment (FDI) was $33.4 billion between April 2000 and March 2020, accounting for 7.1 percent of India’s total FDI flows during the period.
A report released in June by the Indian Council for Research on International Economic Relations, a New Delhi-based think tank, said that Japanese FDI into India has mainly been in the automobile, electrical equipment, telecommunications, chemical, financial and pharmaceutical sectors.
The top five sectors which account for nearly 65 percent of the total FDI inflows from Japan include the automobile, drugs and pharmaceuticals, services sectors, metallurgical industries, and telecommunications, according to the report.