US $ 500 BILLION INVESTMENT OPPORTUNITIES IN NEXT FIVE YEARS – KAMAL NATH URGES JAPAN TO RELOOK ITS INDIA INVESTMENT STRATEGY
Date : 14 Jun 2006
Location : New Delhi
Citing the Investment Commission of India’s recent estimates, Shri Kamal Nath, Minister of Commerce & Industry, said today that investment opportunity of US $ 500 billion would emerge in India in the next 5 years in major economic sectors, of which US $ 250 billion investment opportunities exist in the infrastructure sector alone and urged Japan to relook at its investment strategy in India, as “Japan’s capital and technology combined with India’s human resources and business prospects are the best possible combination”. The Minister, who is currently leading a high level delegation to Japan, was speaking at the closing session of the India-Japan Business Summit in Tokyo, co-sponsored by the Ministry of Economy, Trade & Industry (METI) of Japan and India’s Ministry of Commerce & Industry (Department of Industrial Policy & Promotion).
Stating that India is offering opportunities as never before, Shri Kamal Nath in particular flagged the opportunities in India’s manufacturing sector like “auto-components & automobiles, drugs & pharmaceuticals, R&D & Biotechnology, chemicals & petrochemicals, agro & food processing and fashion & textiles, which were registering double-digit growths. The skilled manpower and the knowledge base have contributed to the manufacturing competitiveness of the country. The Investment Commission of India estimates investment opportunities of US $ 130 billion in manufacturing sector in next five years alone. We expect foreign investors to be the major players in this segment”, he said.
He invited Japanese enterprises to invest in India’s Special Economic Zones (SEZs), saying that “though, today there are only 15 SEZ functioning, we expect the number to increase to 150 in the next 1-2 years in view of the unprecedented policy incentives provided in the scheme. SEZs are well spread geographically in India and also have diverse characteristics to suit requirements of investors. I see SEZs as the future centres of economic growth in India. I am sure that the Japanese corporates will have a closer look at India as their next business destination and we hope to carry forward the consolidation of our economic relations”.