BIG TICKET JAPANESE INVESTMENTS IN PIPELINE – JAPANESE MINISTERS MEET ASHWANI KUMAR
Date : 03 Apr 2006
Location : New Delhi
Indo-Japan economic engagement is set for a major upswing with a slew of major Japanese investments in the pipeline. Big ticket investments in the pipeline include Overseas Development Association (ODA) to Metro projects in Delhi and Bangalore, Mitsubishi Chemicals Complex at Kolkata, Mitsui Logistics at Greater Noida, Suzuki Motors expansion, Yamaha Motor Project and Hitachi Construction Machinery Project. This was indicated in the meetings that the Minister of State for Industry, Dr. Ashwani Kumar had here today with Mr. Kiyohiko Toyama, Vice Minister (Parliamentary) for Foreign Affairs of Japan and Mr. Yoshio Yatsu, Chairman, Special Mission Committee on Free Trade Agreements.
During the meetings, which were a prelude to the forthcoming visit of the Prime Minister of India to Japan, Dr. Ashwani Kumar informed the visiting dignitaries that following the visit of Japanese small and medium enterprises (SMEs) delegation to India in February 2006, an investor guidance book is being prepared in Japanese language in cooperation with Japan External Trade Organisation (JETRO). A business delegation is also proposed to accompany the Prime Minister on his Japan visit to further strengthen business-to-business contacts, the Minister said. During the current financial year, a “Destination India” event is also proposed to be organised by the Japan Cell of the Department of Industrial Policy & Promotion (DIPP).
“In view of the raw material, packaging and human resource advantages offered by India, it has the potential to become food processing hub for the world. It is estimated that an investment opportunity of US$ 22 billion exist in this sector in India for the next 10 years. The sector is growing at a rate of about 20% domestically thus providing immense opportunities. It is estimated that the domestic processed food market will triple in next 10 years to about US$ 310 billion. The sectors which may witness sunrise growth are retail, processed milk, sugar, fruit, vegetable and marine products”, Dr. Kumar said.
Highlighting the immense possibilities for further economic collaboration between India and Japan in the manufacturing sector, Dr. Kumar informed the visiting dignitaries that India seeks to raise the percentage of manufacturing in its GDP and to increase growth in the manufacturing sector from 9% to 12 % in the next five years. He said that a mutually beneficial collaboration between the Japanese and Indian industry will be actively fostered by the Ministry of Commerce and Industry.