The Hindu Business Line : Kolkata to be main centre of India-Japan joint ventures

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Kolkata to be main centre of India-Japan joint ventures

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Kolkata, Dec.13 Kolkata will emerge as a prominent centre for India-Japan joint ventures as more and more Japanese companies are now looking closely at investments in India. Mr Noro Motoyoshi, Consul General of Japan in Kolkata said here on Thursday that Kolkata had the potential to emerge as the business hub for “broader Asia” investments.

Quoting a recent JBIC (Japan Bank for International Cooperation) survey of nearly 600 Japanese manufacturing companies, he said the findings indicate that 70 per cent preferred India as an investment destination. Earlier surveys had indicated China. The high growth rate of the Indian economy and the market scale are said to be the major attractions.

Bilateral trade

Given the change taking place in the last three years in terms of FDI and trade, he said the bilateral trade target between the two countries has been set at $20 billion by 2010. He said Japanese investors are particularly interested in the established market channels of Indian companies.

Alternatively, he expected the Indian companies too to invest in Japan, given the many mergers and acquisitions (almost 170 by Indian companies in 2006) that have already taken place. Speaking at an interactive session organised by the Bengal National Chamber of Commerce and Industry here on “Enhancing Indo-Japan relations’, Mr Motoyoshi said Japanese FDI into India has jumped from $130 million in 2003 to $520 million in 2006. Two-way trade volumes have doubled, from $4.6 billion (Rs 18,294 crore) to $8.6 billion (Rs 34,202 crore).

Investments

Stating that the number of Japanese companies in India has doubled from 231 in 2003 to 475 in 2007, the Consul said securities investments by Japanese companies in Indian markets now has touched $8.2 billion (Rs 32,611 crore). He said Japanese SMEs too were now looking at India with renewed vigour.

He also suggested greater Indo-Japanese collaborations in the manufacturing sector.

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