Japan, which has agreed to provide a $50 billion currency swap window to tide over India’s current account deficit, will also help set up an electronics manufacturing township. This will help India reduce electronic goods imports that are worth $32 billion annually.
India’s current account deficit is expected to touch $70 billion in 2013-14.
Electronics imports account for nearly half this amount. Phased manufacturing of these goods will help reduce foreign exchange outgo. Japan is the leader in electronics goods.
Though India is strong in information technology and software development, it is weak in hardware. India recently came out with an electronics policy, envisaging $400 billion investments in hardware manufacture and electronic production over a decade.
“Both sides have noted the idea to establish a Japanese electronics manufacturing township (JEMT) … in India with world class infrastructure and agreed to take this up in the forthcoming (meeting of the) joint working group,” said a joint statement at the conclusion of the Indo-Japanese ministerial meeting.
India was represented by commerce and industry minister Anand Sharma and Japan by its minister of economy, trade and industry, Toshimitsu Motegi, at the meeting.
“A Japan help desk has been set up in the department of electronics and information technology to help Japanese firms in investing in the electronics sector in India. Steps have been taken to form a joint working group for greater cooperation in the IT and electronics sectors,“ it said. The two sides reviewed the progress of the Delhi-Mumbai industrial corridor, which is expected to attract $90 billion in investments and in which at least seven industrial townships will be set up initially along the 1,483 km Delhi-Mumbai freight corridor, which too is being funded by Japan.
Both sides welcomed the progress made in the Chennnai-Bangalore industrial corridor project initiated in 2011, in which at least two industrial townships are to be set up.
Japan has committed to invest $4.5 billion in this project. The cabinet had approved an expenditure of Rs 18,500 crore to develop the infrastructure for the Delhi-Mumbai industrial corridor.
A Japanese consultant will be hired to prepare the detailed project report for the Chennai-Bangalore corridor. The statement said both the countries had agreed to deepen engagement and further promote investment and improve business environment in partnership with state governments.
“Both sides shared the view that industrial infrastructure is critically important for the expansion of foreign direct investment in India from Japanese companies and welcomed the substantial progress made in the Delhi-Mumbai industrial corridor project,” it said.
These developments came as the government tries hard to reverse the slowdown in the economy by increasing investments.
The electronics township will augur well in the medium to long term as India’s imports of electronics goods have been increasing rapidly and domestic manufacturing in this sector has been week.
FDI flow from Japan has not been that significant at just seven per cent of total FDI inflows.
“The first phase of the two investment regions (Dholera in Gujarat and Shendra-Bidkin in Maharasthra) on the Delhi-Mumbai industrial corridor will be launched this year. Land acquisition is in an advance stage,” Sharma said.
The Chennai-Bangalore industrial corridor will pass through three southern states — Karnataka, Andhra Pradesh and Tamil Nadu. “A preliminary study for a comprehensive integrated master plan has been completed, which has identified 26 priority projects,” Sharma said, adding that the progress on the industrial corridors would be reviewed annually.
The Japanese side will hold business matching activities (between assemblers and automobile parts and raw material suppliers) for procurement of automobile parts and raw materials at Chennai and Pune. It will help consolidate supply chain networks between the countries.
There was also an India-Japan energy forum meeting on Wednesday, in which Japanese minister Motegi proposed to launch a bilateral public-private business round table on renewable energy.
India has the potential to generate 100,000 mw of wind energy and 200,000 mw of solar power. Significant strides are expected during the 12th plan, particularly in solar energy, which has achieved near-tariff parity with thermal power.
India is also planning to set up a separate national green grid exclusively for transmission of solar power.
India’s current account deficit is expected to touch $70 billion in 2013-14.
Electronics imports account for nearly half this amount. Phased manufacturing of these goods will help reduce foreign exchange outgo. Japan is the leader in electronics goods.
Though India is strong in information technology and software development, it is weak in hardware. India recently came out with an electronics policy, envisaging $400 billion investments in hardware manufacture and electronic production over a decade.
“Both sides have noted the idea to establish a Japanese electronics manufacturing township (JEMT) … in India with world class infrastructure and agreed to take this up in the forthcoming (meeting of the) joint working group,” said a joint statement at the conclusion of the Indo-Japanese ministerial meeting.
India was represented by commerce and industry minister Anand Sharma and Japan by its minister of economy, trade and industry, Toshimitsu Motegi, at the meeting.
“A Japan help desk has been set up in the department of electronics and information technology to help Japanese firms in investing in the electronics sector in India. Steps have been taken to form a joint working group for greater cooperation in the IT and electronics sectors,“ it said. The two sides reviewed the progress of the Delhi-Mumbai industrial corridor, which is expected to attract $90 billion in investments and in which at least seven industrial townships will be set up initially along the 1,483 km Delhi-Mumbai freight corridor, which too is being funded by Japan.
Both sides welcomed the progress made in the Chennnai-Bangalore industrial corridor project initiated in 2011, in which at least two industrial townships are to be set up.
Japan has committed to invest $4.5 billion in this project. The cabinet had approved an expenditure of Rs 18,500 crore to develop the infrastructure for the Delhi-Mumbai industrial corridor.
A Japanese consultant will be hired to prepare the detailed project report for the Chennai-Bangalore corridor. The statement said both the countries had agreed to deepen engagement and further promote investment and improve business environment in partnership with state governments.
“Both sides shared the view that industrial infrastructure is critically important for the expansion of foreign direct investment in India from Japanese companies and welcomed the substantial progress made in the Delhi-Mumbai industrial corridor project,” it said.
These developments came as the government tries hard to reverse the slowdown in the economy by increasing investments.
The electronics township will augur well in the medium to long term as India’s imports of electronics goods have been increasing rapidly and domestic manufacturing in this sector has been week.
FDI flow from Japan has not been that significant at just seven per cent of total FDI inflows.
“The first phase of the two investment regions (Dholera in Gujarat and Shendra-Bidkin in Maharasthra) on the Delhi-Mumbai industrial corridor will be launched this year. Land acquisition is in an advance stage,” Sharma said.
The Chennai-Bangalore industrial corridor will pass through three southern states — Karnataka, Andhra Pradesh and Tamil Nadu. “A preliminary study for a comprehensive integrated master plan has been completed, which has identified 26 priority projects,” Sharma said, adding that the progress on the industrial corridors would be reviewed annually.
The Japanese side will hold business matching activities (between assemblers and automobile parts and raw material suppliers) for procurement of automobile parts and raw materials at Chennai and Pune. It will help consolidate supply chain networks between the countries.
There was also an India-Japan energy forum meeting on Wednesday, in which Japanese minister Motegi proposed to launch a bilateral public-private business round table on renewable energy.
India has the potential to generate 100,000 mw of wind energy and 200,000 mw of solar power. Significant strides are expected during the 12th plan, particularly in solar energy, which has achieved near-tariff parity with thermal power.
India is also planning to set up a separate national green grid exclusively for transmission of solar power.
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