The Hindu Business Line : `Japanese firms ready to expand in India'

READY TO EXPAND BIZ TIES: The Japanese Prime Minister, Mr Junichiro Koizumi, with the FICCI President, Mr Onkar S. Kanwar, and the CII President, Mr Sunil Kant Munjal, at a meeting with businessmen in the Capital on Friday. — Kamal Narang

New Delhi , April 29

CALLING for co-operation between India and Japan at the bilateral, regional and global levels, the Japanese Prime Minister, Mr Junichiro Koizumi, on Friday said many Japanese firms are willing to invest in India and expand their businesses, thereby strengthening economic relations between the two nations.

"There seems to be a perception that trade and investment are stagnating. In fact, they are growing," said Mr Koizumi, addressing the captains of the Indian industry at a meeting organised by the three chambers - Assocham, CII and FICCI.

Trade between India and Japan rose 16 per cent in 2004, and the number of Japanese companies investing in India has risen to over 300 from about 220 in 2000.

Seventy per cent of Japanese companies in India enjoy black ink in their balance sheets and 90 per cent of these are considering expanding their business, he said.

Earlier, the Union Commerce and Industry Minister, Mr Kamal Nath, said, "It (India-Japan trade) has been stagnating at $4 billion a year for the past eight years. The trade relations between India and other Asian countries in the region such as China and Korea have shown remarkable growth."

He, however, pointed out that bilateral trade between the nations could reach $10 billion within three years. "We now have a plan of building a quadrilateral railway line, connecting the four corners of the country, exclusively devoted to the movement of goods and trade. This will require a minimum investment of $5 billion, and it offers an excellent opportunity for investors," Mr Kamal Nath said.

Mr Koizumi lauded India's `Look East' policy and said the future belonged to Asia. He assured Japan's support to India for widening and deepening engagement in East Asian regional arrangements.

The CII President, Mr Sunil Kant Munjal, said there is a need to bridge the information gap between the two countries, link their knowledge economies, convert ODA (overseas development assistance)-based relationships to FDI-based ones and work for a peaceful, prosperous and stable Asia.

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