The Hindu Business Line : Japan FIIs may pump in over $10 b next year

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Japan FIIs may pump in over $10 b next year

K.Venugopal

Freight corridor work may begin in a year: Manmohan

New Delhi , Dec 16

Japan may funnel more than $10 billion in foreign institutional investment into the Indian markets in the coming year, the Commerce Minister, Mr Kamal Nath, said today.

Speaking to the media on board the special Air India aircraft bringing home the Prime Minister after his visit to Japan, Mr Kamal Nath said that this was disclosed to him by representatives of Nomura Securities.

Recalling that Japanese FIIs had pumped in $4.5 billion in the past twelve months, he contrasted with less significant investments they had made in China. "The Japanese have faith in our institutions," he said

On foreign direct investments, he sad he expected about $2 billion from Japan this coming year. Toshiba, the electrical and electronics conglomerate, which had exited the country, had plans to return and invest in the country.

"What they have not done in 15 years, they will do in 15 months," said Kamal Nath. Japan.

Mr Kamal Nath also said that the Chairman of Suzuki had informed him that Maruti had plans to export 300,000 cars a year, and needed commensurate port facilities. They need 40 acres to park the cars meant for export, he said.

Feasibility study

Work on the proposed dedicated freight corridor from New Delhi to Mumbai and to Kolkata, which would cost about Rs 22,000 crore, is expected to start in a year's time, the Prime Minister, Dr Manmohan Singh, said.

Speaking to the media on board the special aircraft, Dr Singh said the Japanese had done a feasibility study on the project and a final report would be available soon.

Asked whether Japanese companies would get a preference in the execution of the project, he said, "The normal rule is that we go by the competitive bidding, but the Japanese industry's competitiveness is well known. And there is every possibility that a sizable chunk of orders will go to Japan on merit."

The Prime Minister said that his visit was likely to result in a transformation of relations between India and Japan. He said he was delighted with his interaction with Japanese business and industry. "When I went for a lunch with captains of Japanese industry, I found a new enthusiasm among them which I have never seen before. So I feel for the first time, the synergy involving both the Japan government and Japanese industry is most favourable as far as investing and trading with India are concerned."

On the political opposition to the proposed Tata plant at Singur, Dr Singh said, "We need more investment to create more jobs, our young people need a fast moving economy to provide them with job opportunities which is their right. So it goes without saying that anything which comes in the way of maintaining the industrial peace constitutes a setback. I hope all political parties and trade union leaders and employer's representatives will work together to create a climate for industrial relations which is at the same time is investor-friendly."

The Prime Minister conceded that there was some ambiguity on the issue of security and foreign direct investment. "I cannot say that the security concerns can be totally set aside but it is very important that security concerns are sector specific and should not be targeted at individual countries."

Carrefour to enter India

The French multinational retail store, Carrefour, is likely to announce in the next two weeks its plans to enter India.

Headquartered in France, Carrefour,has revenues of 75 billion in 2005 and operates in 29 countries across Europe, Asia and the Americas.

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