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Vajpayee seeks Japanese investments in India

Pledging continued political stability and economic reforms, Prime Minister Atal Bihari Vajpayee on Saturday sought Japanese investments in India in sectors like infrastructure, telecommunications, information technology, energy and textiles.

"Now, more than ever before, India offers excellent opportunities to do business. There is political stability, there is growing commitment to carrying out further economic reforms across the political spectrum," Vajpayee, who is on a five-day visit to Japan, said while addressing an India business meeting.

The meeting was organised by Kansai Economic Federation, Kansai Association of Corporate Executives, Osaka Industrial Association and Osaka Chambers of Commerce.

Assuring Japanese investors that his government was committed to simplification, rationalisation and ensuring transparency of regulatory procedures and institutions, the prime minister welcomed Tokyo's recent decision to lift economic sanctions against India.

"This should provide further impetus to financing infrastructure development, in turn leading to enhanced business opportunities," he remarked.

Stating that tourism in India is another area where both the need and scope for Japanese investment are large, Vajpayee said Buddhist pilgrimage sites in the country such as Ajanta, Ellora, Bodh Gaya, Nalanda, Varanasi and Sanchi have always attracted many Japanese tourists and pilgrims.

"We will further improve facilities on the Buddhist circuit and seek Japanese collaboration in this endeavour," he said at the meeting attended by CII (Confederation of Indian Industry) and FICCI (Federation of Indian Chambers of Commerce and Industry) delegations including their presidents Sanjiv Goenka and R S Lodha.

Pointing out that India had already completed many successful projects with the help of Japanese companies including several electricity generation programmes as well as construction of ports, bridges and highways, the Vajpayee said Japanese companies were working on the ambitious Delhi metro project.

He said India looked forward to Japanese participation in many more such railway projects. The completion of the Haldia petrochemicals project near Calcutta and the long-standing and fruitful partnership of Suzuki in Maruti are clear indicators of the success of Japanese businesses in India, he said.

In the last two decades, Japanese investments in the Indian automobile sector transformed the face of the industry, he said, adding it has triggered a new competitive culture of quality, productivity, efficiency and work ethics in their business partners in India.

Leading Japanese companies have a strong and growing presence in the consumer durables sector today. Sony, National, Suzuki, Honda and Toyota have become household names in India, Vajpayee said.

"We in India value the presence of this small community of Japanese companies and business houses, we want them to grow, flourish and become partners in our development strategy," he added.

Recalling his meeting with then Prime Minister Yoshiro Mori in India in August last year during which they agreed to a global partnership, Vajpayee said economic cooperation was the necessary underpinning for such a partnership in the 21st century.

"It is aimed at not only broadening and expanding our economic, commercial and financial collaboration but also at infusing a new strategic content into our natural friendship in the 21st century," he said.

Stating that India had historically enjoyed cordial and warm relations with Japan, he said it was surprising for him that the economic and business ties between the two countries did not adequately match the depth of their cultural and spiritual links.

"We must remove this mismatch. We must do so for our mutual benefit. India is a large country with enormous needs of infrastructure and investment in manufacturing services. We also have a large base of quality and value conscious consumers. Japan has a huge economy, currently with significant underutilised capacity," he said.

Expressing happiness that Japan had been showing a growing interest in India's strong IT capabilities, he said India should fully harness the synergy between Japan's prowess in hardware and India's strength in software.

There are also big business opportunities in films and entertainment, animation, software, music and publishing, Vajpayee added.

Addressing the meeting, Divestment Minister Arun Shourie said a special cell had been set up in the finance ministry to address specific problems faced by Japanese companies operating in India.

Minister of State for External Affairs Omar Abdullah also attended the meeting.

FICCI president Lodha said it was high time hi-tech cities in Bangalore and Hyderabad developed satellite links with Osaka and Tokyo and became front-runners in e-commerce and e-business.

"We are greatly encouraged by the recent initiative of Osaka-based companies to establish a hundred-acre IT park in Mysore for housing off-shore development centres of at least 30 companies," he added.

CII president Goenka said the time had come now for building a new highway of cooperation between the two countries.

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