India needs to have more world-class infrastructural facilities, minister of state for finance Jayant Sinha said after his recent discussions with Japanese investors.
Japan last year had committed $35 billion (2,23,000 crore) worth investments in the country’s public and private sector projects over the next five years, especially in the infrastucture sector. Sinha, who was recently in Japan, told HT that Japanese companies have cautioned against continuous currency fluctuations, and have demanded to provide high-quality industrial townships for their workforce.
“One of the very important things that emerged from my recent discussions (with Japanese investors) was the need for India to create additional industrial townships. Like the one that has been created in Neemrana,” Sinha said. “These should provide high-quality infrastructural and educational facilities across central and south India. This would provide manufacturing base for Japanese companies, and they would be able to settle in India, which is a major requirement for them.”
Sinha added that continuous depreciation of the rupee and yen is another reason cited by the Japanese investors behind the delay in investments promised.
“Japanese certainly have immense interest, especially in Delhi-Mumbai Industrial Corridor (DMIC) and Chennai-Bengaluru Industrial Corridor...We are seeing significant investments from Japanese automotive companies, such as Maruti Suzuki, Honda, Yamaha, Toyota, which are investing strongly in India. There are a host of other Japanese manufacturing companies, especially in some of the unheard sectors such as pump manufacturing etc, which are keen to invest in India” Sinha added.
Japan had last year also inked pacts for nuclear energy cooperation with India and Prime Minister Narendra Modi had promised he would introduce special mechanisms like “Japan Fast Track Channel” for Japanese investors.