Prime Minister Narendra Modi's home state Gujarat is emerging the preferred destination for Chinese and Japanese companies.
While Japanese auto majors Honda Motor Co and Suzuki Motor Corp are building manufacturing units in the state, American car giant Ford is also setting up its unit.
The Chinese government is also looking to set up an industrial manufacturing unit in the state to house its state-owned companies. In fact, Chinese transformer producing company Tebian Electric Apparatus Stock Co Ltd (TBEA) already has a power equipment manufacturing facility near Vadodara.
Honda, which is already building its two-wheeler factor in Halol near Vadodara in Gujarat, has finalised a deal with the state government to set up its car factory near Ahmedabad at an investment of over Rs 4,000 crore.
"Honda has decided to set up its car factory near Sanand in Gujarat, the fourth car company that has come to Gujarat after Tata Nano. US' Ford is already building its plant in Gujarat, which will go for production in some time while Japan's Suzuki Motors is also setting up its plant in north Gujarat," J Pradhan, Gujarat's additional chief secretary, industries, told Hindustan Times.
About two dozen companies from China and Japan are expected to sign MoUs in the next vibrant Gujarat summit to be held in January 2015, he said.
"China Development Bank is also set to open its office in Gujarat to cater to Chinese companies, which are investing in Gujarat. China will set up an industrial manufacturing park in Gujarat where only Chinese firms will be located," he added.
A few months back, representatives of over a dozen companies from China engaged in electric vehicle manufacturing visited Sanand to set up a manufacturing park for producing electric vehicles at an investment of $100 million.
Companies in the delegation included Green Field Motor, VOCH Group, YueHua Control Group, Zhuji Yongcheng Auto, Wenzhou Jinpi Machinery Manufacturing and JBON Control Industry.
In July this year, TBEA opened its manufacturing facility near Vadodara.
Earlier, another company engaged in the energy sector, Baoding Tianwei Baobian Electric Co, had inaugurated its factory in the state.
Last month, Japanese sanitaryware firm Toto inaugurated its first factory in India, a Rs 350-crore factory at Halol near Vadodara.
"At present, 60 Japanese firms are operational in Gujarat. In future, the number will rise to 100," Japan's ambassador to India Takeshi Yagi had said while inaugurating the factory along with Gujarat chief minister Anandiben Patel.