Investments by Japanese companies has been steadily rising in India and there is scope for more, said Kazuo Minagawa, Consul General of Japan.
He said there was more possibility for investments in manufacturing and outsourcing as talented, skilled workers and engineers are easily available in the country.
Addressing the Confederation of Indian Industry (Madurai) members on Wednesday, Minagawa said the Mumbai attacks have had no impact on foreign industrial investment in India.
Tamil Nadu, according to him, with its well-developed infrastructure and availability of skilled manpower is the safest state to invest. To date there are 180 Japanese companies in Tamil Nadu with 155 of them in Chennai. However, with increase in land cost in Chennai smaller cities like Coimbatore are now equally favoured.
Nissan company’s Urangadam project is located outside of Chennai and will be ready by next year. The company intends to outsource 90 per cent of its requirements to small and medium companies. A number of automobile companies including Honda, Suzuki and Toyota have also set up their facilities in Tamil Nadu.