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In a major bid to invite foreign direct investment (FDI) in Madhya Pradesh, Shri Kamal Nath, Union Minister of Commerce & Industry, today invited Japanese companies to invest in India, saying that the Indian economy was very well suited to the small and medium Japanese companies who might have difficulty in operating in their own saturated market. “With the vast technical and managerial skills available in India, Indian and Japanese small and medium companies can join hands as complementary and supplementary partners. They could cater to not only the vast Indian market, but also the untapped markets in Asia, Latin America and Africa. There is a great scope to further intensify the Indo-Japanese Industrial Cooperation in sectors like telecommunication, power generation, software, biotechnology, food processing, transportation, chemicals and petro-chemicals”, he said here while co-chairing with the Chief Minister of Madhya Pradesh, Shri G. Babu Lal Gaur, an interactive session with Japanese companies working in India on Investment Opportunities in Madhya Pradesh.
The event has been organised by the Government of Madhya Pradesh in association with the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry.
Shri Kamal Nath pointed out that while India’s trade with almost all major trading partners have been growing, her bilateral trade with Japan had been stagnant at below US $ 5 billion. FDI inflow from Japan since 1991 had been less than US $ 2 billion. “These figures do not justify the potential between the two countries”, he added.
Stressing India’s investment potential, Shri Kamal Nath said: “FDI policies in India are reckoned to be among the most liberal and attractive among the emerging economies. Government has allowed FDI up to 100% under the automatic route for the development of townships, housing, built-up infrastructure, and other construction and development projects. This would catalyse investment in construction activities of all types. We believe that this would improve availability and quality of both housing as well as other infrastructure… India promises high returns on investments. I may also mention that repatriation of profits on the original investment is freely permitted in India. According to a survey conducted by FICCI, 70% foreign investors were making profits and another 12% were breaking even. As many as 69% companies were meeting their profitability targets. Investing in India is ‘a good investment’.”
SB/MRS
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