India one of the most open FDI economies globally: Secretary, DPIIT

Mar 12, 2021

• GoI looks forward to Japan participating in PLI schemes

NEW DELHI, 12 March 2021: Dr Guruprasad Mohapatra, Secretary, DPIIT, Government of India today said that India is one of the most open economies of the world and most of the sectors have been open under the automatic route of FDI.

Addressing the '44th India-Japan Business Cooperation Committee Meeting' (IJBCC) organised by FICCI, Dr Mohapatra said India and Japan will be the most preferred strategic partners in days to come. "The partnership between India and Japan very strongly indicate the foundation of professional, political, economic and common strategic interest, has made the foundation stronger," he said.

Dr Mohapatra stated that the Atmanirbhar Bharat campaign enunciated by PMO speaks about a self-reliant and resilient India, which is globally integrated with major economic partners around the world to maintain a very smooth and cost-effective global supply chain.

He further said that Japan has also been regarded as a key partner in India's economic transformation and today it stands to be one of the key investors in India (third largest FDI) with a cumulative investment of more than US$ 30 billion, which represents 7.05 per cent of the cumulative inflows received till date.

"India-Japan investment promotion partnership focuses on the next generation infrastructure, connectivity, smart cities, manufacturing, rejuvenation of river, water security with special interest to India," Dr Mohapatra.

India and Japan are collaborating in the form of an industrial competitiveness partnership that will work towards enhancing India's industrial competitiveness. The COVID 19 pandemic, has led to foreign exports to Japan, and this provides India with a unique opportunity to attract fresh Japanese investments, he further added.

Elaborating on the PLI scheme in the 13 key sectors Dr Mohapatra said, "It will enhance India's manufacturing capabilities and exports and we look forward to Japan participating in the PLI scheme in India. DPIIT and MEA are closely working with our missions abroad to see that the investment coming to India are hassle-free and we are coming out with a single-window system from 15 April 2021 to help the investors coming into India." India and Japan in the times to come will have a strong strategic relationship and India will be the most preferred global partner for investment, he added.

Amb Sanjay K Verma, Ambassador of India to Japan said, India and Japan should jointly look at exploring the economic and commercial activities in the third world countries and the two countries must concentrate on co-innovation, co-creation, and co-production.  He also mentioned that there is a need to explore possibilities of creating better supply chain synergies between the two countries.

HE Mr Satoshi Suzuki, Ambassador of Japan to India said that Japanese companies maintain a high appetite for investment in India and the Indo Japanese relationship has been expanded and enhanced post the COVID-19 pandemic. He further mentioned that Japan is keen on strengthening the human connections between the two countries and would like to utilize the availability of skilled workers. People to people, he said, is an important topic for cross-cultural linkages.

Mr Masami Iijima, Chairman, Japan-India Business Cooperation Committee and Chief Executive Officer and Chairman of Mitsui & Co Ltd said India and Japan are two major democratic countries in Asia that have upgraded to strategic global partnerships.

Mr Onkar S Kanwar, Chairman, IJBCC and Chairman, Apollo Tyres Limited said India and Japan share a strategic relationship that is based on mutual trust and shares values with compassion for political, economic, and strategic interest.

He added that some of the major economies including Japan, have decided to de-risk their manufacturing investments, and have dedicated stimulus packages. "We feel this provides India with an opportunity to become the next hub of global manufacturing value chains. We appreciate the various policy reforms and measures that the Government of India has undertaken towards making India attractive for foreign investors and encouraging greater investments," said Mr Kanwar.

FICCI through the IJBCC and other platforms has also been actively promoting this idea and have conducted several (virtual) discussions with all relevant stakeholders to understand and gauge their issues and suggestions, said Mr Kanwar.

Mr Rohit Relan, Co-Chairman, IJBCC and Chairman &Managing Director, thanked JCCI for their long-standing partnership in FICCI in creating knowledge leadership and initiatives towards fostering business linkages with Japan.

Mr Dilip Chenoy, Secretary-General, FICCI said that the IJBCC has been a valuable contributor to the vital structure of the India- Japan ties and this joint meeting aims to strengthen the Japan-India economic engagement.