Japanese companies keen on investing in India

Indian Prime Minister Narendra Modi is welcomed by his Japanese counterpart Shinzo Abe upon his arrival at the State Guest House in Kyoto, western Japan, on August 30, 2014. - Photo by AFP

New Delhi -  The government on Friday said Japanese companies have ranked India as the top most preferred destinations for further investments.

According to the Commerce and Industry Ministry, the business sentiments of Japanese companies were revealed in a survey conducted by Japan Bank for International Cooperation (JBIC) in July 2014.

The survey of 1,000 Japanese manufacturing companies ranked India as the No.1 destination for future investments followed by Indonesia and China.

"Some Japanese companies are seriously contemplating their future investment plans in India amounting to about Rs.75,000 crore ($12 billion) in next 2-3 years," the survey said.

During the period from June to September 2014, foreign direct investment (FDI) inflow from Japan amounted to $618 million against $273 million for the corresponding period in 2013.

The ministry said FDI inflow of $103.14 million took place in October 2014.

The ministry further said that the government has set up a special management team called Japan Plus to facilitate Japanese investors.

"The team is actively interacting with Japanese companies and handholding them through various approval processes, as and when required," the ministry said.

"One of the mandates of Japan Plus is to help develop Japanese Integrated Industrial Parks. For this, discussions are going on with Japanese companies and the state governments concerned."

In October 2014, the number of Japanese companies in India reached 1,209, signifying an increase of 13 percent over the same period last year with a compounded annual growth rate (CAGR) of 13.67 percent for the last five years (2010 to 2014).