Manmohan Singh’s strong pitch for enhanced Japanese investment in India appeared to have achieved significant success with Japan agreeing to build a freight corridor between Delhi-Mumbai.
Japan to provide $4.5 bn for first phase of corridor
TOKYO: Prime minister Manmohan Singh’s strong pitch for enhanced Japanese investment in India appeared to have achieved significant success with Japan agreeing to build a freight corridor between Delhi-Mumbai. In an agreement inked in Tokyo on Wednesday, Japan agreed to provide $4.5 billion for the first phase of the corridor between Rewari and Vadodara in addition to committing its support to the rest of the corridor.
Japan has also committed itself to build an industrial corridor on both sides of the Delhi Mumbai corridor. Five Japanese companies will set up their industrial bases on both sides of the corridor, from which their products will travel on the freight corridor to the ports.
The two countries also signed a joint declaration on security cooperation that will intensify interaction between their militaries and expand the scope of strategic dialogue between the two Asian powers. Cooperation between coast guards, defence dialogue, coordination on issues relating to disarmament and non-proliferation and disaster management are some of crucial elements of the security cooperation pact signed here by Singh and his Japanese counterpart Taro Aso.
According to the joint declaration, the two countries will put in place mechanisms for a strategic dialogue at the level of foreign and defence ministries and periodic consultations by national security advisors of the two countries. Bilateral consultations will be intensified to enhance cooperation in the crucial area of counter-terrorism. Japan has also agreed to help develop a tsunami disaster map in India.
The Japanese government appears to have taken a clear decision to embark upon a strategic relationship with India and the Indian side is hoping that the enhanced investment on the part of the Japanese government will encourage private Japanese companies to follow suit. According to the Japanese PM, his country’s investment in the last five years has increased ten-fold, wile the number of private companies investing in the country has also doubled.
Sources said the PM pointed out to Japanese businessmen that companies from Korea were doing far greater in India than Japan. Addressing concerns on dual taxation between states, Singh said efforts were underway to rationalise it.
His hardsell of India as an investment destination came alongside his emphasis on seeking access to the Japan market. He underlined the point both during talks with Taro Aso and in his meeting with business leaders of both countries. The meeting with business leaders of the two countries was attended by Mukesh Ambani, Tarun Dash, Vikram Kirloskar, Nandan Nilekani and Sunil Munjal from the Indian side.
j_ansari@dnaindia.net
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