Make in India has become a movement in Japan: Modi
14 Dec 2015 3:52 AM IST
Prime Minister Narendra Modi on Saturday said that the ‘Make in India’ initiative has become a movement in Japan and the island nation has created a fund of about $12 billion for it.
“Today, there is a ‘Make In India’ movement in Japan. I have been told that $11 billion to $12 billion fund has been earmarked for it. This clearly indicates how both the countries can move forward,” he said while addressing the India-Japan Business Leaders Forum here. ‘Make in India’ is proceeding in mission mode, not just in India, but also in Japan, he added. Modi also said that for the first time Japan will import cars from India.
“Maruti (Suzuki) will manufacture here... Japanese company will manufacture here and export it to Japan,” he said, adding that both India and Japan should move ahead together, not just in the sphere of high-speed trains, but also for “high-speed growth.” Recalling his last visit to the country, Modi said that Japan committed an investment of $35 billion. “The figure had surprised many at that time but, today, within a short time-span, unimaginable progress had been made, and the contours of this investment are beginning to get visible on the ground,” he said.
Highlighting the improvement in economic indicators in both India and Japan, he said that these were extremely encouraging, especially in the light of the global economic slowdown. “It is clear that India is a land of possibilities,” he added. Praising Modi’s reforms programme, Japanese Prime Minister Shinzo Abe said, “Prime Minister Modi’s speed of implementing policies and reforms is like Shinkansen (bullet train) and his reform agenda is as safe as Shinkansen.”
Abe also said that India has become a very attractive investment destination for Japan. On economic front, Japanese Prime Minister Shinzo Abe said that the two countries would like to work closely as it will benefit both. “A strong Japan is good for India and a strong India is good for Japan... I hope economic ties between our two countries will be ever closer,” Abe said.
Further, Modi said that the “Japan Plus” initiative that began last year in India as a policy experiment, is also doing well. India wants not only high speed trains but also high speed growth, Modi said, adding that the Indo-Japan business forum has discussed various opportunities between the countries. The recommendations given by the forum will actively be considered by the Indian government, he said.
The economies of the two countries are showing signs of improvement amidst the global slowdown, he said, adding, “Japan economic analysis, which came on Friday, is very encouraging. Even India’s manufacturing number is 10.6 per cent and 9.8 per cent; IIP indicates growth.” Modi said that there is a need to move forward, taking advantage of the strength of human resources and technological base.
India Inc seeks review of Free Trade Agreement with Japan
Review of the existing free trade pact and quick implementation of the social security agreement were among the key suggestions made by Indian businesses to boost economic ties between India and Japan. These recommendations were made by the Indian side during the India Japan Business Leaders Forum meeting here on Saturday.
The Indian side, co-chaired by Bharat Forge Chairman and Managing Director Baba Kalyani, also pitched for fostering linkages between large Japanese companies and SMEs in India and enhanced collaborations in the human resource space to promote the development of soft infrastructure. The Forum later was addressed by Japanese Prime Minister Shinzo Abe and his Indian counterpart Narendra Modi.
Modi said that the Indian Government would actively consider all the recommendations of the Forum. India and Japan had implemented a Comprehensive Economic Partnership Agreement (CEPA) in August 2011.
The suggestion of free trade pact review assumes significance as the domestic steel producers have complained of surge in imports of steel products like hot-rolled steel and other variants from China, Korea and Japan. Kalyani also suggested a “review and strengthening” of the Comprehensive Economic Partnership Agreement and quick implementation of the India-Japan Social Security Agreement, industry body Confederation of Indian Industry (CII) said in a statement.
In May 2012, the two governments had reached an agreement to exempt their nationals from making social security contribution in the country of their employment if they do it in their native country. This was aimed at easing the economic burden on Indian workers in Japan.
India Japan Business Leaders Forum Co-Chairman Sadayuki Sakakibara stated that Japan looks forward to continued action on the part of India in areas like ease of doing business, land acquisition, Goods and Services Tax, among others.
ICICI Bank MD and CEO Chanda Kochhar said that India is one of the fastest growing economies in the world. She urged Japanese companies to step up investment in India, especially in areas such as smart cities and renewable energy.
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