Industry Anticipates PM Modi’s Japan Visit to ‘Click FDI’

The Union Government under the leadership of Hon’ble PM Shri Narendra Modi has accorded special emphasis on regional cooperation and partnership with other countries which will strengthen India’s bilateral ties and position India as a favourable trade destination. India’s revitalized foreign policy will witness increased diplomatic engagement and expanded avenues of cooperation with the world, further consolidating our geopolitical importance.

The industry is evidently optimistic about the PM’s forthcoming visit to Japan this week. As a global economic leader, Japan offers immense opportunities for cooperation and partnership. ASSOCHAM recommends the following areas for boosting this critical bi-lateral partnership with Japan:

• Come Make in India: The Government’s role in facilitating industry partnerships that aid technology transfers in key segments such as Capital Goods Manufacturing, Automobiles and Electronic System Design & Manufacturing (ESDM) will be critical for the growth of India’s manufacturing industry. Mega investments in these sectors can be structured by leveraging Japan’s expertise and technical support across various dimensions. For e.g. Japan’s strength in ESDM could be partnered with India’s inherent strength in IT to establish electronic product manufacturing facilities for the global market

• Zero Effect: Japan’s evolved power generation sector has increasing dependence on renewable and clean energy sources. In 2013, Japan was the fastest growing clean energy market in the world with investments of over USD 28 Billion. Within a period of one year, Japan has set up 6.7 GW (~22% of India’s total RE installed capacity) of solar installations. India must leverage on this expertise to address critical challenges of power adequacy

• Zero Defect: Japan is a global leader in Quality Assurance techniques like Kaizen & Six Sigma. Institutionalizing these quality principles can significantly boost product quality levels and operational efficiencies of the Indian Manufacturing and MSME sectors and improve competitiveness in global markets

• Diamond Quadrilateral – Japan is the land of Shinkansen (network of high-speed railway lines operated by four Japan Railways Group companies) - the first country to build dedicated high-speed railway lines. India’s vision for a Diamond Quadrilateral for high-speed trains and Bullet trains will benefit immensely from Japan’s expertise in building and operating such lines. Adequate bilateral impetus can fast track implementation of high-speed rail projects and also facilitate establishment of global manufacturing facilities for key components and rolling stock required for the sector

• Healthcare - Government’s approval on healthcare cooperation between India and Japan will create new avenues of cooperation in fields of HR development, financing of universal health coverage and healthcare service delivery, health information systems, Pharma and medical devices and Health research

• Buddhist Tourism – Buddhism is the predominant religion of Japan and India too is a very important global destination for Buddhist pilgrimage. According special priority to this developing pilgrimage circuit in India, enhancing support infrastructure and facilitating seamless experience to tourists from Japan and across the world will be a transformational step.

ASSOCHAM believes that this global partnership will form an important enabler for industrial development. The industry is confident that the Hon’ble PM’s visit to Japan will catalyze progressive economic development.

Sincerely,

Rana Kapoor

President, ASSOCHAM