Editor's Pick: Japan’s big-ticket investment

On Saturday, Japan expressed its intention to invest JPY 5 trillion ($42 billion) in India to finance relevant public and private investment projects of mutual interest. Japanese PM Fumio Kishida announced the same during his first bilateral visit to India, which concludes on Saturday. Whilst unveiling the investment proposal, Mr. Kishida expressed his satisfaction on having achieved the previous investment target of JPY 3.5 trillion (approx. $29.4 billion), announced in 2014. In February this year, India and Japan, represented by the Dept for Promotion of Industry & internal Trade (DPIIT) and Ministry of Economy, Trade and Industry (METI) respectively, conducted an annual review of progress made under Japanese Industrial Township (JITs) in India. They were set up pursuant to the ‘Action Agenda for the India-Japan Investment and Trade Promotion and Asia-Pacific Economic Integration’ signed between the Governmental ministries of the two countries in 2015. At present, there are 114 Japanese companies operating across the JITs. The Neemrana (Rajasthan) and Sri City (Andhra Pradesh) house marque Japanese investors such as Daikin, Isuzu, Kobelco, Yamaha Music, Hitachi Automotive etc. It was informed in the summit that Japan is India’s fifth largest investor. It has contributed over $36.2 billion in cumulative investments since 2000. The investments have flowed especially in key sectors such as automobiles, Electronics System Design & Manufacturing (ESDM), medical devices, consumer goods, textiles, food processing and chemicals. Additionally, the two countries have a Comprehensive Economic Partnership Agreement (CEPA) in place. During the recently concluded summit, the two leaders recalling the India-Japan Industrial Competitiveness Partnership (IJICP) welcomed the formulation of a roadmap under the same to further promote industrial cooperation between the two countries in the areas of MSMEs, manufacturing and supply chains. Further, “They emphasised the importance of collaboration to address illicit technology transfers, build resilient supply chains and strengthen the protection of critical infrastructure, including through the Quad,” the joint statement mentioned. The present bilateral meet was the first between the two countries since 2018, which were postponed in previous instances due to the protests against the Citizenship (Amendment) Act and then the pandemic. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor‘s Pick and more. Click here The Hindu Explains Did the Karnataka High Court’s hijab verdict overlook ‘reasonable accommodation’? Will the war in Ukraine rattle India’s banks? The Hindu’s Daily Quiz Who is Delhi Capital's costliest buy in this year's IPL? Shardul Thakur David Warner Prithvi Shaw Deepak Chahar To find out the answer and play the full quiz, click here [logo] Editor's Pick 20 MARCH 2022 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Japan’s big-ticket investment On Saturday, Japan expressed its [intention to invest JPY 5 trillion]( ($42 billion) in India to finance relevant public and private investment projects of mutual interest. Japanese PM Fumio Kishida announced the same during his first bilateral visit to India, which concludes on Saturday. Whilst unveiling the investment proposal, Mr. Kishida expressed his satisfaction on having achieved the previous investment target of JPY 3.5 trillion (approx. $29.4 billion), announced in 2014. In February this year, India and Japan, represented by the Dept for Promotion of Industry & internal Trade (DPIIT) and Ministry of Economy, Trade and Industry (METI) respectively, conducted an annual review of progress made under Japanese Industrial Township (JITs) in India. They were set up pursuant to the ‘Action Agenda for the India-Japan Investment and Trade Promotion and Asia-Pacific Economic Integration’ signed between the Governmental ministries of the two countries in 2015. At present, there are 114 Japanese companies operating across the JITs. The Neemrana (Rajasthan) and Sri City (Andhra Pradesh) house marque Japanese investors such as Daikin, Isuzu, Kobelco, Yamaha Music, Hitachi Automotive etc. It was informed in the summit that Japan is India’s fifth largest investor. It has contributed over $36.2 billion in cumulative investments since 2000. The investments have flowed especially in key sectors such as automobiles, Electronics System Design & Manufacturing (ESDM), medical devices, consumer goods, textiles, food processing and chemicals. Additionally, the two countries have a Comprehensive Economic Partnership Agreement (CEPA) in place.  During the recently concluded summit, the two leaders recalling the India-Japan Industrial Competitiveness Partnership (IJICP) welcomed the formulation of a roadmap under the same to further promote industrial cooperation between the two countries in the areas of MSMEs, manufacturing and supply chains. Further, “They emphasised the importance of collaboration to address illicit technology transfers, build resilient supply chains and strengthen the protection of critical infrastructure, including through the Quad,” the joint statement mentioned.  The present bilateral meet was the first between the two countries since 2018, which were postponed in previous instances due to the protests against the Citizenship (Amendment) Act and then the pandemic. Was this newsletter forwarded to you? 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