Anand Sharma and Toshimitsu Motegi in New Delhi on Wednesday. (PTI)
New Delhi, Sept. 11: A township housing Japanese electronics companies is under consideration as this will shave off electronics imports and cut the trade gap.
“Both sides (India and Japan) have noted the idea of establishing a JEMT (Japanese Electronics Manufacturing Township) with Japanese assistance in India and agreed to take this up in the forthcoming meeting of the joint working group,” a joint statement released by India and Japan said. Last year, India imported electronic goods worth $32 billion.
Commerce minister Anand Sharma and Japanese minister of economy, trade and industry Toshimitsu Motegi met today and discussed the possibilities.
The statement said New Delhi would set up a helpdesk, in the department of electronics and information technology, to facilitate Japanese investments in electronics. Besides, a joint working group is on the way for a greater co-operation in IT and electronics.
Both sides also reviewed the progress of the Delhi-Mumbai Industrial Corridor project. India’s ambitious $90-billion DMIC project is aimed at creating giant infrastructure facilities along the Delhi-Mumbai Rail Freight Corridor, which is under implementation. Japan is giving financial and technical aid to the freight corridor project, which will cover seven states totalling 1,483 km. Japan has committed itself to invest $4.5 billion in this project.
“Both sides shared the view that industrial infrastructure is critically important for the expansion of foreign direct investments to India from Japanese companies and welcomed the substantial progress made in the DMIC project,” it said.
Bilateral trade between the two was $18.51 billion in 2012-13. India has received $14.75 billion FDI from Japan between April 2000 and June 2013. The Japanese investment accounts for 7 per cent of India’s total FDI.
The Union cabinet is likely to consider tomorrow a proposal to set up two semiconductor manufacturing facilities to check the dependence on the import of electronic products, especially chips.
“The telecom ministry has proposed the setting up of two semiconductor wafer fabrication manufacturing facilities in the country,” sources said. The two fab projects, entailing an investment of $4-5 billion each, were shortlisted from around 30 such applications received by an empowered committee.