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Japan to invest more in India to expand offshore invesments: BMI Research

Japan has given a loan of Rs 88,000 crore at 0.1 per cent interest for the Rs 1.10 lakh crore bullet train project

Press Trust of India  |  New Delhi 

Prime Minister Narendra Modi with his Japanese counterpart Shinzo Abe at Ground Breaking ceremony of Mumbai-Ahmedabad High Speed Rail Project, in Ahmedabad on Thursday. (Photo: PTI)
Prime Minister Narendra Modi with his Japanese counterpart Shinzo Abe at Ground Breaking ceremony of Mumbai-Ahmedabad High Speed Rail Project, in Ahmedabad on Thursday. (Photo: PTI)

The Japanese investment in will continue to rise as the East Asian country is keen to expand offshore to generate opportunities for its and engineering firms, according to BMI Research.

Prime Minister along with his Japanese counterpart Shinzo Abe, who was on a two-day visit to India, laid the foundation stone for country's first bullet train project between and


has given a loan of Rs 88,000 crore at 0.1 per cent interest for the Rs 1.10 lakh crore bullet train project.

"Japan's involvement in India's infrastructure industry will continue to accelerate, as (Shinzo) Abe seeks to expand overseas infrastructure to generate opportunities for Japanese and ..," the Fitch group company said in its outlook for India's infrastructure sector.

This expansion will be aided by Modi's 'Make In India' initiative, which has "relaxed or eliminated" restrictions on foreign investment across many industrial sectors, it said.

is well-positioned to become an alternate source of financing and support for infrastructure projects in the country, BMI Research said.

has a massive infrastructure deficit with planned projects spanning from urban transit and sewerage systems to nationwide electricity transmission and highway networks - all of which will generate contracts that Japanese companies can take advantage of, it said.

BMI Research said it also sees the potential for and to cooperate on infrastructure development in neighbouring countries such as Bangladesh and Nepal, partly as a way to balance increasing Chinese investment and influence in the region.

is the largest foreign investor in India's infrastructure market by the number of projects, with the International Cooperation Agency (JICA) involved in USD 1.7 billion worth of projects in 2016, it added.

First Published: Fri, September 15 2017. 18:35 IST
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