Plan for Japanese cluster to enhance trade relations tiesJanalaskhmi to raise funds

Tamil Nadu is planning a dedicated Japanese cluster near Chennai to enhance trade relationship between Tamil Nadu and Japan, said Rajeev Ranjan, principal secretary - industries department, Government of Tamil Nadu.

Addressing a seminar on ‘Infrastructure Development for Greater Gateway Chennai: Under Core Nodal Development and Asia Comprehensive Development Plan’ organised by the Confederation of Indian Industry in association with the Japan External Trade Organisation (JETRO) he said the Tamil Nadu government is looking for a public-private partnership (PPP) model to develop the infrastructure sector in the state, while he said small and medium enterprises in Japan are looking towards Tamil Nadu as an attractive investment destination.

“The proposed dedicated cluster will help the state to attract more companies from Japan.” He noted, Japan’s Foreign Direct Investment (FDI) in India has increased substantially in 2008 to $8.6 billion, which was higher compared to China. The number of Japanese companies in Tamil Nadu has risen from 77 in 2007 to 170 at present, he further said.

Takezo Yanagida, executive vice president, JETRO said that India is the third country after US and China to have more than 3 JETRO offices. In the last four years there is growing interest in the Southern Region.

He noted, currently 627 Japanese are operating in India, of which 55 per cent are located in the states of South India, especially in Tamil Nadu.

To support the Japanese companies, JETRO will set up an office in Chennai which will be inaugurated in early May this year, he added.

Naoyoshi Noguchi, director general - New Delhi JETRO added that connectivity is the major advantages for South Indian states. All the four states are well connected with sea and air, which will help Japanese companies most of which are manufacturing units to cater to both domestic and export markets.

Yanagida added that Japanese business community is lacking in information on the Indian PPP model which needs to be addressed

Japan ranks third in terms of technology transfers to India. Japanese economic collaboration with India has been crucial to our development process in the past, he added.