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Japan and India Signed a Roadmap and a Memorandum for the Promotion of the Make in India Policy

On September 14, 2017, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Commerce and Industry of India concluded a Japan-India Roadmap for Investment Promotion,*1 in the suburb of Ahmedabad, Gujarat, India. In addition, METI and the State Government of Gujarat concluded a Memorandum of Cooperation on the Japan and India Special Program for Make in India.*2

On the same date, Japan and India exchanged the roadmap and the MOC witnessed by Prime Minister Abe and Prime Minister Modi, India during their visit to Ahmedabad.

Notes:

*1:Signatories:
Mr. Tadao Yanase, Vice-Minister for International Affairs, METI, and Mr. Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, India
*2:Signatories:
Vice-Minister Yanase, METI, and Dr. J. N. Singh, Chief Secretary of the Government of Gujarat, India

1. Japan-India Roadmap for Investment Promotion

Japan and India have been diligently working to achieve the goal of doubling the direct investments from Japanese companies to India in terms of total value and the number of companies operating in India under the Japan-India Investment Promotion Partnership, which was inaugurated in 2014, thereby promoting the Make in India policy set by Prime Minister Modi. As part of the efforts to achieve the goal, METI (Vice-Minister Yanase) and DIPP (Secretary Abhishek) concluded the Japan-India Roadmap for Investment Promotion.

As described in the roadmap, Japan and India will support Japanese companies, mainly SMEs, in developing business in India through certain measures, including enhancement of promotional activities and improvement of investment business environments so as to mitigate bottlenecks that Japanese companies are likely to face when they start business in India. These supports are expected to further encourage Japanese companies to invest in India.

Main Components

  • The Embassy of India in Japan will continue to organize promotional activities in Japan for the purpose of realizing Japanese investment potential in India. Japan will enhance investment promotion activities, including JETRO’s Business Launch in India Support Service (BLISS) Package, e.g., establishment of the fourth JETRO Business Support Center in India and provision of various professional services that can support SMEs in developing business in India.
  • The Indian State Governments will be requested to further strengthen review mechanisms related to resolving issues and improve single window clearance.
  • METI and DIPP will continue to work together on the promotion of Japan Industrial Townships (JITs).
  • They will cooperate in infrastructure development contributing to the business environment for Japanese affiliated companies.
  • Human resource development (Japan-India Institute for Manufacturing (JIM), Japanese language education, etc.) will be further enhanced.

2. Japan and India Special Program for Make in India in Mandal-Becharaji-Khoraj, Gujarat

Gujarat boasts the third rank in terms of development of business environments in India and is an area that exhibits significant potential for Japanese companies to further develop business and investment, mainly related to the automobile industry.

In January 2015, METI signed with the State Government of Gujarat the Memorandum of Cooperation on Public-Private Cooperative Actions towards Further Development of Gujarat  between METI and the State Government of Gujarat. Since then, METI has been advancing efforts for building the relationship with the state government, which is strategically important for Japan, including convening policy dialogues with the state government.

On September 14, 2017, METI (Vice-Minister Yanase) and DIPP (Chief Secretary Dr.J.N.Singh) signed a memorandum of cooperation, titled “Japan and India Special Program for Make in India in Mandal-Becharaj -Khoraj, Gujarat.”

In response, METI has started a call for applicants for a research project focusing on mid- to long-term infrastructure requirements in India.*3

Major specific efforts

  • Development of a Hybrid Industrial Park may be considered, in which the State Government of Gujarat will provide an area of land and Japanese companies will provide services involving management of the park.
  • The Gujarat Investment Promotion Program (GIPP) will be considered for development of the infrastructure.
  • Both sides will develop soft infrastructure, including human resource development, mechanisms for issue resolution, and investment promotion activities.

Moreover, on the same date, in the presence of the two leaders, H. E. Mr. Kenji Hiramatsu, Ambassador of Japan to India, and Mr. Subhash Chandra Garg, the Secretary of the Department of Economic Affairs, Ministry of Finance, Government of India, exchanged notes for the provision of ODA Loans for the Gujarat Investment Promotion Program (GIPP).*4

*3:
Feasibility Study for Infrastructure Development for Smart City Development Projects in Gujarat, India(for further details, search for the project name on the website for government procurementexternal link and tender)(in Japanese)
*4:
MOFA’s press release concerning Exchange of Notes for the Provision of ODA Loans and Grant Aid to Indiaexternal link(in Japanese)

Release date

September 15, 2017

Division in Charge

Southwest Asia Office, Trade Policy Bureau

Related website

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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