With Indo-Japan relations not growing at the right pace, both countries have
signed an accord that will “meet the needs of Japanese investors” and “address
India’s needs” to ensure “strategic importance of both countries” are met. The
plan is to build special economic zones (SEZ) and industrial parks as a
“support platform for a better trade and investment climate in India.” India
and Japan are planning on a
Comprehensive Economic Cooperation Agreement (CECA).
The Japanese conglomerate Mitsui has been awarded the charter to create a
“Japanese city” which is being positioned as distinctly different from current
SEZ. This “city” will cater to the needs of Japanese small and medium
enterprises (SME) and will be located on a 2000 acre site in Haryana. Commerce
and Industry Minister Kamal Nath said that “We are looking for a flow of
investments from Japanese companies, especially the SME sector, which are a
repository of technology but have been slow to invest in India.” While major
Japanese companies like Honda and Suzuki have large investments in India, Nath
said that “We are looking to scaling up their presence by setting up this
industrial sector.”
