India-Japan Investment Promotion Partnership
The two Prime Ministers announced the India-Japan Investment Promotion Partnership under which:
a) The two Prime Ministers decided to set a target of doubling Japan's foreign direct investment and the number of Japanese companies in India within five years as an objective to be jointly achieved. They also decided to work closely towards further expanding bilateral trade relationship to the next stage.
b) Prime Minister Abe expressed his intention to realize 3.5 trillion yen of public and private investment and financing from Japan, including Overseas Development Assistance (ODA), to India in five years, to finance appropriate public and private projects of mutual interest including in the areas of next generation infrastructure, connectivity, transport systems, Smart Cities, rejuvenation of Ganga and other rivers, manufacturing, clean energy, skill development, water security, food processing and agro industry, agricultural cold chain, and rural development. In this connection, Prime Minister Abe pledged ODA loan of 50 billion yen to India Infrastructure Finance Company Limited (IIFCL) for a public-private partnership infrastructure project in India.
c) The two Prime Ministers welcomed the public-private initiatives between the two countries to set up Electronics Industrial Parks in India. They also shared the intention to develop "Japan Industrial Townships" and other industrial townships with investment incentives for companies would not be lower than under the prevailing policy framework such as Special Economic Zone (SEZ), National Investment and Manufacturing Zone (NIMZ).
d) The two Prime Ministers directed their officials to work out an appropriate mix of financing mechanisms, including public-private partnership, and terms for utilization of public funds, taking into account the nature of the projects, developmental priorities, procurement policies, level of industrial and technological capacities and skills available locally. They decided to explore ways to enhance Japanese and Indian participation in appropriate infrastructure projects in India.
e) Prime Minister Modi underlined his determination to further improve the business environment in India, including through tax, administrative and financial regulations, in order to boost investment. The two Prime Ministers decided to further deepen bilateral economic and financial cooperation. Prime Minister Abe welcomed the approval to establish Mizuho Bank`s Ahmedabad branch.
The two Prime Ministers placed special emphasis on Japan's cooperation for enhanced connectivity and development in Northeast India and linking the region to other economic corridors in India and to Southeast Asia, which would catalyse economic development and increase prosperity in the region.
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