Though Japan had approved an estimated cumulative foreign direct investment (FDI) of $3.1 billion for India from 1991 to August 2002, the actual inflow of investment was only about $1.2 billion, a Federation of Indian Chambers of Commerce and Industry (Ficci) report said.
The reason for this, according to the Ficci report, is that Japanese firms, unlike American and European Fortune 500 companies, are still apprehensive about doing business in India. For them, differences in business practices, environment and culture are major hindrances.
In terms of FDI, Japan was behind the US, Mauritius and the UK, the study said. Also, India received only 1.1 per cent of Japan