India and Japan decided today to look at the possibility of setting up a Japanese Electronics Manufacturing Township (JEMT) here.
The township will help India reduce imports of electronic goods and contain trade deficit. Last year, India imported electronic goods worth $32 billion.
"Both sides have noted the idea to establish a JEMT with Japanese assistance in India with world class infrastructure and agreed to take this up in the forthcoming (meeting of the) joint working group," a joint statement said.
The statement was issued after the meeting of Commerce and Industry Minister Anand Sharma and Japanese Minister of Economy, Trade and Industry Toshimitsu Motegi.
"A Japan Help Desk has been set-up in the Department of Electronics and Information Technology with the mandate to facilitate Japanese companies in investing in electronics sector in India and steps have been taken to form a Joint Working Group (JWG) for greater cooperation in the IT and Electronics sector," it said.
Both the sides also welcomed the progress made in the Chennnai-Bengaluru Industrial Corridor (CBIC) project initiated in 2011. Besides, the two sides reviewed the progress of the Delhi-Mumbai Industrial Corridor project.
India's ambitious $90 billion DMIC project is aimed at creating mega industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor, which is under implementation. Japan is giving financial and technical aid for the project, which will cover seven states totalling 1,483 km.
Japan has committed to invest $4.5 billion in this project. The Union Cabinet had approved an expenditure of Rs 18,500 crore on development of infrastructure for the project.
Japan is also helping India in developing CBIC. An official said that a Japanese consultant will be hired to prepare the detailed project report.
The statement said both the countries have agreed to deepen engagement to further promote investments and improve business environment in partnership with state governments.
It said: "Both sides shared the view that industrial infrastructure is critically important for the expansion of foreign direct investments to India from Japanese companies and welcomed the substantial progress made in the DMIC project," it said.
Bilateral trade between the two was $18.51 billion in 2012-13. Besides, India has received $14.75 billion FDI from Japan between April 2000 and June 2013. The Japanese investment accounts for 7 per cent of India's total FDI.
Further, Sharma said DMIC Trust has given clearances for six major projects for implementation, which will entail total investment of Rs 1.10 lakh crore.
"First phase of the two Investment Regions (Dholera in Gujarat and Shendra-Bidkin in Maharasthra) will be launched within this financial year. Land acquisition is in advance stage," he said.
The CBIC will pass through three southern states -- Karnataka, Andhra Pradesh and Tamil Nadu. "Preliminary study for a comprehensive integrated Master Plan has been completed which has identified 26 priority projects," he added.
Further, the joint statement said that both the sides committed to formulate an action plan to promote two-way investments based on three pillars - India-Japan business partnership; Cooperation with Central and State Governments on Investment promotion and Facilitation and Improvement in business environment.
The two countries have decided to review the progress of the Action Plan annually.
As per the plan to promote 2-way investments, the Japanese side will hold business matching activities (between assemblers and automobile parts/raw material suppliers) for procurement of automobile parts and raw materials at Chennai and Pune in 2013. It will help in consolidation of supply chain networks between the countries.
Japan will also hold energy exhibition by Japan External Trade Organization (JETRO) and New Energy and Industrial Technology Development Organization (NEDO).
Both sides will promote dissemination of investment information related to central and state governments including rules, regulations and policies.
Japan will also support SMEs investment in India through the establishment of the SME Overseas Business Support Platform in Mumbai and Chennai.
It also said that Japan will support capacity enhancement of export institutions such FIEO besides both the sides will initiate industrial human resource development.
"Both sides will promote investment in India by Japanese companies which will enable such companies to export from India to surrounding countries," it said, adding that both will endeavour to create an environment for investments, particularly in industrial parks and clusters.
The statement said both sides will endeavour to simplify procedures for investment applications and approvals.
"Both sides reaffirmed the desire to continue to work closely to achieve an enabling predictability and transparency in terms of business environment including tax administration which is conducive to India Japan economic cooperation," it said.
