JETRO to promote FDI from India to Japan in IoT

by March 22, 2016 0 comments

The government of Japan expecting FDI of nearly US$300 billion from overseas by 2020 and establishing “India Desk” in Tokyo HQ to promote investment from India

An innovative ‘Invest Japan Seminar’ was hosted by The Japan External Trade Organization (JETRO) few weeks ago in order to promote FDI from India to Japan in IoT. JETRO is a government related agency, which promotes business between India and Japan and this seminar was part of “Japan-India Internet of Things (IoT) Investment Initiative” based on a joint statement between India and Japan signed by PM Narendra Modi and PM Shinzō Abe in Delhi last December.

Shigeki Maeda, Executive Vice President, JETRO Tokyo, Japan said, “Japanese government targets FDI of close to US$300 billion from overseas by 2020. To promote investment into Japan, JETRO will provide assistance to interested Indian companies.  We are also planning to deploy sector based experts in our offices in India to support potential direct investment to Japan.” He further added “JETRO will establish “India Desk” with Indian staff in Tokyo HQ for Indian companies to ease consultation.”

With the effectiveness of Abenomics, GDP of 517 Trillion Yen in 2012 has increased to 529 Trillion Yen in 2015 and operating profits for companies have surged from 126 Trillion Yen to 152 Trillion Yen in the same period. Other than that, economic indicators such as employment and business confidence have improved. Japanese companies are showing positive impact of Abenomics.

To sustain this virtuous cycle, the government has been implementing various restructurings. Corporate tax rate of 39.54% in fiscal year 2011 (the highest in the world) has already reduced to 32.11% in fiscal year 2015. It is expected to lower to 20% in FY2016. In addition to that, the “regional monopoly of electricity production and distribution” which has continued for 60 years has been broken, and the electricity market will be free in April. Further, the Pharmaceutical Affairs Act has been amended and the approval procedure substantially simplified.

A business-friendly environment and a sustained upkeep of its infrastructure have helped Japan become more attractive investment destination.  JETRO has supported over 12,000 projects from across the world in the past 11 years.  1,245 foreign companies including 25 Indian companies have started their business in Japan.

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