G20 Summit: Japan PM Kishida pitches for improving investment environment for Japanese companies in India

NEW DELHI: In a 20-minute meeting with the Indian Prime Minister Narendra Modi on Saturday, Prime Minister of Japan Kishida  Fumio reiterated his country’s concern about the investment environment for Japanese companies in India.

The Japanese PM, who is visiting India to attend the G20 Summit in New Delhi, told Modi that Japan-India relations had steadily progressed in recent years. He called for cooperation in improving the investment environment in India toward the realization of the 5-trillion-yen target of public and private investment and financing from Japan to India in the next five years, which was set in March last year, said a statement issued by the Embassy of Japan in India on Saturday.

Both leaders welcomed the provision of a 400-billion-yen loan for the construction project of the high-speed rail (V), an ongoing flagship project of Japan and India.

It is noteworthy here that in July earlier this year, former Japan Prime Minister Yoshihide Suga during his visit to India along with a large contingent of Japanese business leaders, said he would pitch for improving the business environment in India for Japanese companies during his meeting with Modi.

“I will convey to His Excellency (PM Modi) the request we have received from the business leaders who are accompanying us this time and are keen to improve the environment for Japanese companies to do business in India,” Yoshihide had said at an event organized by industry body FICCI in New Delhi.

As per the official data released by the Japanese government, the number of Japanese companies in India has gone down by 55, from 1455 in 2020 to 1400 in 2022. Many small Japanese companies have wound up their Indian operations, especially after the Covid-19 pandemic. This is the first time that the graph of the number of Japanese in India has registered a downward trend.

In his tweet on Saturday post this meeting, PM Modi said on X, “Held productive talks with PM Kishida. We took stock of India-Japan bilateral ties and the ground covered during India’s G20 Presidency and Japan’s G7 Presidency. We are eager to enhance cooperation in connectivity, commerce, and other sectors.”

During the bilateral meeting on the sidelines of the G-20 Summit in New Delhi, Modi appreciated Prime Minister Kishida’s visit to India, as well as paid his gratitude for Japan’s previous cooperation for the success of the G20 New Delhi Summit. Modi also stated that the fact that Japan is accomplishing economic growth under the leadership of Prime Minister Kishida is highly appreciated in India.

In response, Prime Minister Kishida reiterated his gratitude for Prime Minister Modi’s attendance at the G7 Hiroshima Summit and his desire to pass on the outcome of the G7 Hiroshima Summit to the G20 New Delhi Summit to contribute to its success.

Furthermore, Prime Minister Kishida expressed his congratulations for the historic success of the landing of Chandrayaan-3 on the moon, and the two leaders concurred to work together in such areas as maintaining and strengthening a free and open international order based on the rule of law, as well as in the field of advanced technology, including space.

According to the Embassy of Japan communique, the two leaders welcomed the various initiatives being taken for the “Japan-India tourism exchange year,” which was agreed on in March this year, and concurred to continue to promote it in both countries. In addition, Prime Minister Kishida stated that coordination is underway to launch the Japanese Grant Aid for Human Resource Development Scholarship (JDS), which will enable talented administrative officials who will play a leading role in Japan-India relations to study in Japan.

Prime Minister Kishida explained Japan’s position regarding the recently initiated discharge of ALPS-treated water into the ocean. The two leaders concurred to work together to further strengthen bilateral relations.