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India, Japan Move Forward For Setting Up of Electronic Township In India

Wednesday, September 11, 2013: As part of their continuing efforts to enhance bilateral investment and trade, India and Japan have decided to work further for setting up a Japanese Electronics Manufacturing Township (JEMT) in India.

“Both sides have noted the idea to establish a Japanese electronics manufacturing township (JEMT) in India with world class infrastructure and agreed to take this up in the forthcoming (meeting of the) joint working group,” said a joint statement at the conclusion of the Indo-Japanese ministerial meeting between the minister of Commerce and Industry of India, Anand Sharma and the minister of Economy, Trade and Industry of Japan, Toshimitsu Motegi in New Delhi on Wednesday.

The township is expected to help India reduce imports of electronic goods that stands at $32 billion annually and also to contain trade deficit that is expected to touch $70 billion in 2013-14. Electronics imports account for nearly half this amount. Japan is the leader in electronics goods.

Though India is strong in information technology and software development, the same cannot be said for hardware. India has recently come out with an electronics policy, envisaging $400 billion investments in hardware manufacturing and electronics production over a decade.

“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,” the joint statement also added.

The statement also said both the countries have agreed to deepen engagement to further promote investments and improve business environment in partnership with state governments.

Bilateral trade between the two was USD 18.51 billion in 2012-13. Besides, India has received USD 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.

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