The turnaround economic numbers emanating from Japan are just what
the doctor ordered to step up big-ticket Japanese investment projects
in India. The mega Delhi-Mumbai Industrial Corridor
(DMIC) project — with its various earmarked zones, dedicated clusters,
rapid connectivity and related feeder plans — needs to be fast-tracked
to proactively coagulate much-needed funds on the ground. It would be a
win-win proposition for the investment-constrained Indian economy, and should also help cure the growth sclerosis that has afflicted the Japanese economy for far too long. More important, by finalising DMIC and other bilateral infrastructure projects, India would be able to access long-term funds at fine rates, with the added advantage of tapping proven project expertise available in a mature economy. It is true that funding from Japan is generally tiedaid requiring the involvement of Japanese corporates in project implementation. But for a massive project like the DMIC, with an estimated project cost of over Rs 4,50,000 crore, we do need to leverage international knowhow for top-of-the-line infrastructure. Reports say that land acquisition for DMIC has started in Haryana, Rajasthan and Gujarat and Maharashtra. We need to firm up clear time lines and benchmarks to avoid costly project delays. Also, a modular approach would better optimise costs.
The developed world is awash with liquidity. Developed country companies need orders and markets. Countries like India can absorb huge investment and offer the demand that large companies require. What is needed is to bring these elements together, in the form of bankable projects. It requires a little imagination, a little diplomacy and a lot of work in project planning. That should not be a major hurdle.
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