Friday 31 August 2012

India seeks Japan's support for National Investment and Manufacturing Zones

 India today sought support from Japan for creating world-class infrastructure in the proposed national investment and manufacturing zones (NIMZs) to boost its manufacturing sector.

During the meeting of Commerce and Industry Minister Anand Sharma and Japanese Minister of Economy, Trade and Industry Yukio Edano, issues related to Delhi-Mumbai Industrial Corridor project were also discussed.

NIMZs will be mega industrial zones with world-class supporting infrastructure. The government is offering a host of incentives like exemption from capital gains tax and a liberalised labour and environment norms to promote these zones. The National Manufacturing Policy proposes to create 100 million jobs by 2020.

Both the ministers met on the sidelines of 44th ASEAN Economic Ministers (AEM) meeting and related meetings at Siem Reap, Cambodia.

"Sharma briefed his Japanese counterpart on the NIMZs and sought Japan's support for creating the infrastructure in the notified zones," a statement by commerce and industry ministry said.

The two sides have also discussed the modalities of release of $ 4.5 billion funds. Japan would invest this in the DMIC project.

"The Japanese concern on relaxation of capital regulations was also discussed and Sharma conveyed the significant progress made on the issue," it said.

India is considering to relax guidelines to encourage Japanese funds to invest in the ambitious $ 100-billion project.

The DMIC project is important as it would help in boosting investment in infrastructure sector and would also encourage overall economic growth of the country which has slipped to a nine-year low of 6.5 per cent in 2011-12.

The project, which was conceptualised in 2006, is being developed in collaboration with Japan as a manufacturing and trading hub.

Both the sides have targeted for $ 25 billion bilateral trade by 2015. The figure stood at $ 13.72 billion in 2010-11.

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