Joint Business Meeting in Honour of H E Mr. Shinzo Abe, Hon'ble Prime Minister, Japan
August 22, 2007, New Delhi

Address By Shri Kamal Nath, Minister of Commerce and Industry

His Excellency Mr. Shinzo Abe, Prime Minister of Japan,
His Excellency Mr. Yasukuni Enoki, Ambassador of Japan to India
Honorable business leaders from Japan
Distinguished delegates
Ladies and Gentlemen

• It is my deepest honour to add my own welcome to Your Excellency Mr Shinzo Abe, prime Minister of Japan, to today's business luncheon.
• Sir, you have always been a close friend of India. Your vision for engaging India was clearly articulated in the Japan India Strategic and Global Partnership Statement signed during the visit to Japan of our Prime Minister Dr Manmohan Singh last December. The Statement structures the commonalities of interest between the two largest democracies of Asia into a vibrant collaboration. The Partnership envisages a bonding across political, economic, defense, technological and other dimensions.
• We were deeply impressed by your keen interest in India's cultural performances during the inauguration of the India Japan Friendship Year. The time you spent at the colourful event was an indication of your desire to engage with India across multiple spheres, including cultural.
  
• Today, your presence at the business meeting highlights the importance placed by you in deeper economic bonds between our two countries . The large delegation of top industry leaders from Japan accompanying you is a measure of how India has seized the imagination of your business compatriots .
  
• The India-Japan economic engagement is not only a core concern of our business leaders, it is an essential and critical component of the larger Asian economic orientation. The world today is beset with uncertainties and risks. Going forward, there is a need for all economies to hedge the confronting challenges through diversification of their economic interests. This can come only through deeper interaction between business communities across the globe in a true partnership that will make the world a better place for millions of people.
• In the volatile scenario today, Asia needs to be more interdependent on its own resources and capabilities. Already trade within Asian countries has assumed great importance for the region. New trade agreements are being forged between nations that will further propel this trend. The regional grouping of the East Asia Summit has now convincingly taken its first steps.
• The leadership provided by both the Prime Ministers has been central to the process of trade and investment dialogue currently underway. Our two governments have been carrying forward the talks on Comprehensive Economic Partnership through the Joint Task Force as spelled out in the December Statement.
  
• Let me quickly enumerate the progress that has been made in our bilateral economic cooperation since then.
  
• Several Task Force meetings have been held since December. We are confident that we will be able to deliver on the promise of readying an agreement on an Economic Partnership by the third quarter of 2008, in time for the deadline of December 2008 that we have set for ourselves.
  
• The concept paper on the Delhi Mumbai Industrial Corridor has been completed. The project provides investment opportunities of $90 billion to investors from India, Japan and other places, as well as meeting key targets of doubling employment, tripling industrial production and quadrupling exports. Japan's support of this project is impressive and will assist in building the much-needed infrastructure required for India's industrial agenda. We expect the DMIC to transform not only the Industrial landscape of India, but to act as a platform for increased Japanese engagement in the neighborhood and beyond.
  
• The Visit of Mr Akira Amari, Minister of Economy, Trade and Industry earlier this year resulted in significant economic agreements being signed, on energy efficiency, global warming and intellectual property rights.
  
• The Japan External Trade Organization has already signed a MoU on strengthening business engagement between industry leaders of both sides. In particular, their MoU centers on bringing together the SME sectors of both countries. Already, the number of SMEs from Japan with business engagements in India has expanded rapidly and this will increase as other agreements fructify.
  
• JETRO has also set up an incubation facility for Japanese investments into India and has established a dedicated India desk at its Tokyo office. Such business to business engagement will be the determining factor for the success of our economic relationship. I am happy to know that India has become the only country, which will have two Business Support Centers - in New Delhi and in Mumbai. My congratulations go to the leadership of JETRO in planning DMIC Support Centres in the Six of the DMIC region states.
  
• Japanese ODA to India remains its largest to any country and we are deeply honoured by this gesture of the Japanese Government. The ODA is helping India build the key developmental institutions to strengthen our progress.
  
• These initiatives over the last year are a reflection of, and a trigger for, the rapid expansion of business between the two countries. Trade in goods has doubled over the last four years. FDI from Japan from projects announced already by large Japanese corporations aggregates close to $6 billion for the next five years. This figure is bound to go up as the DMIC takes shape.
  
• Most heartening is the confidence of Japanese financial institutions in investing in the Indian markets and companies. I believe such investment from India Portfolio Funds was $8.2 billion in March 2007. Almost 500 Japanese companies are now operating in India.
• The future is exciting for both countries. As India travels on its path of sustainable 9% growth and transforms into a developed nation, it Will have a domino effect on other economies. Sixty years after independence, India is becoming an engine of global growth. The rapid expansion of its middle-income consuming class will have favourable repercussions for producers all over the world, while its growing workforce expands to meet global demographic deficits. Japan's industry has natural complementarities with India's emerging industrial scenario and will benefit from India's growth.
  
• Your Excellency, India has always admired Japan's dedicated commitment to industrial development and has watched with appreciation as Japan became the first Asian country to join the league of developed nations. Japan's economic restructuring to make it the global leader in manufacturing and innovation is a role model for all developing countries.
• In particular, your interest in India is of profound significance for our efforts towards development. We are confident that with your support and engagement, India and Japan Will stand as an exemplary model for cooperation between a developed and a developing country.
  
• I wish to acknowledge the presence of the senior businessman and industrialists from Japan. I hope to have the privilege of meeting with each one of you to discuss and support your India plans. On behalf of my Government and people; I pledge our support for the common values and fructification of Japanese investments to our mutual advantage.
• I thank you once again for participating on this occasion. Your guidance will inspire us all.

Thank you