India has announced 13 PLI schemes in wake of the Covid-19 pandemic last year to encourage large companies to ramp up its manufacturing base and boost exports. The total incentives under the PLI schemes, covering sectors such as telecom, electronics, auto parts, pharma, food processing, medical devices, white goods and textiles, are pegged at Rs 1.97 lakh crore over a five-year period.
“These are precisely the areas where Japan is known globally. We look forward to a lot of interest from Japan to participate in the PLI scheme,” Mohapatra said at an event organised by industry chamber Ficci and the India-Japan Business Cooperation Committee.
He said an Empowered Group of Secretaries has been setup to fast track and handhold such investments, and a single window to help investors will be launched on April 15.
Explaining that the Covid-19 pandemic led to a fall in exports to Japan and disrupted the supply chains of Japanese companies, leading to adoption of de-risking strategies by companies across the globe, Mohapatra said: “Japan has offered special incentive package to Japanese companies and this provides India a unique opportunity to attract fresh Japanese investments”.
Japan is the fifth largest contributor to the foreign direct investment (FDI) equity inflows into India, at around $34.1 billion from April 2000 to September 2020.
Mohapatra said welcoming and raising the automatic level of FDI in defence production and insurance are the two major changes that India has made and the country is one of the most open FDI economies in the world.
On the India-Japan Industrial Competitiveness Partnership, the secretary said that discussions have started, joint working groups have been formed and “we are making steady progress”.
“Industrial competitiveness is of special interest to India,” he said, adding that the India-Japan investment promotion partnership focuses on the next generation infrastructure, connectivity, transport systems, smart cities, rejuvenation of rivers, manufacturing, clean energy, skill development, water security.