Tamil Nadu could soon sign agreements with several large Japanese companies that are looking to invest big money, to set up their factories, in the State.
Chief Minister J Jayalalithaa’s government is looking to bring in more Japanese FDI in the manufacturing and infrastructure sectors. "...The auto sector (alone) accounts for about 60% of Japanese FDI in Tamil Nadu. I am confident Chennai will emerge as the world's largest auto cluster," she said after inaugurating a Toshiba JSW Turbine and Generator factory on the outskirts of the city.
1,422 Japanese companies have operational bases in India of which 286 are based in Tamil Nadu. Chennai has the largest share of these operations with 20.11% of the total operational bases, according to a PTI report published in The Hindu Business Line.
"The Joint Steering Committee consisting of the (State government) and the Ministry of Economy, Trade and Industry, Japan, (METI), has identified a number of infrastructure projects for co-operation,’ Jayalalithaa said. These will include the promotion of new industrial parks, Japanese Industrial Townships, logistics parks, waste water treatment plants and desalination plants, reports an IANS news story published in CIOL.
Will these MoUs provide opportunities for Indian SMEs? Time will tell.