New Delhi: For many Japanese companies, India represents the future but some obstacle need to be removed before they start "meaningful investment" here, an envoy said. (Agencies)
Economic Minister at Embassy of Japan Tamaki Tsukada cited a quote from Japanese technology giant Hitachi that "Japan in the past, Thailand now, India in future" to express the interest of Japanese companies in India.
"This shows production base is actually shifting. They are looking to future in India," Tsukada said while speaking at Electronics Manufacturing Industry round-table organised by industry body Assocham.
"They perceive India as very promising base for exports. There are very important promising conditions developing in India. So, we need to develop this robustly," he said.
The diplomat further said that there are some obstacles that "we need to remove before we embarking on some meaningful investment". He said uncertainty in policy matters is an issue.
"This is one of the basic conditions for investors to make long term investment. If there is uncertainty, there will be no investment," the diplomat said.
Tsukada raised the issue of desktop personal computers and Dot matrix printers coming under the list items under preferential market access policy---giving preference to domestic products in government procurement.
"Preferential Market Access policy....The desktop PC and Dot matrix were listed in notice without consultation with industry and some industries have complained that this was rather abrupt and they wanted some time," he said.
The Japanese diplomat also said that some electronics product standard issued by government "were little unfriendly to industry. "We wish to raise here the need for sufficient transition period to adjust to new regime," he said.
Department of Electronics and Information Technology (DEITY) in September 2012 made registration of electronics product in 15 categories mandatory before being sold in the country.
DEITY Joint Secretary Ajay Kumar said that Indian government's policy on electronics is a result of recommendations from Industry and government started consulting the policy draft from 2011 onward.
"The policy (National Policy of Electronics 2012) is a creation of industry task force. The draft of the policy has been discussed since 2011 onwards," Kumar said.
He added that after wide consultations, the final policy approved by the government is legally sound and stable.
Government is expecting investment of Rs 25,000 crore in the Indian electronics sector during this calendar year.
New Delhi: For many Japanese companies, India represents the future but some obstacle need to be removed before they start "meaningful investment" here, an envoy said.