In its keenness to build small city projects across the country, Japan in a recent move has identified 11 sites to set up industrial townships in India, including Tumkur in Karnataka, Ghilot in Rajasthan, Mandal in Gujarat and Supa in Maharashtra, among others. In addition, the country will also provide soft-skills training to Indian workers in the manufacturing sector to help bridge the demand-supply gap as these townships will also serve as investment hub for investors from Japan. The move would help strengthen bilateral economic ties as the investors from Japan are already the primary investors in India's economic corridors, said official sources, adding that the details are being firmed and that the move will strengthen domestic manufacturing, support the 'Make in India' campaign and ensure transfer of technology. The Indian government on its part plans to give concessions to Japanese companies in the industrial townships, equivalent to at least what is offered to units in special economic zones and the proposed National Investment & Manufacturing Zones.
They further said adding that the development of the townships will be assisted by the respective state governments, the Department of Industrial Policy & Promotion and Japan's Ministry of Economy, Trade & Industry. The sectors will be wide-ranging, right from auto components to textiles, food processing and engineering. In this connection, Japanese Minister for Trade Yoichi Miyazawa met Indian Minister of State for Commerce and Industry Nirmala Sitharaman recently and they also inked a five-point agenda for the development of Japanese industrial townships, promotion of investment and infrastructure development, further development and cooperation in the IT sector, enhancing cooperation in strategic sectors and advance Asia-Pacific economic integration. Japan has invested $4.5 billion in the first stage of the Delhi Mumbai industrial corridor through lending by Japan International Cooperation Agency and Japan Bank for International Cooperation, they added.