Japanese keen on India as PM Abe reboots Japan's economy

With Shinzo Abe winning the race for Japan's Prime Minister, Japanese companies are looking forward to measures to boost growth. And this is good news for Indian infrastructure projects, which have enjoyed strong Japanese participation, reports CNBC-TV18's Manasvi Ghelani.

The deadlock in Japan's Parliament has broken. And new Prime Minister Shinzo Abe is has one of the strongest political mandates in years to help him continue pulling Japan's giant economy out of its long-term decline.

Also Read: PM Abe's bloc wins big in upper house vote

Accordimg to Haruo Shimada, president, Chiba University of Commerce, "Abe and his Cabinet changed the monitory policy completely. This lured the international community came back and start investing. This caused stock prices to jump up and lowered the exchange rate of the Yen to allow Japanese industry to export more and is a stong boost for the revival of the Japanese economy."

This is good news for India. It can now capitalise on Japan's long-term lending capacity and low interest-rate regime to attract financing for cash-strapped landmark infrastructure projects.

Amitabh Kant, MD and CEO, DMICDC, says, "Much of China's manufacturing revolution was led by the Japanese. Now the Japanese think they have over-invested in China and are looking at other options. India needs to tap this opportunity."

The Delhi-Mumbai Industrial Corridor, which was recalled to life a year ago, is one such beneficiary. So far, the project has seen capital infusion of about US 4.5 billion from Japanese firms who hold 26 percent equity in the project. And crucial funds at advanced stages of the project should now become easier to access.

Experts say other such projects such as the Chennai - Bangalore Corridor for which feasibility study has been completed; the Bangalore - Mumbai Freight Corridor for which a feasibility study is underway and the Kolkata - Delhi Corridor for which a feasibility study is all set to begin, may also get a fillip.

But infrastructure is not the only area of interest. Japanese companies have shown interest in sectors like agriculture, medical services, education and energy. And as Japan looks to reboot growth, these sectors in India could also witness significant investment.

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