Bengaluru: Karnataka on Wednesday beckoned Japanese firms to invest more in the state and enhance the economic and trade relations between India and Japan.
“We look forward to increasing investments from Japanese firms and investors in the southern state to strengthen the economic and trade relations between India and Japan,” said state Chief Minister B.S. Yediyurappa here.
Addressing a day-long ‘India-Japan Business Forum’ in a virtual conference, organised by the Indian Chamber of Commerce (ICC), the Chief Minister said a 519-acres of the Japanese industrial township has been built near Tumkuru to enable more Japanese investments in the state.
Tumkuru is about 70km northwest of Bengaluru in the southern state.
“Japanese investors and firms can take advantage of the incentives, including 25 per cent capital subsidy offered by us on land to set up their operations in the township across verticals, especially electronic manufacturing,” said the Chief Minister.
For economic growth and infrastructure development, Yediyurappa said the state encouraged foreign direct investment (FDI) from Japanese firms across sectors under the India-Japan comprehensive economic partnership pact, signed between the two countries in August 2011.
“Japan is an important partner for us to promote growth with equity. The NITI Aayog 2019 Innovation Index placed Karnataka on top owing to availability of quality human resources, reputed educational institutions and thrust on research and development,” asserted Yediyurappa on the occasion.
FDI from Japan doubled to $3.2 billion in 2019-20 from $1.6 billion in 2017-18 across the country.
“As we are on the forefront of attracting FDI, we will set up a benchmark post-Covid-19, as the state is first among the states to lift lockdown restrictions gradually for reviving the sagging economy,” reiterated Yediyurappa.
As knowledge hub, Karnataka and its capital Bengaluru are reputed the world over for strengths in IT, back-office services, biotechnology, machine tooling, aerospace, manufacturing and engineering design.
The Japan External Trade Organisation (JETRO) has set up a Startup Hub in the city in 2018 to identify Indian startups for the Japanese market.
“As a pioneer in IT-BT, we have policy measures to promote startups and create an ecosystem for their growth with the Karnataka Innovation Authority, a law passed through Legislation in November 2019,” recalled Yediyurappa.
The state government has simplified processes, set up a single window for investors and engaged in regular discussion with the industry to create a stable, policy-driven environment for ease of doing business in the state.
“With an investor-centric approach, we have unveiled a new industrial policy (2020-2025), offering production-linked incentives to create jobs for our youth,” added the Chief Minister.
The state government has liberalised labour laws to attract investments and create jobs in all sectors.