Making Gujarat a hot
investment destination for perfectionist Japan
Gujarat created a niche for
itself in the heart and minds of Japanese people
*****
§ On
the invitation of Government of Japan, Hon’ble Chief Minister Shri Narendra
Modi accompanied by senior officers and captains of business & industry
paid a visit to Japan from 22 – 27 July, 2012. The Ministry of Foreign Affairs,
Government of Japan as a host organization, managed the visit.
§ Shri
Mr. Narendra Modi is the only Chief Minister of any state who has been invited
by the Government of Japan and received unprecedented welcome in Japan. The
political leadership of ruling and opposition parties as well as business &
industry and Japanese media had tremendous interest and excitement in Gujarat. At
a time when whole world is reeling under the economic slowdown and Japanese
economy too passing through tough times, Gujarat’s double digit growth provides
a great hope.
§ He
has established Gujarat as front ranking State and ‘Gujarat’ means progress and
development. Japanese establishment – Government, industry and business wants
strong relations with this ‘miracle economy’ Gujarat. Mr. Narendra Modi left
last impact in the heart and minds of people of Japan about ‘brand Gujarat’.
§ He
showcased Gujarat as an ideal destination for investment and technology
transfer from Japan. He established emotional and cultural connect between
Japanese people and Gujaratis for long-term relationships.
§ Since,
2007, when Gujarat Chief Minister visited Japan, since then relations between
Gujarat and Japan have grown by leap and bounds. During the visit, Chief
Minister held a number of delegation level meetings with important dignitaries,
viz.
§ Deputy
Prime Minister Mr. Katsuya Okada
§ Minister
for Economy, Trade & Industry Mr. Yukio Edano
§ Minister
for Land, Infrastructure, Transport and Toursim Mr. Yuichiro Hata
§ Minister
for Foreign Affairs Mr. Koichiro Gemba
§ JETRO
Chairman Mr. Hiroyuki Ishige
§ Vice
Minister, Foreign Affairs Mr. Kazuyuki Hamada
§ Ex-Prime
Minister Mr. Yasuo Fukuda
§ Ex-Prime
Minister Mr. Shinzo Abe
§ A
number of Parliamentary delegations (MPs) and Swenators
§ Governors
of Hamamatsu Prefecture (state)
§ Governor
of Aichi Prefecture (state)
§ Vice
Governor of Aichi Prefecture (state)
§ Governor
of Hyogo Prefecture Mr. Toshizo Ido (state)
§ Vice
Governor of Hyogo Prefecture Mr. Yoshimoto (state)
§ Chairman,
Japan Chamber of Commerce & Industry (JCIC) Mr. Tadashi Okamura
§ Chairman
Keidanren ( Japan Business Federation) Mr. Hiromasa Yonekura
§ Indian
Chamber of Commerce & Industry
§ India
Centre Foundation
§ Members
of Indian Social Society, India Club and Indian Chamber of Commerce &
Industry, etc.
§ Hamamatsu
Chamber of Commerce & Industry Mr. Mimuro
§ Meetings
with President/ Chairman/ CEO/ MD of top Japanese companies (Fortune 500) viz.
Sumitomo Corporation, Toyota Motor Company, IHI, Hitachi, Bank of Tokyo
Mitsubishi, Mizuho Itochu Corporation, Kowa, Suzuki Motors, etc.
§ During
the four-day visit, delegation participated in investment seminars at Tokyo,
Hamamatsu, Nagoya and a round table conference with top industry leaders at
Osaka and various receptions organised of JETRO, JICA, Japan–India
Parliamentarians Friendships League, India Foundation Centre, Indians settled in
Japan and Japanese Government. All these meetings, seminars and round table
were attended by the members of delegations and officials of Indian Embassy and
Ministry of Foreign Affairs.
§ In
the last five years, Japanese diplomats and business/ industry leaders have
firsthand experience of decisive leadership, consistent and transparent policy
and good governance in Gujarat, which is driving Gujarat economy and bringing
investment. With Gujarat getting transformed into a modern manufacturing and
automobile hub with abundance of highly-skilled manpower and great emphasis on
new and green technology, Japan see Gujarat as their best investment
destination.
§ In
spite of Japan’s Parliament in session and Government busy in the midst of
highly debated and critical bill raising consumption tax to foot the rising
social security and healthcare cost of aging population, they invited the
Gujarat Chief Minister and arranged all the high level meetings.
§ At
Tokyo, he had a delegation level meeting with Mr. Yukio Edano, Minister for
Economy, Trade & Industry (METI) on various aspects of economy, industry,
business and growing trade and explored the opportunities to increase the
Japanese investment in Gujarat. Impressed with excellent infrastructure in Gujarat,
Japan sees Gujarat as best place to do business. Mr. Modi discussed a number of
innovative projects relating to renewable energy, infrastructure, tourism
promotion, water management, etc. with the Japanese Minister.
§ He
also had a wide ranging discussion with the Minister for Land, Infrastructure,
Transport & Tourism especially on Metro Rail, high speed connectivity
between various cities, other infrastructure, tourism promotion, air
connectivity between Tokyo – Ahmedabad as traffic and visits from Japan to
Gujarat and vice versa is on increase. Both leaders agreed that there is a wide
ranging areas where Japan and Gujarat should collaborate and it will be
beneficial to all.
§ He
also held a detailed discussion with Ex-Prime Minister Mr. Shinzo Abe, who is
known as friend of India and had initiated Delhi Freight Corridor (DFC) and
Delhi – Mumbai Industrial Corridor (DMIC). He reiterated his continued support
to promote investment in Gujarat and accepted the invitation from Mr. Narendra
Modi to Visit Gujarat.
§ In
spite of Japan’s Parliament being in session, Mr. Yasuo Fukuda, a highly
respected Ex-Prime Minister of Japan and a team of MPs held a wide ranging
discussion with the delegation led by Mr. Modi. Mr. Fukuda and MPs hosted a
reception in the honour of Mr. Modi. Last year, Mr. Fukuda along with Deputy
Prime Minister Mr. Kazuyuki Hamada had visited Gujarat and he recalled his
discussion with the Chief Minister. Japanese MPs had a lot of questions for Mr.
Modi and especially wanted to know more about the governance which led to this
double digit growth in Gujarat especially at a time when there is worldwide
slow down in the economy. Mr. Fukuda, spoke about greater Japanese investment
and transfer of newer technology to Gujarat. Mr. Fukuda admired the approach of
the Chief Minister and ensuring sustainable development leading to increase in
forest and mangrove cover, improved habitat management for wildlife. He
appreciated the steps taken by Mr. Modi on renewable energy and making the
state a policy-driven state.
§ Mr.
Modi held a high level meeting with Mr. Koichiro Gemba, Foreign Minister of
Japan. Mr. Gemba complimented Mr. Narendra Modi for his good governance, high
economic growth in Gujarat, sound management of economy and focus on
environmental management and green economy coupled with reforms to enable the
people of Gujarat to improve their lives. He promised to further support and
encourages Japanese companies to invest in Gujarat. Mr. Modi recalled the
historical relations between Japan and Gujarat, and wide ranging opportunities
available in Gujarat.
§ JETRO,
a government agency responsible for promotion of external trade and investment
has entered into a MoU with iNDEXT-b to promote Japanese investment in Gujarat.
Gujarat Chief Minister held a delegation level meeting with JETRO Chairman Mr.
Ishige, as Japan is the partner country for Vibrant Gujarat Summit. A detailed
plan was discussed for investment promotion and facilitating FDI in
Gujarat.
§ JETRO
organised a seminar on ‘investment in Gujarat’ wherein leading business and
industry leaders of Japan participated. In fact, response was so overwhelming
that JETRO has to stop registration on the last day and many of the leading
industries couldn’t attend. In a packed hall, Mr. Narendra Modi presented the
growing economy of India and pitched Gujarat as a leading destination in the
country. In his speech, he highlighted the socio-cultural ethos of Gujarat and
its people and strong values shared by Japanese and Indian people. In the
seminar, JETRO Chairman and other leading industries of Japan spoke about their
experience of Gujarat and its good governance and consistent policy.
§ Later
in the reception, attended by who’s who of Japanese business and industry, they
honoured Chief Minister Mr. Narendra Modi for his stupendous achievement and
showing a way forward to economy. Mr. Modi accepted their compliments with
humility and dedicated to the same to the people of Gujarat and their ethos and
culture.
§ Mr.
Modi had a meeting with President, Chairman, MDs and CEOs of top Japan
industries viz. Sumitomo Corporation, IHI Corporation, Mitsubishi Corporation,
Hitachi, Itochu, Bank of Tokyo, Mizuho Financial Group, etc. and discussed
their plan/ proposals for investment in Gujarat. He invited them to participate
in the forthcoming Vibrant Gujarat Global Investor Summit to be held in
January, 2013 at Mahatma Mandir, Gandhinagar.
§ In
a reception organised by India Centre Foundation, attended by a very large
gathering in a packed hall, Mr. Modi spoke about growing Indian economy,
infrastructure and conducive environment in Gujarat to live and do their
business. Mr. Modi also had meetings
with Mr. Tadashi Okamura and other members of Japan Chambers of Commerce &
Industry, Keidanren’s Chairman Mr. Hiromasa Yonekura and other senior members
and Mr. Ken Matsuzawa, head of International Friendship Exchange Council. In
these meetings, areas of cooperation in business, economy, trade, investment,
culture, tourism, etc. were firmed up to enhance the bilateral growth between
Japan and Gujarat.
§ Mr.
Kazuyuki Hamada, Deputy Prime Minister received Mr. Narendra Modi at Prime
Minister’s Office and had an extended meeting on various aspects of Gujarat –
Japan relations. The meeting continued beyond the scheduled time and both
leaders discussed a number of areas for possible cooperation. Mr. Modi extended
an invitation to Mr. Hamada to visit Gujarat at the earliest. Deputy Prime
Minister accepted the invitation and showed his keenness to visit Gujarat on
the first opportunity.
§ Government
of Japan hosted a reception in the honour of Mr. Narendra Modi, which was
attended by Ministers and senior officials.
§ From
here, Mr. Modi along with his delegation accompanied by Vice President of JICA
and officials of the Ministry of Foreign Affairs travelled to Hamamatsu – the
city of Suzuki, where was received by Mr. Suzuki and had a high level meeting
with Mr. Suzuki, President Suzuki motors, meet its engineers, visit Suzuki
R&D Centre. Mr. Suzuki explained their plan especially vendors, jobs and training
to Gujarat’s engineers at Japan so that they learn the whole production
process. He also explained the requirements of various component vendors who
all are coming with Suzuki Motors to Gujarat.
§ In
Hamamatsu, Chief Minister also addressed a huge gathering of CEOs of world
famous automobile companies and various component makers. A reception was
organised where Governor and Vice Governor of the Prefecture and Mayor of the
city along with top CEOs of companies and Chairman of Hamamatsu Chamber of
Commerce & Industry were present. The Indian business delegation interacted
with famous automakers and various auto-component makers at Hamamatsu.
§ Osaka
– Tokyo corridor is like Delhi – Mumbai Industrial Corridor and the delegation
covered all major industrial centres like Tokyo, Hamamatsu, Nagoya, Osaka and
Kobe. At Nagoya, JETRO organised a seminar wherein delegation participated and
explained the strength of Gujarat. The Governor and Vice Governor of Aichi
Prefecture also held a detailed meeting with the delegation led by Hon’ble
Chief Minister. A reception was also held by JETRO where Governor, Vice
Governor, Head of Chamber of Commerce & Industry felicitated the Chief
Minister. One-to-one meetings with top industries were held and a number of
manufacturing SMEs showed keen interest to investment in Gujarat.
§ At
Osaka, the delegation led by Chief Minister attended a round table conference
and reception organized by Mizuho Bank. Here the delegation led by Hon’ble CM
also had one-to-one meetings with more than 30 companies interested in
investment in Gujarat. They are supported by the Mizuho Bank. The Osaka
Consulate General Mr. Vikas Swarup ably assisted by his team facilitated the
meetings.
§ At
Kobe, the delegation attended a reception organized by the Indian Community
where many of them showed interest in setting up their ventures in
Gujarat. The Kobe, one-to-one meetings
and interaction took place with the captains of Indian Chamber of Commerce and
Industry.
§ The
delegation also visited Kobe port areas and it was explained in the detail
about facilities and its functioning. There are many things which a state like
Gujarat can learn from Kobe port. The Kobe was also affected by devastating
earthquake in 1995. In 2001, Kobe was among the first State who came forward
with all help and assistance. The delegation led by CM had a high level meeting
with the Governor and Vice Governor of Hyogo Prefecture and a number of areas
where collaboration is possible and will be beneficial, were discussed. H E
Governor showed keenness to work closely with Gujarat in various areas like
cyber technology, port development & management, disaster management, etc.
§ A
reception was also hosted by the Hyogo prefecture attended by high ranking
officials, viz. Vice Governor, Mayor, Foreign Affairs officials, industry &
business leaders, etc.
§ During
the visit, Hon’ble Chief Minister and delegation met more than 2,000 companies
varying from medium to Fortune 500 companies and attended about 65 programmes,
4 seminars/ round table, in a 4-day visit.
§ Overall
the visit was an unprecedented success and Japan Government, business and
industry leaders were highly excited and expect a lot of business with Gujarat.
The biggest contribution of this visit has been the effective showcasing of Gujarat
as a brand with whom Japan would like to do business and their industry would
like to make investment. Gujarat has created a place among heart and minds of
people of Japan which will yield very rich dividends. It will now be much
easier for Gujarat to attract investment from Japan and enable Gujarat based
business and industry to do business with Japan and forge partnership. With the
strengthening of this process, people of Gujarat will have better opportunities
to realise its full potential.
§ Outcome:
Distinct & Historic
§ After
the first visit of Narendra Modi to Japan in April 2007, a series of activities
and flow of people from Japan had already started. This includes Japan’s
participation in Vibrant Gujarat Summit, agreement with JETRO to set up
Japanese cities, the setting up of a desalination plant and agreement with
Maruti-Suzuki to set up their plant.
§ With
the current visit of July 2012, this process has been tremendously
strengthened. From the response of the Government, Industry and various
Chambers of Commerce and Industry, it was very clear that the Japan side has
developed strong liking for Gujarat as a place to live in and work. Both sides
felt, agreed and decided that it is in their best interest to work together.
Since, the Japanese industry and people are viewing Gujarat as their second
home, the Chief Minister of Gujarat assured them that in Gujarat, they should
feel as if they are in Japan only. He repeatedly said that they should feel part of the Gujarat
family. This expression and assurance of
Gujarat Chief Minister touched the heart of every Japanese present.
§ This
was echoed, expressed and established in meetings with the Government
dignitaries like Minister METI, Minister LITT, Minister Foreign affairs, and
the Deputy PM as well as as ex-PMs like Mr Abe and Mr. Fukuda and Hon.
Governors of Hamamatsu, Aichi and Hyogo and various other political
dignitaries.
§ Both
sides showed their keenness to quickly to give a formal and more productive
shape to this spirit and further streamline the channels of exchange and
interaction between both sides. In this direction, the following was agreed
upon.
§ Hon
Minister of METI in Japan suggested that there should be a formal structure for
consistent dialogue and continued interaction and regular follow up between
Japan and Gujarat. The Chief Minister assured him of that. It was agreed that
soon, a structure will be evolved with that purpose.
§ Japan
Government including the central Ministers, Governors and other dignitaries who
met the Chief Minister of Gujarat expressed interest in Vibrant Gujarat even
and assured of large scale participation from the side of Government and
Industry.
§ Looking
to the increasing frequency of visits of the Japanese to Gujarat, and also
looking to increasing potential of Tourism, including Buddhist tourism, in
Gujarat, the Chief Minister of Gujarat suggested to the Hon. Minister of
LITT of Japan that there should be a
direct flight from Japan to Ahmedabad. Hon Minister said that it is his own
department and he will seriously examine the issue.
§ It
was also discussed at all forums that both sides will work together to enhance
understanding of both sides and particularly to make Japanese feel at home in
Gujarat. In this direction, specific points which were agreed upon were: more
and more student exchange, promoting Japanese cuisine and enhancing the
learning of Japanese language in Gujarat. In fact, during the process of the
visit, some entrepreneurs expressed interest in opening Japanese language
school and also Japanese Hotel/restaurant in Gujarat.
§ At
every place and forum and at every meeting and reception, the response was
unimaginable. This showed the keenness of Japan to understand Gujarat as a
formidable location to grow and a lucrative location to live at. Looking to
this, the Chief Minister assured them that the work on the two Japanese
townships will be expedited. These Japanese townships will have among other
facilities, the Japanese industrial park, Japanese Schools and other amenities.
This will be done in consultation with the JETRO and METI.
§ The
Delhi Mumbai Industrial Corridor (DMIC) and the Special Investment Regions
(SIRs) were the main center of discussion in Japan. The Japanese Government,
its leadership and Industry is keenly following and is deeply interested in
these mega projects and the components of these mega projects. Japan Government
also expressed its support to some flagship early bird projects of Dholera
SIR.
§ The
Chairman & CEO of Suzuki expressed that they will soon start the work on setting
up their proposed car manufacturing plant at Mandal SIR. He also said that the Gujarat Government
should be assured that a large number of vendor units will also come alongwith
the main plant. The Chief Minister assured him of all the infrastructure
facilities in the area.
§ Mr.
Suzuki also said that, to begin with, they will bring 500 young trainees from Gujarat to Japan for
training for long term training. Thereafter they will be employed and deployed
in their Gujarat and other plants. He
also added that the employment potential is much more than this which they will
develop in the manufacturing plant of Suzuki at Mandal-Becharaji.
§ A
large number of entrepreneurs who met the delegation and the Chief Minister
expressed keenness on setting up industry and base in Gujarat. They include
industries in various sectors, a large number of SMEs of Japan and some of the
biggest names in Japanese industry.
§ Particularly,
the SME sector of Japan is aggressively interested in setting up industries in
Gujarat. This will lead to employment generation in the State, technology
upgradation of the Gujarat SMEs and overall productivity and price
competitiveness in Gujarat Industry.
§ Looking
to the interest of Japanese industries in Gujarat of the leading Banks of Japan
expressed desire to open branch in Ahmedabad and also to take stakes in various
projects specially those coming under the purview of DMIC and the SIRs. With
this objective Mizhou Bank had also organised an interaction of Japanese
Industry with the Gujarat Chief Minister.
§ The
representative bodies of Industry including JETRO, JICA, JBIC, Keidanren, Japan
Chamber of Commerce and Industry, Hamamatsu Chamber of Commerce and Industry,
Osaka Chamber of Commerce and Industry and the Hyogo Chamber of Commerce and
Industry expressed unequivocal confidence and interest to work in and with
Gujarat.
§ Japan’s
interest and keenness to partner with Gujarat was also clear from the fact that
the Japan Government gave very high place in protocol to the Chief Minister and
his delegation. In fact, it is unprecedented that Japan Government invites the
Chief Minister of a State of India and gives so much importance and attention
to his visit.
§ It
was also clear that Japan has accepted the standards and benchmarks implemented
by Gujarat Government, its industry and administration and feels comfortable to
relate to and work with in such an environment.
§ This
visit has also led to some of the most significant developments in
socio-cultural fields. A global temple of Lord Buddha to be built at ‘Dev ni
Mori’ and participation of Hyogo prefecture (Kobe city) in disaster management
systems of Gujarat are a few examples.
§ It
was visible from the presentations and interactions that Gujarat’s processes of
administration and policy vision has got global bench marking and the Japanese
are more than convinced about the efficacy of the systems of Gujarat.
§ Many
companies were targeting to form joint ventures with Gujarat based companies.
From this, it was also clear that they feel comfortable with the business
spirit and business acumen of the people of Gujarat. They find reliable
partners in the people of Gujarat.
§ Overall,
this visit was a historic and path breaking visit. Historic in the sense that a
developed country like Japan accorded so much importance to a State of India
and its leader is unprecedented. It is path breaking in the sense that with
Gujarat – Japan partnership there a strong likelihood of a paradigm shift in
terms of technology and quality upgradation, process discipline and in overall
productivity in various sectors. As the Chief Minister of Gujarat said it is
foreseen that Japan’s strength in hardware and that of India in software, and
technology of Japan and talent of Gujarat is meeting together to give a higher
level of satisfaction and sustainability to not only both countries but to the
entire world community.
*****
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