With a large number of Japanese companies pulling out of China in view of the Covid-19 pandemic, Karnataka is aggressively pitching to attract these firms, but has to face intense competition from within country and abroad
We have earmarked 300 acres of land near Bengaluru: Shettar
After the searing impact of Covid pandemic, Karnataka, the fourth-largest economy in the country, is aggressively looking at Japan for attracting large investments. Industries Minister Jagadish Shettar said, “In the recent past, we have worked hard legally to frame an investor-friendly legislation. We have earmarked about 300 acres of land, which is just an hour’s drive from Bengaluru, which can exclusively accommodate hundreds of Japanese companies.
We can also increase the area if the need be. Any investment of up to Rs 500 crore can be cleared by me in one stroke, while anything over that can be okayed by Chief Minister BS Yediyurappa. This will eliminate all the bureaucratic red tape that investors usually accuse us of.” He said, “We have set up a committee of officers under Chief Secretary TM Vijay Bhaskar, which has the finance secretary and a few other senior bureaucrats as members.
It can also accommodate representatives of countries where the investment is coming from, including Japan. The committee will iron out any concerns and make the investment process smooth.” He said, “We are consulting global experts and are keen to enhance Japanese investments in the state. We have the wherewithal and companies can come here and plug and play.” Over 1,300 companies from Japan have invested in the country, but it constitutes only 5 per cent of investments abroad by that country. Its investments in China are about $124 billion, but it is committed to divert $2.25 billion from China back to Japan or possibly to other countries.
Can look at 3% of India pie: Expert
Ray Vikram Nath, a consultant based out of Delhi who works on Japanese investments in India, said, “While Japan is seeking to diminish its dependence on China, its investments of $124 billion are of interest to India. We can look for a large portion of this in Karnataka. I have worked in Japan for many years and understand Japanese concerns. Nomura had said about 3 per cent of $314 billion could come to India. Karnataka will have to work nationally with a new entity, Japan Plus, set up by the central government to deal exclusively with issues concerning Japan. Karnataka has to ensure that we are the preferred investment destination against other states like Andhra Pradesh, Tamil Nadu, Telangana, Maharashtra and others. At the global level, we have to to compete with Vietnam, Indonesia, Taiwan and others.”
Only the best will get investments: Industrialist
It is a competitive world. Everyone from across the world is trying to get Japan’s investments. Only the fastest and the one who is able to make the best offer wins, said industrialist D. Muralidhar, who has manufacturing facilities and investments in Vietnam, China, Singapore and other places. He was earlier a member of the Karnataka Planning Commission and member of the IIM Board of Governors.
He said, “We need to work in tandem with the Union government and the foreign offices. We have to reach out to Japanese companies and find out their requirements. The state government has to work proactively to provide those requirements here.” He said, “Look at Vietnam, where the government has offered entire villages.
Japanese companies have taken these vast stretches of land and have built restaurants, schools and other facilities. We have to understand that Japan had a very closed culture. I recall that they were looking for land on the Mysuru-Bengaluru Road for an exclusive township some years ago. But people at the helm were sluggish and the investment never came.”