The Indian government has invited Japanese companies to invest in infrastructure projects in India.
Speaking at a business forum in Tokyo, Indian prime minister Manmohan Singh said that the infrastructure deficit, especially in the fields of power and transport, is posing a major constraint to India’s growth.
“We need to close the infrastructure deficit, especially in the fields of power and transport and communication. This is a major constraint on our development and we shall give high priority to infrastructure development and modernization in the years ahead. We will rely on both public investment and public-private partnership to achieve our infrastructure targets,” Singh said.
He also said that a target of $1 trillion has been set aside for infrastructure projects in the next five-year plan beginning 2012 and invited Japanese companies to invest and play a more significant role in achieving this target. He also suggested that private investments will play a large role in achieving this target.
According to government estimates, India has been the largest recipient of Official Development Assistance (ODA) from Japan since 2003. Following the metro rail project in Delhi, Japanese ODA was received for other metro projects in Kolkata, Bangalore and Chennai.
Meanwhile, prime minister Singh also mentioned that India will look to Japan for its highly ambitious Delhi-Mumbai Industrial Project that aims at developing and expanding infrastructure and industry across six states in India.
“Japan is our partner of choice in the Delhi-Mumbai Industrial Corridor project (DMIC). This is a mega project covering a length of over 1,480km across six States of India. We welcome in particular the involvement of Japanese companies in the development of “smart communities” in the DMIC area,” Singh said.
India has targeted an ambitious $500 billion of infrastructure investment in its five-year plan ending 2012 and $1 trillion by the end of 2017. It is looking for heavy private investment in order to reach these targets.