Japan Weighs $30B In Assistance To Indian Infrastructure

Japan aims to make India a hub for production and exports to Europe and the Middle East.

TOKYO (AP) - Economy, Trade and Industry Minister Akira Amari is expected to unveil a plan to extend $30 billion, or 3.7 trillion yen, to help build industrial infrastructure in India when he visits the country from late June to early July, industry ministry officials said Thursday.
Japan's envisaged assistance would cover part of India's $90 billion, 12-year program to promote industrial infrastructure projects in the country beginning next year, the officials said.
Indian leaders are likely to welcome Amari's plan. It will be Japan's biggest investment for industrial infrastructure development in a single country.
Prime Minister Shinzo Abe plans to officially agree the plan with the Indian side during his planned visit to the country in August, the officials said.
The $90 billion program includes the building of a high-speed freight railway system between New Delhi and Mumbai, the development of a harbor in the state of Gujarat and the construction of industrial complexes in the state of Rajasthan.
By supporting the development of railway and distribution systems in the emerging economic powerhouse, Japan is aiming to make India a hub for production and exports to Europe and the Middle East, according to the officials.
The assistance will also bolster Japan's trade with India, which has a mammoth market with a population of more than 1 billion.
During his June 30-July 3 trip to New Delhi and Mumbai, Amari will be accompanied by top executives from a dozen major Japanese companies interested in investing in India.
India plans to shoulder the rest of the $90 billion infrastructure development program. Several major Indian companies are considering procuring part of the $60 billion via Japanese financial markets, the officials said.
The vast majority of Japan's $30 billion assistance is likely to come from the private sector in the form of foreign direct investment, they said. The remainder will come in the form of government loans.
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