Japan and India to launch joint investment fund
Japan and India are to launch a joint investment fund to help finance Japanese companies operating in India.
The fund - which is expected to manage between JPY30 billion to JPY40 billion ($287 million to $383 million) - will focus on those Japanese companies which lack funding but show good growth potential.
According to Nikkei, the Japanese government is working in cooperation with the Japan International Cooperation Agency and the Japan Bank for International Cooperation and hopes to announce the creation of the fund later this month to coincide with Prime Minister Shinzo Abe's visit to India. The two governments will also launch a joint study committee next month.
The fund is likely to focus on auto parts makers, consumer product manufacturers, IT and semiconductor-related firms. Support will also be extended to Indian firms working in cooperation with Japanese companies and joint ventures between the two countries. An advisory board made up of Japanese and Indian government officials will select companies eligible for investment.
Foreign investment in India - which peaked in 2008 - was down to just over $25 billion in 2012, according to the International Monetary Fund.
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