Many Japanese firms export steel to India but do not allow Indian steel into Japan, and such an unfair trading practice is a concern, Commerce and Industry Minister Piyush Goyal said on Friday.
Piyush Goyal said Japan's export to India has been rising but India's export to Japan in the last 15 years has not increased much
Many Japanese firms export steel to India but do not allow Indian steel into Japan, and such an unfair trading practice is a concern, Commerce and Industry Minister Piyush Goyal said on Friday.
"Sadly I have seen in the last 15 years India's exports to Japan are not increasing whereas Japanese exports to India continue to rise. Many of the Japanese investments that happen in India source their input products from Korea, Japan, Taiwan and even China. And bring that to India and use India only as a demand or only as a country to sell their products," he said.
"A case in point is steel. Japan is keen to send or export their steel from Japan to India. But the Japanese companies don't allow any Indian steel to be sold in Japan. This kind of unfair trading practice is certainly a matter of concern for us," he added.
Goyal was speaking at the Japan-India Economic and Investment Forum organised by Nikkei in New Delhi.
He said reciprocal access was important for both counties to grow. He offered Japanese firms to work in India and also export to Japan to balance trade.
"Make a bridge that works not just one way, but both ways," he said.
The comments came when the minister was asked about the government's plan for facilitating Japanese capital in India.
The minister also said that the government was ready to handhold investors for starting a business in India.
He said India wants to showcase itself as an investment destination based on its own strength and not on the fact that if companies are pulling out of China or not.
"We have talent, we have demand... and we have industrial townships," he said.
Goyal invited Japanese firms to come and set up businesses in India and assured that the government will create an investment friendly environment.
Terming Japan as India's one of the closest allies, the minister said India and Japan have strong strategic partnership and the country has helped in India's economic growth
Japan is India's fifth largest source of foreign direct investment.
Goyal said that more than 1400 Japanese firms are working in India which shows their confidence in the country.
The minister highlighted the investments of Japanese firms in various infrastructure projects including bullet train and metro train projects in cities like Mumbai and Bengaluru. He said collaboration of Indian and Japanese companies is shaping the future of mobility in the country.
"Brand India and Japan are working to make global brands," he said.
"Participate in India's growth story. Collaborate in green energy, renewables, semiconductors and electronic goods."
Highlighting the government's schemes like Make in India and PLI, the commerce minister said India's target to raise the share of manufacturing to 25% of gross domestic product has the potential to create huge job and growth opportunities.
"We look to raise it (manufacturing sector's share in GDP) through Japanese cooperation," he said.
Nikkei India is hosting the Japan-India Economic and Investment Forum aimed at promoting bilateral growth and investment opportunities in the two countries.