Bullet train project to enhance economic opportunities: PHD Chamber

While complimenting India and Japan on decades old strong economic and business linkages and significant milestones year after year, said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry, Bullet train project will be a game changer for India’s infrastructural growth story.

This breakthrough is going to provide an all-round economic opportunity including state-of-the-art infrastructure, boost to employment opportunities for unskilled, semi-skilled and skilled workforce, enhancement to foreign investment and enhanced business activity, said Mr. Gopal Jiwarajka.

Based on strong complementarities and growth prospects going forward the trade between two nations has the potential to reach USD 20 billion by 2022.

The total trade between India and Japan has increased from mere USD 6.13 billion in 2005-06 to USD 13.64 billion in 2016-17. India’s exports to Japan increased from USD 2.46 billion in 2005-06 to USD 3.83 billion in 2016-17; and India’s imports to Japan increased from USD 3.68 billion in 2005-06 to USD 9.81 billion in 2016-17.

India’s exports to Japan are majorly focused on consumer goods (36.6%). On the other hand, being a capital intensive and abundant nation, Japan’s exports to India majorly focused on capital goods (46.1%). This clearly describes the characteristic India being a relatively more labour-intensive nation is exporting more consumer goods to Japan, added Mr. Gopal Jiwarajka.

Japan has recently overtaken UK to become the 3rd biggest investor in Indian market. The FDI flows from Japan has accumulated to USD 26.2 billion during April 2000 – June 2017, which is nearly 8% of India's overall FDI during this period. In addition, with promised FDI worth USD 35 billion by Japan by 2020, India can enhance its infrastructural capabilities towards new high, said Mr. Gopal Jiwarajka.

In the past decade, Japanese FDI into India has mainly been in automobile, electrical equipment, telecommunications, chemical and pharmaceutical sectors. Further, the presence of Japanese companies in India has been steadily and substantially increasing, added Mr. Gopal Jiwarajka.

The proposition to establish high speed bullet train by Japan in India will surely enhance India’s development prospects comprehensively and holistically. India’s inordinate and skilled human capital highly aligns with the technological capabilities of Japan in creation of employment opportunities and boost in the economic activity, said Mr. Gopal Jiwarajka.

The bullet project covering the Mumbai – Ahmedabad corridor will not only expand the business activity around the zone but also the employment opportunities in the coming years, said Mr. Gopal Jiwarajka.

It is imperative for both the nations to comprehend on the favourable complementary scenario and intensified business to business and people to people relationship and reinforce the same in the coming times, added Mr. Gopal Jiwarajka.

Going ahead, growth prospects for business, trade and development between two countries seems to be very promising and sustainable in the coming years. Both nations should continuously engage in discussions related to mitigating bilateral trade issues, defence ties, renewable energy, skill development and other vital areas, said Mr. Gopal Jiwarajka.

As India is moving ahead as the top leader in growth of its economy, the establishment of such strong relationship with Japan will surely flourish India’s development story to a new high and sustain the growth momentum for the coming years, added Mr. Gopal Jiwarajka.

Last but not the least, India and Japan has a very promising future going forward as fundamentals are creating complementarities and opening of new avenues for a sustainable growth, said Mr. Gopal Jiwarajka.