Piyush Goyal interview: Ready to act on feedback, expect Japanese investments to pick up pace

Piyush Goyal interview: Ready to act on feedback, expect Japanese investments to pick up pace 'Have to create India an attractive case on its own merit and not just as it's China plus one'.

Key points

• Union Commerce and Industry Minister Piyush Goyal with Governor of Aichi Prefecture Hideaki Omura during a session, in Nagoya, Japan.
• In ten months, Japan invested Rs 1 lakh cr out of Rs 7 lakh cr targeted for 10 yrs: Goyal.
• The first set of Section 301 tariffs have not been extremely harsh like they were last year.
• New Delhi is not only seeking higher investments from Japan but is keen to deepen its economic partnership with Tokyo.
• It was confirmed last year, and in 10 months it has already reached $10 billion.

Union Commerce and Industry Minister Piyush Goyal with Governor of Aichi Prefecture Hideaki Omura during a session, in Nagoya, Japan. (@PiyushGoyal/X via PTI Photo).

New Delhi is not only seeking higher investments from Japan but is keen to deepen its economic partnership with Tokyo. In an interview to The Indian Express, Commerce and Industry Minister Piyush Goyal remarked after his four-day visit to Tokyo, Nagoya and Osaka, he hoped that the pace of investment will pick up further. To growth its presence in Japan, he stated India must strive to become its global sourcing partner, and that businesses need to be more outward-looking. Edited excerpts.

How far do you think review of trade deals signed with Japan will yield benefits for India?

It took us so plenty of years to secure them to the table to talk. As of now, even terms of reference have not been discussed. We have just done a macro level opening.

In all the FTAs we have put some unique element, and we have negotiated from a position of strength. Like we have done with the European Free Trade Association (EFTA) that includes Iceland, Liechtenstein, Norway, and Switzerland and they have committed $100 billion investment. If they don't bring, then I can claw back concessions.Similarly, New Zealand has committed $20 billion investment.

What is the progress on investment promises of $70 billion by Japan?

It was confirmed last year, and in 10 months it has already reached $10 billion. After this visit, it will pick up further. They are looking for projects. According to I met the chairman of a sizeable textile retailer here and he, he wants to come to India in a major way. "India is my only horizon, " he remarked. They have 1, 000 stores in China and 4, 000 stores worldwide. As they come, the quality consciousness will improve and even exports will improve as these firms do international sourcing (from various geographies) and we have to see if on a net basis exports are more or the imports are more.

India, Japan eye joint investments in Africa for critical mineral supply, notes FICCI President. Has there been any discussion with Japan on job creation?

We have discussed with firms throughout sectors including shipping, chemicals, hi-tech and different types of service sectors and they will train around 3 lakh Indian youths in Japan.

You have created references to China in your address, including a comment that seemed to be a reference to Jack Ma. What is your view on China?

It was on a lighter note. We backing enterprises, entrepreneurs. We protect them, we protect technology, we protect data. According to I have never, they should move their investments from China. India on its own should be an attractive destination. See, they want to diversify their supply chains but for that India is not the only place, they can go anywhere. We have to create India an attractive case on its own merit and not just as it's China plus one. Expert Explains How India and Japan can deepen their business ties.

Are there opportunities that India sees vis-a-vis Japan-China ties?

What is happening between them and another country is not something for us to interfere in. We are focussing on our own strengths. Automobiles have become a strength area; so are textile, footwear, leather, precision engineering, aerospace and defence. We have done well on mobile phones and so we are moving forward on areas where our strength lies.

We have to stand on our own feet and become an international player. We have done FTA covering 38 countries (all rich countries) and we have opened up two-thirds of global trade for India.

What are some of the challenges that Japanese firms are pointing out. It are hindering investment?

They have indicated they are having challenges, particularly at the local body level and in some states additionally. But it's a mixed bag. Some of them have had such wonderful experiences. They come and share that your administration has transformed investments in India.

Everybody has some thoughts and suggestions that you may amend this to create it easier. We take this feedback particularly seriously. In one of my meetings with regard to the semiconductor industry, we took a decision rapidly and I have already instructed lawyers, and instructed my ministry to prepare a framework. Can you elaborate on the case?

Tokyo Electron is a semiconductor firm that is planning to come to India. They triggered concern with me over BIS certification. They need over 13, 000 parts. As they source it from all worldwide, it would be a herculean task to obtain BIS certification for each of them. They create high quality semiconductors so they can take care of that themselves.

On that basis, for specific industries. It are hi-tech industries, we remarked we will produce a new rule or a new regulation. They want to create a new rule or recognition by which we can offer either a company-wide exemption or exemption to produce semiconductors.

In another case, somebody wanted approval for SEZ in Dholera. I talked to Mr Harsh Sanghvi regarding it. He remarked he was waiting for a substantial group to certify as to what is the ecosystem, how much land they want and he would immediately apply for SEZ approval and my ministry will immediately process it. So we ourselves are excited and want firms to come with any matters they face so that we can resolve them.

You spoke regarding the $100 billion EFTA investment commitment. What are your expectations from there?

We are still working on which specific areas. Pharmaceutical is one major area that they are working on, where they think that clinical trials and innovation in India can be done in a major way and substantial amounts can be invested.

They additionally are highly keen to shift their high precision and middle SMEs to India. They don't have labour there as it's too expensive. At best, what they will produce, they will employ locally as they can afford high rates. So they are all looking for Indian partnerships. Now, the Indians have to go and create connections and partnerships, bring technology. You remarked Indian businesses are complacent. Can you elaborate?

I am doing it all the time. I am talking to Indian businesses, telling them to be more outward looking, go and explore the world. Hon'ble Prime Minister has directed all our missions to focus on technology, trade and tourism.

I mean geopolitics has now become economics geopolitics or economic diplomacy. Earlier our embassies applied to stay away from businesses, now they are changing that. We are saying we will market our business firms, not one particular business. We are encouraging Indian industry and we are willing to stand by Indian industry. We have to stand up for our investors.

India, US ties have lately shown some stability. The first set of Section 301 tariffs have not been extremely harsh like they were last year. Some firms are additionally getting back their tariffs refunds and RBI on Monday noted that India is better prepared to handle Section 301 tariffs. Is the year-long negotiations yielding fruits?

Section 301 is a mechanism that they have discovered to try and put duties on everybody in the world as the earlier tariffs obtained struck down by the (U.S.) Supreme Court. So they are now attempting different ways to put tariffs. Our accord is kind of done, we have to now formalise it. We have to create sure that our tariff is lower than our competition. It is an assurance the U.S. Has given us. So Indonesia, Vietnam, all these countries are our neighbours and competitors, they have to create sure that we secure a lower rate than them. It is a part of our agreement. After all, what is a free trade agreement? It's a preference you have over your competition.

In short, piyush Goyal interview: Ready to act on feedback, expect Japanese investments to is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.