India and Japan are natural partners and would like to strengthen the partnership further. We have shared values as we both have belief in democracy, individual freedom and the rule of law. India-Japan relationship has transformed into a partnership of great substance and purpose.To achieve more significant economic transformation, India encourages FDI investment from Japanese companies in all sectors.
India-Japan Comprehensive Economic Partnership Agreement is a comprehensive deal covering both trades in goods and services.
India is also one of the most attractive investment destinations for Japanese companies.
FDI from Japan to India increased from USD 1.6 billion in 2017-18 to USD 3.2 billion in 2019-20. For us in Karnataka, Japan is an important partner. Karnataka is one of the biggest states in southern India and is known for IT, ITES services, machine tooling, manufacturing, aerospace, biotechnology, and engineering design.
Karnataka is also one of the first states to lift the lockdown gradually and re-start economic activities.
Our State is at the forefront of attracting FDI into the country, and I can assure you that we will set the benchmark as we progress beyond the COVID-19 phase.
The recent NITI Aayog 2019 Innovation Index has placed Karnataka at the top.
This has been possible due to the availability of quality human resources, reputed higher educational institutions, and a big thrust on research and development.
This is also assisted and supported by a proactive administration and Conducive investment climate.
Karnataka has set up a Japanese Industrial Township at Vasanthanarasapura near Tumkuru town.
519 acres of land has been developed and made ready with infrastructure facilities such as roads, power, and water supply.
Karnataka has significant potential in the field of Electronic Manufacturing Sector and offers many incentives for investors, including 25 % capital investment subsidy on land, to boost investments in the sector.
A Joint Statement on Japan-India Start-up Initiative was signed to promote start-ups in the state.
A Start-up Hub was established in Bangalore by JETRO to identify selected Indian start-ups for the Japanese market.
The State has taken strong policy measures to promote the emerging start-up industry ecosystem, and has passed landmark legislation creating Karnataka Innovation Authority in November-2019.
Our government has taken several steps to ensure investors find it easy to do business in Karnataka.
We have simplified processes, set up a single window for investors and engaged in regular discussion with the industry to create a stable, policy-driven environment.
Over the last few months, labour laws have been simplified, as these measures were long overdue to attract investment to the State.
Keeping the investor-centric approach, our Government has launched the New Industrial Policy 2020-2025, to build a prosperous Karnataka and create employment opportunities for the youth
The industrial policy will introduce path-breaking changes like production-linked incentives.
I sincerely believe all the changes we are bringing about and your support will help Karnataka build a robust industrialised economy that will be a benchmark for other states in the country.