Tamil Nadu has outperformed the rest of the country in the automotive sector and has emerged a most preferred investment destination for Japanese investors in the sector.
This was stated by Mr. L. Ganesh, past Chairman, CII – Southern Region, and Chairman, Rane Group, in his address at the seminar on ‘Tamil Nadu – A Potential Investment Location for Automotive Related Industry’ organised by the Confederation of Indian Industry (CII) in association with Japan External Trade Organisation (JETRO) in Chennai.
He said Tamil Nadu, with a thriving auto industry eco-system, supported by investor-friendly policies and availability of high quality engineering talent, continues to attract global investment in the automotive sector. India is home to 1,804 Japanese companies, of which 344 are in Tamil Nadu. The auto sector accounts for about 60 per cent of Japanese FDI in the State, he added.
Ms. Pooja Kulkarni, Joint Secretary, Industries Department, Government of Tamil Nadu, said: “Tamil Nadu has been one of the fastest developing States in India. With a large middle class and youth population in the country, the automotive sector is poised for an exponential growth and the State would play an active role in this growth story”.
Mr. M. Velmurugan, Executive Vice Chairman, Guidance Bureau, Government of Tamil Nadu, in his address, said Tamil Nadu and Japan enjoy special relationship. Japan has emerged one of the major investors in the State. India will be the third largest market in another four years in the automotive segment. Tamil Nadu, with its huge port infrastructure – Chennai in particular with three major ports – has emerged an ideal investment destination for the automotive sector.
In his welcome address, Mr. Soichi Yoshimura, Executive Vice President, JETRO, observed that Tamil Nadu has attracted a large number of Japanese visitors in the last few years seeking opportunities in diverse sectors, including automobile, engineering and machinery, electronics, logistics, infrastructure, trading, IT and IT-enabled services.
Mr. Masashi Iwanaga, Director, Financial Cooperation Division, Ministry of Economy, Trade & Industry (METI), in his address, said there is a lot of investement potential identified in the southern market, especially in Chennai and Bangalore. The Japanese interest in India is owing to its strong economic fundamentals, a large and expanding market, skilled human resources, and the facilities for export to various continents.
Mr. Hajime Sato, Director, Overseas Investment Division, JETRO, and Mr. Shinya Fujii, Director General, JETRO, Chennai, also addressed the seminar.