PM Modi Invites Japanese Businesses, Promises Speedy Clearances

Tokyo: Prime Minister Narendra Modi today invited Japanese businesses to join India's developmental efforts with a promise of non-discriminatory and speedy clearances and announced setting up of a Special Management Team under the Prime Minister's Office to facilitate business from Japan.

Addressing top business leaders of Japan and India in Tokyo, PM Modi flagged the recent decisions to liberalise Foreign Direct Investment (FDI) policy in the railways, defence and insurance sectors and remarked that rules and laws are being changed in India which would show results in the near future.

Mr Modi, who has enjoyed immense reputation in Japan as then-Gujarat Chief Minister in terms of ensuring the state's progress, said India wants to emulate Japan in terms of quality, zero defect and delivery systems while carrying out skill development.

He underlined the need for closer and deeper cooperation between the two countries to champion the cause of global "vikas vaad" (development) instead of vistar vaad (expansionism)."

"We have to decide if we want to have 'vikas vaad' or 'vistar vaad' which leads to disintegration. Those who follow the path of Buddha and have faith on 'vikas vaad', they develop. But we see, those having ideas of the 18th century, engage in encroachments and enter seas (of others)," Mr Modi said in comments that may be seen as targeting China which faces conflict over territories in the South China Sea and East China Sea with some neighbouring countries, including Japan.

While wooing Japanese businesses, Mr Modi cited the latest growth figures of 5.7 per cent in the first quarter of this financial year and suggested that the phase of disappointment
was over.

"See the work done in 100 days of my government. Earlier, the GDP used to hover around 5 - 5.4 per cent and led to an environment of disappointment. But in the first quarter of our government, there has been a growth of 5.7 per cent. It is a big jump. Now there is renewed hope," he said.

Targeting the previous Manmohan Singh-government, he said the situation had remained poor for one decade. He specifically mentioned the UPA government's 'Go, No-Go' policy with regard to environmental clearances and said it would put anybody in a "dilemma" with regard to taking any decision.

He said India, after 30 years, has a government with full majority, which puts increased responsibility on the government to deliver according to the wishes and aspirations of 125 crore people in the country.

Inviting Japanese businesses, particularly in the infrastructure and clean energy sectors, the Prime Minister asked them to keep in mind the Gujarat experience. He promised single-window clearances, speedy decision-making which is non-discriminatory in nature.

Asserting that good governance is his priority, the Prime Minister said single window-clearances is a significant part of it as he realises the importance of easing business,
simplifying procedures, quickening processes and using technology.

"I understand well the importance of coordination between government and industry," he said while noting that he wants to replicate the experiments he made in Gujarat at the
national level.

"I have decided a Japan-plus Special Management Team directly under the PMO to absolutely facilitate proposals from Japan. I also propose that you nominate two people from Japan
who would be made part of a team which looks into business proposals and they can be permanently part of our decision-making," he said.

He additionally talked about the "bold" decision to allow 100 per cent FDI in railways and the "significant" decisions of raising the cap of FDI from 26 per cent 49 per cent in defence and
insurance sectors. He remarked that these decisions would bring results in some time.

"To make the PMO more efficient, we have started Japanese Management System. Training is already underway under the Kaizen system (of management)," Modi said, adding that this was to bring the Japanese efficiency, at least in his office.

In his address, PM Modi talked about some of the quick decisions taken after he became the Prime Minister, like clearance to setting up of Japanese bank in Ahmedabad and the completion of rare earth materials agreement.

"Being a Gujarati, commerce is in my blood. Businesses do not need concessions. They only need the environment to grow. It is the responsibility of the government and the leader to frame policy so that things start to move. If policy decisions are in place, there can be no discrimination and all get equal treatment," Mr Modi said.

Pitching for closer cooperation between the two countries, Mr Modi said it was fortunate that governments in India and Japan have been elected with a full majority.