Tokyo and new Delhi agreed Wednesday to expand bilateral economic ties by encouraging Japanese companies to invest more in India, a Japanese official said.
Indian Finance Minister Palaniappan Chidambaram told Economy, Trade and Industry Minister Toshihiro Nikai in a meeting in Tokyo that a lack of essential market information hinders Japanese investment in India, the official said.
Nikai told the minister several public-private missions will visit India in the coming months to help improve Japanese firms' understanding of the Indian business environment, according to the official. Nikai stressed the importance of promoting investment in India by small businesses.
One mission led by Nobuo Ohashi, head of the Japan-India Business Cooperation Committee, is scheduled to go to India next week. Ohashi is chairman of the major trading house Mitsui & Co., and several companies, including Toshiba Corp., will join the group.
A business mission from the Japan External Trade Organization, which will also include private firms, will leave for India on Feb. 5, while the Organization for Small & Medium (size) Enterprises and Regional Innovation will visit the country from late February to early March.
Nikai and Chidambaram agreed to accelerate a feasibility study on a bilateral free-trade accord. The study group is scheduled to issue a report in June.
Nikai also asked the Indian minister to consider extending a contract for providing Indian iron to Japan that is set to expire in March. The two ministers also agreed that Japan will expedite surveys to build new freight-train lines between New Delhi and Bombay as well as New Delhi and Kolkata.
Chidambaram, who arrived in Tokyo on Tuesday for a four-day visit, also called for increased economic ties with Japan, saying he hopes India will reach an economic cooperation agreement with Japan before concluding a similar pact with China.