Japan Bank for International keen to invest in India

Business: The Japan Bank for International Cooperation (JBIC), a government financial and export credit institution, is committed to supporting investments in India’s semiconductor supply chain, Governor Hayashi Nobumitsu said on Wednesday. “We can share supply chains with India… so that we can continue to share semiconductor supply chains with our friendly countries,” Nobumitsu said at a seminar organised by the Centre for Social and Economic Progress (CSEP). He said Japanese companies can support India’s semiconductor supply chain as the Prime Minister Narendra Modi-led government seeks to make the South Asian country a hub.

Electronics and Information Technology Minister Ashwini Vaishnaw said earlier this month that the Indian government plans to launch the next phase of the India Semiconductor Mission in the next six months, adding that significant funds have been allocated for the next phase – focusing on developing new areas, including Greater Noida as a semiconductor hub. The Semiconductor Manufacturing Mission, launched in December 2021, has allocated Rs 76,000 crore for manufacturing-linked incentives to help companies set up semiconductor foundries, testing centres and design offices in the country. Highlighting India’s growing attractiveness as an investment destination for developed countries like Japan, Nobumitsu said, “In the past, India was the future investment destination (for investors) because they invested in China.” But “in the last two years, India has done that.” So, “Japan has overtaken China as the nearest destination (for investment), partly because of China’s unpopularity and India’s growing popularity.” A $600 million fund has been created for investing in climate and environmental initiatives in India, with the Japanese side contributing 51% and the Indian side 49%.