Japan committed to provide an Overseas Development Assistance (ODA) loan of 2620 crore rupees (50 billion Yen) to India. The notification related to this was released by the Union Ministry of Finance on 16 January 2015.
The loan amount will support infrastructure projects that will be implemented in public-private partnership mode.
The loan will be provided by Japan International Commerce Agency to the India Infrastructure Finance Company (IIFC) to support infrastructure projects built on public-private partnership mode.
The commitment to provide the ODA loan was part of pledge made by Japan’s Prime Minister Shinzo Abe during the Prime Minister Narendra Modi’s five-day visit to Japan. Modi visited Japan in August – September 2014.
India-Japan Economic Relations
Since the formation of Narendra Modi-led government at the Centre, the economic relations between India and Japan has catapulted to a new high.
According to Ministry of Commerce and Industry, Government of India, in October 2014, the number of Japanese companies in India reached 1209, which is 13 percent higher over the same period in 2013.
Further in last five years, that is, during 2010 - 2014, the numbers of Japanese companies doing business in India have shown a Compound Annual Growth Rate of 13.67 percent.
During the period June 2014 to September 2014, FDI inflow from Japan rose to 618 million US dollars from 273 million US dollars during the corresponding period in 2013. The FDI inflow from Japan stood at 103.14 million US dollars in October 2014.
In a recent survey made public by the Japan Bank for International Cooperation (JBIC), India has been ranked as the top destination for future investments from Japan.
When: 16 January 2015