Lending for development, particularly infrastructure, has grown nearly sixfold since 2001, totaling ¥ 366 billion ($3.2 billion) in 2015, the most recent year for which data is available. Foreign direct investment (FDI) by Japanese companies has also soared, reaching $3.7 billion in 2016, its second-highest level ever. Japanese manufacturers have flooded into auto clusters in Haryana and Rajasthan near Delhi, and into western Gujarat and southern Chennai. Political stability in both Japan and India gives the two nations confidence to build deeper economic ties while strengthening the strategic relationship, Japan’s Sone said. Both know that by themselves they are not sufficient to balance China, but together they do not look all that bad.” Bloomberg

Source: Mint December 15, 2017 05:15 UTC