Chennai, Andhra come under Japanese investors’ radar

Of late, Japanese business establishments prefer to set up their units in Karnataka and Andhra Pradesh due to various factors, including logistics support.

This is evident from the investment figures made available for the period October 2012-October 2013 with Tamil Nadu leading the pack with 179 business establishments followed by Andhra Pradesh (141), Maharashtra (120), Karnataka (71) and Delhi/Haryana (46). However, in the year-ago period, about 58 firms have been established each in Maharashtra, Tamil Nadu and Delhi/Haryana.

Talking to

The Hindu , Director General of Japan External Trade Organisation (JETRO) Chennai, Hidehiro Ishiura, said: “With the recent entry of insurance and logistics firms, a large number of Japanese firms have expanded their business base in different parts of India in the last one year. The number of firms located in Tamil Nadu has gone up from 344 to 523. This is due to the formation of insurance firms. But, if we exclude the insurance firms, then the numbers in Tamil Nadu would be close to 400.”

According to him, there has been a 41 per cent increase in business establishments operating in India. It now stands at 2,542 marking an increase of 738 over the corresponding period last year.

At the last count, Tamil Nadu ranks first with 523 firms, followed by Delhi/Haryana 500, Maharashtra 397, Karnataka 299 and Andhra Pradesh 229.

“Eighty-six firms are located in Hyderabad and 14 firms are operating from Sri City. The proximity to Chennai and Krishnarajapatnam Port makes it an attractive option. Japanese agencies are demanding inclusion of Nellore in the Chennai-Bangalore Industrial Corridor. It would help all the three growing regions,” said a port user.