While India has assured Japanese companies of necessary incentives and tax benefits to set up a technology park here, Japanese firms have promised to spend ¥350 billion or more in India.

Officials privy to a meeting between Communications and IT Minister Ravi Shankar Prasad with some delegates from Japan here last week said, “The meeting also discussed about technology based township (smart cities) in India and the Minister has promised them (Japanese) that the Government is ready to give everything – concession, tax benefits.”

However, the Japanese delegates headed by Yoichi Miyazawa, Minister of Economy, Trade and Industry, Japan, have sought a clearer picture on India’s tax structures, land acquisition and environment laws. There were around 25 executives from Japanese companies such as NEC and Docomo who wanted to be clear about laws of the land before investing anything.

To this, Prasad assured the Minister that the Government will provide all suitable environment for the Japanese companies, since IT and Telecom are on the high priority list of Japanese investors.

According to both the Ministers (Prasad and Miyazawa), Indo-Japan can create a win-win situation in IT and electronic manufacturing, where Japanese manufacturing and India IT business can have synergy.

A new frontier of IT such as Internet of Things and big data, high skilled Indian IT engineers and entrepreneurs, can boost Indian and Japanese companies to create business activities and promote innovation, said the Ministers.

There are many Indian IT companies such as Tata Consultancy Services, Infosys and HCL Technologies, which already have centres in Japan and if Japanese companies also invest here in projects, then it will be beneficial for both the countries, said analysts.