Monday 5th September, 2011- Plenary Session- Assessing the India-Japan Relationship: Opportunities for the Future (IJGPS-Micro Road Map for Macro Vision)

Yoshimi Ishikawa, Director General, India Center, Japan: Good afternoon I am Yoshimi Ishikawa, a moderator of this planery session so far, we have a two days session of this summit tomorrow and the day after tomorrow, so this is now to open up the plenary session to kick off what I would like to say is the beginning. We have the four Japanese former Prime Minister's here. These four former Prime Minister's are not be the best friends politically it’s so amazing those four seated together on the stage.

Japanese media people must be shocked to see those four Prime Ministers together but then they talk about India it’s possible to have a grand liaison of coalition between the LDP and DPJ who are really confronting with each other, because thanks to India they can get together. The DPJ and LDP when they have political struggles if they choose the discussion on India they can come to a friendly relationship and they can still communicate just because of this  uniting word India may be that can contribute to the betterment of Japanese politics thanks  to this summit . 

 Japan has been set as the country of God and India there is a place where the Buddha and Buddhism was born so on the country of Buddha and the country of marshals God like Japan, we get together we can create something new I am sure, so what is the possible word of future the Japan India Partnership what has been done so far so those 4-5 members who discuss these matters .So now I would like to introduce my co partner the other Moderator, I would like to give floor to him, Mr. Claude Smadja please…

Claude Smadja, President, Smadja & Associates Inc, Switzerland: Thank you very much Mr. Ishikawa, It’s my pleasure now to start the session, I think we have heard in the past 60-75 min who much for India and Japan the relationship has been important and is acquiring even greater importance by the day I could be tempted say. At the same time despite the very strong old ties between the two countries we have to be realistic that the present level of cooperation, the economic interest and of political coalition between the two countries is not doing justices to the potential that exists.

Off course when we look at it immediately as this has been mentioned by the previous speaker when can see a number of evident complementarities. We see a number of conversations of political security, strategic interest between the two countries. We have heard that thanks to Comprehensive economic agreement CEPA which has now been signed the trade  relationship, is bound to achieve  25 billion dollar by 2014 be again let us be realistic this  is much  much lesser  with what Japan trade with china .

This is again not doing Justices to what could be achieve between the two countries so the question is in fact is how this opportunity how  this potential can be materialize, how can be achieve the graters conversations  business, financial, economic, political, security, linkages that is truly realize this vision of strategic partnership between the two countries that not only benefit India Japan but  will  benefit  to the whole region and the world at large .

We know how much global economic issues are bound , we know how much we live today in era of volatility and uncertainty and it would not be a loss it would not be a waste if India and Japan could  pull together at same rope on many issues which shape our global future. So try to assess how we move to much realizing this opportunity I would like to first turn to Mr. Shinichi Nishimiya, Deputy Minister of Foreign Affairs, Japan and I think we have heard such a nice worlds from former Prime Ministers about the closeness of our relations, we heard a lot about the common but I think it would be nice to hear from you, how does

Japan position its relationships with India in terms of the whole pictures strategic national interest. What is the position of India in the political map seen from Japanese if I can put that way and how all the good words and the agreements that have been signed can really be put into much stronger reality. Mr. Nishimiya you have the floor.

Shinichi Nishimiya, Deputy Minister of Foreign Affairs, Japan: So thank you, I from Ministry of Foreign Affairs, I am Shinichi Ishimiya, many former Prime Ministers spoke earlier then me but since I have been asked to speak so I would be happy to make a few comments first I would like to express my gratitude to what India has done after the great east Japan earthquake. India supplied us with blankets, water and biscuits and sends the team of Indians to help us. That was the first time the Indian govt. send us the team of Indians to help the effected people and that simplifies the good relationship between the India and Japan that showed the good solidarity of India with Japan and we are in the middle of the reconstruction and recoveries. 

We are suffering from unsounded glummer of Japanese food and agriculture products many countries restricted the import of agriculture products from Japan but India did not do that. India was much dealt with Japanese products rationally not affected by rumors I would like to express my gratitude to Indian people. And many Indian people here visited Japan for the first time after the earthquake but many areas in Japan not affected by the earthquake and we are In the process of restoration and reconstruction. We are open for business and we are open for travel and want to emphases this once again that Japan is open for business, Japan is open for travel. May be relationship between India and Japan many years ago may be 6th Century in 1582 the first Japanese visited India that is in ancient period.

The christen Daihyou send a boy to Western Europe via India so they were the first one to visited India and we have relationship for long time but it was in 2006 that India and Japan started an annual summit. When Prime Minister Singh visited Japan and from 2006 there is a regular annual summit between India and Japan and that has been explained by former Prime Minister. This is the year when Japanese Prime Minister Mr. Noda will visit India. And we are going to arrange the special arrangement for Prime Minister Mr. Noda’s visit to India.

India Japan relationship are now strengthen and extended so what was the reason its end of cold war India in now a big power emerging as a new country. As a market India is a big market 2 billion populations and India is the largest democracy and the economy is give priority but we should not forget the importance of freedom of speech and rule of law and India Japan shared that universal value that is freedom of speech and rule of law. And India is the third become power in Asia in terms of GDP and India is joining high economic rate. And economic growth is very important but as Mr. Samadja talk about strategic relation between India and Japan, there is very important sealing in Japan to Middle East. India had a long coast line in the India n ocean so India is very important for energy security for Jap.

When it comes to economy bilateral trade and invested is very important but economic is globalize so India is very imp player in global world. And as I’m serving in self G20, India is very good colleague in G20 to talk about economic and financial issues. And at G20 we discuss those imp things in the frame work of G20 and in G20 we discuss how to improve the situation and about trade WTO about climate change. India is imp to those international for a all though we don’t necessarily agree on all the points at this international forum but we are to help each other so that we can international forum India and Japan cooperate.

There is something that I want to talk to you today in 2009 there was a pole survey in India and with regards to the 77% thing that the relationship between India and Japan in good and at the time of national disaster India showed the solidarity and cooperation with us . So we also have a strong interest in India and about 28000 thousand people live in Japan this is on estimate but what I think about these people we have many India and many India curry restaurants in Japan we have a chain restaurant of Indian curry and where I live I have many Indian restaurants In japans.

These Indians are very close to use and the presence of Indian restaurants and the presence of Indians is increasing. And with regards to the relationship between India and Japan with regard to politics and security the annual summit and we have foreign ministers with strategic dialogues on secret issues with foreign minister discuss in a so many summits, I am in charge of economic cooperation and in economic cooperation as well the India Japan bilateral trade expending and Japanese countries are making investment in India.

As Mr. Samadja told us for Japan and India to become a strategic partner we have a long friendly relationship and we consider the other strategic partner much room for expansion of trade and the share of India in Japan is only 1 % and the same applied to India Japan occupies only 1% in trade in India when consider the size of economy countries we have much more room for the expansion of bilateral trade and we hope that we can further extend the trade relationship and I am in charge of Vice Minister level dialogue with India and we have to remove any ….business in each country the govt. has to remove the barriers in business and in any case CEPA to force that was not only signed but it came into force on 1st Aug this year. So the CEPA would be very important agreement, so in the next 10 year 90 % of trade would be removed to a trade and there will be a improvement of people and improvement of trade and business. 

Between India and Japan we need to come to an agreement that security and we have scattered the negotiation on this so that people need to pay the social security contribution in both countries and there are much more room in improved t. And improvement in India Japan relations and business in Japan is asking for and taxation is another thing that Japanese business would like to have a better taxation system and not only to national Govt. but to local Govt. are need to cooperate so those relationships in India and Japan at my own level  we have annual meeting and specially Delhi Mumbai Industrial Corridor DMIC is very important and Indian Govt. pay lot of importance to DMIC is especially the Dedicated  Freight Corridor DFC is very important . And we extend Yen loan for the ….of DFC, Dedicated Freight Corridor.

I would like to ask the state govt. to improve specially the smart greed and other IT issues the environment Issue, water supply and sewage issues, waste management and recycling and public transportation systems those are the sectors where Japanese had a good technologies so that we can cooperate to come up with smart community in India and that is what we cooperate in India. And another important issue with Japanese is that china is not exporting to us recently so we are negotiating with china.

About last year when your prime minister came to Japan the summit level prime minister ready to cooperate the level of......and both Govt. started cooperation on the level of development so we have the partnership is natural resources off course supplied Iron Ore and the others about the high technological pressure should be further projected and I think we need to have a good exchange of people I think Mr. Ishikawa is working hard to promote the people exchange we have only 200 thousand people between Indian and Japan that is only 20th of the exchange with China , 5 million people come from China to Japan . Bilateral exchange of people should be future promoted between India and Japan and we have three days for discussion in this summit and we have a lot of important agenda items.

We need to promote cultural exchange and people exchange next year will be the 60th Anniversary of the diplomatic relationship between the India and Japan and we have a many programs celebration of the 60th year universally of the diplomatic relationships  between India and Japan. We hope to further promote cultural exchange, we have many companies making investments in India and they invite young trainees fro9m India to Japan they found Japanese and there many restrictions and relations on particular in India but next year when we celebrate 60^th year of the diplomatic relationship between India and Japan .India would like to develop food which is acceptable by Indian people.

I hope that there food Industry people on the floor why don’t you develop something which is welcomed by accepted by Indian People. Like Indian curries why don’t we develop something which is for the Indian People in Japan. Well coming back to the main subject he have not only bilateral relationship by G20 is very imp forum for cooperation between India nad Japan and we hope that we continue to work as G20 partners .Well he have to pretend the protectionism international trade with India larger amount of CO2’s. Japan has a very good climate change that we have to cooperate with India. There is con kun agreement should be observed and with this frame work we would like to address global climate change and for purpose we like to cooperate with India. I hope India should decrease the emersion of carbon; low carbon technology can be planned to India.

Previously I talked about the sealing in Indian Ocean and Asian countries and India and Japan can have a regional cooperation and we have CEPA already coming into force and we have CEPA with the Asian Countries. We have CEPA with India and India had CEPA with FDA with Asian countries. Asian can share the sea links and in that further cooperation’s. India had the strong relationship with Africa, in African development may be Japan can cooperate India. So in further areas and further fields we can further strengthen the bonds between Japan and India, we have only one percent of trade values in bilateral trade we should increase the trades between Indian and Japan not only by the Govt. by the private sectors as well, thank you very much.

Claude: Thank you Mr. Nishimiya, you have provided quite a large areas of action where we cooperation could be extended could be deepen for the mutual benefit. If I take your point from high-tech and rare issue to smart grad and energy efficiency to G20 global economic issues to climate change actions and so I think a it is very interesting to from you how much if you want the road to be open and wide in the terms of what the two countries can do together and this off course this  begs  the question of how all these areas can be  truly implemented and we will have the many discussions for next two days on very specific  issues you  mentioned DMIC , you mentioned how to optimize the benefit of CEPA we have to talked about the energy efficiency  we will be talking about power and power grid and this kind of issues.  But this can be to follow up on you have mentioned that there have we many opportunities. and Now I would turn to Mr Hari S. Bhartia.

Mr.  Hari S. Bhartia, Co-Chairman and Managing Director, Jubilant Life Sciences Limited, India is off course a head of the one of the most important Indian company and for his company the issues of research and development  the pharmaceutical sector this is  very fast developing activity and we can see tremendous   growth in last few years he did in India and at the same time I think there are not only possibilities but of joint research and development   project from cooperation to cooperation but also how Indian company with these activities and how they can manage this pharmaceutical industry in very cost efficient way can  help Japan can address the issues of raising the health cost and like this , So it not the question only of cooperation research and development it is truly bringing forces together to solve problem not only in India but also in Japan. So Mr. Bhartia, your point of view on that aspect of cooperation.

Hari S. Bhartia, Co-Chairman and Managing Director, Jubilant Life Sciences Limited, India: Thank you very much for puting up the context, you know I remember almost 25-26 years back when India Economic summit started you use to present from the forum side the economic agenda for India and I know how much role the forum played in bringing the change .I just want to talk about the two things that change and I will off course talk about the innovation you asked me . You know in  last 10 years in early 90’s when India actually opened up before that we were growing at the Hindu rate of growth that is may be 3 to 2 % and in 91 our present prime minister was the finance minister he opened up India for competition.

And now when you open up India for the completion  the customer has the choice and when the customer has  choice he is able to buy not only the India products he is able to buy products from anywhere in the world and including from Japan and I think that created the first spirit of innovations. Companies needed to compete and If they can’t compete they will die. So they need to come out with better products , products which service the customer much better and I think that transformed India a bit and especially the Indian corporate sector  to compete with the world and allowed other companies to really come and built base in India . 

At that time I must say a lot of manufacturing base was built with the Japanese partnership we learn not only in that era efficient manufacturing, lean manufacturing, incremental innovation how do we capture incremental innovation and continue to reduce the cost of the product so I think that was the beginning of India’s R&D industry, I remember at that point my company in nearly 90 use to have 5 people doing research and today we have 1200 people doing research. That shows mentality of Indian companies changing very fast. I must say in the last ten years there was another contest that came in; at this contest off course you know India is now at part of G20 the 4th largest economy in the world. But so what we still have almost 1/3^rd people who belong below the poverty line. I think there was lot of talk about the inclusiveness. One of our challenge is to be innovative to see that how do we this large number of people into the main stream of economy.

So India really started in the last 10 yrs another kind of reform which is to bring inclusiveness. So we stated investing a lot into the social sector, into the rural areas, in the educations owe today have almost 99% enrollment at the primary education level and at the secondary and the higher education level Govt. continuous to invest more so that is building the human resource capacity and making sure that our younger generation is able to contributes to the economy. Off course we built in the issue like social security throw guarantying employment. what happen we started putting it in larger investment into the social sector and that money came back as demand and continue to fuel growth so the inclusiveness to get the virtual cycle where customers who got money at rural areas or at the lower sectors of the society started spending their money to further generate their demand to corporate sector.

Then this also started a new level of innovation what I call the Google innovation, that means creating product and services which are really for the lower section of the society and you will find this is in banking in the insurance and coming back to the pharmaceuticals the whole generic business India strengthen the generic business came because we have to produce a pharmaceutical product at the very low cost but still keep a very high quality. So I think the local situation demanded that we have to produce products at the value level where the customers can afford to pay. So I think while we have built clusters we have an innovation eco system we have a built innovation capacity through our education system through our human resource capital.

But I think for the Japanese companies there is a huge opportunities tap into that innovation capacity of India and to built not only products for 1.2 billion people that you can serve as a market but to also to use India’s strength to built market in other parts of the world . Trade is important, we are planning to go from 12.5 billion dollars to 25 billion dollars but I think with trade I think Japanese companies esp., in SME’s sector and the even larger companies now have the opportunities to invest in India to you India’s own market to develop products which would serve Indian market develop capabilities  where you develop products at the low cost which can then come back and serve the Japanese market.

 Coming back to pharmaceutical sector I think I must say here that today India is not only leader in generic products where under the CEPA we will be able to get equal status as the Japanese companies and I’m sure India companies will play the a very important role in reducing the cost of health care in Japan . But another revolution is starting in India is in the new drugs , today India is doing drug discovery not only to compete with the market in India but also with the global market .You are starting to see the largest pharmaceutical companies today to come to India to develop their new drugs.

Now that only goes to say that the India capability in science and technology to convert some of these products which could be most innovative and could lead to adding into the portfolio of pharmaceutical companies so at the conclusion I must say that the Indian R& D capability , the innovation capacity is world class and I think it’s an opportunity for Japanese companies to use and to tap into their knowledge to built products for themselves , for  the India markets as well as for Japanese market .

My experience today in the morning, today a friend of my came to have breakfast with me and we were In the room and as you know  now the temperature in the room 25 or 26 or 28 degree centigrade’s  so and we very both wearing our jacket so were sweating  I asked him is this because of restriction on power usage he said yes . all the companies have been asked to reduced to asked their power consumption by 15%  and then he made a very strange remark he said but they are not following that guideline.

 I said how can Japan not follow guidelines but then he said no they are not only saving 15% ,they have crossed their limits and some of the companies now saving 30% of the power. So that shows in my view the innovative capacity of Japan in terms of  how they can deal with issues when it comes to coming together collectively and deal with such disasters, thats what I wanted to add finaliy thank you.

Claude: We continues of discussion because again I think the stage has been set but if we remain at the helicopter view 3000 ft not much will be achieved and with Mr. Bhartia we have seen with respect to innovation the kind of areas of orientations that could be a taken in the near future but I think we need to  turn to  the other sectors and I would like here to her go to Mr. Jaspal Bindra, Group Executive Director and Chief Executive Officer, Asia, Standard Chartered Bank, India and also group executive director and I think we he speak about cooperation when we speak about increasing the intensity of relationship off course one need to speak about the financial investment flows and again here the reality doesn’t do justice to the potentials and so from your prospective Mr. Bindra as a global banker as somebody knows the India scene and the Japanese scene.

What is from your prospect is the kind of recommendation or observation that could make to push the envelope much further in term of investment and financial flows between the two countries.   

Jaspal Bindra, Group Executive Director and Chief Executive Officer, Asia, Standard Chartered Bank, India:  Firstly Standard Chartered bank has been in both these countries India and Japan for over a hundred years and we have the experience and the we witness the growth that has taken place between these two in terms of nations that deals with each others. And I can tell you what we have seen in the most recent times is the clear evidence of all the aspirations that have mentioned just now in this afternoon. Becoming very much reality we can say that and watch for that some assurance. The most recently signed Comprehensive  economic partnership agreement between India and Japan which is now implemented , actually it’s the major gain in financial from Japan to India because under this agreement Japan is being offer a national treatment both pre and post investment and that is almost unique.

In trying to understand the investment flows between India and Japan one has to consider several channels first is the foreign direct investment and an interesting question that why Japanese companies can think of using India’s a manufacturing hub we might use this as a background for foreign direct investment flow. Firstly there is the obviously attraction of the domestic potentials in terms of the market we have seen in passenger cars, we have seen in electronic goods and the per capita income is rising at such a fast pace that we are trash hold of moving to very accelerated consumption on these goods. There is also the building of supply chain which Japan had done so well in its own country and around the world which there in a start in India but there is lot of room for scaling that out.

There is the need for Japan to diversify the China risk, Japan has got too much concentrated in terms of manufacturing outside the Japan and in China alone. And India offers a very companying alternative I think what Japan can learn very effectively by operating as a manufacturing hub in India is to gain experience of how to deal in emerging markets .You know what emerging markets needs are good quality low prices low additional features models exactly what you are saying and I think India is the good ground to do that so that they can enjoy successes in other markets like Africa.

Japanese companies are all worked in highly captive intense environment and I think India gain allows them to enjoy a different business model through higher productivity lower cost labors. And then off course India can very much serve as the exporting base and Nissan is already doing, then there are bilateral agencies that are another channel for investment flows into India and we have the Japan bank for International corporations called JBIC and we have Japan International corporations agencies called JICA and their primacy source as I think it has been mentioned in the afternoon India has the largest recipient of Japanese ODA loan for the several years.

The cumulative amount is in accesses of 3.6 trillion yens as of days. India also enjoys a very rich and strong equity capital market it is the 8th largest stock exchange in the world. And the in terms of market capitalization it is also has the largest number of listed companies, foreign investment into India into through the Indian equity is not subjected to any significant barrier. And I think the Japanese retail investors can benefit not just from the hypertension on India companies but also the potential appreciation of Indian rupee. Japanese pension fund, insurance funds and mutual funds have largely over looked the Indian market.

If we look at the investment in that product Kokusaia Investment  management is the only firm which has launch a fixed income formed dedicated to India roughly 300 million dollars and I think there are lot of others waiting for to see how they perform but given them a large part of the foreign institutional investor limit  in infra bonds is still available this could be something with the Japanese firm and it could be a win-win opportunity, also India has issued guidelines where infra debt is much lower withholding tax of 5% compare to 20% otherwise.

There is obviously the banking system which allows flow between India and Japan. And there are two banks now from Japan in India and two from India in Japan. But their presence is moderate and I think there is a lot of room for them to grow and fine India I would say the last significant source of flow would be the private equity investment into India. There is a company from Japan called Sompo which is advancing lot of interest in the private equity investment space largely in the infra projects and I think this could be another source of potential investment.

If you look at the current GDP of India its 2% but if we  look at what would be in 30 but what be per capita income might be, what the consummation might be that  could be very significant and I think it  will alter the  consumption pattern of the world and whatever way we look at it , there is only directionally one way up  several channels and I think lot of sectors have been spoke about here much offer  good opportunity for the Japanese to invest and we think there are all channels that will allow those investment to happen. So I think this stage is set the infrastructure is available interest is large in  the support and commitment  that we had today is growing and now it’s  really for action and with this all the very best for Indo Japan summit thank you.

Claude: I would like now to turn to you Lt Col Bedi, despite your title not any more in military duty you are now in industrial duties as the head of Tulip Telecom and again the telecom is also very important sector where India have been developing at incredible speed if you look at JETRO over the last year at the same time there is still lot of ground to be covered. And when you look at these things at first glance things where number of things Indian corporate and Japanese corporate could do together and may be so you could provide us your view about how this partnership could be developed between in some of the areas which hare your domain of activities now.

Col. H.S. Bedi, Chairman and Managing Director, Tulip Telecom Limited, India: India and Japan are two of three main Asian countries amongst the main economical countries and they have tremendous value that they share with respect to democracy. Japan and India was always visible through Maruti Suzuki, Sony and Toyota and today off course becoming much more visible through DMRC and Delhi Mumbai Industrial Corridor and such infrastructure projects. Japan is actually a power house of technology India on the other hand is a fast growing market and could be an ideal scenario where Japan would really look at growing its business.

The growing economy off course has created tremendous opportunities for infrastructure and there is a lot of collaboration happening between defense forces the two countries and you know it brings the Governments together, but it is the Indian telecom sector which is really an interesting sector. It is the youngest and the fastest growing sector has among the lowest tariff among the world. But somehow there has been while most of the Japanese companies are there, are there mostly to serve there global customers in India or their Japanese customers in India. I believe that the telecom sector offers tremendous opportunities for investment.

Today no longer our roads, electricity , water the  only infrastructure, data connectivity what really provides the connectivity and on which  Services are rolled out and it is actually a infrastructure. The tremendous incentives are available in infrastructure I believe that telecom is the space where most countries are investing and I believe from Japan this could be a very-very good investment. People often talked about India and China, India as compare to china does have a short coming in that , it has the conservative economy but them may be this economy has stood the test of time and probably proven to be right way to run its economy and yes democracy at times does have a short comings but ask any India I think he would he could trade anything for democracy.

One big advantage that India has is that its main growth is yet to come  and since its main growth is yet to come , develop countries have also already invested in infrastructure they have already invested in industries, electricity etc. and  the those systems are inefficient as compare to new technology available. India as the late entrant had the advantage of deploying the latest technology and therefore anything that India deploy will always be much greener; will be much more power efficient, more carbon efficient then any other country. And I think with that there are certainly tremendous opportunities where India and Japan can work together and I believe that this is really the time, where these two countries can do a lot together, thank you.

Claude: Thank you very much, Mr. Ishikawa, You have been listening to that and you are the Director General of the India Center and so in a way you are as a Japanese at the same very close to this reality you have been hearing for the last forty five minutes, our panelist talking about the potentials, the opportunities, we are as it could be applied and from the practitioner point of view of this India Japan Cooperation, but how do you react.

Ishikawa: As Nishimiya mentioned and also listening to the presentation by four people, something that’s makes me really wonder, when I become closely relate to India is that, the economic power between Korea and Japan is one to ten you know, but economic exchange between Korea and India is bigger than that between Japan and India.

We keep on saying that the two countries are friends and yet when it comes to the potential and state of this economic I should say that exchange of between two countries is so small and so untapped. When you look at it on the global perspectives I just wonder why it is that we are not been able to best use of this potential. Now we created India Center we can have face to face exchange between the two countries and information that we presented by the four speakers I should say  that it has not been properly delivered to Japanese audience.

We know so little about India and I think it’s the same in India they don’t know much about Japan. I think all of you who came here, came to Japan, via Malaysia or via Singapore, not by direct flight, even when you tried to do something; either it is not direct flight between Japan and India. Now between Japan and China they are some thirty direct flights between Japan and China, but then the reality with India is that there is even very few small direct flights between the two countries, so what can we do now in more concrete terms, what can Japan and India cooperate in terms of water sector, in IT in Agricultural sector and so forth. When you consider these issues and what can India and Japanese Pharmaceutical companies can do when it comes to developing new medicines.

Now there are some thirty business of meeting here starting tomorrow so perhaps through this thirty business meetings we can really address so many concrete issues standing in front of Japan and India when we try to step up our relationship, we have prime minister here, former prime ministers, they all talk about potentials between the two countries. But what’s more important is just simply general talks but details so we are going to be having close to forty sessions, so in each of the sessions I hope that you will have the concrete talks, detailed talks so that you can make progress even in two or three fields.

Claude: I am really glad that you have raised that point and of course we would like to already engaged into discussion but we have this pressure of time coz we have now wonderful performances that will be waiting for us before we go to dinner but to alleviate your frustration, Mr. Ishikawa has mentioned we have about forty sessions in the next two days.

et me try to make two points, I think as Mr. Ishikawa mentioned and I was mentioning beginning of this discussion of course the potential is tremendous, the question is why this potential is not really implemented, why the reality is not doing the justice to this potential and we might said this today, there is a window of the opportunity for three reasons. Reason no. one as Mr. Bhartia has mentioned the tremendous explosion of growth which has happened in India in the last fifteen years as results of reforms initiated by Mr. Manmohan Singh.

This explosion of growth and development has now created a propitious ground for collaboration, because to collaborate as for tango you need to be true. You can collaborate with yourself, now Indian companies offer tremendous partnership opportunities we have many examples here on the floor and here in the room are becoming full-fledged global players. So they are today partners, reliable partners, relevant partners, for top Japanese companies so this is one reason why we have this window of opportunity.

The second reason for why we have this window of opportunity that we need to seize is that even the terribly painful event of last march have illustrated that the whole notion of supply chain has to be revisited, and we need to address the venerability to a supply the chain and India provides a very good platform if you want and a very good partner again for in a way creating and developing supply chain that will be less renewable in the global context.

Point no three and Mr. Bindra has mentioned that I think despite the fact it might be politically incorrect to mentioning it I think the China Japan relationship as it had evolved also raise the question for Japanese prospective of how as you said Mr. Bindra diversify the china risk and if you look at this issue in a very cold headed realistic way, India is a very-very good opportunity to diversify that risk either let me inject that India is wishing that relationship between Japan and China will not go well. We’ll have all an interest that will go and developed and strengthen and become even better. But at the same time everybody knows, even the most basic person that you never put all your eggs in the same basket.

And last but not least, we are seeing today a tremendous new constellation of growth around the big countries, this is what we might called with big plus constellation, countries in Africa, countries in Latin America, countries in Asia which are joining this dynamic of growth created by with big countries. And to enter this constellation of growth which is emerging you need the platform, you need the conduit, you need people who can understand this kind of markets.

 Japan has in India a tremendous partner in that, look at what Singapore is doing to penetrate this constellation of growth, and I think Japan need this kind of partner because this kind of constellation of growth will be very important even it’s already become very important to sustain Japan growth in the future. So these are all this reasons that create fantastic window of opportunity today to get into action as we have said.

Let me make one wish, is that by the end of this summit by Wednesday have at least ten practical actions, that we have identify and where we can really move, very practical thing down to earth where that will bring very concrete result and I think, this is a kind of objective that we should set for all, now let me turn to our three panelists here ask each of them for one minute to identified one point where you would like to see immediate results in terms of what you wish for expending this economic business human collaboration between the three country. One point that can identify immediately and when you say is this happened and this happened fast then it would make a difference for better in terms of what we can do together.

Hari Bhartia: You know we have this DMRC as symbol of our new partnership and this is huge project which will impact huge number of people, I am talking about building, new supply chain, building new cities and completely the new infrastructure which is green, which is most efficient as it pros pointed our earlier, new growth we will built things which are state of the art. So my view is, is that one thing between India and Japan gets implemented effectively, it will have an amazing side effect of cross the economy. This is you asked me one thing I said let’s do it, let’s do it right.

Mr. Bindra: Just take it my investment theme,   I think firstly there is a huge amount of encouragement to take from the stellar example of Japanese investment into India, I mean the story of the Suzuki, Maruti as well known to us, one which is probably less well known is Kanzai Nerolac. The second largest paint company in India, 70% of Kanzai owned by Japan, they have now 10 Year compounded growth rate, in profits after tax of 25% plus. So clearly there is a lot of root, but on my one point, I will agree and reiterate Hari’s point which is we can actually delivered, the DMIC I think that is absolutely fantastic, the way I see it say two, three, four, five benefits and let me just explain two, three, four, five points, if this projects happened, it will double the employment, it will triple industrial output, it will quadruple exports, this should happened as planned five years. Clearly it is going to be in a very big way.

Lt. Col. Bedi: Well I will come to the very basic level the reality is that one of India’s biggest products is its people and the services in exports. I believe one of the biggest challenges, one of the advantages India and Japan is in the western world, is the capacity of its people to speak in English. The moment that comes to Japan is a bit of challenge as far as they feel, with respect to being able to communicate in Japanese;

I believe there is a need to improve our language skills so that we can improve our services that we can give here. Second thing is that someone mentioned that India has much more trade with South Korea well even with China; well the reality is that India is very price sensitive market. If we need to increase trade between India and Japan, I think Japanese companies will need to relook for price point as far as India is concerned, quality is something that cannot be compromised, but India is the price sensitive market; I believe that will certainly help increased trade.

Claude: Thank you very much