New Delhi, April 18 (IANS) As the world economic order changes rapidly amid the West Asia crisis, central government and state governments in India should work jointly for giving a strong push to economic linkages between India and ASEAN countries, as well as East Asian nations, according to a new report in Modern Diplomacy.

The report highlights that several Asian countries, such as Japan, Singapore, and South Korea, which already have a strong presence in India, are also exploring opportunities in states whose potential has been untapped so far.

Recently, Vietnam’s VinGroup pledged an investment of nearly $8.5 billion (Rs 71,000 crore) in Maharashtra. The investment will focus on sustainable urban development, industrial and tourism growth, renewable energy, and electric mobility.

State Chief Minister Devendra Fadnavis expressed confidence that the partnership would catalyse green energy, modern infrastructure, and dynamic transport systems across the state. He also added that a world-class, eco-friendly smart residential township on 2,700 acres will be developed, which houses a population of nearly 200,000 people.

In 2024-2025, Maharashtra accounted for 39 per cent of India’s total FDI flows.

Also, Japan’s Ministry of Foreign Affairs has established a new Japan-India Economic Affairs Division to help Japanese companies invest in India, as part of its strategy to bolster bilateral economic ties.

Through the establishment of the Japan-India Economic Affairs Division, the Ministry of Foreign Affairs of Japan will further make public-private efforts to promote companies’ expansion of business and investment from Japan to India and to deepen cooperation in the area of economic security with India.

Given India’s high rate of economic growth, the importance of economic cooperation in Japan-India relations is growing day by day, according to the Indian government.

According to the Modern Diplomacy report, while Japan has invested over $40 billion ($43 billion) in India ever since 2000, “both sides realise that it is well below the actual potential”.

As per estimates, 1,400 Japanese companies operate across India. Japan already has a significant presence in several states, including Haryana, Rajasthan, Tamil Nadu, Karnataka, and Gujarat.

Moreover, Gujarat this month signed an agreement with Taiwan-linked Allegiance International Company Ltd. to develop an Indo-Taiwan Industrial Park in the Sanand-Dholera economic corridor in the state.

According to the report, India should continue to focus on further bolstering economic ties with ASEAN nations as well as South Korea and Japan, and state governments have an important role to play in this regard.

—IANS

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