New Delhi, April 18 (NationPress) Amidst the rapidly shifting global economic landscape due to the West Asia crisis, it is crucial for both the central and state governments in India to collaborate effectively in enhancing economic ties with ASEAN nations and East Asian countries, as highlighted in a recent report by Modern Diplomacy.

The report emphasizes that various Asian nations, including Japan, Singapore, and South Korea, are actively seeking investment opportunities in Indian states that have yet to be fully developed.

Recently, Vietnam's VinGroup announced an investment commitment of approximately $8.5 billion (Rs 71,000 crore) in Maharashtra. This investment aims to promote sustainable urban development, boost industrial and tourism sectors, advance renewable energy, and enhance electric mobility.

Chief Minister Devendra Fadnavis expressed optimism that this collaboration would drive the growth of green energy, modern infrastructure, and efficient transport systems throughout the state. Additionally, plans are in place to create a state-of-the-art, eco-friendly smart residential township covering 2,700 acres, capable of accommodating around 200,000 residents.

In the fiscal year 2024-2025, Maharashtra is projected to account for 39 percent of India's total foreign direct investment (FDI).

Moreover, Japan's Ministry of Foreign Affairs has initiated a new division dedicated to Japan-India economic affairs to facilitate Japanese investments in India, aiming to strengthen bilateral economic relations.

This division will promote public-private initiatives to support the expansion of Japanese businesses and investments in India while enhancing cooperation in economic security.

Given India's robust economic growth, the significance of economic collaboration between Japan and India is increasingly recognized, according to the Indian government.

The Modern Diplomacy report notes that while Japan has invested over $40 billion in India since 2000, both nations acknowledge that this figure is significantly below the actual potential.

Approximately 1,400 Japanese companies are currently operating throughout India, with a notable presence in states such as Haryana, Rajasthan, Tamil Nadu, Karnataka, and Gujarat.

Furthermore, Gujarat recently entered into a partnership with Taiwan-linked Allegiance International Company Ltd. to establish an Indo-Taiwan Industrial Park within the Sanand-Dholera economic corridor.

The report advises that India should continue to enhance its economic relationships with ASEAN countries, as well as with South Korea and Japan, emphasizing the critical role that state governments play in fostering these ties.