Wednesday, December 14 2005 18:05 Hrs (IST) - World Time -

New Delhi: Japan plans to invest USD two billion in India over the next three years in order to broaden its economic activity in the country.

We have to broaden our economic activities (in India).Japan is expected to invest two billion US dollars in India in the next three years," Japanese Ambassador Yasukuni Enoki said today (December 14,2005) in his address at an Indo-Japanese Dialogue on Ocean Security and Maritime Cooperation here.

He said his country-recognised India as Asia's major economic power alongside China and Japan.

At present, Delhi, Mumbai, Pune and Bangalore are the main centres of Japanese business activities in India, but the Ambassador said his country aimed to move beyond.

"We have to expand our business centres," he remarked. Japan is also considering a key project in petrochemicals and automotives as part of the proposed investment, the Ambassador told reporters later.

Pharmaceuticals, he said, was "next promising area" in India-Japan business ties. Indian pharma products have also been finding takers in Japan's market because of their highly competitive prices, the Ambassador said.

"Indian pharma industries should therefore be much more aggressive in exploring Japan, where we want to drastically reduce public expenditure on medical care," he remarked.

A couple of Japanese pharmaceutical firms are also likely to set up business in India soon, Enoki said.