Stating that “sky is the limit” for Japanese investments in India, the Prime Minister said India’s infrastructure funding needs are expected at $500 billion over the next five years. “Financing this level of investment presents a special challenge in view of the uncertainties now prevailing in capital markets. We have begun to attract investment from Japan, but it is much less than the full potential,” he said.

Japan Prime Minister Aso Taro, however, said in a media briefing later in the day that over the past five years, Japanese investment in India had increased ten-fold compared with the last 10 years. “We are making progress and the situation is changing really fast,” he said, pointing out that the number of Japanese companies has doubled to over 500 during the period.

Japanese premier Taro Aso, however, said negotiations were still underway and he would refrain from commenting on specific issues. “We will strive for early conclusion of the talks on CEPA,” he said.