Japan seems to have overcome its reluctance to invest heavily in India.It will now go ahead with its largest ever loan package for a single overseas project.The project, worth about 450 billion yen, will build a freight rail connection between New Delhi and Mumbai.This dedicated freight corridor will be about 1,500 kilometers long.
Japan's involvement is a clear sign that Japanese companies will continue to invest in India in a big way and this freight link will be an incentive for Japanese companies to further develop their assets in India. Japan obviously now sees India as a target for its private sector.
The spin off for Australia from any large infra- structure development in the Asian region is clear.
The bounce will come!!