Japanese firms halt operations in Mumbai amid terror attacks

TOKYO, Nov. 27 Kyodo - Business operations of Japanese companies in Mumbai were paralyzed Thursday amid a series of attacks in India's financial capital that began Wednesday
night as many firms rushed to suspend operations for safety concerns.

Major trading houses including Mitsubishi Corp. decided to refrain from having
its employees travel to the region. Mitsui & Co. closed business at its branch
in Mumbai, while Sojitz Corp. ordered its workers to stay home in the city.
Among manufacturers, Canon Inc. suspended operations at its branch in the
suburbs of Mumbai, and NEC Corp. also temporarily shut its office.
According to the Foreign Ministry, more than 80 Japanese firms were operating
businesses in Mumbai as of January this year.
Economic ties between Japan and India have been growing as Japanese firms are
increasing investment in the fast-growing Indian economy.
Finance Ministry data show that Japan's direct investment in India in fiscal
2007 tripled from the previous year to 189.0 billion yen. The amount of
bilateral trade totaled 1.24 trillion yen in 2007, about 2.3 times the amount
in 2003.
But the terrorist attacks in the financial capital of India could dampen
investment fever among Japanese firms due to concerns over worsening security
in the region, observers say.
Many Japanese companies are positive toward expanding business in Asia. But the
simultaneous attacks in Mumbai following political unrest in Thailand may cast
a shadow on such a business strategy.
An official of a major Japanese chemical company said, ''We want to decide what
to do by gathering information.''
More than 100 people, including one Japanese businessman, were killed and over
300 people were injured in the series of attacks in Mumbai.
==Kyodo