The manner in which the grants to India will be frozen has not been finalised yet, Kawagishi said while addressing members of the Bharat Chamber of Commerce on Friday on Indo-Japanese trade and economic co-operation.

Japan's direct investment into India had increased from Rs 50 crore in 1991 to Rs 600 crore in 1992 and finally to Rs 1,500 crore in 1996. It is the fourth largest investor in India and this represents 0.5 per cent of Japan's entire overseas investment. Kawagishi pointed out that the total cumulative Official Development Assistance (ODA) to India from Japan is $5.4 billion. During 1996, Japan disbursed $580 million in the form of yen loans, grant-in-aid, technical co-operation and grantassistance for grassroot projects.