Japanese firms look for government incentives to relocate investment into India

“My mission is to promote India-Japan partnership as I believe there is bright future for both the countries. Japan, which is the third largest economy of the world, and India, which is the sixth largest economy, can work together for mutual benefit. India and Japan share similar values of democracy, rule of law and human rights. Our religions of Hinduism and Buddhism also have huge similarities. Many Japanese companies, who have invested in China and ASEAN countries, are looking to re-locate their investments into India, as part of their supply chain diversification strategy. Major Japanese banks such as Mizuho and Mitsubishi have targeted India as the number one destination for business expansion. Already, India is the largest recipient of Japan’s Official Development Assistance,” said Dr. Yasukata Fukahori, Consul General, Consulate General of Japan in Mumbai at an interactive meeting. The event was organized by World Trade Center Mumbai and All India Association of Industries (AIAI).

Dr. Fukahori further added, “Japan has been proactive in funding infrastructure projects of central and state governments in India. We wish to increase our investment commitment in India, which is growing not only in the manufacturing sector but also in the infrastructure sector.”

Speaking about the future strategy to enhance bilateral relations, Dr. Fukahori remarked, “India’s central and state governments need to provide incentives for Japanese companies, on par with those provided by other Asian countries to attract investment. I strongly feel that both the countries have untapped potential to collaborate in tourism, textile, automobiles and other manufacturing sectors.”

The size of the Indian consumer market is double that of ASEAN market and so I feel Japanese investors will profit more by relocating their investment from ASEAN to India, Dr. Fukahori highlighted.

Earlier in his welcome remarks, Dr. Vijay Kalantri, President, All India Association of Industries,Chairman, MVIRDC World Trade Center Mumbai said, “Japan can play a prominent role in India’s vision of USD 5 trillion economy. We need your support in technology, finance and industrial development. Today, bilateral trade stands at USD 15 billion, which belies true potential. Already, Japan has invested substantially in India’s transport, power, environment and industrial corridor projects. There is still untapped potential to expand our partnership in information technology, textile, auto and engineering sectors. We have huge manpower, while Japan has technology and finance.”

Dr. Kalantri pointed out that both the countries should take advantage of the shared heritage, culture and spiritual connection to strengthen bilateral relations in commercial areas as well. Dr. Kalantri invited the Consul General for another meeting with the members of trade and industry to prepare roadmap for expanding commercial collaboration through joint ventures, trade, investment and technology transfers.

During the event, the Consul General addressed queries raised by the audience on expanding bilateral relations in education, retail, infrastructure, food processing and other sectors.

Mr. Ajoykant Ruia, Vice Chairman, MVIRDC World Trade Center Mumbai proposed vote of thanks for the event.

The meeting was attended by Ms. Reiko Mori, Consul-Economics, Consulate General of Japan in Mumbai, members of trade & industry, infrastructure companies and academia.