These enterprises met a delegation from India on the 7th October under the support of the Japanese Ministry of Economy, Trade and Industry.
The Sunday Guardian quoted a member of the Indian delegation saying 100 SMEs that are participating in the event are related to sectors such as automobile, electronics and aerospace. “Many big companies are already operating in India but the entry of Japanese SMEs with their good technology base, will complement their requirements, and thus help expand their operations in India," he said.
Economic ties between the two countries have been on an ascending trajectory, through successive regime changes in both the countries.
According to a DNA report, while speaking to some industrialists in Mumbai in 2005, business and corporate strategist Kenichi Ohmae predicted that by the year 2020 at least 400 japanese companies would relocate themselves to India. The report further said that currently there are about 246 Japanese business groups already established in Maharashtra. The figures at the national level would be much higher.
In a recent event organised by the Federation of Andhra Pradesh Chamber of Commerce and Industries on November 4, 2013, Masaki Takaoka, deputy mayor of Miyoshi City in japan was quoted as saying, “Japanese FDI into India has increased to $2,786 million in 2012, showing an increase of 19.8 per cent over the previous year.”
According to a Ficci estimate, 1000 Japanese companies have already invested $14.75 billion into India. The SMEs, besides the FDI inflow, are expected to help local manufacturers by means of transfer of technology, job creation, etc.
Japan finds India, a better destination to place its companies than places like china, because the lack of xenophobia against their people. Periodic riots in China against Japanese interests have made India attractive. India being Buddhism’s birthplace also makes the deal sweeter. With the US markets losing their sheen and an aging population in Japan looking for safe returns on foreign investments, India is rising to be a reliable partner for the Asian economic powerhouse.