 "Amitabh Kant")
India offers huge growth potential for Japan manufacturers as economic and political collaboration between the two countries grow deeper. This is evident from the fact that many of Japanese enterprises have announced in investments (in the form of expansion or acquisition) in India especially in the field of auto component, agro chemicals, chemicals, etc.
FICCI, on its, part has decided to open a ‘FICCI India Plus’ office in Japan, which will be launched soon. The office is expected to be of great help to Japanese companies interested in doing business in India and vice versa.
“Japanese companies must rapidly move into the Indian market as the process of infrastructure creation and reforms will throw up ample opportunities for investment. They must learn from Maruti’s India story which has brought in a culture of manufacturing excellence to India,” said Amitabh Kant, CEO, NITI Aayog, at the joint meeting of India-Japan Business Cooperation Committee (IJBCC) in New Delhi yesterday.
He said that in the governance structure in India today there is consistency, clarity and predictability of policy. Evidence of this can be found in the structured changes that have been brought about on business process engineering and the enactment of the bankruptcy law. The India story for Japanese companies has just begun, Kant said adding that while Japanese companies are over-exposed in China, their future lies in India.
A joint statement issued at the end of the meeting noted that the two sides discussed potential areas of cooperation between India and Japan, such as pharmaceuticals and Information Technology. IJBCC highlighted the issues on market access in these areas, such as the below par share of Indian companies in the Japanese drug market and the low share of India’s IT services in the Japanese IT market. The Indian side also sought improvement on the certificate of eligibility for Indian persons intending to obtain business visa for Japan.
To increase two-way investment, it was considered imperative for both India and Japan to proactively address the Regional Comprehensive Economic Partnership (RECP) negotiations.
“Agreements for introducing Japanese Shinkansen technology for the Mumbai-Ahmedabad High Speed Rail (MAHSR) Project had been signed. The Shinkansen, known for its speed, reliability and safety, is seen in India as a vehicle to embark on a high-growth trajectory through better connectivity, on the lines of Japan’s own transformational half a century ago,” informed Onkar Kanwar, chairman, IJBCC, and chairman, Apollo Tyres Ltd.
Calling for a special strategic global partnership between Japan and India, Masami Iijima, chairman, Japan-India Business Cooperation Committee (JIBCC) and CEO & president, Mitsui & Co Ltd, said, “There was an overall improvement in the business environment in India and the passage of the GST Bill in Parliament holds out great hope for making the business environment more friendly.”
Besides, the government’s Make of India programme has spurred strong competition among Indian states in improving the ease of doing business, which has attracted many overseas investors.
“Global investors were now focusing their sights on India. His company tries to find common ground to problems faced in this country by endeavouring to understand one another. The landmark taxation reform by way of introduction of the GST next year was the new buzzword which was being keenly watched by businesses around the world,” said Kenichi Ayukawa, MD & CEO, Maruti Suzuki Ltd.
Rohit Relan, co-chairman, IJBCC and managing director, Bharat Seats Limited, added, “There were huge opportunities for Japanese companies in India in manufacturing areas such as pharmaceuticals, defence, textiles, chemicals and auto components and I hope Japanese businesses will take a closer look at these avenues for enhancing their activities and presence in India. I believe the way forward is to break new grounds of cooperation by exploring complementarities in our economic strengths and plan investments accordingly.”
