New Delhi: India’s drive to become a global manufacturing hub for sectors such as electronics, semiconductor, and automobile is unlocking fresh investment opportunities for Japanese firms, a report said on Sunday.
The other sectors where businesses of both the sides can increase collaborations include warehousing, packaging materials, setting up cold chain, dairy, defence and aerospace, according to the report - India’s growth Story: Unlocking new opportunities for Japanese SMEs - prepared by Shardul Amarchand Mangaldas and Ficci.
It said that the technological synergy between Japanese firms and India’s burgeoning information and technology industry offers an exciting avenue for innovation.
India’s vibrant startup culture and robust research institutions provide a pool of expertise in areas like automation, data analytics, and Internet of Things (IoT).
“By engaging in collaborative research and technology transfer initiatives, Japanese SMEs can integrate these advanced solutions into their operations, thereby boosting efficiency and maintaining a competitive edge on the global stage,” the report said.
It added that India’s vast domestic market, driven by a young and increasingly affluent middle class, ensures robust internal demand across sectors, from consumer electronics and automotive components to healthcare and food
processing.
This large-scale market creates a buffer against global economic fluctuations and provides a steady base for long-term growth.
“India’s export-oriented policies, supported by extensive network of trade agreements and geopolitical stance make it an ideal hub for Japanese companies looking to export their products, particularly to Africa and the Middle East,” it said, adding, by setting up manufacturing operations in India, Japanese firms can leverage the country’s advantageous position to access the global market, which can significantly enhance their
global presence.
Rudra Kumar Pandey, Partner, Shardul Amarchand Mangaldas, said India’s current/future FTAs and bilateral ties with major economies provide huge export opportunities for Japanese companies operating in India.