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Japanese firms set to boost investment in India

Japan is fast emerging as one of India's major trading partners as economic ties between the two countries continues to improve. At the World Economic Forum East Asia summit in Tokyo last month, the two countries launched a plan of action to boost Japanese investments in India, with considerable focus on the small to medium sized enterprises (SMEs). According to The Hindu, Japan's Economy, Trade, and Industry Minister Toshihiro Nikai and India's Commerce and Industry Minister Kamal Nath have planned steps to "heighten the awareness of Japanese investors about economic opportunities in India".

Meanwhile, the India Brand Equity Foundation has released a report "Proven Strategies: Japanese Companies in India" which records that about 71% of surveyed Japanese companies in India planned to raise their investments in India, reported the Business Standard. The report surveyed 25 Japanese companies in India and profiles 17 Japanese companies in India. India's Commerce Minister Kamal Nath has called upon more Japanese companies to show faith in the prospects that India offers and invest in the country.

In another report, the Business Standard also reports that more and more Japanese firms are setting up software development centres in Bangalore, India. These include electronics industry giants such as Sony, Matsushita, Fujitsu, Toshiba, among others. These companies are now being followed into the Indian market by chip design firms like Kawasaki Microelectronics and SoCrates Software. The paper also reports that a delegation of Japan Electronics & Information Technology Industries Association had recently visited the country to explore suitable business opportunities.

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