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Japan hoping to set up more shops in India

Discussion in 'World Affairs' started by ZABASHO, Apr 26, 2012.

  1. ZABASHO

    ZABASHO FULL MEMBER

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    Emerging markets have become a favored destination for businesses looking to expand and India is no exception. In fact, Japan is increasingly looking toward that nation for opportunity.

    In the last two years alone the number of Japanese businesses in India has doubled. What's pushing the move to Mumbai as we travel along the Silk Road?

    This Japanese couple feels very much at home here. Home is Mumbai, India. They say they enjoy the culture, the people, ant their work.

    Jintaro Shimizu was sent here by the Japanese government last year to oversee an ambitious infrastructure project: an industrial corridor linking India's financial capital Mumbai with its political capital Delhi.

    Japan has invested billions of dollars in it and is offering both financial and technical expertise. That's just one example.

    Many Japanese businesses are making a big push into the Indian market these days and are investing in various sectors including automobiles, white goods and pharmaceuticals.

    In fact, Japan was one of the earliest investors in India when its economy began to liberalize in the early 90s. In the last couple of years, the number of Japanese companies had doubled to 800 and foreign direct investment, or FDI, from Japan to India has jumped. Sushil Jiwarajka with FICCI says, "If you notice, the FDI inflows in the last few years has been going down, but the inflow of FDI from Japan has quadrupled in the last few years."

    Sushil Jiwarajka is an industry leader. He's led many Indian trade delegations to Japan. He says Japan and India make perfect partners. While Japan has a slowing economy and an aging population, India offers just the opposite. He says, "You know, Japan's economy has been at an ebb for the last 10 years. They've already invested substantially in china. They see India as a huge market that is opening up. Twenty percent of the world's population, the world's market."

    One of the reasons Japan is investing so heavily in India is the people. A population of 1.2 billion, 60 percent of them are under the age of 30. That means strong domestic demand.

    It's this demand that's fueling growth at Japanese camera maker Nikon. Nikon set up shop in India five years ago. Its managing director says turnover has been doubling each year, and the Indian market, though small, is the most promising. Hiroshi Takashina with Nikon says, "Compared with even the other prospective markets like China or Russia or Brazil, we strongly believe India is the most prospective market for us."

    Why? Takashina says, "Considering the potential, considering the huge population and a lot of lovers of photography; this is different from other countries. So, we are at least expecting more than 30 percent growth over the market every year for say coming 5 to 10 years."

    The future of Japanese business lies outside the country, says Shims, and India will be a key market. He expects many more Japanese businesses and expiates to move to India and call it home, just like his family does.

    Japan hoping to set up more shops in India | todaysthv.com