India: A Promising Frontier for Japanese Enterprises

Japanese companies are setting their sights on India as both a vital market and a potential manufacturing base, according to Rajeev Khanna, Managing Executive Director at Sumitomo Mitsui Banking Corporation (SMBC). With global markets imposing tariff barriers and Japan's domestic market shrinking, India presents a substantial opportunity for Japanese enterprises.

During Prime Minister Narendra Modi's visit to Tokyo, Khanna discussed the prospects offered by India's auto sector and high-tech semiconductors, highlighting the need for Japan to leverage India's technical talent pool for advanced manufacturing. He emphasized that while several Memoranda of Understanding (MoUs) were signed, the ultimate success depends on the actual investment implementations.

Khanna expressed optimism about the potential for converting these MoUs into real investments, noting that industries involved are complex. Meanwhile, PM Modi advocated for collaboration in areas like batteries, robotics, and green energy at the India-Japan Forum, advocating for deeper Japanese engagement in India's growing market.

(With inputs from agencies.)