Japanese businesses are being urged to tap into the promising Indian market, according to Yoshiyuki Enomoto, president of the Japan Chamber of Commerce and Industry in India (JCCII). Enomoto, who is also the chairperson and director of Mitsui & Co. India Pvt. Ltd., highlighted the significant improvement in India’s business environment as a key driver for this push.
In a recent interview with Jiji Press, Enomoto expressed confidence in India’s sustained economic growth, even with Prime Minister Narendra Modi entering his third term. He pointed out the lack of “major policy change” as a positive indicator for continued stability.
This bullish outlook is reflected in the growing membership of JCCII, which currently stands at around 550 firms.Significantly, over the past two years, nearly 60% of new members have been small and mid-sized companies. This marks a shift from the past, where large corporations dominated Japanese investment in India.
The trend extends beyond traditional manufacturing giants. Enomoto noted a surge in service sector companies entering the Indian market. Consulting firms, accounting firms, and law firms are increasingly establishing a presence, indicating a growing diversification of Japanese business interests in India.
JCCII is actively supporting this expansion, particularly for smaller firms. By facilitating partnerships with local businesses, the chamber aims to bridge the gap and ease entry for Japanese companies seeking a foothold in the Indian market.
This renewed focus on India by Japanese corporations aligns with broader economic trends. With geopolitical uncertainties looming, companies are looking to diversify their markets. India’s large and growing consumer base,coupled with its improving business environment, makes it a strategic destination for Japanese investment. As Enomoto suggests, this is an opportune moment for Japan Inc. to leverage India’s growth potential.
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