Nomura Bullish on India: Rising Economy Seen as Boon for Japanese Companies

Mumbai: Japanese financial services giant Nomura is painting a rosy picture for India’s economic future, highlighting it as a prime destination for Japanese firms seeking growth.

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A recent Nomura report cites a survey by the Japan Bank for International Cooperation (JBIC) which ranked India as the number one most promising country for medium-term investment by Japanese manufacturers, for the second year in a row. This positive outlook comes as China, previously the top destination, slipped to number three.

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Nomura attributes India’s attractiveness to several factors, including its robust economic growth trajectory and a large, young domestic market. The report emphasises India’s strong democratic institutions and demographic dividend (a large working-age population) as key strengths that will continue to fuel its economic rise.

This bullish outlook by Nomura aligns with the Indian government’s efforts to attract foreign investment. Initiatives like the Production Linked Incentive (PLI) scheme are designed to create a business-friendly environment and incentives companies to set up manufacturing bases in India.

The report suggests that Japanese firms across various sectors, including manufacturing, infrastructure, and healthcare, stand to benefit significantly from India’s growth story. This presents a lucrative opportunity for Japanese businesses to tap into a burgeoning market while diversifying their investment portfolios beyond China.

While Nomura is optimistic, the report acknowledges potential challenges like ensuring consistent earnings growth to justify current market valuations. However, the overall sentiment leans towards India’s vast potential offering a win-win situation for both the Indian economy and Japanese businesses.

News source- https://m.economictimes.com/news/economy/finance/india-growth-story-to-benefit-japans-firms-says-nomura/articleshow/109567756.cms


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