On the world''s economic map, India is the fourth largest economy. Most economic
indicators highlight the fact that India is emerging as a preferred destination
for global investors. Against this background, one such association that has grown
over the years is between India and Japan, with Japan being the fifth largest
investor in India.
the guidance of Department of Industrial Policy & Promotion (DIPP), KPMG alongwith
FICCI, CII and ASSOCHAM today released a white paper Nihon and Bharat - Two
ancient Asian giants engaging to take economic relations to a new level.
white paper was released on the occasion of the India - Japan Business seminar
organised by DIPP and the three apex chambers for the visiting delegation of CEOs,
accompanying Japan''s Prime Minister Shinzo Abe.
companies are expanding their operations in India, not only to exploit the enormous
opportunities that a market of over a billion consumers offers, but also to use
India as a hub for their activities in the region. With the proposed development
of the Delhi-Mumbai industrial corridor, significant opportunities for investments
are expected to emerge. This is a massive project involving an investment of $90
billion over a seven-year period.
relations between the two countries continue to move along an ascending curve,
with the signing of a Joint Statement during the Indian prime minister''s visit
to Japan in December 2006. The statement envisages a vision for planning the future
course of this relationship and a detailed plan of action to move forward.
strengthen trade relations between the two countries, some promising and potential
business areas such as Infrastructure, Power, Automobiles and Auto Components
and Electronics Hardware have been identified in this whitepaper. These sectors
have been analyzed, from the perspective of the existing scenario as well as future
opportunities and growth potential.
on the white paper, Pradeep Udhas, head, Markets, KPMG India, said, "Japan''s
post-war economic miracle was in no small part due to the pride that the average
Japanese felt in rebuilding the country. One is seeing stirrings of the same pride
in Indians today. Japan and India have a lot on their joint agenda at present.
Japan''s technological prowess and design/engineering skills, if combined with
India''s highly skilled labor and IT leadership, can prove symbiotic to both countries.
The ongoing political and strategic engagements can only hasten this process".
growth potential between the two countries is demonstrated by the following factors:
is a relatively labour-scarce, capital-abundant country that complements India''s
rich resources in human capital
India''s strength in the software sector lends synergy to Japan''s excellence in
the hardware sector
India''s abundance of raw-materials and minerals complements Japan''s capabilities
in technology and capital to produce high-tech goods
the increased development in the infrastructure space, an enormous demand for
power, need for a better road infrastructure, and the necessity to attract private
sector participation in these projects, India is currently one of the most attractive
destinations for Foreign Direct Investment.
first step of this process, however, lies in creating a strong foundation for
a long term relationship between the two countries. Closer the links between the
two countries, will not only mutually benefit the two economies, but will also
go a long way in paving a bright future for all of Asia.