Business collaboration between India and Japan set to advance state’s dream of $1 trillion economy

Organized by the Bangalore Chamber of Industry and Commerce (BCIC) in collaboration with knowledge partner PWC and conceived by the Indo-Japan Business Council (IJBC), the India-Japan Business Summit suggested that collaboration between Indian and Japanese companies is the state’s vision could significantly improve a trillion dollar economy by 2032.

Under the motto “Make in India with Japan for the Globe”, prominent speakers appeared at the summit who believed that there are several industries such as defence, aerospace, manufacturing, information technology and chemical industries in which both countries could work together to boost trade and investment.

In his keynote address, His Excellency Tsutomu Nakane, Consul General of Japan in Bengaluru, said: “With this summit, we aim to explore the diverse opportunities in both countries for businesses to thrive and grow.” As of October 2022, 228 companies have opened 537 offices across Karnataka and the number of Japanese companies expanding to Karnataka is also steadily increasing. The cooperation between Japan and Karnataka shows that business is not only important for the development of bilateral relations, but also has great meaning for the world.

By investing in India or establishing an industry in India, Japanese companies can expand their exports through India to countries in the Middle East and Africa. Business collaboration between Japan and India will bring synergies to both economies by combining Japanese manufacturing know-how with India’s information technology capabilities and diverse talented workforce. To foster such cooperation, it is necessary that Japan recognizes the business opportunities available and that India continues to improve amenities and infrastructure in and around industrial parks.”

In her keynote address, the President and CEO of Kirloskar Systems Pvt. Ltd and Chairman, Toyota Tsusho Insurance Broker India Pvt. Geetanjali Kirloskar from Bengaluru said, “India has a relatively stable economy that presents tremendous growth potential for Japanese companies to build a very strong, competitive manufacturing supply chain.”

“There is tremendous potential for both countries to develop lighthouse projects in industries that offer potential for collaboration, such as chemicals, which represents a multi-billion dollar opportunity.” Another big opportunity is the defense and aerospace industries, wants to nativeize the sub-assemblies with newer and more autonomous manufacturing processes. Japanese startups are now also taking Bangalore very seriously. However, there are two challenges, namely the need to develop a quality provider in India and the need for quality expertise. We still have a lot of work to do to improve the skill quality of the workforce.”

In his inaugural address, BCIC President Dr. L. Ravindran: “Both Japan and India, characterized by their stability and resilience as economies, must use their economic cooperation to foster broader regional growth.” The link between the two countries is a remarkable model based on shared values, mutual respect and a vision for a prosperous future, not just for their nations but for the global community.

Through joint research and development initiatives, India and Japan can unlock tremendous potential and lead their economies to unprecedented success. With the pledge to invest $5 trillion in India announced by Japan’s former Prime Minister in 2022, there is huge potential for small and medium-sized enterprises in Japan to collaborate and do business with similar companies in India. It is important to prioritize specific sectors such as infrastructure, advanced manufacturing, global mobility, information technology and healthcare as they play a critical role in shaping their collective future and achieving their investment goals.”

“BCIC has set up an office in Japan with a three-pronged strategy to promote Karnataka as an investment destination, bring a delegation of industrialists from Karnataka to Japan and receive a delegation of industrialists from Japan to Karnataka,” he added.

Partner, PwC India, Mukesh Agarwal said: “Global economic trends are positioning India in a unique position for new investment, largely due to India’s improved business-friendliness, attractive industrial policies and incentives, production-based incentives to strengthen the manufacturing ecosystem and cheap costs. “ Business activity and India’s highly talented workforce. India is seeing continued interest from Japanese companies and there is tremendous potential for collaboration much larger than what we see today. Japanese companies can capitalize on the opportunities arising in emerging sectors that will allow for the growth of new investments in India.”

A Murali, Adviser to BCIC and Vice President of Toyota Tsusho India Private Limited, provided the context of the summit, saying, “The diplomatic relations between the Government of India and the Government of Japan are of a very high quality.” This Summit provides a unique platform for business leaders , policy makers and academics to come together and discuss various aspects of economic relations between the two countries and share best business practices. The purpose of the summit is to explore new areas of cooperation between the two nations and to facilitate the exchange of ideas and people-to-people contact.”

Thematic sessions at the summit included panel discussions on Unveiling the Secrets of Japanese Manufacturing Excellence, Revolutionizing Global Mobility and Electronics Manufacturing: Cooperation Strategies for India and Japan, Building World-Class Infrastructure for Make in India: A Joint Effort Between India and Japan” and “Unleashing”. India’s talent pool in IT, healthcare and technology for Japan. Over 200 delegates from government, industry and academia attended the one-day summit.

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