Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

Japan Inc. an Island of calm in India's chaotic business terrain.


Date: 11-07-2017
Subject: Japan Inc. an Island of calm in India's chaotic business terrain
In the desert-like scrub land of Rajasthan, beside a barren stretch of highway, an unlikely oasis appears: an island of Japan Inc. 

On more than 1,100 acres of land dedicated exclusively to Japan’s corporations, global titans such as Toyota Motor Corp., Daikin Industries Ltd. and Hitachi Ltd. have clustered together to protect themselves from the vagaries of India’s chaotic business landscape. 

Located roughly three hours from New Delhi, the sprawling industrial estate provides Japanese companies with largely uninterrupted power and water supplies. It also offers a streamlined license and approval process that bypasses local officials who might ask for bribes. These are rare luxuries in a country ranked 130th by the World Bank for ease of doing business. The project has been so successful that there are plans for another location that is similarly dedicated to Japanese firms. 

For Japanese expats, the perks are even better. There are three karaoke lounges, a hotel with Japanese TV channels and magazines, traditional pine-wood baths, a golf simulator and four restaurants serving everything from ramen to sushi. 

"In India, the size of investment matters," said Takayoshi Tokimune, the managing director of the India subsidiary for Dainichiseika Color & Chemicals Manufacturing Co. "So we flocked together." 

Japan’s foreign direct investment in India has risen since the global financial crisis, reaching nearly $3.5 billion in 2016. Japan is India’s 10th largest trading partner with the bilateral relationship worth about $14.5 billion. 

Japan has the technological know-how and a cadre of mighty corporations hungry for new, markets, as economic growth and its population shrink at home. India has rapid growth, an expanding middle class eager for higher-quality products and more than one million youth joining the labor force every month. 

Prime Ministers Narendra Modi and Shinzo Abe, both right-leaning nationalist leaders, personify the tight-knit relationship, embracing every time they meet. 

"They have what we don’t, and we have what they don’t," said Hiroshi Daikoku, a senior investment adviser to the Japanese external trade promotion agency, JETRO. 

Businesses -- as well as Abe’s government -- also view India as a low-cost regional base to ship Japanese products into Southeast Asia and across the Arabian Sea to the frontier markets of Africa. 

"If you look at this whole market from Africa to Southeast Asia, India is the core," Kenko Sone, economic head of Japan’s embassy in New Delhi, said in an interview. "It’s easier from India to see the African market. And Indian companies also have strong connections with African businesses, especially on the east coast. We can collaborate." 

‘With Conditions’ 

As Japanese capital flowed into India’s fast-growing economy, the intriguing industrial experiment at Neemrana -- a collaboration between JETRO and the government of Rajasthan -- has created about 10,000 factory jobs. 

With the allotted land now more than 90 percent full of factories, mainly linked to the automotive sector, the project is being expanded to a separate 500-acre plot in Rajasthan, as well as to other Indian states such as Gujarat. Japanese executives in India said the vast Neemrana estate has allowed them to bypass the single biggest hurdle to setting up a factory in India: Obtaining a piece of land at a fair price that won’t be subject to contested land claims at a later date, and without needing to offer bribes to local officials. 

"They would say no to investment, and then yes the next day -- with conditions," said Eiichiro Terada, managing director for Mitsui Chemicals Inc. subsidiary Mitsui Prime Advanced Composites India. "It’s very difficult to talk to local government officials." 

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 30-05-2025
Notification No. 31/2025-Customs
Seeks to i. extend the specified condition of exemption to imports of Yellow Peas (HS 0713 10 10) to bill of lading issued on or before 31.03.2026; ii. to reduce the basic custom duty on crude soya bean oil (HS Code 15071000), crude sunflower oil (HS Code 15121110), and crude palm oil (HS Code 15111000) from 20% to 10%

Date: 30-05-2025
Notification No. 38/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Date: 26-05-2025
NOTIFICATION No. 37/2025-Customs (N.T.)
Notification of ICD Jalna, Maharashtra u/s. 7(1)(aa) of Customs Act, 1962" and it was issued under Section 7(1)(aa) of Customs Act, 1962

Date: 23-05-2025
Notification No. 30/2025-Customs
Seeks to amend notification No. 55/2022-Customs dated 31.10.2022 to remove the condition required for availing exemption on Bangalore Rose Onion.

Date: 23-05-2025
NOTIFICATION No. 36/2025 - Customs (N.T.)
Amendment in the Notification No. 63-1994-Customs (N.T) dated 21.11.1994 in respect of Land Customs Station, Raxaul

Date: 15-05-2025
Notification No. 34/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Date: 09-05-2025
Notification No. 29/2025-Customs
Seeks to exempt works of art and antiques from Basic Customs Duty

Date: 30-04-2025
Notification No. 02/2025-Customs (CVD)
Seeks to amend Notification No. 05/2024-Customs (CVD) dated the 11th September, 2024 so as to align with changes made vide Finance Act, 2025

Date: 30-04-2025
Notification No. 26/2025-Customs
Seeks to rescind Notification No. 04/2025-Customs dated the 1st February, 2025

Date: 30-04-2025
Notification No. 27/2025-Customs
Seeks to amend Second Schedule to the Customs Tariff Act, to align it with changes made in the First Schedule to the Customs Tariff Act vide Finance Act, 2025.



Exim Guru Copyright © 1999-2025 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001