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Japan ministry unit to aid firms entering India market

From Hindustan Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • Japan's foreign ministry has established a new division to support small and medium-sized Japanese companies and startups in entering or expanding their investments in the Indian market.
  • The division aims to address issues like opaque legal systems, varying state regulations, and insufficient infrastructure, which have hindered Japanese business growth in India.
  • This initiative aligns with Japan's target of realizing 10 trillion yen in private sector investments in India over 10 years and reflects the growing importance of bilateral economic cooperation due to India's high economic growth rate.

Japan's Ministry of Foreign Affairs has launched a new unit dedicated to helping Japanese small and medium-sized enterprises (SMEs) and startups navigate the Indian market. The Japan-India Economic Affairs Division, established in April and set to fully operate from August 3, will focus on facilitating market entry and investment expansion for these companies.

The division's mandate includes addressing regulatory hurdles and other challenges that have historically slowed Japanese business growth in India. According to a Jiji Press report, the number of Japanese companies in India has remained relatively stagnant since 2018, with factors like legal system opacity, inconsistent state regulations, and inadequate infrastructure cited as key obstacles. The new division plans to tackle these issues through inter-governmental dialogue and diplomatic efforts.

This move supports Japan's broader economic strategy, which includes a target of 10 trillion yen in private sector investments in India over the next decade. While Japanese foreign direct investment in India has seen an increase, it still represents a small portion of Japan's total outward FDI. The establishment of the division underscores the growing significance of bilateral economic ties, particularly given India's robust economic growth.

We want to solve problems facing companies through diplomacy.

— foreign ministry sourceA foreign ministry source was quoted by Jiji Press explaining the division's objective.
DistantNews Editorial

Originally published by Hindustan Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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