In 1952, Japan and India established a diplomatic relationship and since then the two nations have been strengthening their bilateral relations through trade, commerce and technical co-operation. The complementarities that exist between the two countries provide vast potential for growth in their economic ties.
During the visit of Prime Minister Modi to Japan in 2014, the bilateral relationship was elevated to the Special Strategic and Global Partnership. Today, Japan and India share a global vision of peace, stability and shared prosperity. In October 2018, the two prime ministers, Narendra Modi and Shinzo Abe, had their fifth annual summit meeting. Abe expressed the view that a strong India benefits Japan and a strong Japan helps India. In a joint statement, they shared a vision for the future of Japan-India relations in such areas as security, economic cooperation, economic ties, people-to-people exchanges and global challenges.
Over 200 Japanese companies in TN
Japan has long contributed to the development of the manufacturing sector in India. The recent years have witnessed a dramatic rise in our FDI to India. The number of Japanese companies doing business in India has exceeded 1400. In Tamil Nadu alone, the number has increased to 201, contributing to the state economy by creating thousands of jobs.
Investment by Japanese companies earlier concentrated on the infrastructure and manufacturing sectors, but now, has diversified into retail, services and other sectors. India has been named the most promising mid-to-long-term investment destination for Japanese companies. Expanding investment by Japanese companies will further contribute to “Make in India” and “Skill India” initiatives by the Government of India.
Emphasis on skill development
In November 2016, the Ministry of Economy, Trade and Industry (METI) of Japan, and the Ministry of Skill Development and Entrepreneurship (MSDE) of India signed a Memorandum of Cooperation on the Manufacturing Skill Transfer Promotion Programme. METI certifies Japanese companies to establish training courses for the Indian workforce to attain quality skills for manufacturing as well as Japanese style work ethics and methods. This programme aims to train 30,000 Japanese- standard shop-floor leaders and engineers over the next 10 years. Currently, eight Japanese companies across India (including two in South India) have been selected as platforms to provide training for skill development.
In March 2012, the Government of Tamil Nadu launched Tamil Nadu Vision 2023 envisaging the state becoming one of the top three destinations for investment in Asia and emerging as the most attractive state for investment in India. Japan has been actively engaged in helping improve the investment climate. Programmes under Japan’s Official Development Assistance (ODA) scheme such as Tamil Nadu Investment Promotion Programme (TNIPP) have played a role in this endeavour.
A Partner Country…
At the Global Investors Meet 2019, Japan participates as one of the partner countries. More than a half-dozen Japanese companies are expected to announce their new investment or expansion of their operations in Tamil Nadu, a clear indication that Japanese companies have continued interest in investing in Tamil Nadu, the second largest state economy in India.