India’s ambition to position itself as a global manufacturing hub is creating promising new investment opportunities for Japanese companies, particularly in sectors such as electronics, semiconductors, and automobiles, according to a recent report titled India’s Growth Story: Unlocking New Opportunities for Japanese SMEs. The report, jointly prepared by Shardul Amarchand Mangaldas and the Federation of Indian Chambers of Commerce and Industry (FICCI), highlights several high-potential areas for collaboration between the two countries.
With India’s expanding digital economy and established expertise in automation, data analytics, and the Internet of Things (IoT), there is significant potential for Japanese small and medium enterprises (SMEs) to engage in joint research and technology transfer projects that enhance global competitiveness.
India’s young, growing, and increasingly affluent population is also cited as a key driver of domestic demand across sectors, offering stability amid global economic uncertainty. This demand spans consumer electronics, automotive components, healthcare, and food processing, providing a broad base for sustainable long-term growth.
The report also underscores India’s strategic geopolitical stance, pro-export policies, and expanding network of trade agreements as key advantages for Japanese firms aiming to reach wider markets. Manufacturing in India, the report suggests, could serve as a gateway for Japanese exports to regions like Africa and the Middle East.
Rudra Kumar Pandey, Partner at Shardul Amarchand Mangaldas, noted that India’s current and future free trade agreements (FTAs), combined with its strengthening bilateral relationships, provide a favorable landscape for Japanese companies. He added that Japan’s evolving investment strategy—shifting focus toward services and technological innovation—aligns well with India’s rapidly developing digital and financial ecosystem.
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