Japanese firms increasingly eye India for global exports, govt supporting investors: MD, Saraf & Partners
New Delhi, August 24
Japanese companies are increasingly looking at India not only to serve the domestic market but also as a base for exports, with greater government involvement in resolving business concerns helping strengthen investor interest, said Mohit Saraf, Managing Partner, Saraf & Partners.
Saraf, who is part of the business delegation accompanying Union Commerce and Industry Minister Piyush Goyal during his visit to Japan, said Japanese companies are now looking at India as an important destination for investment and manufacturing for global markets.
"I think there are two very important things. One is that Japanese companies are looking at India as a very important destination to put the money," Saraf said.
He said Japanese companies have traditionally invested in India to serve the domestic market, but the focus is now expanding towards using India for exports.
"One is to serve the domestic market, which has been done in the last 10 years also. But really now looking at India as investment into India, making India for the world. This was not happening earlier," Saraf said.
He pointed to Maruti and Toyota as examples but said the trend was not happening on a large scale. According to him, Japanese companies are now increasingly focused on investing in India for both the domestic market and exports.
Saraf also said there is growing interest among Japanese companies to establish a presence in India.
"I feel every Japanese company wants to be in India. This is a rare moment where every Japanese company wants to be in India and if they are not in India, they feel left out," he said.
Another important factor, according to Saraf, is the increased involvement of the government in addressing concerns raised by Japanese businesses.
He said companies have been able to raise issues directly, with the government showing willingness to resolve them quickly.
"The other very important thing, which I have not seen to that extent, is that companies were raising issues and the minister was saying, don't worry, raise it now, I will resolve it today," Saraf said.
Saraf said Japanese companies have often had concerns about regulations and the ease of doing business in India. He said the government-business engagement is helping address some of these concerns.
"A lot of the time Japanese companies believe that regulations in India come in the way, and this is why the level of government involvement in soothing the issues is tremendous," he said.
He added that the business delegation is also working to explain India's regulatory environment and policy changes to Japanese companies.
"We are trying to make sure that their ease of doing business, all that the government is doing, is getting translated to the Japanese people and they can appreciate what is happening," Saraf said.
As per the Ministry of Commerce, Goyal's four-day visit covers Tokyo, Nagoya and Osaka, with representatives from sectors including manufacturing, semiconductors, clean energy, steel, automobiles, financial services, healthcare and start-ups.
Japan's bilateral trade with India stood at USD 27.47 billion in FY 2025-26. During the period, exports from Japan to India stood at USD 21.43 billion, while imports from India stood at USD 6.04 billion.
— ANI
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