Japanese firms increasingly turning their focus towards India: Official

Japanese companies are increasingly turning their focus towards India, with expectations of significant expansion in the eastern and northeastern regions, a top official from the Japan External Trade Organisation (JETRO) said here on Friday.

JETRO is a Japanese government-related organisation that promotes mutually beneficial trade and investment relations.

The official added that current uncertainties have prompted Japanese firms to seek alternatives to their traditional markets, including a notable interest in India.

"Due to the current geopolitical situation, more and more Japanese companies are scouting for alternative markets, including India. I expect the number of Japanese companies in India to increase significantly in the near future," JETRO India chief director general Suzuki Takashi told PTI on the sidelines of the 15th Business IT Conclave organised by The Bengal Chamber.

Takashi highlighted the intentions of several major Japanese corporations like Daikin and Suzuki to ramp up their investments in India, particularly in research and development and manufacturing sectors.

While China currently hosts around 20,000 Japanese companies, India accommodates only 1,400, with recent Japanese investments averaging USD 2.4 billion annually compared to USD 4 billion in China over the last decade, officials said.

Despite a modest presence of 25 Japanese companies in West Bengal and the absence of a JETRO office in Kolkata, Takashi remained optimistic about expanding Japanese business activities in the eastern states.

Takashi also chaired a meeting with the Bangladesh JETRO office to promote greater cooperation and help Japanese companies harness increased synergy in both India and Bangladesh.