Bullish Indian Economy Attracts FDI from Japan

Reports on India’s financial numbers continue to promise economic prosperity for the nation. Indicators are up in almost all sectors as the government’s promises for economic upheaval continues to inspire the nation.A swath of hopeful predictions are being made for the nation, as India’s exports are expected to increase from $40 billion at present to $85 billion in 2023 which will ideally allow the nation to achieve a GDP growth rate of 7 percent per annum.

Other countries have taken note of India’s bright prospects, as Japanese investors have ranked India as the top choice for investment potential in comparison to other emerging markets. As part of the Japanese government’s goals for their economy, the country is seeking to triple infrastructure orders for India to about $300 billion within the next 10 years. Japan feels their country will be an important investor in India’s much needed infrastructure, stating that with their regional experience they will have an instrumental role in bringing India into Asia’s elaborate cross-country manufacturing supply chain.

This is good news for India, as newly elected India Prime Minister Narendra Modi  is eager unblock stalled infrastructure products and seeks to promote growth by creating new high-speed train lines and smart cities. With ambitions from Shinzo Abe to boost the Japanese infrastructure-system export orders, Japan is natural answer that can help revitalize India’s stagnant economic growth. Leaders Modi and Shinzo are reported to already have established a good rapport on personal level, and analysts have posited “bilateral economic relations between Japan and India are set to blossom.

While news on FDI generally promises a brighter for future India, the implications for Japanese investment are diverse. Firstly, as the Japanese have a wealth of expertise in infrastructure development, the newly created work by these foreign investors is certain to be reliable and capable to deliver quality products. With this pedigree, foreign buyers can trust that their sourcing orders will be at the same standards as any other manufacturing nation in South-East Asia. Furthermore, Japanese infrastructure is bound to expedite India’s capabilities for manufacturing and export, while alleviating pressure on the Indian government.

By allowing the Japanese to focus on key manufacturing areas, India will consistently improve its abilities to receive and expedite orders. Our Indian office noted that some of these investments have already provided great changes in Bangalore. Hari Sankar, the office director noted these changes in the automobile and telecommunications sector in surrounding areas are already improving the ability to source. Overall, this genuine cooperation between India and Japan is sure to bring increased success to the region.


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