Japanese firms and business establishments in India increase 5%

NEW DELHI: The number of Japanese companies registered in India and business establishments operating in the country increased 5% in October from a year ago amid growing momentum in bilateral ties.

According to Japanese government data, the number of Japanese companies registered in India increased to 1,441 from 1,369 and that of Japanese business establishments went up to 5,102 from 4,838 during the period.

The numbers grew more in Haryana and Maharashtra than in other states, as per the data. Manufacturing sector accounted for half the companies and a third of the business establishments in India.

There was a significant increase in the number of companies in sectors such as metal manufacturing as well as services, according to the Japanese government.

On the other hand, some companies became non-Japanese due to corporate restructuring or change of ownership, among other factors. While Haryana led the states with 393 Japanese firms registered in the state, Maharashtra came second with 243 enterprises. Karnataka was third (243), followed by Tamil Nadu (201) and Delhi (162).

Prime Minister Narendra Modi’s home state, Gujarat, had the highest number of Japanese business establishments but it lagged states such as Rajasthan and Uttar Pradesh as well in the number of Japanese companies, at 38.

Andhra Pradesh and Kerala each had less than 20 Japanese firms registered in the states while Jharkhand and Odisha had one Japanese company each. Although Japan had been assisting India to upgrade infrastructureNSE -0.30 % in the landlocked Northeast, there was no presence of Japanese firms or establishments in the region.

In 2016-17, Japan was the third-largest source of foreign direct investment for India, accounting for FDI of $4.7 billion. Japan has been a strong supporter of Modi government’s initiatives such as Make in India, Skill India and Clean India Mission, sharing resources and advanced technologies, and actively mobilising Japanese public and private sector investments.

Source:ET

Image Courtesy:South Asian Voices