Japanese investors want India to move from stereotype “Large & Potential” to “Open & Deregulated” Economy

NEW DELHI: Industry has witnessed a major shift in the way Japanese investors look at the Indian market for making large investments here.  The stereotype “Large & Potential” market size of India no more lures the Japanese investors. What appeals to them now is how much the Indian economy is “Open & Deregulated”.

This was disclosed during a San Moku Kai – the monthly General Meeting of Japan Chamber of Commerce and Industry in India (JCCII) normally held at Japan Embassy, now is held through WEB,  in New Delhi where Nobuhiro Takahashi,  Advisor of Suggestion Activities, JCCII made a presentation in the presence of Satoshi Suzuki, Ambassador of Japan in India.

“Gone are the days when Japanese investors would get attracted to India solely on the basis of its market economy size and the vast business potential it offers. Japanese investors looking at India for making an investment here are shifting from their stereotype thinking of seeing India’s

“large and potential” economy to “Open and Deregulated” economy,” said Nobuhiro Takahashi who happens to be the Managing Executive Officer (MEO) with a large Japanese automotive component manufacturing company in India.

Though he said it was not easy for a country like India to open up the economy and deregulate the market entirely sincere attempts were being made by Narendra Modi-led Indian government to speed up the process in this direction.

San Moku Kai meeting was attended by the representatives about 250 member companies of JCCII as well as a Secretary of Japan Embassy.

“India had started rolling out reforms in the early 1990s during the time of Prime Minister Dr. Manmohan Singh where the country was facing financial crises. These reforms were, however, slow-paced. But ever since the Modi government has taken reigns in 2014, the speed of reforms and initiatives to open up the market economy has been faster comparatively. The paradigm has changed as various deregulations have been promoted under the leadership of Prime Minister Modi,” said Takahashi adding that the proposition of a Market Economy is deregulation and the Key To Economic Promotion is Financial Spending.

However, Nobuhiro Takahashi is of the opinion that India’s speed on global reforms has been slower when compared with china whose economy has grown 10 times bigger than India. China had started opening the market and deregulating the economy in the middle of the 1980s even though it received a bad name for infringing human rights like the one Uighur is an example.

“No matter how inconvenient it is to live in an open market, but foreign capital comes there. The amount of Problematic Debt in India has remained, and liquidity will not improve accordingly. There is a limit to the tax collection by the Indian government, and I am afraid that there will be more tax matters in India without FDI or ODA. The Indian economy will be Winter-Sleep unless we invite FDI & ODA to India. India should be an open market for her Economic Freedom.

While commenting on a recent webinar headed by the Railways and Commerce & Industry minister Piyush Goyal who was interacting with Japanese trade and commerce associations like JETRO, JICA, and JCCII,  Nobuhiro Takahashi said that despite the trade deficit between Japan and India, Mr. Piyush Goyal called Japan as the most reliable trade partner, and highly evaluated Japan’s FDI.

“I can understand that his remarks at this time place importance on cooperative relations with Japan as a national interest. There is no doubt that India will grow into a huge market, and the strengthening of economic independence in her market is an important turning point for India’s future defense. If Japan can gain the strong trust of India and cooperate in creating an open market with India that will also contribute to India and Japan’s national interests. I believe the events we are seeing now, have emerged as a major turning point of the history,” Nobuhiro Takahashi added.