Push for Deeper Localisation in India
In a recent address, Commerce and Industry Minister Piyush Goyal appealed to Japanese auto and capital goods companies to deepen their localisation efforts in India. Highlighting the rapid growth of the Indian economy and its manufacturing potential, Goyal urged these firms to leverage local supply chains, source components domestically, and tap into India’s skilled workforce. According to the minister, stronger localisation will not only strengthen global competitiveness but also create new jobs and opportunities across the value chain.
Focus on R&D and Innovation Hubs
Goyal emphasised the importance of setting up dedicated Research & Development (R&D) centres in India. By establishing innovation hubs and collaborating with Indian institutes, Japanese firms can tailor products to local requirements and global markets alike. He further recommended the creation of Global Capability Centres (GCCs) to drive digital transformation, streamline processes, and develop cutting-edge technologies. These centres can act as engines of growth, delivering advanced solutions for both domestic use and export.
Building New Manufacturing Capacity
At the core of his appeal, the minister highlighted the need for fresh manufacturing investments. He encouraged Japanese corporations to expand existing plants or build new facilities in strategic locations across India. With government incentives, improved infrastructure, and streamlined approval processes, setting up greenfield or brownfield projects is more attractive than ever. Increased production capacity will help firms respond swiftly to demand fluctuations and scale operations efficiently.
India as a Global Export Hub
Piyush Goyal painted a vivid picture of India as a global export base. He pointed out that enhanced localisation and capacity-building can position Indian subsidiaries as export champions, supplying components and finished goods to markets in Europe, Southeast Asia, and beyond. The minister also noted that bilateral ties between India and Japan have strengthened under various trade agreements, offering a stable framework for cross-border commerce and investments.
Advantages of Collaboration for Japanese Investors
Collaborating with local partners not only reduces costs but also accelerates market entry and regulatory compliance. Indian suppliers are rapidly upgrading their capabilities, adopting international standards in quality, sustainability, and efficiency. Japanese investors stand to benefit from cost-effective manufacturing, proximity to emerging markets, and a supportive policy environment that includes tax breaks, duty exemptions, and infrastructure support.
The Road Ahead for Japan-India Industrial Partnership
Looking forward, Goyal expressed optimism that deeper engagement will spur innovation, boost exports, and create high-value jobs. He called on industry stakeholders and government bodies to work in tandem, ensuring seamless implementation of projects and timely resolution of challenges. With a shared vision of growth and resilience, India and Japan are well-placed to strengthen their industrial partnership and deliver mutual prosperity in the coming decade.
