Japan is looking to deepen its economic engagement with India by tapping into the country’s booming digital ecosystem. According to Takashi Suzuki, chief director general, Japanese External Trade Organisation (JETRO), Japanese industries must embrace India’s digital capabilities to stay competitive in the evolving global market.
During the ‘Viksit Bharat 2047: A Global Perspective’ seminar held at IIM-Nagpur, Suzuki acknowledged that while Japan excels in manufacturing, it lacks the digital momentum that is essential in modern industry. Highlighting Toyota’s plans to set up four factories in Aurangabad, he emphasised that companies are no longer just manufacturers but are evolving into technology-driven enterprises. He believes Indian digital talent can fuel and speed up this transformation for Japanese firms.
Suzuki also pointed to Japan’s pressing labour shortages, particularly in low-skilled roles. While JETRO focuses on high-end talent, other Japanese government departments are addressing mid- and low-skill manpower needs. This shortfall, he suggested, could also open up avenues for workforce partnerships between the two countries.
Maharashtra, particularly Aurangabad, has emerged as a key destination for Japanese investors. With Toyota’s entry, Suzuki expects a ripple effect, drawing ancillary industries and deepening Japan’s industrial footprint in the region.
Suzuki also noted concerns over India’s protectionist policies, particularly non-tariff barriers, which have impacted Japanese exports. However, Japan is working around this by increasing local production within India, aiming to align with the country’s diverse and self-reliant market.
