Indian Market Potential Draws Japan Firms

A recent survey by Nikkei Weekly, Japans leading business news weekly, shows that a majority of Japanese companies consider good growth potential in India as one of the main reasons for entering the market here.

Of the 30 Japanese companies which answered a detailed questionnaire prepared by the Weekly, 13 said they entered the Indian market because of its growth potential, while 18 said their business in India was currently close to what we expected.

Only two companies said business was worse than expected.

Pump makers Ebara Corp, responding to the questionnaire, said its business plans were as planned as the Indian management is very good at working out a strategy and implementing it.

 

Regarding expansion plans in the country though all the 30 respondents are already here - 17 answered in the affirmative, while 11 said they would maintain the current level.

None of the firms were in favour of scaling down operations.

Regarding changes they would like to see, 11 respondents wanted simplifications of government permits and licences, eight sought infrastructure development, five deregulation of foreign investment and three tariff reductions.

Two companies were for liberalisation of interest rates and liberalisation of foreign exchange.

Sumitomo Corp hoped that the Indian government would permit 100 per cent foreign-owned trading houses to trade domestically.