Nomura's India President Hisao Nakajima on Japanese firms' interest in India

Two months ago, Nomura Research Institute India acquired a 25 per cent stake in the Indian market research firm Market Xcel Data Matrix Ltd.  Nomura is into research and consulting jobs in India. Hisao Nakajima, president of the Indian unit, spoke with Business Today on the sudden spurt of acquisitions by Japanese companies in India.

Q Why the sudden interest of Japanese companies in India?
A: There are mainly two reasons. There is a growing market in India and the entry into a new country also offers diversification. Today, the Japanese share of automobile market in India is already above 50 per cent, and Japanese tier 2 and tier 3 auto component manufacturers are expected to enter India. The infrastructure investments in India are expected to be about a trillion US Dollars in the next 5 years including public private partnerships. The healthcare industry in India is on a high growth trajectory. Now most of companies have recovered from the Lehman shock. The Yen appreciation is high which also offers the opportunity to invest outside. Japanese companies are also looking for balancing their investments in China, India and other Asian countries.

Q How big could the Japanese investment in India become?
A: The FDI inflows from Japan have already grown several times in the past years. We suppose this trend would continue in future.

Q Which are the sectors in which Japanese companies are strong and can help Indian companies?
A: There are many  sectors, like manufacturing, automotive, machinery, electronics, infrastructure, smart city, integrated city development, high speed rail like bullet trains, power generation, transmission & distribution, water purification, new energy, logistics etc.

Q Is India more friendly to Japan than China?
A: India is certainly more friendly with Japan. There is a CEPA (comprehensive economic partnership agreement) signed for free trade and there are also plans to celebrate India and Japan's 60 years of partnership.

Q What is unique about Japanese entrepreneurs and do you see similarities between Indian entrepreneurs and Japanese entrepreneurs?
A: The service-oriented and process-driven approach is something which is similar. There is also a focus on seeking high quality products. The long term relationship-based business approach is also quite similar.