Singapore, Apr 25 (PTI) An Indo-Japanese SME association is on the anvil to help small businesses from Japan enter the Indian market with support of governments from both countries.
Speaking at a conference here, Mehool N. Bhuva, President of 70-year-old Indo-Japanese Association in Mumbai said, Japanese SMEs must get into the Indian market and intensified efforts are the need of the hour to take the India-Japan business partnerships to the next level.
“My goal is to form an Indo-Japanese SMEs association in Mumbai, taking in members from both countries' SME sectors, helping them deal with each other to form partnerships and enter the Indian market.
“But progress of such an initiative needs strong support from the governments of both countries, especially help in overcoming barriers such as languages, cultures and visa issues,” Bhuva told PTI on the sidelines of the international conference organized by the US-based not-for-profit Entrepreneurs’ Organization (EO).
Japanese have a lot of money and technology but no market, while India is a growing market with less access to cash and lack of technology, he added.
He pointed out that Japanese Yen5 trillion (2019-24) investment is nearing completion in infrastructure, bullet train and the recently opened 21.8 km Mumbai Trans Harbour Link.
He expects more Japanese investment in India especially following Japan's SMEs working in India in new sectors such as semiconductors, IT and healthcare as well as sprouting fintechs.
Japanese financial institutions such as MUFG Bank and Mizuho Bank are also advising their clients on how to enter the Indian market, according to Bhuva.
As of now, 1,500 Japanese companies are working in India, mostly large corporations with global operations and banks, while China has the largest concentration of Japanese businesses, estimated at 20,000.
Certainly, there is room to get more Japanese businesses into the vibrant Indian market. Right now, Japanese are also recruiting 51,000 IT engineers from India, the Philippines and Vietnam, said Bhuva who runs Mumbai-based consultancy Nichi Insurance Services Pvt Ltd and advises Japanese businesses on the Indian market.
He has facilitated several deals including last year’s USD 100 million investment by Mizuho Leasing Company in India’s leading leasing company Rent Alpha.
Bhuva was one of the 143 Indian delegates at the conference attended by 1,800 delegates from 65 countries. The event was held from April 22-24 here.
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