April 26th, 2012
02:36 PM GMT
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Mumbai, India (CNN) – While Japan has a slowing economy and an aging population, India has just the opposite. That’s why the number of Japanese companies in India has doubled in the last two years.

Japanese businesses looking to expand are faced with problems at home, including a strong Yen, which makes exports expensive, and a weak economy, which means shrinking domestic demand. The result? Many Japanese businesses are looking to grow overseas, with India emerging as a favored destination.

Japanese companies are investing in various sectors of the Indian economy, such as automobiles, white goods and pharmaceuticals, and Japan has invested billions of dollars in the construction of an industrial corridor linking Mumbai with Delhi.

Sushil Jiwarjka is an industry leader who has led many Indian trade delegations to Japan. “Japan’s economy has been at an ebb for the last 10 years,” he told CNN’s Mallika Kapur.

“They’ve already invested substantially in China,” he added. “They see India as a huge market that is opening up.

There are now 800 Japanese firms in India and foreign direct investment from Japan to India has quadrupled in recent years, according to the Federation of Indian Chambers of Commerce and Industry.

One of the reasons Japan is investing so heavily in India is the people. A population of 1.2 billion – 60% of them under the age of 30 – means strong domestic demand.

It's this demand that's fuelling growth at Japanese camera maker Nikon, which set up shop in India five years ago. Its managing director says turnover has been doubling each year and the Indian market – though small – is promising.

“Compared with even the other prospective markets like China or Russia or Brazil, we strongly believe India is the most prospective market for us,” said Hiroshi Takashina, of Nikon India.

“Considering the potential, considering the huge population and a lot of lovers of photography, this is different from other countries,” Takashina added. “So, we are at least expecting more than 30% growth over the market every year for, say, the coming five to 10 years.”

soundoff (31 Responses)
  1. Remove China from supply chain.

    Everyone in the world should work to try to remove China from the supply chain.

    April 26, 2012 at 9:04 pm |
  2. uzair

    Just waiting for american and Indian trolls dissing china

    April 27, 2012 at 8:37 am |
  3. Robin

    Problem with china is its irrational and arbitrary laws.One day you could be their darling, the next day you will be dumped in prison for no reason. India has a democracy and rational western legal system.Plus its youth will be the biggest as the Chinese age in years to come.

    April 27, 2012 at 2:25 pm |
  4. littlexav

    So what are "white goods"? I've never heard that term...

    April 27, 2012 at 9:21 pm |
  5. eman

    this site is very good to learn english for free


    April 27, 2012 at 11:22 pm |
  6. ckj

    'White Goods' as in consumer appliances

    April 28, 2012 at 3:09 am |
  7. amor.filipina

    why wouldn't try to invest in the philippines. filipino's tongue's ared flexibale can adjust any languages

    April 28, 2012 at 6:19 am |
  8. panda

    doing business in china may land you straight in a body bag

    April 29, 2012 at 3:22 am |
  9. keshab

    they should try to nepal also because both china and india are neighboring country easy to supply to both country who have largest population in the world.

    April 29, 2012 at 3:26 am |
  10. Frankhy

    "Everyone in the world should work to try to remove China from the supply chain."

    Go ahead, and then watch prices in your WalMarts tripple. China is the reason the US still has had some kind of prosperity for the last 20 years. Too bad you wasted it all on multi trillion dollar wars to prop up the oil companies.

    April 29, 2012 at 3:57 am |
  11. solomon

    be careful................don't rub this young economy...........it will be greater than yours

    April 29, 2012 at 4:37 am |
  12. JP

    Incidents like impending law to recover capital gain tax with retorspective effect from Vodafone can do more harm in the long term to such investments in India...

    April 29, 2012 at 7:24 am |
  13. SS2

    Check with those companies who did infrastructural projects in India and ask for their comment and advice. You will be very surprised the negative feedback. We have known many construction companies who did highway projects in india and lost money. The indian economy is over exaggerated and sometimes to the point of misrepresentation. We are construction based company, we have done highway projects in india. There is no clear cut as to who is responsible for the project and its payment. Neither the federal nor the state authorities wants to accept the responsibilities. Beware for those who attempt to do any investment in india, to do a thorough due diligence before making your final decision.

    April 29, 2012 at 1:38 pm |
  14. Tom Steward

    Our Australian companies help built the Commonweath Games in Delhi.when the time come to collect payment, the Indian say they have no monies!
    India Rising is a mirage...the country is dirt poor.

    April 29, 2012 at 2:02 pm |
  15. SnoShadow

    Indian democracy is not the same as western democracy. If it is, there would not be 45 million underaged children working as domestic helpers in serf-like conditions.

    April 29, 2012 at 2:07 pm |
  16. Aj

    Let the dogs bark, but India cruising ahead, If you are not fit for doing business here then don't do it.

    April 29, 2012 at 2:54 pm |
  17. Izabel Carvalho

    SS2 – your comments sounds like it could also be applied to Brazil. ALL your hear about how booming Brazil is etc is propaganda to get foreign investments into the country. But guess what? Corruption eats up at leat 50% of the money brought into the country. Also, it does NOT trickle down to the citizens of Brazil, MOST US ARE STILL STRUGGLING TO MAKE ENDS MEET DOWN HERE. We have the VERY RICH and the POLITICIANS who LOVE to say Brazil is doing well and they do NOT want to change a thing about it since it is NOT to their advantage. I ALSO WANT TO WARN ALL THE FOREIGNERS OUT THERE – infrastructure is still badly needed down here in Brazil. But the government is more interested in building fancy stadiums to show off how well the country organized itself for the World Soccer Cup of 2014. BE AWARE – the biggest airport in the country (Guarulhos) does NOT the Federal Police checking people nor X-raying luggages – DID YOU SAY SCARY? If you doubt this go to http://www.sindpolsfsp.org.br it is in Portuguese however.

    April 29, 2012 at 11:17 pm |
  18. panorain

    China's 1.5 billion people are getting old. Because of the one-child policy. India's population is booming and will overtake China's soon. Since the average woman still has six children and the population doubles every 30 years. Adding 50 million new consumers yearly. Every twenty years brand-new Indians add up to 1 billion new people, or the entire population of the entire world 100 years ago. Lots of business in India. Plus lots of potential immigrants too.

    April 29, 2012 at 11:19 pm |
  19. ravi paudel

    the economic will be be good if anybody invest on nepal because it lies between india and china and has got huge natural resources...

    April 30, 2012 at 12:01 am |
  20. Gobal dude

    Besides India is birthplace for Buddhism so there is some degree of cultural compatibility.

    April 30, 2012 at 5:50 am |
  21. 2Bob

    I find it incredible that some commentators here still believe that India will gain some demographic dividend from their out of control population growth. Even the growth of China will tax the worlds resources beyond what it is capable of providing. The reaility is that the majority of Indians are destined to live their lives in squalor. Say what you like about China – the leadership are technocrats with a strong determination to see their society progress. That is far from the reality in India despite the hype. having visited India many times it is actually very difficult to find someone who would not migrate if given half the chance.

    April 30, 2012 at 6:16 am |
  22. cmmrc

    There ia a key word in "Everyone in the world should work to try to remove China from the supply chain."

    1st, you must see that key word; 2nd, you must do it; 3rd, talking and posting comments are useless.

    April 30, 2012 at 11:42 am |
  23. cmmrc

    Yes, India is the birthplace of Buddhism! But, what do Indians think about Buddhism? Not very nice, right?

    April 30, 2012 at 11:46 am |
  24. cmmrc

    What China has and most other countrise don't is a complete industrial system, from toys to space, all things can be made in one country.

    April 30, 2012 at 11:50 am |
  25. wewe


    April 30, 2012 at 1:30 pm |
  26. PC

    India population keep growing...make one wondering who and how are we going to feed all these people come the day ? Indian causing the end of world, i mean the death of Mother Earth ?

    May 1, 2012 at 4:48 am |
  27. Intrepid

    Cheaper Labor Period.

    May 1, 2012 at 1:12 pm |
  28. Question

    "automobiles, white goods and pharmaceuticals" what are white goods?

    May 2, 2012 at 7:38 am |
  29. medhat

    this site is very good to learn english for free

    May 3, 2012 at 3:21 am |
  30. Hamodh

    It so superb can u let me know where r u from I hav to learn mdaenhi design from pls help me on this.. pls pls can u send me this pictures to my email Id is Wow very nice design. Pls help me.. I amd on ur design

    May 15, 2012 at 6:07 pm |
  31. Carroll B. Merriman

    Pensee form of indicated squeezes in certain natural leather provide the massive pansy like bloom in the same materials sitting on exploding with the band Carroll B. Merriman

    August 22, 2012 at 11:14 pm |

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