JETRO’s Takashi Suzuki emphasizes Japan-India collaboration in digital technology and manufacturing. Learn how Japan plans to overcome workforce shortages and boost investments in India.
Japan Needs India’s Digital Edge to Strengthen Its Industries
Nagpur – At the Viksit Bharat 2047: A Global Perspective seminar organized by IIM-Nagpur, Takashi Suzuki, Chief Director General of the Japanese External Trade Organisation (JETRO), highlighted the need for Japan to embrace India’s digital advancements to stay competitive.
“If manufacturing is Japan’s strength, India leads in digital technology. Japanese industries must adopt this expertise,” said Suzuki. He stressed that collaboration with Indian tech firms is no longer optional but a necessity for Japan’s industrial growth.
Japan’s Workforce Crisis & India’s Opportunity
Suzuki acknowledged Japan’s severe labor shortage, even in low-skilled sectors. “Japan is facing a workforce crisis. While JETRO focuses on high-skilled talent, other government bodies are working on mid and low-level workforce solutions,” he said.
This shortage has led Japan to explore business opportunities in India, especially for its small and medium enterprises (SMEs). With India’s vast talent pool, Japan sees potential in outsourcing and skill exchange programs.
Toyota’s Expansion & Maharashtra’s Rising Appeal
A major development is Toyota’s decision to set up four factories in Aurangabad, making Maharashtra a hotspot for Japanese investors. “Toyota’s investment will attract ancillary industries, boosting local manufacturing,” Suzuki explained.
He also noted increasing inquiries from Japanese companies looking to invest in Maharashtra’s industrial and tech sectors.
Geopolitical Shifts & Japan’s Strategic Moves
Suzuki touched upon Japan’s delicate relations with China, citing geopolitical tensions. “China is a neighbor, but its confrontations with the US complicate Japan’s stance,” he said.
The Russia-Ukraine war, Israel-Hamas conflict, and India-Pakistan tensions have pushed Japan to secure its economic interests. However, Suzuki clarified that Japan’s defense collaborations remain limited due to its pacifist constitution.
Overcoming Trade Barriers with India
One challenge in Japan-India trade relations is India’s protectionist policies, which sometimes hinder Japanese exports. “Non-tariff barriers exist, but Japan is adapting by increasing localized production in India,” said Suzuki.
He praised India’s diverse market and multi-trade partnerships, making it an ideal investment destination for Japan.
Key Takeaways
- Japan must adopt India’s digital expertise to enhance its industries.
- Toyota’s Aurangabad factories are boosting Maharashtra’s appeal for Japanese investors.
- Japan faces a labor crisis, making India a key partner for workforce solutions.
- Geopolitical tensions are pushing Japan to diversify its economic alliances.
- Localized production helps Japan navigate India’s trade barriers.
Conclusion
As Japan seeks to strengthen its digital and manufacturing sectors, India’s technological prowess presents a golden opportunity. With strategic investments and workforce collaborations, both nations can achieve mutual economic growth.
By focusing on localized production and tech partnerships, Japan can overcome its challenges while helping India advance toward its Viksit Bharat 2047 vision.
