As India prepares to host the 2023 G20 New Delhi summit this weekend, the country takes center stage on the global economic platform, spotlighting its enormous potential as an investment hub. In an insightful interview, Toshihiko Kurihara, Chief Representative at the Representative Office in New Delhi, Japan Bank for International Cooperation, sheds light on India’s investment appeal, especially for Japanese enterprises.
“India has become one of the most favored destinations for investment in the G20. The concept of a free and open Indo-Pacific region, as introduced by former Japanese Prime Minister Shinzo Abe, has generated significant traction and potential for the region,” shared Kurihara.
“India is a vibrant and evolving investment destination, positioned at an exciting intersection between a developed, corporate economy and a rural, base economy,” he continued.
According to a press release issued by the Embassy of Japan in India last year, the total number of Japanese companies registered in India as of October 2022 is 1,400.
“The resurgence of Japanese companies in the Indian market from late 2021, marked by billion-dollar (USD) investments like Kubota’s additional purchase of Escorts and SMBC’s acquisition of Fullerton India, indicates a renewed confidence in India’s investment landscape,” remarked Kurihara. He foresees an extensive range of industries thriving with investments from Japan, spanning traditional sectors like car manufacturing to innovative areas emerging from the China Plus One diversification strategy.
Even in the face of unprecedented global challenges such as the COVID-19 pandemic, Kurihara shares that Western investors have sustained a remarkable interest in India, leveraging strong connections with Indian-American sources and Indian-based entrepreneurs to maintain investment momentum.
“The Indian government’s effective management of the economy during the COVID-19 pandemic by providing ample liquidity to the market has been a key factor in averting large-scale bankruptcies or a credit crunch,” he emphasized.
Looking closer, according to Kurihara, “India’s middle-income demographic and wealthy elite significantly contribute to the diversification of its economy and geography, presenting an investment landscape more multifaceted than often realized.”
As India gears up for its moment in the G20 spotlight, its ascent as a global investment powerhouse appears poised to accelerate, bolstered by strategic partnerships and a forward-looking economic vision.