170 MoUs, $13bn pledged: Ties extend beyond large cos to SMEs, rural areas

NEW DELHI: Japanese companies have signed over 170 MoUs over the last two years with investment of over $13 billion committed in the country. But the cooperation is not limited to large players alone.

Japanese industry partnerships are also enabling the entry of Indian small and medium enterprises into global supply chains, helping them gain from global-standard practices, technology infusion, and get market access, which also elevates India's export competitiveness, govt sources said.

Indian SMEs have become suppliers for high-value components in Tokyo Electron and Fujifilm's partnership with Tata Electronics for building a semiconductor ecosystem.

Similarly, auto majors Toyota and Suzuki have integrated hundreds of Tier-2 and 3 Indian small businesses into their value chains.

Fujitsu is recruiting 9,000 Indian engineers in its GCC.

Exports and manufacturing with Japanese JVs and knowhow also unlocks export opportunities, the sources said, pointing to Nippon Steel's projects boosting specialty steel exports to auto and energy markets, while Toyota and Suzuki's hybrids and EVs are being shipped to Africa and West and southeast Asia.

The partnership extends to farming and sustainable development with Japanese cooperation, empowering India's rural economy through green energy projects, helping cut emissions, increasing farm income levels and creating rural jobs in the country. TNN


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