OSAKA: From focusing on high-tech industries to weaning away entities with presence in China and southeast Asia and wooing small Japanese banks, beyond the Big 3, that have strong local relationships, govt is deploying every tool to get Japanese firms to invest in India.The moves come amid heightened distrust with China, which has not just stopped supply of critical inputs needed by the Japanese industry, but has also indicated that profits can’t be repatriated to Japan and need to be invested there.India, officials said, is seen to be a reliable player, which has a democracy and rule of law, in addition to a large and growing market. The pitch is also that a base in India will also help tap the large talent pool as well as traditional trade relations with West Asia and Africa, which also boasts of a large Indian diaspora.“We are working with the regional and smaller banks to work in India,” India’s ambassador to Japan Nagma M Mallik said, adding that govt is keen to attract Japanese SME investment, which works closely with these lenders.A host of small players, from Yokohama Bank to The 77 Bank, Resona Bank and Toyoma Bank, operate in 47 prefectures, the first level of administration, and have close ties with local players. Many of the bankers also go on to be governors and wield influence. As a result, getting these banks can help open the doors to local businesses and SMEs, which are large in size compared to Indian standards and specialise in product segments.While some of the small banks are sending researchers to India, who will work with the three large Japanese banks, MUFG, SMBC and Mizuho, which have now established local presence through acquisitions, said another official.Separately, govt is hoping that just like Maruti brought in its vendors, the other large Japanese players will get its affiliates to set up shop in the country so that the entire value chain is covered.Japan is the fifth largest investor in India and govt is hoping that it will move up given the recent rush of investments, which have been focused more on the financial sector.
