Japan Inc is betting big on India as China risks deepen

At the same time, Japan's traditional markets for expansion have become increasingly less attractive, he says."Investment into China has fallen sharply amid geopolitical tensions and changing economic dynamics, the US market is more challenging because of tariffs and domestic competition, and the market size of other Southeast Asian economies is limited."Against this backdrop, India has become a natural target market for Japanese companies to drive long-term business growth.Economic ties between the countries gathered pace at a government-to-government level when they signed an agreement to liberalise trade nearly a decade-and-a-half ago.After Prime Minister Narendra Modi came to power in 2014, he elevated the relationship to a "special strategic and global partnership", setting a target of doubling the number of Japanese companies in India and launching marquee projects like India's first bullet train between Mumbai and Ahmedabad, built using Japanese Shinkansen technology.But now, it is Japanese private firms that are driving business expansion in this latest investment up-cycle.At a landmark summit in July held during Japanese Prime Minister Sanae Takaichi's first official visit...