The View From Gellért Hill 2022/5: An outlook on Japanese FDI in India

Kilátás

By now, India has emerged as the largest recipient country of Japanese public money, that is provided mainly in the form of loans. On the contrary, private Japanese investors are more reluctant to invest in India. Generally, China and India are competing for FDI projects of Japanese companies, in which the major attraction of India has been the relatively cheap labour force. However, labour costs are rising in India as well, which is a major constraint for Japanese investors. Rising geopolitical tension is also an issue, however we cannot expect a massive wave of Japanese companies leaving China, so India is not positioned to totally replace its neighbour in regional supply chains. There are some sectors that has the potential to see more Japanese FDI inflow to India, the automotive industry could be one of them. In the technology sector, there is no significant interdependence between Japan and India. Our guests were Takeshi Daimon-Sato, Professor of law and economics at the Waseda University of Japan, and Zsolt Trembeczki, associate research fellow of IFAT. The discussion was moderated by Péter Goreczky, senior analyst at IFAT. The View from Gellért Hill ("Kilátás a hegyről") is the podcast series of the Institute of Foreign Affairs and Trade. The file features a part from the song entitled "Something Elated" from the brand Broke for Free (freemusicarchive.org/music/Broke_Fo…6ething_Elated). Photo: https://www.business-standard.com/article/international/india-japan-to-enhance-military-exercises-and-defence-co-operation-122090800390_1.html