New Delhi, Mar. 17 : Japanese companies should look at more trade opportunities in India and its tertiary industries as India has opened up sectors like finance, retail and applied research industries , said Dr. Masanori Kondo, Senior Associate Professor of Economics, International Christian University, Tokyo. He was addressing a seminar on “Japanese Business in India: Strengthening Ties”; organised here today by the Confederation of Indian Industry (CII).

As Japan is seen making gains only in capital intensive markets in India , this is an opportune time for Japanese companies to improve their business image in India, he said .

The seminar highlighted that India and Japan can collaborate in Biotechnology , Pharmaceutical, Automobile and Information Technology. He suggested diversification of bilateral trade and investment. India’s strong position during the global financial crisis reflects that Japanese enterprises too should avail the opportunity and enter the huge Indian market .

Dr. Kondo referred to a recent study conducted by JETRO, which reveal ed that Japanese companies’ Indian operations were more profitable than in other Asian countries. He said that more Japanese companies were planning to expand their operations in India. Dr. Kondo called for greater participation of Indian Small and Medium Enterprises in Japanese economy; diffusion of Indian IT in Japanese commerce; and intensification of Indian BPO operations for Japanese enterprises.

He cited specific references from the successful Korean investments in India, which endorses massive initial investments, products based on comprehensive market surveys; and large scale advertisement campaigns. He expressed uneasiness on India’s foreign investment patterns, which lay operating decisions on local subsidiary, against the Japanese belief that an active business should negotiate directly with government and local staff. Further obstructing their business operations are India’s complicated taxation system, bureaucratic hurdles, human resource management and inadequate infrastructure, he said.

V K Mathur, Chairman, Inapex Ltd. stated that India recognises and appreciates Japan for its technology and work ethics. CII is engaged with Japan in many initiatives like development of SMEs, launching of a website by JETRO and CII. Japan was also the Guest Country in IETF 2009, recently organised by CII in Bangalore. He felt that such initiatives will greatly help in strengthening bilateral trade and economic cooperation between the two countries. He also referred to the huge domestic consumer base resting within India which is driving many MNCs to set base here. He said that the opportunities in India surpass the challenges as reflected by strong sentiments shown in the Indian economy during the current downturn in the world economy. (ANI)