ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Japanese Investment in India: Trends and Prospects

Though Japan had been one of the top five investors in India for long, its share in India's total foreign direct investment inflows has been dwindling since 2000. In this context, the article attempts to analyse trends in Japanese investments in India. Major constraints faced by Japanese investors in India include poor infrastructure, a complex taxation system, procedural hassles in customs clearance and red tape. Further, many Japanese companies have lost out to stiff competition from South Korean companies.

COMMENTARY

Japanese Investment in India: low even when compared to Japanese investments in smaller Asian countries such
Trends and Prospects as Vietnam ($411 million), not to mention China ($1,899 million).
  The enhanced trade and investment re
  lations between India and Japan would be
Geethanjali Nataraj looked at positively by other countries in

Though Japan had been one of the top five investors in India for long, its share in India’s total foreign direct investment inflows has been dwindling since 2000. In this context, the article attempts to analyse trends in Japanese investments in India. Major constraints faced by Japanese investors in India include poor infrastructure, a complex taxation system, procedural hassles in customs clearance and red tape. Further, many Japanese companies have lost out to stiff competition from South Korean companies.

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