"Moral codes adjust
themselves to environmental conditions."
—Will Durant (American,
1885-1981)
Word for the day
Ergate (n)
A worker ant.
Malice towards none
NiKu's mantra of success -
"If you can't beat NaMo, join him."
First random thought this morning
30 members, including some
senior ministers, of Rajya Sabha belonging to the ruling NDA were found absent
from the house when an important legislation relating to backward classes was being
discussed and put to vote. Consequently, the opposition Congress was able to
push through some amendments. This absenteeism happened despite specific
directions from the prime minister.
The moot point is that should
these MPs be punished the same way, as any other public servant would be, in
case he knowingly and willfully remains absent from office when an important
agenda is being discussed. Or if a senior police officer enjoys dinner at home
when riots break out! Or 'we the people' should also not take PM seriously.
Factroing Japan in investment strategy - 3
·
India's rapid economic growth is attracting
worldwide attention. Many countries are keen to strengthen their ties with
India, with a population of 1.1bn the world's largest democracy and. like
China, one of Asia's most important countries. From a geopolitical point of
view s well, India has great strategic importance, located in the middle of
what the Japanese government calls the "Arc of Freedom and
Prosperity".
·
Japan and India have deep ties, with roots
extending far into the past, and today e two countries share many strategic
interests. Now that India's global presence is growing, the two countries need
to deepen their ties to spur prosperity in an Asia that is moving towards
regional integration.
·
Strengthening Japan-India ties depends on
private sector business activities. The Japan-India relationship can be
suitably enhanced only if trade and investment are increased far above their
present levels.
·
Japan and India share many strategic interests
and a number of common diplomatic objectives.
·
One prerequisite for enhancing Japan-India
business ties is diversification of trade and investment. Most direct
investments made in India by Japanese corporations are in the area of
transportation equipment manufacturing., indicating a remarkable lack of
diversification. Furthermore, the majority of those investments are to promote
sales within the Indian market, and this inhibits diversification in India's
foreign trade structure.
·
In addition, Japanese investments should be made
in various parts of India. Most Japanese investment in India has been
concentrated in the Delhi capital region, because that is where many companies
affiliated with Suzuki and Honda established operations in 1980s abd achieved
considerable success.
·
Promising areas for Japanese investment in India
include general and industrial machinery, processed foods, everyday items such
as sanitary goods and cosmetics, chemical products, pharmaceutical, retail
markets, distribution, real estate, infrastructure, finance and software
development.
·
Another area worth considering is investment by
Japanese financial institutions in the infrastructure funds of Indian financial
institutions.
·
Prime Minister Singh's visit to Japan near the
end of 2006 formed the backdrop to an announcement that bilateral
leadership-level consultations would be held annually, and that annual summit
level meetings would be held in the respective capitals.
·
Japanese corporations should adapt their
business strategies to realities in India
·
Japan's financial sector would benefit most from
India's IT expertise. Instead of coddling their affiliated IT companies and
client hardware companies, Japanese financial institutions should develop open
IT systems and outsource some of their business to Indian software related
companies. Japanese manufacturing sector should too make use of India's IT
expertise.
·
One of the most effective ways to promote human
interaction is to greatly increase the number of Indian students studying in
Japan. Bilateral government arrangements encouraging the employment of Indian
exchange students in Japan should be augmented. Other possible approaches
include Japanese universities promoting themselves in India to attract more
students, and Japanese companies conducting hiring campaigns in Indian
universities.
The events post these
recommendations in 2007 indicate that these recommendations have been accepted
and being acted upon.
The Indo-Japan relations have
grown. The area of Japanese investments has moved much beyond Delhi NCR region.
Japanese companies have invested
in building India's infrastructure. Metro Rail Projects, Dedicated Freight
Corridors are some signature projects.
Japanese transportation equipment
companies like Suzuki and Honda have greatly enhanced their commitment to
Indian markets by larger investments in their local manufacturing units.
Furthermore, they have increased the scope of these units beyond India's local
markets to other parts of Asia and Africa.
Besides we have material rise in
commitment and investments of other equipment makers like Hitachi, Toshiba, FCC
etc.
Besides, investments have been
made in logistic (Gati Ltd); Pharma (Deep Care), Consulting (New Era India, Alp
Consulting), IT Services (Accel Frontline, Micro Clinic) Stationary (Camlin)
and Telecommunication (Inmobi tech)
The most notable growth has
occurred in financial and retail sectors. The corporations like Nippon,
Softbank, Nomura, etc. have made significant investments in financial services,
Financial technology services and ecommerce retail ventures.
Between 2008 and 2014, Japanese
corporations made about 180 M&A deals in India (including minority stakes,
joint ventures, acquisitions and increase in shareholding).
The point I am trying to make is
that Japanese commitment to Indian economy is a mutual necessity and part of a
long term strategic plan. It transcends political parties and political
leaders.
The action so far is miniscule, if
we consider the potential. There are enough indications that this engagement is
going to rise exponentially. It is therefore important investment strategies
and technical market studies include this factor as a critical one, in my
view.....to conclude on Friday
I liked your work and the way in which you have shared this article here about equipment companies. It is a beneficial and helpful article for us. Thanks for sharing an article like this. Semiconductor equipment companies
ReplyDeleteThis article provided me with a lot of useful information. The material you presented during this post provided me with some excellent information. Continue to post. Equity Research For Corporates
ReplyDelete