Japan keen to shift Jobs, Yen from China to India

rock127

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Prime Minister Manmohan Singh and his Japanese counterpart Shinzo Abe shake hands after exchanging the documents of their joint statement at Abe's official residence. Singh is currently on a four-day official working visit to Japan.

Japan keen to shift Jobs, Yen from China to India

Hundreds of Japanese companies may shift factories from China to India, bringing with them big investments and thousands of jobs, and a remilitarising Japan is likely to emerge as an attractive source of technology for India.

A deepening of joint military exercises between the two countries will offer India a chance to thumb its nose at China, which recently staged an audacious intrusion into our territory in Ladakh.As Prime Minister Manmohan Singh said in Tokyo: "Greater investment by Japanese companies in India's large market will be in our economic as well as strategic interest."

As the Chinese fumed, Japan rolled out the honours for Singh.In a rare gesture, the Japanese emperor hosted a private lunch for the PM and his wife, protocol usually reserved for visiting head of states only.Singh and his Japanese counterpart Shinzo Abe enjoy a strong personal rapport.

Japan wants to build up India as an alternative, economic and military, to China, and Singh signalled strongly that India welcomed the idea.The first phase of this is giving India a modern infrastructure: the Delhi Metro, the Delhi-Mumbai Industrial Corridor and now, bullet trains. The second is shifting the thousands of Japanese factories in China to India.And on Wednesday, the two sides stepped up defence ties, with an offer from Tokyo for US2 amphibian aircraft, more bilateral naval exercises and defence technology cooperation.

The backdrop is deteriorating Sino-Japanese ties. Tokyo believes the Chinese regime is whipping up anti-Japanese sentiment to absorb rising middle class nationalism.China's muscle-flexing over the Senkaku islands and anti-Japanese protests inside China are two sides of the same Beijing policy.Beijing ultimately wants Tokyo to end its defence ties with the US and accept Chinese suzerainty, believe Indian and US diplomats.

One, as Chinese attack their employees and as labour costs keep rising, Japan Inc wants to move elsewhere. Japan is the second-largest foreign investor in China, with accumulated investment of over $70 billion.But a Japan Export Trading Oraganisation survey last year showed India emerging as the most preferred alternative site for Japanese FDI.India is seen as a difficult place to invest, but helping India's rise has a strategic benefit that is becoming increasingly important to Tokyo.

In the past decade, says an Ernst and Young study, Japan is already the second largest foreign job creator in India.This is with only 300 Japanese firms in India. If a fraction of the 14,000 Japanese firms in China were to move, the result would be a job tsunami.Two, Japan is preparing to re-militarise and India is a perfect partner. Abe will seek to increase defence expenditure and even change Japan's pacificist constitution this autumn.

India, which has begun bilateral naval exercises with Japan, will also be the first country to import military equipment from postwar Japan.

Because it has no hangups about Japan's World War II past, India would also provide legitimacy to Abe's re-militarisation.Three, China does not fear its neighbours individually. But it is concerned about them ganging up. Japan is still the third largest economy in the world and technologically far ahead of China.

Abe seems to want to use Japan's capacities to enhance Indian power and make it a genuine geopolitical balancer to the Middle Kingdom.A close Indo-Japanese relationship would also bring the US into the picture -- a trilateral equation that has Beijing gnashing its teeth."China's recent territorial actions only reinforce the logic of strong Indo-Japanese ties," says Hemant Singh, ex-Indian ambassador to Japan.Singh's speeches, with their call for deepening Indo-Japanese ties and support for freedom of the seas -- a code word for opposition to Chinese maritime claims -- is music to Tokyo's ears and geopolitical din to Beijing's.

Hence the dark warning from the Chinese People's Daily to Abe that any attempt to make India part of an anti-Chinese alliance were doomed."The conspiracy of these petty burglars is doomed to fail," it said, pointing to how "successfully" New Delhi and Beijing settled the recent Ladakh border intrusion.
 

rock127

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In short Japan looking to DUMP China and move towards India.

Jobs + Military stuff :tea:
 

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Lot of us on DFI had predicted this many times in the past. We had discussed this in great detail many times, and had concluded that even without political motives, Japanese would eventually have to come to India, just because of the labour costs in China (and general rising costs), and the size of the Indian market itself.

India's great Achilles heel has always been infrastructure. Power, ports, roads, railways, etc. I hope our babus and netas don't screw up this chance. There should be strategic "Infrastructure corridors" like Mumbai-Ahmedabad, Mumbai-Pune (may be tough due to terrain and geography/ecology), Bangalore-Chennai, Delhi-Jaipur, etc. There is already some movement towards this direction, but we need to follow it up in right earnest. This can totally transform the face of our country in the next two decades.
 

Decklander

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If you guys remember my posts in that thread about ladakh intrusion, I had stated that using military force to evict them will bring tons of other benefits and India will emerge as the only counter to China in Asia-Pacific rim. Had we taken the military route, even more investments wud have come to India from everyother country which has an axe to grind with China.
 

Vishwarupa

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India should make other country to follow the suit. They should dump china & establish business in India.

Hope we have separate ministry( exclusive to contain china) to foresee all this activities.
 

rock127

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Since I know a bit about clients of China and Japan... Japanese are very peculiar about getting the jobs done in great quality.This India-Japan strategic+non-strategic ties would be very beneficial not just the region but the whole world.

Japanese tech is way more advanced than Chinese copy-paste stuff and India can look ahead of joint R&D ventures in military stuff as well through investment.

Thanks to China and its adventurism that India-Japan are getting closer.Next time China might be facing some Japanese tech at Ladakh border. :wave:
 

rock127

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Important para...

In the past decade, says an Ernst and Young study, Japan is already the second largest foreign job creator in India.This is with only 300 Japanese firms in India. If a fraction of the 14,000 Japanese firms in China were to move, the result would be a job tsunami.Two, Japan is preparing to re-militarise and India is a perfect partner. Abe will seek to increase defence expenditure and even change Japan's pacificist constitution this autumn.
 

Abhijeet Dey

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Japan has got semiconductor manufacturing facility in China. They can bring this technology to India.:eyebrows:
 

Yusuf

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This is the most humongest thing to ever happen. Japanese coming to India in droves means a lot for India. Not only investment and jobs but more importantly technology that comes with it. Id be rolling out red carpet and going the extra 10 miles to get them at the soonest.
 

rock127

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This is the most humongest thing to ever happen. Japanese coming to India in droves means a lot for India. Not only investment and jobs but more importantly technology that comes with it. Id be rolling out red carpet and going the extra 10 miles to get them at the soonest.
That might mean good job prospect to a friend who is into Japanese hospitality industry.
 

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